Marketing Research

1. Marketing Research

2. Marketing Research • the systematic collection, analysis, and interpretation of information to develop a market strategy or solve a marketing problem. BMI3C Unit 4

3. Marketing Research • Why? Marketing research firms provide businesses with professional researchers to make marketing more successful. BMI3C Unit 4

4. Marketing Research • Two types of information used in market research: • primary data • secondary data BMI3C Unit 4

5. Gathering Secondary Data • Secondary data: information that has already been collected and published by others. • Secondary research: finding this information, and then analyzing it for a new purpose. BMI3C Unit 4

6. Gathering Secondary Data • PROS • information is already gathered • takes less time • less expensive • can be done with small firms (without hiring marketing firm) BMI3C Unit 4

7. Gathering Secondary Data • CONS • information is “second-hand” • may not be suitable for what you are researching • may be difficult to “reinterpret” BMI3C Unit 4

8. Gathering Secondary Data • SOURCES • books, periodicals, indexes, databases, the internet, consultants, marketing research professionals • Statistics Canada BMI3C Unit 4

9. Gathering Secondary Data Assignment

10. Gathering Secondary Data • Choose a city in Canada starting with the same letter as your first or last name. • Find four pieces of information about that city a marketer may use to promote it. • Give list to teacher. BMI3C Unit 4

11. Doyle Research Associates • Please make sure to cleanse your palette between samples! • Answer all questions as truthfully as possible. Do not consult with those around you. • Thank you for your participation! BMI3C Unit 4

13. Gathering Primary Data • Primary data: information newly collected by a researcher for a specific purpose. • Two general types: BMI3C Unit 4

14. Gathering Primary Data • Qualitative Research • used to gather people’s reactions and responses • blind taste tests, opinion polls BMI3C Unit 4

15. Gathering Primary Data • Quantitative Research • data is collected by surveying a sample of the target-market • researchers use the results to predict opinions of entire market BMI3C Unit 4

16. Gathering Primary Data • Researchers collect information using various techniques: • test marketing • internal information sources • surveys • observation • focus-group interviews BMI3C Unit 4

17. Gathering Primary Data • Test Marketing • test markets are sites that mirror the demographic composition of total market; eg. Peterborough, ON BMI3C Unit 4

18. Gathering Primary Data • Test Marketing • used for packaged goods • used for movies: private screenings, sneak previews BMI3C Unit 4

19. Gathering Primary Data • Test Marketing • done in different ways: • product placed in store, monitor sales • change a factor in one store → are sales impacted? BMI3C Unit 4

20. Gathering Primary Data • Test Marketing • location is kept secret so consumers don’t act differently. If people know something is being tested, they may skew the results. BMI3C Unit 4

21. Gathering Primary Data • Test Marketing • expensive, and can give inaccurate results • competitors who know you are conducting a test may try to sabotage process BMI3C Unit 4

22. Gathering Primary Data • Internal Information Sources • This is usually where marketing research begins. BMI3C Unit 4

23. Gathering Primary Data • Internal Information Sources • inventory and sales records: popularity of product, fluctuations in sales ($ and #), stock turnover BMI3C Unit 4

24. Gathering Primary Data • Internal Information Sources • advertising and promotional records: effectiveness of ads, coupons, contests, product sample offers BMI3C Unit 4

25. Gathering Primary Data • Internal Information Sources • production records: peak ordering periods, downtimes, to help schedule marketing and advertising plans BMI3C Unit 4

26. Gathering Primary Data • Internal Information Sources • customer databases • track purchasing patterns • target specific promos to frequent customers BMI3C Unit 4

27. Gathering Primary Data • Internal Information Sources • client cards and reward programs require personal information (gender, age, income, etc.) • card usage is tracked BMI3C Unit 4

28. Gathering Primary Data • Internal Information Sources • data mining looks for hidden connections between personal information and purchasing behaviour BMI3C Unit 4

29. The Market Research Project Big Assignment

30. Gathering Primary Data • Surveys • A survey is a set of carefully planned questions used to gather data. These can be completed in writing or orally, in person, on the phone, through the mail, or on the internet. BMI3C Unit 4

31. Gathering Primary Data • Surveys • Most surveys use closed-ended questions, which ask you to select an answer from two or more choices. • quick and simple to answer • easy to sort and analyze BMI3C Unit 4

32. Gathering Primary Data • Surveys • Usually yes/no, multiple choice, agree/ disagree, rate on a scale types of questions. BMI3C Unit 4

33. Gathering Primary Data • Surveys • Sample closed-ended questions • I would buy this brand again • agree uncertain disagree BMI3C Unit 4

34. Gathering Primary Data • Surveys • Sample closed-ended questions • Are you a smoker? • q yes q no BMI3C Unit 4

35. Gathering Primary Data • Surveys • Sample closed-ended questions • Which brand names have you purchased in the last year? • q Dove q Irish Spring q Ivory • q Jergens q Lever 2000 q Other BMI3C Unit 4

36. Gathering Primary Data • Surveys • Sample closed-ended questions • Rate our service using the following scale • poor excellent • Clean 1 2 3 4 5 • Friendly staff 1 2 3 4 5 • Value 1 2 3 4 5 BMI3C Unit 4

37. Gathering Primary Data • Surveys • Sample closed-ended questions • What do you look for when you shop for a DVD player? • q simple remote q ease of use • q plays MP3/JPG q brand name • q multi-disc q warranty BMI3C Unit 4

38. Gathering Primary Data • Surveys • When researchers conduct surveys they collect from a random sample of their target market population, giving each member an equal chance of being selected. BMI3C Unit 4

39. Gathering Primary Data • Surveys • If a sample does not accurately represent the target market, then the results may be misleading; the sample is said to be biased. BMI3C Unit 4

40. Gathering Primary Data • Surveys • If the survey sample is truly random, then the results could be projected onto the entire market. • see figure 4.17, page 140 BMI3C Unit 4

41. Problem Survey Questions

42. Gathering Primary Data • Problem Survey Questions • Have you ever been caught surfing to inappropriate sites at work? • Leading question BMI3C Unit 4

43. Gathering Primary Data • Problem Survey Questions • How much time do you spend watching TV and doing housework? • Two questions in one BMI3C Unit 4

44. Gathering Primary Data • Problem Survey Questions • Select your annual salary level. • q 20,000-40,000 q 40,000-60,000 • q 60,000-80,000 q 80,000- • Nonmutually exclusive answers BMI3C Unit 4

45. Gathering Primary Data • Problem Survey Questions • When was the first time you saw a commercial for our product? • Unanswerable question BMI3C Unit 4

46. Gathering Primary Data • Problem Survey Questions • Why is our product better than our competitor’s? • Leading question BMI3C Unit 4

47. Gathering Primary Data • Problem Survey Questions • How much do you pay for entertainment? • Ambiguous question BMI3C Unit 4

48. Gathering Primary Data • Problem Survey Questions • How much do you pay for entertainment weekly? • q $5 q $10 q $15 q $20 • Nonexhaustive question BMI3C Unit 4

49. Gathering Primary Data • Problem Survey Questions • How much do you pay for entertainment and groceries weekly? • q $5 q $10 q $15 q $20 • Two questions in one BMI3C Unit 4

50. Gathering Primary Data • Problem Survey Questions • How much do you think the average customer spends monthly on clothing? • Unanswerable question BMI3C Unit 4