1. P a g e | 1 Marketing Research and Analysis: Understanding the Customer Dr. Ajay K. Sirsi Schulich School of Business, York University asirsi@schulich.yorku.ca

2. P a g e | 2 Source: Marketing: A Roadmap to Success by Ajay Sirsi

3. P a g e | 3 Agenda Increasing the profile of marketing research Research design Conducting secondary research Conducting primary research

4. P a g e | 4 A Customer’s Question “How can you help me make more money?”

5. P a g e | 5 Why could Mike not answer the customer’s question?

6. P a g e | 6 What is the customer really saying?

7. P a g e | 7 What the customer is saying … My market share is declining My industry is mature Our products have become commodities Low-cost competitors are here! My customers are price sensitive My brands face declining loyalties My time-to-market for new products is slow My firm lacks customer focus

8. P a g e | 8 What the customer is saying … I cannot distinguish between suppliers –“They are all the same” –“They say the same thing” You are a commodity I need help If you want to help me, differentiate yourself –By creating value for me

9. P a g e | 9 What Are Customers Looking For? “Be a thought leader” –Strategic business partner –Help me build my business –Provide expert knowledge –Provide latest trends in industry –What are my competitors doing? –What are best practices?

10. P a g e | 10 Agenda Increasing the profile of marketing research Research design Conducting secondary research Conducting primary research

11. P a g e | 11 Research Design Descriptive Research Improved Decision-Making Causal Research Exploratory Research Problem Definition Secondary Research

12. P a g e | 12 The World is Your Market Research Agency Pringle Prints, launched in 2004 Old P&G model (two years to launch product) –Do everything in-house –Shoulder all investment and risk New model (less than one year to launch new product) –Develop Top ten consumer needs Product adjacencies Technology game boards –Source Proprietary networks –Technology entrepreneurs –Suppliers Open networks –NineSigma –InnoCentive –YourEncore –Yet2.com 12

13. P a g e | 13 Open Networks NineSigma –Connects companies with science and technology problems with companies, universities, labs … InnoCentive –Developed by Eli Lilly –Brokers solutions to narrowly-defined scientific problems YourEncore –Connects 800 high-performing retired scientists and engineers with businesses Yet2.com –Brokers technology transfer into and out of companies, universities, government labs

14. P a g e | 14 Research Design Descriptive Research Improved Decision-Making Causal Research Exploratory Research Problem Definition Secondary Research

15. P a g e | 15 Agenda Increasing the profile of marketing research Research design Conducting secondary research Conducting primary research

16. P a g e | 16 Primary Research Techniques Focus Groups Depth Interviews Ethnographic Research Questionnaires

17. P a g e | 17 Successful Focus Groups 8 - 12 participants Careful screening of participants Homogeneous participants Relaxed atmosphere Room with one-way mirror, recording Session between 1 - 3 hours Trained moderator Good discussion guide Compensation for respondents

18. P a g e | 18 Steps In Conducting A Focus Group Define the research objectives Create a discussion guide (including focus group length) Select focus group facility Develop screener Recruit participants Select moderator Conduct the group Prepare the focus group report

19. P a g e | 19 Attitudes and feelings toward eating out Fast foods Food and décor of a particular chain Discussion Guide

20. P a g e | 20 Improving Focus Groups’ Success Ask how respondents are recruited Ask fewer questions Increase focus group length Give participants “homework” assignments –Have respondents do tasks during session Tap into naturally occurring groups Develop customer advisory boards

21. P a g e | 21 Depth Interviews Elimination of group pressure –No group dynamics Customer decision-making process Focus on respondent Rapport with interviewer Probing for answers More expensive than focus groups

22. P a g e | 22 Depth Interviews Spend 60 - 90 minutes with each customer Pre-scheduled Telephone or face-to-face Respondents compensated Saturation point is quickly reached –Excellent insights

23. P a g e | 23 Typical Depth Interview Questions How customer spends his/her day –Bottlenecks –Frustrations –Challenges Customer decision making process Key players involved –Criteria used to make decisions

24. P a g e | 24 Ethnographies Excellent insight generating technique –Participant observation –Depth interviews Pattern analysis

25. P a g e | 25 Basic Rules for Effective Market Research  talk to your customers, whenever and wherever you can  use the data you already have  talk to your market research people  clarify marketing problems before you do the research  create research that you will be prepared to act on... ...and then act on it !

26. P a g e | 26 Designing Better Research Purpose of the Research – What is the information to be used for? Give examples of Questions this Research is to answer – Market segmentation Action Standards – What criteria will be used to translate research results into action? Value of the Research – What is the value of the information? What is the cost of incorrect decision making? Timing – When do you want the research to start? When do you need the results?

27. P a g e | 27 In Chapter 2 - you will learn about effective ways to conduct market research to understand customer needs