1. Market research in Business
Unit 10

2. Market research is… 1 a b 2 3

3. “It ain’t the things we don’t know that gets us in trouble
“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”
Artemus Ward

4. Unit 10 Market research in Business
Market research enables a business to find out information about its market, its customers and aspects of the business environment such as what competitors are doing.
Businesses also use it to find out about customer views on current marketing campaigns.

5. Learning outcomes After completing this unit, you should:
understand the main types of market research used to make marketing decisions
be able to plan research
be able to carry out research
be able to interpret research findings

6. How you will be assessed
For this unit you are expected to carry out some market research of your own. You will then need to produce a market research report setting out your findings. An oral presentation coupled with a clear written report will be an effective way of doing this.

7. Because Marketing Research is part of Marketing we should understand:
What is marketing?
What is the marketing concept?
What is marketing strategy?
Ch 1

8. managing customer relationships benefit the organization
What is Marketing?
Marketing has been defined by the AMA as
an organizational function
and
a set of processes for
creating
communicating and
delivering value to customers
and for
managing customer relationships
in ways that
benefit the organization
its stakeholders.
Ch 1

9. What is the Marketing Concept?
The Marketing Concept is a business philosophy that holds that the key to achieving organizational goals consists of the company’s being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.
Ch 1

10. What is Marketing Strategy?
A Marketing Strategy consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.
Ch 1

11. Learning by Doing: Let’s Apply Marketing to a Restaurant
Target market segment?
Marketing strategy
Location?
Menu?
Prices?
Type?
Advertising?

12. Restaurant Marketing Decisions
What if you owned a restaurant located in Manchester near the college?
What would be your marketing strategy?
How certain are you that you made the right decisions?
Ch 1

13. Restaurant Marketing Decisions
What if the restaurant was located near a university in a foreign country like China, Thailand, Italy, Iceland, or Peru?
What would be your decisions?
How certain are you that you made the right decisions now?
So, what’s going on? Class comments?
Ch 1

14. Key Point
To practice marketing; to implement the marketing concepts; to implement marketing strategy, managers must make decisions.
Many decisions require additional information and marketing research is needed in order to supply that information.
Ch 1

15. We need Marketing Research to:
Make the “right” decisions to
Implement marketing
Practice the marketing concept and
Make the right decisions to select the right marketing strategy
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16. What is Marketing Research? (Burns and Bush Definition)
Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
Ch 1

17. Marketing Research Defined
The systematic and objective process of generating information for aid in making marketing decisions

18. What is Marketing Research? AMA definition
Marketing research: the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.
Ch 1

19. Redefining Marketing Research
Used to identify and define market opportunities and problems
Information
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding of marketing as a process

20. A Classification of Marketing Research
Fig 1.1
Marketing Research
Problem
Identification Research
Problem Solving Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research

21. Market Research vs. Marketing Research
Market research: the “systematic gathering, recording, and analyzing of data with respect to a particular market, where ‘market’ refers to a specific group in a specific geographic area.”
Ch 1

22. What is the purpose of market research?
What is market research?
Why do companies carry out market research?
How do companies carry out market research?

24. Determining When to Conduct Marketing Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Is sufficient
time
available?
Information
already on
hand
inadequate?
Is the
decision of
strategic
or tactical
importance?
Does the
information
value
exceed the
research cost?
Conduct
Marketing
Research
Yes
Yes
Yes
Yes No No No No
Do Not Conduct Marketing Research

25. Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs
Research expenditures
Delay of marketing decision and possible disclosure of information to rivals
Possible erroneous research results
Decreased uncertainty
Increased likelihood of correct decision
Improved marketing performance and resulting higher profits
Costs
Value

26. IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!
ALWAYS Remember
Marketing Research is a tool.
It assists marketing managers in their decision making.
IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!

27. Marketing Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation

28. The Role of Marketing Research
Fig 1.2
Customer Groups
Employees
Shareholders
Suppliers
Consumers
Uncontrollable
Environmental
Factors
Economy
Technology
Laws & Regulations
Social & Cultural Factors
Political Factors
Controllable
Marketing
Product
Pricing
Promotion
Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Needs
Marketing Managers
Market Segmentation
Performance & Control
Target Market Selection
Marketing Programs

29. 1. Understand the main types of market research used to make marketing decisions
Market research can be defined as the systematic gathering, recording and analysis of data about problems relating to the marketing of goods and services.
This can be broken down as follows:
systematic
carried out in a careful and organised way
gathering and recording of data
collection of data and setting this down in writing or (more likely) in computer records
analysing the data
identifying patterns and trends
problems relating to marketing
these include what price to charge, how best to advertise the goods and services, where to sell them from and so on

30. A simpler definition of market research that is easy to remember is:
‘Keeping those who provide goods and services in touch with the requirements of those who buy them’
There are two main methods that be used for market research:
primary research
collecting new information
secondary research
using research that is already published.

31. Observing behaviour

32. Primary research methods
Information that an organisation collects from its own research efforts is termed ‘primary’.
This involves the collection of new information for a specific purpose.
In groups find 4 different types of primary research
What are they?
What are they used for?
What are the advantages of using the research method?
What are the disadvantages?
Give an example of when a business could use them
What marketing objective could they help to meet

33. Primary research methods
Join with another team, discuss your findings
You should have 6 different methods in your team
The groups should now present back their methods until each method has been covered

34. Primary research methods
observation
experimentation
surveys
face-to-face
postal
telephone
e-marketing research
focus groups
panels
field trials
piloting

36. Primary data
You have been approached by a company who think that they could open a successful business providing food, drink and social space for students near The Manchester College
In pairs pick 3 forms of Primary Data collection and decide;
How you are going to collect relevant data
What will you be asking
What do you expect to find from your data
What are the benefits of the methods you have chosen
What are the drawbacks / limitations of the methods
You should design and carry out 2 of your methods
The AIM of the research is to find out:
Should you open this business?
What will the business be like? Price, Products, Place, Promotions, People, Physical evidence, Processes