Apparel Merchandising and Costing (BFST107E)

prepared by Prof. S. Vinusowndarya B.Tech (FT), MFM (NIFT), PH.D (Consumer Behavior)

Module: 2.Forecasting and Product Development:

Forecasting Research - Fashion and Market Research; Product development –
New product by buyer, manufacturer, external agencies/studios; role of
merchandiser in product development, apparel analysis, customer profiling
 Forecasting Research
• Forecasting research in the fashion industry involves predicting trends, consumer preferences,
and demand patterns to inform design, production, and marketing decisions. Fashion
forecasting aims to anticipate upcoming styles, colors, fabrics, and silhouettes that will be
popular in the future.
• Trend Analysis and Prediction: Fashion forecasting researchers analyze a wide range of factors,
including runway shows, street style, consumer behavior, social media trends, and cultural
influences to identify emerging fashion trends. They study historical data and patterns to
predict which trends will gain popularity and inform designers and brands about the direction
of future fashion.
• Color Forecasting: Color plays a crucial role in fashion, and forecasting researchers analyze
color trends to anticipate which shades will be in demand in upcoming seasons. They
consider various factors such as color psychology, cultural influences, market research, and
input from designers and color experts to predict the dominant colors in fashion collections.
• Consumer Behavior and Demand Forecasting: Understanding consumer preferences and
behaviors is vital for fashion forecasting. Researchers analyze consumer data, conduct
surveys and focus groups, and monitor social media platforms to gain insights into
consumers' purchasing habits and preferences. This information helps predict demand for
specific products, identify target markets, and inform production and inventory planning.
• Data Analytics and Predictive Modeling: Fashion forecasting researchers employ data
analytics techniques to process large volumes of data, including sales data, customer
feedback, online searches, and social media engagement. They use predictive modeling and
machine learning algorithms to identify patterns, forecast demand, and predict future
consumer preferences. This data-driven approach improves accuracy in forecasting trends
and aligning production with market demands.
• Market Research and Competitive Analysis: Fashion forecasting involves keeping a close eye
on market trends and competitors. Researchers conduct market research to analyze
consumer behavior, monitor competitor activities, and identify gaps in the market. This
information helps fashion companies stay competitive, make informed decisions about
product development, pricing, and marketing strategies, and anticipate future market
demands.
AN OVERVIEW OF THE MARKETING RESEARCH PROCESS
The collection of information is a process that must be planned. There are many different areas in which
planning decisions need to be made, so good organization is vital. Stages in the research process Research
procedures will vary depending on the nature of the research problem, but in general, the process of
marketing research can be seen to be made up of a number of stages. They are:
1. Define the research problem and set the research objectives.
2. Design the research. This includes:
(a) Data sources; (b) Select the sampling method; (c) Select the data collection method;
(d) Design the data collection form (questionnaire).
3. Test the research design (pilot).
4. Collect the data.
5. Analyse the data and interpret the results.
6. Present the findings.
THE PURPOSE OF MARKETING RESEARCH

• Marketing research

Kotler defines marketing research as ‘the systematic design, analysis and reporting of data and findings
relevant to a specific marketing situation facing the company’.

• Market research and Marketing research :

Market research is used to refer to research into a specific market, investigating such aspects as market
size, market trends, competitor analysis, and so on.

Marketing research is a much broader concept, covering investigation into all aspects of the marketing
of goods or services, such as product research and development, pricing research, advertising research,
distribution research, as well as all the aspects of market analysis covered by market research.
 TYPES OF RESEARCH
• Marketing research techniques can be applied to all areas of marketing, not all techniques are appropriate to every

situation. Broadly speaking, there are two types of research: qualitative and quantitative.

• Qualitative research uses techniques such as group discussions, individual depth interviews, projective techniques and

observation. The information obtained attempts to find out the ‘how’ and ‘why’ of a situation, rather than ‘how many’.

Analysis may be difficult owing to the depth and complexity of the data collected and so it should be carried out by

experienced and trained researchers. Qualitative research is invaluable for basic exploratory studies, new product

development and creative development studies.

• Quantitative research provides information to which numbers can be applied. Quantitative research is the best-known

face of marketing research and its main survey method is what most people recognize as marketing research.
PROBLEM DEFINITION AND SETTING RESEARCH OBJECTIVES

• Defining the research problem is the most critical step in the research process. Unless the
problem is accurately defined, the information collected will be of limited or no use. Careful
thought and discussion about the problem, the information needed to address the problem and
the relative value of the information collected should take place before anything else.

