May 9th, 2015 Market Research Describe the purpose of marketing research

Why Is Marketing Research Important? The information obtained from research helps businesses increase sales and profits. Research answers questions about: What products to produce At what price to sell them Who will buy the products How the products will be promoted Research also helps solve marketing problems and gauge the potential of new ideas.

Market intelligence is concerned with: The size and location of a market The competition The segmentation within the market for a particular product or service Market intelligence helps define potential target markets for a particular product or service and how to reach potential customers. market intelligence Information about the size and location of a market, the competition, and the segmentation within the market for a particular product or service. Market Intelligence Marketing Essentials Chapter 28, Section 28.2

Chapter 28 Marketing Research4 Types, Trends, and Limitations of Marketing Research The type of marketing research businesses conduct depends on the problem that they are trying to solve. Some of the most significant areas of research are:  attitude research  market research  media research  product research Types of Marketing Research

Chapter 28 Marketing Research5 Types, Trends, and Limitations of Marketing Research Attitude Research Attitude research, also known as opinion research, is research designed to obtain information on how people feel about certain products, ideas, or companies.  Example: The Gallup Organization conducts opinion research polls on politics, elections, business and the economy, social issues, and public policy.

Chapter 28 Marketing Research6 Types, Trends, and Limitations of Marketing Research Market Research Market research involves the systematic gathering, recording, analyzing, and presentation of information related to marketing goods and services. It uses market analysis—the study of particular consumer and industrial markets—to obtain data about the size, location, and make-up of the market for a product. Slide 1 of 2

Chapter 28 Marketing Research7 SECTION 28.2 Types, Trends, and Limitations of Marketing Research Market Research Sales forecasting is an effort to estimate the future sales of a product. Economic forecasting is an attempt to predict future economic conditions. Most businesses rely on government data to predict economic conditions and to adjust their business activities depending on the economic outlook. Slide 2 of 2

Chapter 28 Marketing Research8 Types, Trends, and Limitations of Marketing Research Media research focuses on issues of media selection and frequency. It measures the effectiveness of the advertising message and media placement. Media research is done on:  print media  broadcast media  online media Media Research

Chapter 28 Marketing Research9 Types, Trends, and Limitations of Marketing Research Researching Print Advertisements The effectiveness of a printed advertising message can be tested on its recall, communication, and persuasive abilities. Several different techniques are used, including:  reader surveys  consumer panels

Chapter 28 Marketing Research10 Types, Trends, and Limitations of Marketing Research Advertisers who prepare television advertisements are interested in TV ratings. What information can TV ratings provide for a television advertiser? TV Ratings

Chapter 28 Marketing Research11 Types, Trends, and Limitations of Marketing Research As online advertising increases in popularity, researchers have developed marketing research techniques for online copy testing. Techniques include:  using a mock environment similar to traditional copy testing  live testing in an interactive environment  tracking ad recall and copy effectiveness  evaluating Web site elements that attract users Researching Online Advertising

Chapter 28 Marketing Research12 Types, Trends, and Limitations of Marketing Research Product research centers on evaluating product design, package design, product usage, and consumer acceptance of new and existing products. Product Research

Product research centers on evaluating: Product design Package design Product usage Consumer acceptance of new and existing products Product research is also conducted to collect information about competitive products. Concept testing, product positioning, and pricing studies are frequently done with focus groups to get initial consumer reactions to a product or service idea. product research The evaluation of product design, package design, product usage, and consumer acceptance of new and existing products. Product Research

Chapter 28 Marketing Research14 Types, Trends, and Limitations of Marketing Research Product tests are a way of measuring new product acceptance. Techniques include:  having consumers try a product and give their opinions  providing samples  test marketing by placing a new product in a selected geographic area  having a product rating board New Product Acceptance

Chapter 28 Marketing Research15 Types, Trends, and Limitations of Marketing Research Satisfaction questionnaires and interviews gather information about existing products and services.  Industrial satisfaction surveys focus upon products and services utilized by business and manufacturing firms.  Customer satisfaction surveys provide data for businesses regarding retail customer attitudes toward existing products and services. Existing Product Research

Chapter 28 Marketing Research16 Types, Trends, and Limitations of Marketing Research The nature and scope of marketing research are rapidly changing to keep pace with a changing marketplace. In the face of global competition, research that measures product quality and consumer satisfaction is the fastest growing form of marketing research. Trends in Marketing Research

Chapter 28 Marketing Research17 Types, Trends, and Limitations of Marketing Research Marketing research information is used to help businesses make sound business decisions, however it is limited by the following factors:  the company's budget  time  quickly changing customer preferences Limitations of Marketing Research

Chapter 28 Marketing Research18 A SSESSMENT Reviewing Key Terms and Concepts 1. What are the four major areas of marketing research? 2. What is the difference between sales and economic forecasting? 3. What is test marketing? 4. List at least four trends facing marketing researchers today. 5. What are two limitations of marketing research?

Chapter 28 Marketing Research19 A SSESSMENT Thinking Critically Should every type of business engage in marketing research? Why or why not?

Chapter 28 Marketing Research20 Graphic Organizer Types of Marketing Research Product Research Product Research Attitude Research Attitude Research Media Research Media Research Market Research Market Research New Product Acceptance Existing Product Research Researching Print Advertisements Researching Print Advertisements Researching Broadcast Media Researching Broadcast Media Researching Online Advertising Researching Online Advertising Economic Forecasting Economic Forecasting Sales Forecasting Sales Forecasting