Market Research

1. Market Research The gathering of information to make marketing decisions.

2. Market ResearchSimple Complex

3. Marketing Research Process • Much valuable marketing research is performed in an informal way. Angry phone calls from customers! Talking to customers in the store

4. Types of Data • Data is divided into two categories: primary data and secondary data.

5. Primary Data • Data that's tailored to a company's particular needs. • By customizing tried-and-true approaches — focus groups, surveys, field tests, interviews or observation — you can gain information about your target market. • More specific results than secondary data • Professional primary research can be pricey!

6. Collecting Primary DataThe Four Methods

7. Observation • The researcher watches customers and records their behavior. • Another form of observation used by many service companies is the secret shopper (or mystery shopper). This is a person hired by the company to visit its place of business and observe the quality of service.

8. Interview • A formal meeting between two or more people, during which questions are asked of one person. • In marketing, interviews are used to gain insight into customers’ thoughts, opinions, and reactions to products. • A focus group is a small group of people who discuss topics of interest to a researcher. The researcher observes and collects information as the members of the focus group exchange ideas.

9. Survey • An organized study in which a researcher asks questions of a number of people. • A survey can be conducted in person, over the phone, by mail, or over the internet. • The series of questions is called a questionnaire. The questions should be fair and unbiased.

10. Who should you survey? • The idea behind a survey is to ask a small sample of people, who represent a larger group of people. • Asking EVERYONE would be too expensive and time consuming! • Many national surveys use 1,000 people to get useful information about national attitudes and opinions.

11. Experiment • The researcher sets up an actual experiment and compares the results. • Taste tests are common experiments. • Often researchers use a combination of observation, survey, and experiment to get the most valid data to make decisions.

12. Secondary Data • Based on information taken from studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations. • This includes Census Bureau information and Nielsen ratings. • Although secondary research is less expensive than primary research, it's not as accurate, or as useful, as specific and customized research.

13. Sources of Secondary Data

14. Private Databases • Marketing research firms collect information in order to sell it to outside parties. • An industry publication is a magazine or newsletter that focuses on a specific industry. • Gathers and publishes market information • A trade association is an organization of people in a specific type of business. • Sometimes provides free information published in journals

15. Trend Research • One of the major goals of marketing research is to spot business opportunities. • One way to do this is to look for new trends. • In marketing, a TREND is a direction of movement of consumer behavior. • Successful businesses recognize trends early and develop products to meet new needs.

16. Types of Trends

17. Is Marketing Research Always Right? • The market is constantly changing • Customers are always changing their minds • Surveys can be biased • Incorrect representation of target market • People did not respond truthfully • Different methods of data collection can yield different results