• A structured, systematic approach to decision making will also enable management (or the
commissioner of the research) to set the objectives of the research. In other words, what is the
problem and what do we want to find out to try to solve it? This preliminary planning is important
as it has implications for the design of the research and the quality of the information collected.
 DATA SOURCES
• Data come from two sources, primary and secondary. Secondary data sources consist of information that
has already been collected for other purposes and primary sources of information are those used for the
purpose of collecting information specifically for the current research project.

• Secondary sources: These provide the researcher with a starting point for data collection. It may be
possible to solve the research problem either wholly or in part by using secondary data. This reduces the
cost of a research project as secondary data are cheaper than collecting primary data. Secondary sources
of information, are in the main, fairly accessible, although some sources may remain confidential and
others may be too expensive to acquire.

• Internal sources are those that generate information within a company or an organization, e.g. sales
figures and accounts information. External sources are those that generate information outside a company
or an organization.
• These are by far the more numerous, and some examples of external sources are listed below:

◆ Government statistics: Census data, family expenditure surveys, trade and manufacturing trends.

◆ Trade information: Trade press, e.g. Fashion Weekly, Drapers Record; trade associations, e.g. CBI, trade
surveys, company reports and competitors’ accounts.

◆ Financial institutions: Many major banks publish reports on regional and national industries.

◆ Commercial research: Many market research companies undertake continuous research and omnibus
surveys covering an extremely broad range of topics, including consumer, media and retail (e.g. Taylor
Nelson Sofres, NOP, Ipsos-RSL).

Various market reports are available, from, Mintel, Keynote and Retail Intelligence, for example. The use
of secondary data sources, also called desk research, can be very time consuming because there is such a
lot of information available, including CD-ROM and ‘online’ data. Keeping the objectives of the research in
mind will help to ensure that time is spent efficiently.
• Primary sources: Most marketing research projects
will involve the collection of more up-to-date
information than is available from secondary sources.
Primary sources of information may include consumers,
designers, buyers, manufacturers, retailers, and so on,
depending upon the research problem.

• Qualitative research provides insights and

u n d e rs t a n d i n g o f t h e p ro b l e m s e t t i n g w h i l e
quantitative research quantify the data and applies
some form of statistical analysis. In the current study,
quantitative data is collected under descriptive
research”. The major methods employed in descriptive
research are survey and observation.
A COMPARISON OF PRIMARY & SECONDARY DATA

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Depth involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
 RESEARCH DESIGN
• There are three types of research design: exploratory, descriptive and causal. The choice of research design will depend on the problem
previously defined.

• Exploratory research: This is most useful in the early stages of research, particularly if the researcher is not familiar with the subject area.
There is no formal structure to exploratory research as the researcher needs to look at a wide range of information sources without being
restricted. Exploratory research is defined as a research used to investigate a problem which is not clearly defined. It is conducted to have a
better understanding of the existing problem, but will not provide conclusive results. For such a research, a researcher starts with a general
idea and uses this research as a medium to identify issues, that can be the focus for future research. It is often referred to as grounded
theory approach or interpretive research as it used to answer questions like what, why and how.

• Descriptive research: The purpose of descriptive research is to provide an accurate description of the variables uncovered by the
exploratory stage. This could be used to investigate the market share of a company’s products or the demographic characteristics of the
target market (age, gender, income, etc.). Data are usually obtained from secondary data sources or from surveys.

• Causal research: Causal research is used to determine the relationship between variables, e.g. the relationship between advertising and

repeat purchases. This type of research has the potential to get to the bottom of deeper issues, such as why products are returned or why

a certain target market doesn't understand the service. One variable gets manipulated to see if it changes the outcome. This could be as

simple as putting a service in a test market at two different price points to see if purchase rate is highly correlated with price.
 It is focused on collecting either primary or secondary
data using an unstructured format or informal procedures.
It incorporates the least amount of scientific method and
ü discuss the problem with informed sources within rigor because of aims and structures.
the firm - Situation analysis
ü discuss the problem with knowledgeable others
outside the firm - Informal Investigation

This methodology focuses more on the “what”

of the research subject rather than the “why” of
the research subject.

