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Marketing Research.

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Presentation on theme: "Marketing Research."— Presentation transcript:

1 Marketing Research

2 Purpose of Marketing Research
Businesses need accurate & up-to-date information because the business world is always changing around them Changes in technology Changes in customer tastes Changes in competitor products Changes in economic conditions How marketing research can help Gain a more detailed understanding of consumer needs Reduce risk of product / business failure Help anticipate / forecast future market trends

3 Information a Business Needs
Who are our customers? How do customers make buying decisions in our market? How well are our products selling? What are our competitors doing? How can / should we respond to changes in the marketplace?

4 Main Sources of Business Information
Internal company information Sales, orders, customer profiles, stocks, customer contact Marketing intelligence Everyday information about developments in the market Suppliers, customers and distributors Bought from specialist business intelligence providers (e.g. Mintel) Market Research Commission specific studies to obtain data

5 Marketing Research Process
Important to understand and define the problem Research plan should aim to be cost-effective Choose between primary and secondary sources Use appropriate research tools and methods Design the sample with care Research needs to be closely managed Define the Problem Define Research Objectives Choose Data Sources Choose Research Methods Construct Sample Set Budgets / Deadlines Get Started!

6 Uses of Marketing Research
About the market Market potential for new products | Forecasting future demand | Competitor behaviour and performance | Market shares About products Likely customer response to new products | Comparison of existing products in the market (features, costs etc) | Forecasting new uses for existing products | New product development About promotion Effectiveness of advertising | Effectiveness of direct marketing and/or the sales force | Competitor promotional strategies About distribution Use and effectiveness of each distribution channel | Opportunities to sell direct | Cost of transport & warehousing products About pricing What happens to demand following changes in price | Analysis of impact of changes in price on costs and profits | Customer perceptions of pricing

7 Quantitative Research
Quantitative marketing research is all about numbers! Quantitative research tires to get hold of statistically valid, numerically measurable data Usually related to data on the market (e.g. size, growth and market shares) Usually obtained via surveys Concerned with obtaining “hard data” to answer questions such as: How many? How much? How often

8 Qualitative Research Qualitative research is quite different from quantitative research It is concerned with finding out “soft information” Main purpose – to understand consumer behaviour, attitudes and perceptions Obtained by methods designed to get detailed responses – e.g. interviews and focus groups Qualitative research topics usually explored in some depth

9 Two Sources of Research Data
Primary Sources Secondary Sources

10 Primary Research Primary market research doesn’t exist until it is collected for the first time It involves collecting data for the first time and for a specific purpose Can be carried out by a business itself or by a specialist market research organisation Expensive to obtain – but should be up-to-date and exclusive Obtained by several methods: Observation Focus groups Experiments Surveys

11 Secondary Research The difference with primary research is that Secondary Data already exists Has been collected by someone else for another purpose Can be obtained from “internal” data sources E.g. records of transactions by the business; sales and activity reports Should always be considered first, because cheap, quick and convenient May be out –of-date or not relevant to a new product Also many external sources of secondary data Commercial market research organisations (e.g. Euromonitor) The government (substantial and usually free) Competitors (e.g. accounts, web sites) Trade publications / magazines Industry associations (conduct general research for members) General media

12 Observation Method to obtain primary research data
Involves watching people behave, noting and analysing their reactions Can be carried out: Under controlled conditions (“laboratory”) In real-life situations (“the field”) Common observational methods Traffic audits Television and radio panels Retail store audits

13 Focus Groups Method of obtaining primary research data
Used to gather qualitative information Involves a small group of people (6-10) Group spends time with a moderator to discuss their opinions and attitudes to a topic / product Objective – to obtain detailed responses Role of the moderator is crucial: Unbiased Should carefully guide the conversation

14 Experiments Method of obtaining primary research data
Aim – to measure ad evaluate customer reactions to changes in the marketing mix Can be done under controlled conditions or “in the field” Pilot trials of new products and services are a common use of experiments Lower profile Chance to test whether things work before larger-scale roll-out Reduces risk and uncertainty

15 Surveys Key research method to obtain information from large samples
Wide range of uses – ascertain facts, beliefs, opinions, attitudes Various methods to complete surveys: Interviews Telephone Face-to-face Postal Online

16 Continuous, Ad-hoc & Omnibus
Three other research methods Continuous research Carried out on an ongoing basis (e.g. every day / week / month) Gathers data to illustrate “trends” (e.g. consumer buying habits) Example: consumer panels (National Readership Survey) Ad-hoc research Carried out on a one-off basis Designed to meet research needs of a business at a specific moment Can vary widely in terms of objective, scale, scope and cost Omnibus research Involves several businesses contributing their own questions to a multi-part survey Can be more cost-effective for smaller firms Wide range of omnibus surveys available (e.g. Mori omnibus)

17 Questionnaires - Introduction
The most common method for collecting primary research data What is a questionnaire? A series of questions used to collect data from a specified number of respondents Can be self-completed (by respondent) or on their behalf Requires careful design to be effective

18 Sampling in Market Research
Small section of population is asked a number of questions or is given opportunity to use a sample of product to indicate what whole population would think about product Methods Quota sampling – asking people who have certain characteristics (e.g. aged between 18-25) Random sampling – everyone has an equal chance of being asked a question Stratified sampling – population is segmented by a common characteristic Cluster sampling – target population is divided into groups (normally by geographical region) and random sample taken from these groups

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