1. 1 Chapter 16 Marketing Research ROWENNA & SHARNE

2. Slide 2 Discussion Point The Internet provides small firms with the ability to compete more fairly with larger firms, through the provision of global advertising & market research, low-cost electronic mail to communicated with customers, and mobile technologies such as cell phones and lap- tops for order-taking, etc. “Firms have been able to establish a local presence with a global reach on a shoe-string budget”. ???

3. Slide 3 Mkt Research & the Internet Market research is VITAL for effective mktg Internet is changing traditional market research Provides mkters access to the largest and most significant storehouse of info ever, for both consmer and competitor intelligence Provides up-to-date info Both primary & secondary information Better info???? (publishing standards)

4. Slide 4 Disadvantage of the Internet limited and skewed samples “innovative, intelligent & financially secure people” How will this change in the future??? anonymity provides for easier misrepresentation – do you realy know who someone is??? difficult to validate results (hard to generalise results to general pop)

5. Slide 5 The market research process oStated the basic process oThree basic research methods: observation, survey, experiment???? There are others, eg Interviews. oOBSERVATION ON THE NET: cybercommunities, USENET: “a worldwide hierarchy of newsgroups clustered around 7 major topic areas. User messages are broadcast across the news servers around the Net”.

6. Slide 6 Basic research methods contd. Surveys: via Web-site or email surveys. (Karen) Sampling methods: unrestricted samples, screened samples, recruited samples Experiments: interactive web pages (Daniel) COLLECTING & INPUTTING DATA Major +’ge of Net: instant data input, removes error, much less tedious

7. Slide 7 Types of Market Research (can be classified in two different ways)  Objective of Collection –descriptive –diagnostic –predictive  Method of Collection –observational –survey –experimental

8. Slide 8 The Internet is changing Marketign Research  Changing Environments –Can now reach a larger pop with ease: cross-cultural research –Geographic location irrelevant for focus groups and interviews – more valid data??? –consumer empowerment: easier & more discrete form of customer complaints. Advantageous for the firm???? –potential for real time data –competitor information easier to find –global access: Researcher to researcher communications (Tim Beal) for advice, to share experiences??? –Unrestricted publication: more info but is it better: info- overload??? How valid is the source???

9. Slide 9 Main types of info sought from the Net for mktg purposes are: –competitive intelligence (82%) –conducting research such as on-line surveys and focus groups (81%) –determining broad market trends (72%) –information about new production techniques and technology (46%) –information about international markets (36%) What do you use it for???

10. Slide 10 Scanning the Environments in Internet Market Research Scanning is vital (internal & external environments). Internet makes scanning easier, esp detecting change. Environmental scanning (four key styles) undirected viewing conditioned viewing informal search formal search Market Intelligence through Internet based market research CONSUMER INTELLIGENCE (Internet esp good for small firms) primary consumer intelligence data cookie technology: ethical??? secondary consumer intelligence data: govt web sites, consumer survey sites(validity??? )

11. Slide 11 Competitive Intelligence “One of the skills of effective web-based mktg from a strategic perspective is to allow customers access to the max amount of info while trying to minimise the amount of strategically valuable info available to the competitors”. INTERESTING (balance) search engines web sites trade associations personal web pages survey competitors customers on-line specialist company information sites news items discussion groups

12. Slide 12 Conducting On-line Market Research: On-line Focus Groups  main advantage –anonymity allows for more frank discussion  main disadvantages –technical limitations including the fact that non verbal cues are missing in most on-line environments; –biased and potentially misleading samples; –the difficulties inherent in relying on concept descriptions and pictures to get an accurate feel for new products on-line.

13. Slide 13 Opportunity for Marketers through the Internet  Ethnography – “involves the researcher living with & becoming part of a community while recording their view, opinions & behaviour”. –Traditionally been neglected (mainly b/c of time) –gives marketers a deeper understanding of the market –Online acceptance into a community is easier than off-line acceptance (lack of visual and social cues for discrimination)

14. Slide 14 The Internet provides new research methods  Both the addition of new features into existing methods and the creation of new methods of research, eg surveys can include virtual reality  unobtrusive observation –USENET –lurking –telepresence  click tracking –intrasite tracking –visitor tracking –surf tracking

15. Slide 15 Issues concerning On-line Research  Anonymity –Internet has potential to eliminate anonymity of user (good for user, bad for company??) However, potential is decreasing due to sophisticated tracking software: loss of surfing freedom.  Privacy: lurkers may be present –three levels of public-private space public space (personal web sites) telepresence (IRC MUD) private space for point-to-point conversation (but how private is it? George Bush).

16. Slide 16 Limitations of online research information overload information quality Speed (downloading, slow websites: TEDIOUS) security skewed demography ease of access (not easy for everyone) TRENDS FOR FUTURE: how dispersed will the Internet come? (like the telephone??)