Causal research, also known as explanatory research, is defined as an

attempt to connect ideas to understand cause and effect, so
researchers can try to explain what is going on.
EXPLORATORY RESEARCH
Types and methodologies of Exploratory research

• There are several methods which can help a researcher figure out the best research design, data collection
methods and choice of subjects. There are two ways in which research can be conducted namely primary and
secondary. Under these two types, there are multiple methods which can used by a researcher. The data
gathered from these research can be qualitative or quantitative. Some of the most widely used research
designs include the following:

• Primary research methods:

1) Surveys/polls
2) Interviews
3) Focus groups
4) Focus groups

• Secondary research methods:

1) Online research
2) Literature research
3) Case study research
 Primary research methods:
• Surveys/polls: Surveys/polls are used to gather information from a predefined group of respondents. It is one of
the most important quantitative method. Various types of surveys or polls can be used to explore opinions,
trends, etc. With the advancement in technology, surveys can now be sent online and can be very easy to access.

• Interviews: Sometimes an in person interview can give in-depth information on the subject being studied. Such a
research is a qualitative research method. An interview with a subject matter expert can give meaningful insights
that a generalized public source won’t be able to provide. Interviews are carried out in person or on telephone
which have open-ended questions to get meaningful information about the topic.

• Focus groups: Focus group is another widely used method in exploratory research. In such a method a group of
people is chosen and are allowed to express their insights on the topic that is being studied. Although, it is
important to make sure that while choosing the individuals in a focus group they should have a common
background and have comparable experiences.

• Observations: Observation research can be qualitative observation or quantitative observation. Such a research is
done to observe a person and draw the finding from their reaction to certain parameters.
 Secondary research methods:

• Online research: In today’s world, this is one of the fastest way to gather information on any topic. A lot of data is
readily available on the internet and the researcher can download it whenever he needs it. An important aspect to be
noted for such a research is the genuineness and authenticity of the source websites that the researcher is gathering
the information from.

• Literature research: Literature research is one of the most inexpensive method used for discovering a hypothesis.
There is tremendous amount of information available in libraries, online sources, or even commercial databases.
Sources can include newspapers, magazines, books from library, documents from government agencies, specific topic
related articles, literature, Annual reports, published statistics from research organisations and so on.

• Case study research: Case study research can help a researcher with finding more information through carefully
analyzing existing cases which have gone through a similar problem. Such analysis are very important and critical
especially in today’s business world. The researcher just needs to make sure he analyses the case carefully in regards to
all the variables present in the previous case against his own case. It is very commonly used by business organisations
or social sciences sector or even in the health sector.
Advantages of Exploratory research :
• The researcher has a lot of flexibility and can adapt to changes as the research progresses.
• It is usually low cost.
• It helps lay the foundation of a research, which can lead to further research.
• It enables the researcher understand at an early stage, if the topic is worth investing the time and resources and if it is
worth pursuing.
• It can assist other researchers to find out possible causes for the problem, which can be further studied in detail to find
out, which of them is the most likely cause for the problem.
Disadvantages of Exploratory research :
• Even though it can point you in the right direction towards what is the answer, it is usually inconclusive.
• The main disadvantage of exploratory research is that they provide qualitative data. Interpretation of such information
can be judgmental and biased.
• Most of the times, exploratory research involves a smaller sample, hence the results cannot be accurately interpreted for
a generalized population.
• Many a times, if the data is being collected through secondary research, then there is a chance of that data being old and
is not updated.
DESCRIPTIVE RESEARCH

• Descriptive research is a study designed to depict the participants in an accurate way. More simply

put, descriptive research is all about describing people who take part in the study. The observational

method is the most effective method to conduct descriptive research and both quantitative

observation and qualitative observation are used in this research method.

There are three ways a researcher can go about doing a descriptive research project, and they are:

• Observational, defined as a method of viewing and recording the participants

• Case study, defined as an in-depth study of an individual or group of individuals

• Survey, defined as a brief interview or discussion with an individual about a specific topic
 OBSERVATIONAL METHOD

• The observational method is the most effective method to conduct descriptive research and both
quantitative observation and qualitative observation are used in this research method.

• Quantitative observation is the objective collection of data which is primarily focused on numbers and
values – it suggests “associated to, of or depicted in terms of a quantity”. Results of quantitative observation
are derived using statistical and numerical analysis methods. It implies observation of any entity that can be
associated with a numeric value such as age, shape, weight, volume, scale etc.

