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Editorial: Quite often many business people commit huge capital on some ventures in which they only trust their gut feelings.While some have succeeded and created behemoths with such ideas, some however, have paid dearly for such. The means by which one can minimize such links is by means of a sampling survey. This usually forms a very important aspect of any business proposal. To illustrate what may happen if care is not taken before a plunge into a market with a product: Download the video and open or view.
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Sampling and the non statistician.
Introduction
In many instances, we want to find out people's reaction to say, a new product, an impending election, an issue to which a lot of money is to be committed, the market reception of a company's impending IPO. or an outcome which should prove valuable if known.
Experience in an industry may be an informal source of knowledge, which some rely upon, or with which they dispute some results of statistical data sampling.
There is published Government statistics, from where information can be obtained. This can be employed to supplement a sampling exercise, where knowledge of market size is desired.
Successful sampling therefore will reduce a need to carry out detailed sampling on the whole population. For example, the market size of a product can be estimated, if the population of the area is known through published demographics, and the proportion of users in a given sample area is extrapolated for the whole population. This has hitherto, been the exclusive specialty of Statisticians. However, since the arrival of the PC revolution, the availability of specialized statistical packages and spreadsheet programs have actually reduced the arcane processes of analyzing several types of data to form meaningful information into just a few strokes of the keyboard. This does not still override the need for a knowledge of statistical methods. SamplingA sampling pattern observed in a particular area does not usually typify that of the population targeted. However, pollsters and samplers attempt to link such, in an effort to get a close estimate. This is very valuable as it will, in addition to highlighting possible errors, maximize polling efforts by carrying out the minimum amount of sampling that will accurately estimate the whole market. Sampling for market research therefore involves taking opinion of prospective users in different locations to see how it can determine the outcome in a specific market. For example, carrying out a sample survey to determine how a whole country will vote in an election, or carrying out a survey to see how a product will fare in a market.
Some factors may cause variations in sampling results;
A prudent pollster will therefore use these as classifications when carrying out a sampling or polling exercise. We can therefore identify three goals:
Method
We can give a most appropriate example. Someone would like to get into the telecom market in a region, location, or country and would like to know the prospects of getting a comfortable share of the market. Test sampling. He/she can find out from the local regulator the number of subscribers at any time and the share of each provider. You can then make a sampling in groups of say ten or twenty at carefully selected locations taking into account the goals stated earlier in relation to the typical, extreme and the most optimistic results. You can them compare such with the statistics of the regulator, with dates in mind as the results may be dynamic.
Questionnaires
Many polling exercises fail as a result of over reliance on questionnaires. Most busy executives cannot afford to spare the time to read them carefully and answer the questions, nor ready to volunteer information. The pollster approaches the busy executive to introduce the product through a sample or a brochure. (Using this method implies you must have carried out extensive investigation independently on the company or its competitors. You are only filling out the questionnaire on information you have not been able to collect, or which you want to verify.)Pollster: Good morning sir! I have this product I am sure will be very useful to your company. It does this and that (you briefly introduce the product) Busy executive (Worst case scenario): No thanks! We already have something similar. Pollster: I am sure it does not do those things. Busy executive: What makes you think so? It does this and that (hello! Are you listening, taking notes or recording?) Pollster: Are you positive it will do them while doing some others? (You sure must be asking the questions in the questionnaire form without letting the busy executive realize it). Busy executive: Yes. I know what I am saying. We used it for several years without any problems. (More information for your survey.) Pollster : Will the product expand with your company if your turnover increases to (guess a figure) from its present or use the figure you already have in your investigation) ? Busy executive: How do you know we have that turnover? (or) we dont have that much turnover yet (or) what makes you think our turnover is that low? Pollster: (Pause to let him reveal the number or else follow up with this) I'm sorry sir! I thought you made (so much) last quarter, more than (competitor A). busy executive willing to cooperate will reach out for the financial statements and read out the figures to which you will patiently absorb or record whatever info is given. Busy executive: How can you compare us with (competitor A)? We are this, that, etc.( keep your ears wide open as this may be the facts you want to verify.) Pollster: That is quite impressive sir taking into consideration the harsh climate! You must be an outstanding manager with a great team. Like how many employees (or whatever data you require in the order of priority) do you have? Pollster: Is that so? So you have all that? Dont tell me (you pump in the other questions). The busy executive supplies more info. Pollster: Then you must need my product. Busy executive: I am not sure. (He either restates the previous points or adds new ones). You may now offer him a sample or a brochure detailing your product. Pollster:You want to have a look? This will (mention some other points he did not mention). Should I leave it? Busy executive: you can leave it. (If he offers to let others in the department or company see it, then, you are in luck.) When should I come back for it? I am sorry sir, I do not have more samples/brochures left (This may not be true. Just pray he does not ask you to take it away in anger. You want to ensure he/she goes through the brochure or examines the sample . If it is a sample, promise to come back at an agreed date and give a better sample whenever he/she is ready with comments.) When you come back and you are lucky to see the busy executive, clarify any unanswered questions and collect his comments. If not, you may leave a message with the secretary, or call him to say he can keep the sample. While this might be a lot harder than just dropping a questionnaire, it produces more accurate results. |
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