Marketing Research

1. Marketing Research 4.04

2. Marketing Information Management • How are decisions made to introduce new products and delete old ones?

3. 4.04 Vocabulary • Open-ended Questions • Point-of-sale Research • Primary Data • Problem Definition • Product Research • Quantitative Research • Qualitative Research • Reliability • Sample • Secondary Data • Survey Method • Validity • Attitude Research • Data Analysis • Database Marketing • Database • Experimental Method • Forced-choice Questions • Market Intelligence • Marketing Research • Marketing Information System • Media Research • Observation Method

4. 4.04 EssentialQuestion • How does marketing information and research affect business and marketing decisions?

5. Essential Question 1 Marketing Research • What is the role of marketing information management?

6. What is Marketing Research? • Obtaining information about the preferences, opinions, habits, trends, and plans of potential customers. • Helps to determine what customers want and need.

7. Marketing Research ‘the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’ American Marketing Association

8. Why is Research Important? • Businesses that do not pay attention to what consumers are buying, are likely to make costly mistakes. • Information obtained from research helps businesses to plan for the future.

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

10. Purpose

11. Essential Question 2 Marketing Research • How does each type of research differ from each other?

12. Types of Marketing Research Advertising Research • Focuses on the effectiveness of the advertising message and the effectiveness of media placement.

13. Types of Marketing Research Product Research • Used to evaluate product design and acceptance, competitive products, package design, and product usage.

14. Types of Marketing Research Market Research • Studies customer behavior (customer analysis) to gather information about customer attitudes.

15. Types of Marketing Research Market Research • Studies the behavior of a consumer market (market analysis) to investigate the potential markets for a product and to define the target market.

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

17. Essential Question 3 Marketing Research • What are the steps in the marketing research process?

18. The Marketing Research Process Step 1 - Defining 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.

19. The Marketing Research Process Step 2 - Obtaining Data • Collect and examine information in terms of the problem being studied. • Primary data can be used and/or • Secondary data can be used.

20. The Marketing Research Process Step 3 - Analyzing the Data • Compiling, analyzing, and interpreting the results of primary and secondary data. • The results of each question can be clearly read and interpreted.

21. The Marketing Research Process Step 4 - Recommending Solutions to the Problem. • Solutions are usually presented in a well written report. • Recommendations must be clear and supported by the research data.

22. The Marketing Research Process Step 5 - Applying the Results • The required form of action is decided upon and put into place.

23. 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

24. Essential Question 4 Marketing Research • What are the differences in primary and secondary data?

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

26. Primary Research

27. Market Research • Primary Research • First hand information • Expensive to collect, analyse and evaluate • Can be highly focussed 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 analyse

28. Secondary Research

29. Internal Sources • Company Accounts • Internal Reports and Analysis • Stock Analysis • Retail data - loyalty cards, till data, etc.

30. 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.

31. Essential Question 5 Marketing Research • What methods are used to collect primary and secondary data?

32. Data Collection • Primary data can be obtained by: - the survey method - the observation method - the experimental method • Secondary data can be obtained by a number of agencies. - Internet Sources - US and Government Sources - Specialized Research Companies - Business Publications and Trade Organizations

33. Essential Question 6 Marketing Research • How are population, sample, bias, and error used in marketing research?

34. 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.

35. Sampling Methods

36. Market Research • Sampling Methods: • 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

37. Market Research • Stratified or Segment Random Sampling • Samples on the basis of a representative strata or segment • Still random but more focussed • May give more relevant information • May be more cost effective

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

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

40. Terminology of Marketing Research • Quantitative research - statistical basis • Qualitative research - subjective and personal

41. Market Research • Quantitative and Qualitative Information: • Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how • Qualitative – more detail – tells you why, when and how!

42. Essential Question 7 Marketing Research • What are techniques are used in marketing research?

43. Marketing Research Techniques • Interviews • face-to-face • telephone • postal questionnaire • Attitude measurement • cognitive component (know/believe about an act/object) • affective component (feel about an act/object) • conative component (behave towards an object or act)

44. Likert scale • strongly agree • agree • neither agree nor disagree • disagree • strongly disagree • Semantic differential scales - differences between words e.g. practical v impractical • Projective techniques • sentence completion • psychodrama (yourself as a product) • friendly martian (what someone else might do)

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

46. 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

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

48. 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

49. Essential Question 8 Marketing Research • What are the advantages & disadvantages of marketing research?

50. Market Research • Advantages of Market Research • Helps focus attention on objectives • Aids forecasting, planning and strategic development • May help to reduce risk of new product development • Communicates image, vision, etc. • Globalisation makes market information valuable (HSBC adverts!!)