• Qualitative observation doesn’t involve measurements or numbers but instead just monitoring
characteristics. In this case the researcher observes the respondents from a distance. Since the respondents
are in a comfortable environment, the characteristics observed are natural and effective. In descriptive
research, the researcher can chose to be either a complete observer, an observer as a participant, a
participant as an observer or a complete participant.
CASE STUDY METHOD
• Case studies involve in-depth research and study of individuals or groups. Case studies lead to a hypothesis
and widen a further scope of studying a phenomenon. However, case studies should not be used to
determine cause and effect as they don’t have the capacity to make accurate predictions because there could
be a bias on the part of the researcher.

• The other reason why case studies are not an accurate way of conducting descriptive research is because
there could be an atypical respondent in the research and describing them leads to poor generalizations and
move away from external validity.

SURVEY METHOD
• In survey research, respondents answer through surveys or questionnaires, or polls. They are a popular
market research tool to collect feedback from respondents. In order for a survey to gather good quality
data, it should have good survey questions, which should be a balanced mix of open-ended
questions and close ended-questions. The survey method can be conducting online or offline which is
makes it the go-to option for descriptive research where the sample size is very large.
CASUAL DESIGN
• Casual design provides answer to such questions by explaining which variables are the
cause (independent variables) and which are the effect (dependent variables)

• In other words, casual research helps in understanding which market variable causes what
effect on other market variables.

• To measure this, the data must be gathered under controlled condition- holding constant or
neutralizing the effect of, all variables other than the causation variable.

• After neutralizing the effects of other variables researchers manipulate the causation
variable and measure the change in the effect variable.

• Manipulation of the presumed casual variable and control the relevant variables are distinct
features of casual design.
 PRACTICAL SAMPLING METHODS

• Sampling is a very important tool in marketing research. It involves selecting a small number of people
from the larger survey population whose characteristics, attitudes and behaviour are representative of the
larger group.

• Before selecting the sample, however, the researcher must first define the research population from which
to draw the sample. Exploratory research can help to define the population to include all the players and
variables that are relevant to the survey.

• For some surveys, particularly if the survey population is small or concentrated in one geographical area, it
may be possible to take a census, which is a useful method in some business surveys. More commonly a
representative sample is interviewed as this reduces both the time and the cost of the research.
 DECIDING SAMPLE SIZE
• Deciding how many people to included in sample is as important a decision as how they should be selected.
Factors such as cost, time and staff availability, level of accuracy required, data collection method and location of
the population all play a part in deciding sample size.

• In reality, cost-effectiveness is the most important factor in deciding how many should be contacted in the
research, followed by time and staff availability. If it is decided to select a large number for the sample, there
may be insufficient staff available to contact the respondents within the time constraints of the survey, so a
smaller sample size may be accepted as a compromise.

• When selecting a sample it is important that there is a high level of confidence that the sample is representative
of the research population as a whole.

• The sample must be large enough to provide accurate results, without being so large as to increase research
costs unnecessarily.
CHOICE OF A SAMPLING METHOD
• The two main types of sampling method – probability methods and non-probability methods

Purposive
PROBABILITY METHODS
• Statistically, these are the best types of sampling method as each respondent has a known
chance of being selected, so bias is minimized. They also allow the accuracy of the results to be
estimated statistically. Sometimes probability sampling methods are referred to generically as
‘random sampling’ methods.

• Every unit in the population has a chance (greater than zero) of being selected in the sample
Probability can be accurately determined .Every element in the population has same probability
of selection= ‘Equal Probability of Selection' (EPS) design. Also referred to as 'self-weighting‘. All
sampled units are given same weight.

• The main types of probability sample are simple random sampling, systematic random sampling,
stratified random sampling and cluster sampling.
 SIMPLE RANDOM SAMPLING
• Simple random sampling is a probability sampling technique where in each population element is assigned a
number and the desired sample is determined by generating random number appropriate for the relevant
sample size. In simple random sampling, researchers uses a table of random numbers, random digits dialling or
some other random selecting methods that ensures that each sampling sampling unit has a known, equal and
nonzero chance of getting selected into the sample

• Let us assume that the manager of the washing machine Brand X had the name and addresses of all new
washing machine buying females (Assume the total number is 1000). The manager could create a label
associating with each person and put them in a big jar and select washing machine owners from the same. This
way each washing machine owner female has an equal, nonzero chances of getting selected. If the number of
owners was much larger a random number table can be used. However the chances of each owner getting
selected still remains equal and nonzero.
SYSTEMATIC RANDOM SAMPLING

• In systematic random sampling the sample is chosen by selecting a random starting point and then
picking each i-th element in succession from the sampling frame. The sampling interval I, is
determined by dividing the population size N by the sample size n and rounding to the nearer integer.

