1. Marketing Research Mr. Raposo King City Secondary School
Chapter 4
Marketing Research
Mr. Raposo
King City Secondary School

2. Chapter Overview 4.1 What is Marketing Research?
4.2 Gathering Secondary Data
4.3 Gathering Primary Data
4.4 Types of Marketing Research
4.5 Preparing the Research Report

3. 4.1 Types of Marketing Research
Marketing research is the systematic collection, analysis and interpretation of information used to develop a marketing strategy or to solve a marketing problem.
Hard data – information based on supportable facts

4. 4.2 Secondary Data
Secondary Data – marketing research collected and published by others e.g. Statistics Canada Census data
Secondary Research – using secondary data for marketing purposes. This is much cheaper although less effective.
Types of Secondary Data – books, periodicals, indexes, databases, the Internet, consultants, market research firms

5. 4.3 Gathering Primary Data
Primary Data – unanalyzed current information collected by a researcher for a specific purpose e.g. Jones Soda Co. interviewing customers or consumers for their marketing plans

6. 4.3 Gathering Primary Data
Test Markets – areas similar to the demographic composition of a larger area e.g. Peterborough Ontario used as a test market for medium sized Canadian cities
Test markets are real-world trial runs for new products or services
Test markets are often secret locations – no competitors know
Test market analysis leads to product changes or maybe even cancelling the whole launch if response is not favourable
Usually involves placing the product e.g. toothpaste, cereal in a few locations and monitoring the sales and responses from customers using surveys or other primary research

7. 4.3 Gathering Primary Data
Surveys – carefully planned questions
Closed-end questions – select one answer from choices
Open-ended questions – respondents give own answers
Random Sampling – members of the target market are given an equal chance of selection for participation in a survey
Observation – record or track a person’s behaviour without interacting with them. For example, cameras in stores, points or rewards cards (Airmiles, Shoppers Optimum Card). Observation is more objective than surveys as it collects facts.
Focus-Group Interviews – primary data collection using a small group of people discussing a product. Participants are selected carefully to represent a larger group. For example, a new flavour of juice will be tried by the focus group and comments will be recorded.

8. In Your Groups
Create a 10 question survey to research a marketing issue.
You survey must have the following:
An introduction/title
One question on age/gender
One other demographic question (income, education,)
One Psychographic question
One question for each of the following: Price, Product, Promotion, Distribution (location)
One question asking about competition
One question on spending on your topic
One open ended question allowing respondent to leave comment

9. The Topics Pizza store introducing a new type of pizza
A soft drink company introducing a new soft drink
An internet company trying to sell internet connection sticks
Video rental company introducing a new rewards program
A radio station conducting research on their target market
Canadian Cancer Society attempting to raise donations
Your choice??

10. 4.3 Gathering Primary Data
Qualitative Research – measures reactions, responses or feelings to a product or questions about products e.g. blind taste tests or opinion polls
Quantitative Research – collecting data by surveying a representative sample (using statistics) of a target market. Researchers use this data to make predictions.

11. 4.3 Gathering Primary Data
Now lets do this!
Best chocolate chip cookie survey/focus group.

12. 4.4 Types of Marketing Research
Consumer Research – efforts to determine buying behaviour
Awareness, Attitude and Usage Studies (AAU)
Consumers list (unaided) or select (aided) all brands or product names they are aware of. Total Awareness is the sum of both.
Investigates opinions about a brand’s strengths (brand equity)
AAU studies help form consumer profiles (e.g. heavy, medium or light, or non-user of a particular brand or product
Includes demographic, geographic and psychographic data
Consumer Segmentation Analysis – grouping potential
customers into target markets based on shared characteristics
E.g. Coca-Cola selects males as primary target for Barq’s Root Beer. Barq’s uses appropriate ads and placement to reach.

13. 4.4 Types of Marketing Research
Market Dimension Analysis – selects main issues that influence market segments. Barq’s chose ‘bold taste’, ‘fun’ as important issues and the slogan “Barq’s Has Bite”
Product Research – examining each detail of the product and the potential impact. E.g. colour, package, size, scent, design, sound, texture. Researchers gather feedback on each detail to determine what consumers want. For example, an easy-to-open can or a cola box that fits easily in the fridge
Media Research – segments consumers by the type of newspapers, magazines or radio stations they use/read. This includes all media – e.g. websites, TV stations. This knowledge helps marketers to target advertisments.

14. 4.4 Types of Marketing Research
Consumer-Tracking Devices – where consumers shop, what they buy. Data is collected by bar-code scanners, coupons, ‘points’ cards e.g. Airmiles
Motivation Research – research into buying behaviour. For example, consumers were given the same coffee in three different colours of cups. Consumers rated the red coffee cup as having ‘stronger’ coffee. Colour, shape and style influence consumer behaviour in sometimes unpredictable ways.

15. 4.4 Types of Marketing Research
Satisfaction Surveys – customer feedback on satisfaction with a product or service. Results can be used in product development or to improve or update products.
Advertising Research – collecting data on advertising messages to determine which commercials or print materials are most effective. Day After Recall (DAR) – telephone survey.

16. 4.5 Preparing The Research Report
Survey Monkey: Online survey resource for gathering primary data
link to friends/family or post link on Facebook?
Statistics Canada: Government of Canada website offering data for secondary research (Geographics/demographics)