Marketing Research

1. Marketing Research 4.04

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

3. Purpose

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

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

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

7. 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.

8. 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.

9. Marketing Research Process 5 Steps

10. 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.

11. 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.

12. 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.

13. 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.

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

15. Primary Research

16. 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

17. Secondary Research

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

19. 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.

20. Sampling Methods

21. 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.

22. 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

23. Sampling Methods • 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

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

25. Sampling Methods • 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!

26. Terminology of Marketing Research • Quantitative Research - statistical basis • based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how

27. Market Research • Qualitative Research- subjective and personal • more detail – Does not tell you how much!

28. 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

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

30. 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.gAnsoff’s matrix, Boston Matrix • Display unit - VDU and keyboard

31. Market Research