• With larger samples it is more convenient to divide the population by the sample size to calculate the
sampling interval (n). A random starting point is selected using random number tables and every nth
time after that is selected.

• As the first number was selected randomly, this method is sometimes called a ‘quasi-random’ method.
The advantage of these methods is that they are relatively simple to carry out and sampling error and
confidence levels can be calculated statistically.
• The elements of the population are put in a list. Then every kth element in the list is chosen
(systematically) for inclusion in the sample. A researcher wants to select a systematic random
sample of 10 people from a population of 100. If he or she has a list of all 100 people, he would
assign each person a number from 1 to 100.

• The researcher then picks a random number, 6, as the starting number.

• He or she would then select every tenth person for the sample (because the sampling interval =
100/10 = 10).

• The final sample would contain those individuals who were assigned the following numbers: 6,
16, 26, 36, 46, 56, 66, 76, 86, 96.
STRATIFIED RANDOM SAMPLING
• This procedure known as stratified random sampling is also a form of probability sampling. To stratify
means to classify or to separate people into groups according to some characteristics, such as position,
rank, income, education, sex, or ethnic background.

• These separate groupings are referred to as subsets or subgroups. For a stratified random sample, the
population is divided into groups or strata. A random sample is selected from each stratum based
upon the percentage that each subgroup represents in the population.

• Stratified random samples are generally more accurate in representing the population than are simple
random samples. They also require more effort, and there is a practical limit to the number of strata
used. Because participants are to be chosen randomly from each stratum, a complete list of the
population within each stratum must be constructed. Stratified sampling is generally used in two
different ways. In one, primary interest is in the representativeness of the sample for purposes of
commenting on the population. In the other, the focus of interest is comparison between and among
the strata.
CLUSTER SAMPLING
• Cluster sampling is a variation of stratified random sampling and may be used when the survey
population is concentrated in a relatively small number of groups (clusters) that are considered typical
of the market in question. A random sample of these clusters is then taken. A random sample of units
from within these clusters is then taken. If the number of units within a cluster is small, a census may
be carried out. In a national survey of specialist bridal wear retailers, for example, sales areas could be
identified by geographical region and a random sample of these taken. Within each selected sales
area, all or a sample of the store managers would be interviewed. The stages to cluster sampling can
be summarized as follows:

1. Choose cluster grouping for sampling frame, such as type of company or geographical region

2. Number each of the clusters

3. Select sample using random sampling

NON PROBABILITY SAMPLING

• Non-probability sampling is a sampling technique where the samples are gathered in a process that

does not give all the individuals in the population equal chances of being selected.

• Where the probability of selection can't be accurately determined. It involves the selection of elements

based on assumptions regarding the population of interest.

• Non probability sampling is often associated with case study research design and qualitative research.

With regards to the latter, case studies tend to focus on small samples and are intended to examine a

real life phenomenon, not to make statistical inferences in relation to the wider population. A sample of

participants or cases does not need to be representative, or random, but a clear rationale is needed for

the inclusion of some cases or individuals rather than others. Nonprobability Sampling includes:

Convenience Sampling, Quota Sampling and Purposive Sampling.

CONVENIENCE SAMPLING

• Convenience sampling is used because it is quick, inexpensive, and convenient.

• Convenience samples are useful for certain purposes, and they require very little planning.
Researchers simply use participants who are available at the moment. The procedure is casual and
easy, relative to random sampling.

• For example, you will choose your classmates and friends for the study as per your convenience. In
other words, in this type of non-probability sampling method, whoever meets the researcher qualifies
to be the part of your sample.

• With convenience sampling, the samples are selected because they are accessible to the researcher.
Subjects are chosen simply because they are easy to recruit. This technique is considered easiest,
cheapest and least time consuming.
QUOTA SAMPLING

• Quota sampling is a non-probability sampling technique wherein the assembled sample has
the same proportions of individuals as the entire population with respect to known
characteristics, traits or focused phenomenon.

• In this method the quota has to be determined in advance and intimated to the investigator.
The quota for each segment of the population may be fixed at random or with a specific
basis. Normally such a sampling method does not ensure representativeness of the
population.

