MARKETING RESEARCH TYPES, TRENDS AND LIMITATIONS Chapter 28.2

1. MARKETING RESEARCH TYPES, TRENDS AND LIMITATIONS Chapter 28.2

2. Issues in Marketing Research • By the end of class, students will be able to: • Identify the two main types of marketing research. • Differentiate betweenthe four methods of conducting marketing research. • Discuss trends and limitations in marketing research.

3. BRAIN WARMER PREDICT What would happen if marketing research was not used in product development?

4. Marketing Research Terminology • quantitative research • qualitative research • attitude research • market intelligence • media research • product research

5. Two Types of Marketing Research Two Broad Types of Research QUANTITATIVEResearch QUALITATIVE Research Quantitative Research Marketing research that answers questions that begin with “how many”or “how much.”It often gathers information from large random samples. Qualitative Research Marketing research that focuses on smaller numbers of people and tries to answer questions that begin with “why”or “how.”

6. How might a company use Marketing Research? • TACO BELL used new product development research to uncover the potential sales and market for a new version of the taco. Doritos Locos Tacos was the MOST successful product in 2012 with over 370 million sold. That’s over 1 Million Tacos daily! Doritos Locos Tacos Commercial • VW performed customer satisfaction research on its Volkswagon Beetle convertibles which sparked the idea for the following commercial: VW Convertible Commercial

7. Types of Marketing Research Attitude Research AttitudeResearch **The Gallup Poll has measured and tracked the public’s attitudes concerning virtually every political, social and economic issue of the day in more than 140 countries. • Mail surveys • Telephone interviews • Opinion polls Attitude Research Also known as opinion research; designed to obtain information on how people feel about certain products, services, companies, or ideas.

8. Types of Marketing Research Market Intelligence **Learning about competitor’s products is a key component of marketing intelligence. MarketIntelligence • Sales forecasting • Economic forecasting • Competitive products Market Intelligence Also known as market research; concerned with the size and location of a market, the competition, and segmentation within the market for a particular product.

9. Types of Marketing Research Media Research MediaResearch • Brand awareness • Advertisement recall • Brand image • Effectiveness of advertising copy • Audience size Media Research Also known as advertising research; focuses on issues of media effectiveness, selection, frequency, and ratings.

10. Types of Marketing Research Product Research ProductResearch • New product research includes concept testing • Existing product research includes questionnaires and interviews Product Research Research that centers on evaluating product design, package design, product usage, and consumer acceptance of new and existing products. **Research shows that about half of new products introduced into the marketplace fail within the first two years of their product launch.

11. Types of Marketing Research Product Research Continued ProductResearch • Stouffers performed research for 13 years before launching Lean Cuisine. They were so successful that they had $125 million in sales their first year! • Some companies are so quick to “get in the game” that they may not do their research. For example…… • New product research includes concept testing • Existing product research includes questionnaires and interviews **Research shows that about half of new products introduced into the marketplace fail within the first two years of their product launch.

12. Types of Marketing Research Qualitative & Quantitative Research AttitudeResearch MarketIntelligence MediaResearch ProductResearch • Mail surveys • Telephone interviews • Opinion polls • Sales forecasting • Economic forecasting • Competitive products • Brand awareness • Advertisement recall • Brand image • Effectiveness of advertising copy • Audience size • New product research includes concept testing • Existing product research includes questionnaires and interviews

13. Issues in Marketing Research Trends in Marketing Research • MCDONALD'S EGYPT COMMERCIAL • MCDONALD'S JAPAN COMMERCIAL • MCDONALD'S INDIA COMMERCIAL

14. International Marketing Research • Global Corporations like McDonald’s perform intensive new product development research before launching new menu items in the marketplace. • McDonald's Menu Items From Around the World

15. Issues in Marketing Research Limitations of Marketing Research The amount of information that can be gathered is limited by money and time. Favorable customer reviews do not guarantee a product’s success. Fast-changing markets may not allow time for research.

16. Chapter 28 - Marketing Research Review • MARKETING RESEARCH QUIZ Directions Read the statements about marketing research and determine whether each is true or false. Write TRUE or FALSE in the space before each statement. IF an answer is FALSE, please re-write the false statement to make it true.