Presentation on theme: "Market Research The gathering of information to make marketing decisions."— Presentation transcript:
Market Research The gathering of information to make marketing decisions.
Market Research Simple Complex You run a small bakery. You have developed a new cookie and want to know if customers will like it. You prepare a plate of the new cookies and offer a free sample to every customer. You ask each customer what they think about the new cookie. A large national company has developed a new snack product. Before producing large amounts and selling it across the country, the marketers want to make sure that people will buy it and like it. They decide to test market the product in one city, keep track of how much is purchased, and ask customers their opinions of the snack.
Marketing Research Process Much valuable marketing research is performed in an informal way. Talking to customers in the store Angry phone calls from customers !
Types of Data Data is divided into two categories: primary data and secondary data. Data collected for and about a specific business. Primary Data Data collected for someone else, or for nonmarketing reasons, but is available for you to use. Secondary Data
Primary Data Data that's tailored to a company's particular needs. By customizing tried-and-true approaches — focus groups, surveys, field tests, interviews or observation — you can gain information about your target market. More specific results than secondary data Professional primary research can be pricey!
Collecting Primary Data The Four Methods ObservationInterviewSurvey Experiment
Observation The researcher watches customers and records their behavior. Another form of observation used by many service companies is the secret shopper (or mystery shopper). This is a person hired by the company to visit its place of business and observe the quality of service. secret shopper
Interview A formal meeting between two or more people, during which questions are asked of one person. In marketing, interviews are used to gain insight into customers’ thoughts, opinions, and reactions to products. A focus group is a small group of people who discuss topics of interest to a researcher. The researcher observes and collects information as the members of the focus group exchange ideas.
Survey An organized study in which a researcher asks questions of a number of people. A survey can be conducted in person, over the phone, by mail, or over the internet. The series of questions is called a questionnaire. The questions should be fair and unbiased.
Who should you survey? The idea behind a survey is to ask a small sample of people, who represent a larger group of people. Asking EVERYONE would be too expensive and time consuming! Many national surveys use 1,000 people to get useful information about national attitudes and opinions.
Experiment The researcher sets up an actual experiment and compares the results. Taste tests are common experiments. Often researchers use a combination of observation, survey, and experiment to get the most valid data to make decisions.
Secondary Data Based on information taken from studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations. This includes Census Bureau information and Nielsen ratings. Although secondary research is less expensive than primary research, it's not as accurate, or as useful, as specific and customized research.
Sources of Secondary Data Business Records Government Databases Private Databases Libraries Internet
Private Databases Marketing research firms collect information in order to sell it to outside parties. An industry publication is a magazine or newsletter that focuses on a specific industry. Gathers and publishes market information A trade association is an organization of people in a specific type of business. Sometimes provides free information published in journals
Trend Research One of the major goals of marketing research is to spot business opportunities. One way to do this is to look for new trends. In marketing, a TREND is a direction of movement of consumer behavior. Successful businesses recognize trends early and develop products to meet new needs.
Types of Trends Social Changes in society Lead to changes in consumer behavior Ex: Increase in working mothers (child care, convenient food) Demographic Changes in the size of the population Growing markets Increase in older population: health care, travel, financial services Product Development of products Ex: Flat screen TVs, 100 cal snakes, wireless Trend: lasts at least 10 years Fad: Popular for a short time, then disappears
Is Marketing Research Always Right? The market is constantly changing Customers are always changing their minds Surveys can be biased Incorrect representation of target market People did not respond truthfully Different methods of data collection can yield different results