• Example: - Suppose we want to select 100 students, then we might say that the sample
should be according to the quota given below : Boys 50%, Girls 50% Then among the boys,
20% college students, 40% plus two students, 30% high school students and 10%
elementary school students. A different or the same quota may be fixed for the girls
 PURPOSIVE SAMPLING
• In this type of sampling, the researcher chooses the participants as per his/her own
judgment, keeping back in mind the purpose of the study. It uses the judgment of an
expert in selecting cases or it selects cases with a specific purpose in mind.
• This type of sampling is used in exploratory research or in field research. With
purposive sampling, the researcher hardly knows whether the cases selected do
represent the population or not. As mostly sampling problem is being addressed with a
specific plan in mind, most of the sampling methods may be considered purposive in
nature.
• Used when you want to access a particular subset of people based on purpose.
Method: When taking the sample, reject people who do not fit a particular profile.
• For example: For studying attitude toward any national issue, a sample of journalists,
teachers and legislators may be selected for the study. They qualify to be part of
purposive sampling as they can more reasonably be expected to represent the correct
attitude than other class of people.
DATA COLLECTION METHODS
• If a survey is to be conducted, there are a number of methods available for the collection of
data and each has its relative advantages and disadvantages. The three main traditional
methods are by personal interview, telephone interview and mail questionnaire. Later
found was online survey method.
 PERSONAL INTERVIEW
• Face-to-face interviewing is still the most widely used method of primary data collection in the UK, although telephone

interviewing is becoming increasingly popular. This method is labour-intensive and costly, but is more likely to result in a

satisfactorily completed questionnaire than any of the other methods. This is particularly true if the questionnaire is long

or complicated or covers sensitive subjects. Respondents have the opportunity to build a rapport with the interviewer,

who can elicit full and accurate answers to questions without biasing the responses.

• In a personal interview there is the opportunity to show supporting material, such as examples of a product or still

photographs from advertisements. Open-ended questions can also be included in the questionnaire design as the

interviewer is present to record the answers verbatim.

• There is another type of personal interview, the depth interview, which belongs to the realm of qualitative research.

Typically, these interviews can last for over an hour. The interviewer does not have a questionnaire as such, but uses a

less structured interview schedule. This may consist of either a series of open questions that must be asked as they are

written or a checklist of topics for discussion, as with the focus group.

 TELEPHONE INTERVIEW
• Telephone interviewing The development of CATI (Computer Aided Telephone Interviewing) has greatly increased the
extent to which telephone interviewing is undertaken. Interviewing is done from a central location, cutting the costs of
fieldwork considerably, providing the sample size is large. It is not a cost-effective method for small samples. With the
increased demand for immediate information, particularly for commercial omnibus surveys, CATI is ideally suited for the
provision of a very fast turnaround of data as the results are recorded and processed as the questions are answered.

• The sample also can be drawn from a wide geographical spread, as the fieldworkers do not have to travel. There are
disadvantages to this method of data collection. It is difficult to establish a rapport with the respondent by telephone,
which is partly why this method is not successful for the researching of personal or embarrassing topics. Many
respondents are fearful of ‘sugging’, selling under the guise of marketing research, and expect the interviewer to try to
sell them double glazing and the like.

• With a disembodied voice it is also easier for a respondent to refuse or end an interview prematurely. The telephone
interview demands the use of very structured, pre coded questionnaires that may be completed quickly without having
to rely on examples of supporting material. An ideal telephone interview will last no longer than 15 minutes, on average.
 MAIL (POSTAL) QUESTIONNAIRE
• If the survey population is widely dispersed, it may be more useful to send the questionnaire by mail than to have an
interviewer call on the respondent. Mail surveys also have the advantage of a reduction in field staff, and if there is a high
response rate, the cost per questionnaire is low. A high response rate is more likely if the survey population consists of
members of a special interest group and the questionnaire relates to their area of interest. Otherwise, a response rate of
30–40% is not uncommon.

• The advantage over the telephone interview with this method is that the questionnaire can be lengthy and ask for
detailed information. The disadvantages (apart from the low response rate) are several. A mail questionnaire has to
compete with the increasing amounts of junk mail that pour through our letterboxes. If there is a high non-response rate
then the cost per questionnaire is high, particularly if a reply paid envelope is included.

• There is no guarantee that the selected respondent will actually complete the questionnaire, and in spite of careful design,
the control of the question sequence is removed. If the respondent does not understand any of the questions, there is no
interviewer present to clarify the problem. There also may be a long time lag between sending out the questionnaires and
receiving completed forms.
 QUESTIONNAIRE DESIGN
• Questionnaire design is an aspect of research in which many people automatically assume expertise, even
those without prior research experience. The questionnaire is a vital part of most surveys and great care
must be taken with its design.

