Dr Mairead Brady, School of Business, Trinity College Dublin

March 2008

SETTING OUT TO MARKET

What is Market Research?Market research is the process of

systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its can help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which segment of the population will purchase a product/service, based on variables like age, gender, location, income level and lifestyle.

Questions that need to be answered

What is happening in the market? What are the trends? Who are the competitors?

How do consumers or businesses talk about the services or products in the market?

Which needs are important? Are the needs being met by current products or services?

Is there a gap in the market and a market in the gap?

Market Research

Marketing is becoming a battle based more on information than on sales power.

Marketing decisions draw on Marketing Research: STP

Segmentation Decisions Which segment should

we target? What benefits are most

important to each segment?

Which geographic area should we enter?

What is the profile of our target market

Age and Lifestyle:

Geographic

Gender Segmentation

CASUAL DAY/CASUAL DAY/

NIGHT WEARNIGHT WEAR

HIGH HIGH

PERFORMANCE PERFORMANCE

FOOTWEARFOOTWEAR

BASIC STYLEBASIC STYLE

normnorm

normnorm

FASHIONABLEFASHIONABLE STYLESTYLE

Positioning Contradiction - NIKE

contradictioncontradiction

contradictioncontradiction

Trendy authentic Trendy authentic sportswearsportswear

Brand Strength - Matrix

High Head

HighHeart

LowHeart

Low Head

Combining Marketing Research and the Marketing Information System

Marketing Information System (MIS)

10 useful questions for determining the information needs of marketing managers.

What decisions do you regularly make?

What information do you need to make these decisions?

What information do you regularly get?

What special studies do you periodically request?

The Components of a Modern Marketing Information System

The Components of a Modern Marketing Information System

What information would you want that you are not getting now?

What information would you want daily? Weekly? Monthly? Yearly?

What magazines and trade reports would you like to see on a regular basis?

What topics would you like to be kept informed of?

What data analysis programs would you want? What are the four most helpful improvements

that could be made in the present marketing information system?

Forecasting and Market Demand Measurement

Ninety Types of Demand Measurement (6X5X3)

Which Market to Measure? Market Potential market Available market Target market (severed market) Penetrated market

A Vocabulary for Demand Measurement Market Demand

Market share Market penetration index Share penetration index

Forecasting and Demand Measurement

Forecasting and Demand Measurement

Forecasting and Demand Measurement

Market Forecast Market Potential

Product penetration percentage

Company Demand Company Sales

Forecast Sales quota Sales budget

Company Sales Potential

Forecasting and Demand Measurement

Estimating Current demand Total Market Potential Area Market Potential

Market-Buildup Method Industry Sales and Market Shares

Estimating Future Demand Survey of Buyers’ Intentions

Forecasting Purchase probability scale

Forecasting and Demand Measurement

Composite of Sales Force Opinions

Expert Opinion Group discussion method Pooling of individual

estimates Past-Sales Analysis

Time-series analysis Exponential smoothing Statistical demand analysis Econometric analysis

Market-Test Method

Quantitative and Qualitative Data Collection and Analysis

The Market Research Process

Advances in Data Collection Techniques

Quantitative and Qualitative Techniques

Forecasting and Market Demand Measurement

‘The art of prophecy is very difficult especially with respect to the

future’ (Mark Twain, 1835-1910)

The Marketing Research Process

The Research Process Scanning, Risk Assessment and MonitoringPrimary data - gathered directly from people you are interested inSecondary data - data published for its own reasons which is secondary to your

purpose Exploratory, descriptive and causal Validity and Reliability

Secondary-Data Sources

Secondary-Data Sources

A. Internal Sources Company profit-loss statements, balance sheets,

sales figures, sales-call reports, invoices, inventory records, and prior research reports.

B. Government Publications• Statistical Abstract of the United States• County and City Data Book• Industrial Outlook• Marketing Information GuideC. Periodicals and Books• Business Periodicals Index• Standard and Poor’s Industry

Qualitative versus Quantitative Research

Comparative Dimension Qualitative Research Quantitative Research

Types of questions Probing Limited probing

Sample size Small Large

Information per respondent Substantial Varies

Administration requirements Special skills Fewer special skills needed

Type of Analysis Subjective Statistical

Hardware Tape recorders,video, pictures

Questionnaires, computers,printouts

Ability to replicate Low HighTraining the researcher Psychology,sociology

marketing, consumer behavior

Statistics, decision models, marketing research

Type of research Exploratory Descriptive or casual

Key Aspects of Exploratory Research Techniques

Exploratory Technique

Focus Groups Individual Interviews Observation

Understand FunctionalAspects of

Consumption

Understand SymbolicAspects of

Consumption

Accurate Descriptionof What People Actually

Do - Not What They Think They Do

Qualitative Techniques – The Customer

Observation Experimental Research Eye Cameras Mystery Shopping DiariesPersonal interviews/Focus GroupsOnline/Video links

Projective techniques Critical Incident Analysis Cognitive mapping

The Popularity of Focus Groups

About 25 percent of all research expenditures is spent on focus groups.

Conducting Focus Groups

Preparing for a Focus Group

The Setting: focus group facility often in a conference style room

Recruiting Participants: mall intercept, telephone

To gain insight into conducting and analyzing a focus group.

The Growing Role of Focus Groups

Developing a Discussion Guide

•An outline of the topics to be covered

•Three stages:• Rapport is established• Provoke intense discussion• Summarize significant conclusions

Preparing a Focus Group Report

The Growing Role of Focus Groups

Depth Interviews --mainly used in exploratory research

Unstructured(both questions and answers) one-on-one interview with key respondents.

*Expensive

*No group pressure and no interaction

*more time and attention for the respondent

*respondent can be probed at length

*Needs a good interviewer

Other Qualitative Methodologies

Individual Depth Interviews

Project beliefs or feelings onto a third party, to an inanimate object, or to a task situation

word association sentence completion third-person role-playing thematic apperception test pictorial symbols

Common types of projective techniques

Quantitative – Contact/Survey Methods

Addressing the questions of why people behave the way they do

Personal interviews and focus groups

Telephone interviews Mail, email and fax surveys Online and Internet surveys

Marketing Research System

Contact Methods Mail questionnaire Personal interviewing

Arranged interviews Intercept interviews Online methods

Click-stream Cookies Automated

telephone surveys

Personal interviews

Flexible Misunderstandings

noted and clarified Costly Interviewer bias High response

rate?

Low response rate Misunderstandings Bias Geographical

coverage Less expensive Factual details Fast and

inexpensive

Telephone interviews

Online Surveys

www.surveymonkey.com Fast with lowner costs but …. Demographics of target market Novelty and ease of answering Bias Cyber environment - authenticity Hits and webs tracking Dialogue with customers, interactive

discussions and learning from customers Virtual product testing

Syndicated Research - Market Research Companies

An organisation that regularly provides a standardised set of data to customers is called a syndicated service

http://www.gallup.comhttp://www.teleport.com/~tbchad/stats1.htmlOnline Surveys http://www.survey.net

The Future: Neuro Marketing

MRI Scanning Inside the mind The Buy Button….. Interactive TV – Tracking, Monitoring and Scanning

Setting out to Market

The Voice of the Customer….speak loudly and clearly…….

Hire a professional….. You are basing your whole

business on this…..