56 56

Market Research Tools

Market Research Tools
and Techniques
and Techniques
LDM GROUP
LDM GROUP
Franklin Templeton Asset Group
Franklin Templeton Asset Group
57 57
The Need for Market
The Need for Market
Research
Research

Investment analysts and portfolio managers Investment analysts and portfolio managers
need market information at every stage in need market information at every stage in
their decision their decision- -making efforts making efforts

Market information is required not only for Market information is required not only for
rational acquisition decisions, but for rational acquisition decisions, but for
managing the existing investment portfolio managing the existing investment portfolio

Market research is also need to facilitate Market research is also need to facilitate
operating management decisions operating management decisions
58 58
How Much Market
How Much Market
Research?
Research?

Justified by market stability and

Justified by market stability and
degree of investment
degree of investment
complexity
complexity

Maximum net benefit from

Maximum net benefit from
research occurs when pursued
research occurs when pursued
to point where marginal
to point where marginal
benefits equal marginal cost
benefits equal marginal cost

Decision makers must identify

Decision makers must identify
point of maximum benefit
point of maximum benefit
59 59
Figure 4.1
Figure 4.1
60 60
A Design for Market
A Design for Market
Research
Research

Formulate nature of problem

Formulate nature of problem

Proceed from general to

Proceed from general to
specific
specific

Four quadrant forecasting

Four quadrant forecasting
matrix
matrix
61 61
Figure 4.2
Figure 4.2
62 62
Preparing the Research
Preparing the Research
Report
Report

Summarizes procedures
Summarizes procedures
employed and describes
employed and describes
conclusions reached
conclusions reached

Everything in research report

Everything in research report
should be explained in terms of
should be explained in terms of
its bearing on the conclusion
its bearing on the conclusion

Report format is determined by

Report format is determined by
nature of research problem
nature of research problem
and needs of user
and needs of user
63 63
Data Sources
Data Sources

Primary data
Primary data

Secondary data
Secondary data
64 64
Primary data
Primary data

Statistics gathered by
Statistics gathered by
researcher precisely for
researcher precisely for
problem at hand
problem at hand

Can be gathered by
Can be gathered by
communication or by
communication or by
observation
observation
65 65
Secondary data
Secondary data

Less costly and time

Less costly and time
consuming to generate
consuming to generate

Never precisely in desired form

Never precisely in desired form

Available from agencies

Available from agencies
66 66
Descriptive Research
Descriptive Research

Examples
Examples

Describing profile of typical

Describing profile of typical
tenants
tenants

Estimating proportion of people

Estimating proportion of people
in a specific population who
in a specific population who
behave in a particular manner
behave in a particular manner

Describes aspect of problem

Describes aspect of problem

Requires planning and catalog

Requires planning and catalog
system
system

Cross
Cross
-
-
sectional
sectional
or
or
time series
time series
67 67
Statistical Research
Statistical Research

Permit reliable generalizations

Permit reliable generalizations
to be drawn after examination
to be drawn after examination
of a limited portion of the total
of a limited portion of the total
pool of information
pool of information

Descriptive statistics
Descriptive statistics

Inferential statistics
Inferential statistics
68 68
Geographic Information
Geographic Information
Systems
Systems

(GIS) relate information to

(GIS) relate information to
geographic location; series of
geographic location; series of
map overlays
map overlays

Computerized systems
Computerized systems