• Many factors will affect the design of the questionnaire, such as the nature of the data required (qualitative
or quantitative) and how the questionnaire is to be administered (by personal interview, telephone, mail or
other self-completion, or whether electronic instruments will be used).

• However, most questionnaires tend to lie between two extremes: first, the highly structured questionnaire
used, for example, in telephone interviewing, where the question wording is fixed and responses are
limited; and secondly, an unstructured interview schedule used in qualitative research, which consists of a
list of topics to be covered, with the actual wording of the questions left to the trained interviewer.
 Product development – New product by buyer
• Identify the Need: The first step is to identify the need or gap in the market that your new product
will address. Conduct market research, analyze consumer trends, and gather feedback from
potential customers to understand their needs, preferences, and pain points.
• Conceptualization and Ideation: Once the need is identified, generate ideas for the new product.
Brainstorm with your team, involve relevant stakeholders, and encourage creativity to come up with
innovative concepts and features. Consider factors such as target market, pricing, functionality, and
feasibility during the ideation process.
• Market Validation: Before investing significant resources, validate your product concept in the
market. Conduct focus groups, surveys, and interviews with potential customers to gather feedback
and assess the viability and potential demand for your product. Make adjustments and refinements
based on the feedback received.
• Product Design: Once the concept is validated, proceed with the product design phase. Create
detailed specifications, technical drawings, and prototypes to bring the product idea to life.
Collaborate with designers, engineers, and manufacturers to ensure the product is aesthetically
appealing, functional, and manufacturable within your budget and timeline.
• Prototyping and Testing: Develop prototypes of the product to test its
functionality, performance, and user experience. Conduct rigorous testing and
gather feedback from users, incorporating their insights into iterative design
improvements. This phase helps identify and rectify any design flaws or usability
issues before moving to mass production.
• Manufacturing and Sourcing: Once the design is finalized, select reliable suppliers
and manufacturers to produce your product at scale. Obtain quotes, negotiate
pricing and terms, and ensure the manufacturing process aligns with your quality
standards. Establish clear communication channels with your suppliers to
maintain transparency and monitor production progress.
• Packaging and Branding: Design attractive and informative packaging that aligns
with your brand identity and appeals to your target market. Consider factors such
as product protection, shelf visibility, and sustainability in packaging decisions.
Develop branding elements, such as logos, labels, and product names, that
effectively communicate the value proposition of your new product.
• Marketing and Launch Strategy: Develop a comprehensive marketing and launch
strategy to create awareness and generate demand for your new product.
Identify target channels and platforms, plan advertising campaigns, and leverage
digital marketing techniques to reach your target audience effectively. Consider
pre-launch promotions, influencer partnerships, and PR activities to build
anticipation and buzz around your product.
• Distribution and Sales: Set up appropriate distribution channels to ensure your
product reaches the intended market efficiently. Collaborate with retailers, e-
commerce platforms, or distributors to handle inventory management, order
fulfillment, and customer service. Develop sales strategies, pricing models, and
promotional offers to drive initial sales and establish market presence.
• Feedback and Continuous Improvement: Once your product is launched, actively
seek feedback from customers and monitor sales performance. Analyze customer
reviews, track market trends, and gather insights to identify areas for
improvement and future product iterations. Continuously iterate and refine your
product based on market feedback and evolving customer needs.
 Product development – New product by manufacturer
• Idea Generation: Generate ideas for a new product by considering market trends, customer
needs, and technological advancements. Brainstorm with your team, engage in market research,
and explore potential collaborations or partnerships to identify innovative product concepts.
• Feasibility Assessment: Evaluate the feasibility of the product idea by considering factors such
as manufacturing capabilities, resources required, technical expertise, and potential market
demand. Conduct a cost-benefit analysis to determine the viability and profitability of the
product.
• Concept Development: Once the feasibility is established, refine the product concept. Develop
a detailed description of the product, including its features, specifications, target market, and
unique selling points. Create conceptual sketches, renderings, or computer-aided design (CAD)
models to visualize the product.
• Prototyping and Testing: Build prototypes of the product to assess its design, functionality, and
performance. Conduct rigorous testing to identify any flaws or areas for improvement. Seek
feedback from internal teams, industry experts, and potential customers to iterate and refine
the product design.
• Design for Manufacturing (DFM): Optimize the product design for efficient and cost-
effective manufacturing. Collaborate with engineers and designers to ensure the product
can be manufactured at scale without compromising quality or increasing production
costs. Consider factors such as materials, manufacturing processes, assembly
requirements, and supply chain logistics.
• Supplier Selection and Sourcing: Identify reliable suppliers and source the necessary
materials, components, and equipment required for manufacturing the product.
Establish relationships with suppliers, negotiate pricing and terms, and ensure a
consistent supply chain to support production.
• Manufacturing and Quality Control: Set up the manufacturing process based on the
finalized product design and specifications. Implement quality control measures to
ensure that each unit meets the desired standards. Regularly monitor and evaluate the
manufacturing process to identify opportunities for improvement and cost optimization.
• Packaging and Labeling: Develop packaging solutions that protect the product during
transportation and storage while aligning with branding and regulatory requirements.
Design informative labels and user manuals to provide customers with necessary
information about the product's usage, safety precautions, and warranty details.
• Distribution and Logistics: Determine the most efficient distribution channels for
your product. Explore options such as direct sales, retail partnerships, or e-
commerce platforms. Set up logistics processes to manage inventory, order
fulfillment, and timely delivery to customers.
• Marketing and Sales: Develop a marketing and sales strategy to promote the
product and generate demand. Create marketing materials, including product
descriptions, images, videos, and demonstrations. Identify target customer
segments, conduct advertising campaigns, participate in trade shows, and
leverage digital marketing channels to reach your audience effectively.
• Launch and Post-Launch Evaluation: Coordinate the product launch, generate
initial sales, and gather feedback from customers. Monitor customer reviews,
sales performance, and market reception to identify areas for improvement or
future product iterations. Continuously gather insights to enhance product
features, marketing strategies, and customer satisfaction.
Product development – New product by external agencies/studios

