1. Marketing Research
4.04

2. Marketing Research
Obtaining information about the preferences, opinions, habits, trends, and plans of potential customers.
Helps to determine what customers want and need.

3. Why is Research Important?
1. Make costly mistakes if don’t know what customers are buying.
2. Plan for the future.

4. Why is Research Important?
3. Helps to anticipate or solve problems in the marketplace.
4. Helps a company keep track of what is happening in its markets.

5. Purpose of Research

6. Types of Marketing Research
1. Advertising Research
Focuses on the effectiveness of the advertising message and the effectiveness of media placement.

7. 2. Product Research
Evaluate product design and acceptance, competitive products, package design, and product usage.

8. Market Research
1. Studies customer behavior (customer analysis) to gather information about customer attitudes.

9. Market Research
2. Studies the behavior of a consumer market (market analysis) to investigate the potential markets for a product and to define the target market.

10. Sales Research
The study of sales data to determine the potential sales for a product and to solve problems related to future sales.

11. The Marketing Research Process
Step 1 - Define the Problem
Identify and clearly state what the problem is and what can be done to solve the problem.
Determine which problems are the most important to solve at a given time.

12. Step 2 – Research Approach
Collect and examine information in terms of the problem being studied.
Primary data can be used and/or
Secondary data can be used.

13. Step 3 – Collect and Analyze Data
Compiling, analyzing, and interpreting the results of primary and secondary data.
The results of each question can be clearly read and interpreted.

14. Step 4 - Recommend Solutions to the Problem.
Solutions are usually presented in a well written report.
Recommendations must be clear and supported by the research data.

15. Step 5 - Applying the Results
The required form of action is decided upon and put into place.

16. The Marketing Research Process
Set objectives
Define research Problem
Assess the value of the research
Construct a research proposal
Specify data collection method
Specify techniques of measurement
Select the sample
Data collection
Analysis of results
Present in a final report

17. Types of Data
Primary data: Data obtained for the first time and used specifically for the particular problem or issue under study; collected by the business.
Secondary data: Data already collected for some purpose other than the current study; already exists, desk research.

18. Market Research Primary Research First hand information
Expensive to collect, analyze and evaluate
Can be highly focused and relevant
Care needs to be taken with the approach and methodology to ensure accuracy
Types of question – closed – limited information gained; open – useful information but difficult to analyze

19. Primary Research

20. Secondary Research

21. Internal Sources Company Accounts Internal Reports and Analysis
Stock Analysis
Retail data - loyalty cards, sales data, etc.

22. External Sources
Federal Government Statistics (i.e. census, labor dept, etc.)
Local: Chamber of Commerce, Economic Development, City & County Government, etc.
Trade publications
Commercial Data - Gallup, Mintel, etc.
Household Expenditure Survey
Magazine surveys
Other firms’ research
Research documents – publications, journals, etc.

23. Data Collection Methods
Primary data can be obtained by:
- Survey
observation
experiment
Secondary data can be obtained by a number of agencies.
- Internet Sources
- US and Government Sources
- Specialized Research Companies
- Business Publications and Trade Organizations

24. Data Sampling
When designing a survey, marketers must determine the number of people to include in their survey.
Population: The entire target group of people under study.
Sample: Part of the target population that represents it accurately.
Sampling - studying part of a ‘population’ to learn about the whole
Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.
Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.

25. Sampling Methods

26. Sampling Methods
1. Random Samples – equal chance of anyone being picked
May select those not in the target group – indiscriminate
Sample sizes may need to be large to be representative
Can be very expensive

27. 2. Stratified or Segment Random Sampling
Samples on the basis of a representative segment
Still random but more focused
May give more relevant information
May be more cost effective

28. 3. Quota Sampling
Again – by segment
Not randomly selected
Specific number on each segment are interviewed, etc.
May not be fully representative
Cheaper method

29. Sample selected from multi-stage sub-groups 6. Snowball Sampling
4. Cluster Sampling
Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population
5. Multi-Stage Sampling
Sample selected from multi-stage sub-groups
6. Snowball Sampling
Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

30. Quantitative data – statistics based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how
Qualitative data – subjective and personal; more detail – tells you why, when and how!

31. Marketing Research Techniques
Interviews - qualitative
face-to-face
telephone
postal questionnaire
Attitude measurement – qualitative, quantitative
know/believe about an act/object
feel about an act/object
behave towards an object or act

32. Likert scale - quantitative
strongly agree
agree
neither agree nor disagree
disagree
strongly disagree
Projective techniques - qualitative
sentence completion
psychodrama (yourself as a product)
friendly martian (what someone else might do)

33. Group discussion and focus group - qual
Postal research questionnaires - qual
Diary panels - sources of continuous data - qual
In-home scanning - hand-held light pen to scan barcodes - quan
Telephone research - either
Observation - qual
home audit
direct observation
In-store testing - qual

34. American Marketing Association
What is MKIS?
“MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions”
American Marketing Association

35. The components of a computerised MKIS
Data Bank
Statistical
Bank
MKIS
Display
unit
Marketing
Manager
Model
Bank

36. The components of a computerised MKIS
Data bank - raw data e.g historical sales data, secondary data
Statistical bank - programmes to carry-out sales forecasts, spending projections
A model bank - stores marketing models e.g Ansoff’s matrix, Boston Matrix
Display unit - VDU and keyboard

37. Advantages of Market Research
focus attention on objectives
forecasting, planning and strategic development
reduce risk in new product development
Communicates image, vision, etc.
Globalization makes market information valuable

38. Disadvantages of Market Research
Information only as good as the methodology used
Can be inaccurate or unreliable
Results 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!

39. Research Trends Global Marketplace Business Management
Due to increased international competition, US companies must improve or change products frequently to hold on to customers.
Product quality and customer satisfaction are keys to business success and research that measures these qualities are the fast form of marketing research.
Business Management
Many businesses are using internal and external information to improve business operations.

40. Research Limitations Money Time
Customers saying one thing and doing another

41. Market Research