2 Market Research The function which links the consumer, the customer, and public to the marketerthrough INFORMATION
3 Definition of Marketing Research Marketing research is the systematic and objectiveidentificationcollectionanalysisdisseminationand use of informationfor the purpose of improving decision making related to theidentification andsolution of problems and opportunities in marketing.
4 Steps in the Marketing Research Process Problem DefinitionResearch DesignSamplingData CollectionData AnalysisReport Preparation and PresentationFollow-up
5 A Classification of Marketing Research Fig 1.1Marketing ResearchProblemIdentification ResearchProblem Solving ResearchMarket Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends ResearchSegmentation ResearchProduct ResearchPromotion ResearchDistribution Research
8 Internal Sources Company Accounts Internal Reports and Analysis Stock AnalysisRetail data - loyalty cards, till data, etc.
9 External Sources Government Statistics (ONS) EU - Euro Stat Trade publicationsCommercial Data - Gallup, Mintel, etc.Household Expenditure SurveyMagazine surveysOther firms’ researchResearch documents – publications, journals, etc.
11 Market Research Sampling Methods: Random Samples – equal chance of anyone being pickedMay select those not in the target group – indiscriminateSample sizes may need to be large to be representativeCan be very expensive
12 Market Research Stratified or Segment Random Sampling Samples on the basis of a representative strata or segmentStill random but more focussedMay give more relevant informationMay be more cost effective
13 Market Research Quota Sampling Again – by segment Not randomly selectedSpecific number on each segment are interviewed, etc.May not be fully representativeCheaper method
14 Market Research Cluster Sampling Multi-Stage Sampling Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole populationMulti-Stage SamplingSample selected from multi-stage sub-groupsSnowball SamplingSamples developed from contacts of existing customers – ‘word of mouth’ type approach!
16 Market Research Primary Research First hand information Expensive to collect, analyse and evaluateCan be highly focussed and relevantCare needs to be taken with the approach and methodology to ensure accuracyTypes of question – closed – limited information gained; open – useful information but difficult to analyse
17 Market Research Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, howQualitative – more detail – tells you why, when and how!
19 Market Research Advantages of Market Research Helps focus attention on objectivesAids forecasting, planning and strategic developmentMay help to reduce risk of new product developmentCommunicates image, vision, etc.Globalisation makes market information valuable (HSBC adverts!!)
20 Market Research Disadvantages of Market Research Information only as good as the methodology usedCan be inaccurate or unreliableResults may not be what the business wants to hear!May stifle initiative and ‘gut feeling’Always a problem that we may never know enough to be sure!