• Define Product Goals and Objectives: Clearly articulate your product goals and objectives to the
external agency or studio. Provide a comprehensive brief that outlines the target market, product
specifications, unique selling points, desired features, and any specific design requirements.
• Select the Right Agency/Studio: Conduct thorough research and evaluate potential agencies or
studios based on their expertise, portfolio, reputation, and client reviews. Look for
agencies/studios with relevant experience in your industry or product category.
• Collaborative Ideation and Concept Development: Engage in collaborative brainstorming sessions
with the agency/studio to generate ideas and concepts for your new product. Provide insights into
market trends, customer needs, and brand values to guide the ideation process. Encourage
creative thinking and open communication to foster innovative ideas.
• Concept Refinement and Design: Work closely with the agency/studio to refine the chosen
concept and translate it into a compelling design. Provide feedback and participate in design
iterations to ensure the product design aligns with your vision and meets your requirements. This
may involve creating sketches, 3D renderings, or prototypes to visualize the final product.
• Prototyping and Testing: Collaborate with the agency/studio to develop prototypes of the
product. Test the prototypes rigorously to assess functionality, usability, and overall user
experience. Gather feedback from potential users or conduct user testing to identify any
design flaws or areas for improvement.
• Manufacturing and Production Guidance: Seek the agency/studio's expertise in selecting
the appropriate manufacturing methods, materials, and suppliers. Collaborate with them
to optimize the product design for efficient production. They can provide guidance on
production processes, quality control measures, and cost optimization.
• Packaging and Branding: Work with the agency/studio to develop packaging solutions
that align with your brand identity and effectively communicate the product's value
proposition. Collaborate on label design, packaging materials, and product information to
ensure compliance with relevant regulations and standards.
• Marketing and Launch Support: Leverage the agency/studio's marketing expertise to
develop a comprehensive marketing and launch strategy. Collaborate on promotional
materials, marketing campaigns, and go-to-market plans. They can also provide support
in creating marketing assets, such as product images, videos, and website content.
• Project Management and Timelines: Maintain regular communication and
establish a project management framework with the agency/studio to track
progress, ensure timely deliverables, and address any potential challenges. Define
clear timelines, milestones, and checkpoints to stay aligned throughout the
product development process.

• Continuous Collaboration and Feedback: Foster an ongoing collaboration with the

agency/studio, maintaining open lines of communication for feedback and
updates. Regularly review progress, provide feedback, and address any necessary
revisions or improvements. Maintain a collaborative relationship to ensure the
final product meets your expectations.