The marketing researcher should, first of all, explore the secondary data from various sources and examine the possibility of their use for his study. In some cases, however, he may find the secondary data inadequate, unusable or not available, and therefore, he may realised the need for collecting first hand or primary data. There are two main methods of approach is used in collecting primary data.
These are observations and communication method.
Observation method : observation involves watching consumers as they go about various marketing related activities. It is different from other forms of research in. There is usually little or no contact between the researcher and the subject or the person being observed.
There are various research problems in marketing which will involve the use of observation method. They are :
1. One of the factors influencing the sales of a brand product is how readily it is kept in stock. And interested manufacturer may send some observers to a sample of stores to find out how frequently the product is out of stock.
2. Likewise, sales are also influenced by each display position in a store. A prominently displayed products will receive greater attention of the buyer's visiting the store as against another product displayed in an obscure corner. Also, a manufacturer can ascertain from observers which sort of display his product is getting in selected stores and with what results.
3. In order to ascertain what prices are charged by competitors, a manufacturer may mount observed as to go round the stores.
Conditions for using observation.
For exemption to be used in a marketing research project, the following conditions must be satisfied.
1. First, it must be physically possible to obtain the data or information needed.
2. Secondly, the cost of collecting the information should be reasonable. This usually means that the behaviour being observed has to be performed with sufficient frequency and regularly and observers are not waiting for hours or days or endlessly for the required behaviour or activities to be manifested.
3. Finally, the same scientific approach should be applied in the use of observation as it is done in other types of research. For example, the research should have certain hypothesis concerning what information will be observed. Also clear objectives of the observation should be established, and sampling procedures should be such that results may be generalized to a large population.