Fashion Marketing Research Fme 02

7/28/2019 Fashion Marketing Research Fme 02

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FASHION

MARKETING

RESEARCH


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WHAT IS MARKETING

RESEARCH?

It is the systematic design, analysis and reporting ofdata and findings relevant to a specific marketingsituation facing the company.

Marketing research covers investigation into allaspects of the marketing of goods and services, suchas product research and development, pricingresearch, advertising research, distribution research,and all the aspects of market analysis covered by

market research. Market research, as distinct from marketing research,

refers to a specific market, investigating aspects suchas market size, market trends, competitor analysis,

and so on.


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Marketing research, or market research, is a form ofbusiness research and is generally divided into twocategories: consumer market research and business-to-business (B2B) market research, which was previously

known as industrial marketing research. Consumermarketing research studies the buying habits of individualpeople while business-to-business marketing researchinvestigates the markets for products sold by onebusiness to another.

Consumermarket research is a form of applied sociologythat concentrates on understanding the behaviours, whimsand preferences, of consumers in a market-basedeconomy, and aims to understand the effects andcomparative success of marketing campaigns.


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PURPOSE OF MARKETING

RESEARCH

Today, businesses face great risks, andcompetition is aggressive. In such a scenario, inorder to maximize opportunities, the successful

business person must make the right decisionsat the right time.

Such decisions are problematic.

An understanding of the market and the needsand wants of present and future consumers israrely based on intuition alone.

Sound market information provides the basis formarketing decisions.

Properly designed marketing research will

provide all the information required.


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THE SCOPE OF MARKETING

RESEARCH

There is no area of marketing activity to whichthe techniques of marketing research cannot beapplied. Marketing research can provide

information on, and for: 1) The size and structure of a specific market

2) Current trends

3) Consumer preferences

4) Competitors activities 5) Advertising effectiveness

6) Distribution methods

7) Pricing research


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8) Development of new products

9) Development of new advertising and

promotion strategies 10) Monitor performance following

implementation of the above strategies

The technique used in the collection ofmarketing information depends largely onthe nature of the research problem, andtherefore varies from street interviews to

sophisticated techniques.


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The role of marketing research in managerial

decision making is explained further using the

framework of the DECIDE model:

D'- Define the marketing problem E'- Enumerate the controllable and

uncontrollable decision factors

C'- Collect relevant information

I'- Identify the best alternative

D'- Develop and implement a marketing plan

E'- Evaluate the decision and the decision

process


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TYPES OF RESEARCH

There are broadly two types of research:

1) Qualitative Research It uses

techniques such as group discussions,individual depth interviews, projectileinterviews and observation. Theinformation attempts to find out the how

and why of a situation rather than howmany. Analysis can be difficult owing tothe depth and complexity of the datacollected, so it should be carried out bytrained researchers.


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This research is invaluable for basic

exploratory studies, new product

development, and creative developmentstudies.

2) Quantitative Research: It provides

information to which numbers can beapplied. It is the best known face of

marketing research, and most people

recognize its survey method.


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AN OVERVIEW OF THE

MARKETING RESEARCH PROCESS

The stages in the research process are:

1) Define the research problem and set the

research objectives 2) Design the research. This includes:

a. Data sources

b. Select the sampling method c. Select the data collection method

d. Design the data collection form

(questionnaire)


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3) Test the research design (pilot) 4) Collect the data

5) Analyze the data and interpret the results

6) Present the findings

PROBLEM DEFINITION AND SETTINGRESEARCH OBJECTIVES

Defining the research problem is the most criticalstep in the research process. Unless the problem

is accurately defined, the information collected willbe of little or no use. What is the problem? Whatdo we want to find out to try to solve the problem?The preliminary planning has implications for thedesign of the research, and the quality of theinformation collected.


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MARKET RESEARCH

CHARACTERISTICS

Marketing research is SYSTEMATIC. Thus systematicplanning is required at all the stages of the marketingresearch process. The procedures followed at each stageare methodologically sound, well documented, and, as

much as possible, planned in advance. Marketingresearch uses the scientific method in that data arecollected and analyzed to test prior notions or hypotheses.

Marketing research is OBJECTIVE It attempts to provideaccurate information that reflects a true state of affairs. Itshould be conducted impartially. While research is alwaysinfluenced by the researcher's research philosophy, itshould be free from the personal or political biases of theresearcher or the management.


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Marketing research involves theIDENTIFICATION, COLLECTION, ANALYSIS,andDISSEMINATIONof INFORMATION. Eachphase of this process is important. We identify

or define the marketing research problem oropportunity and then determine what informationis needed to investigate it., and inferences aredrawn. Finally, the findings, implications andrecommendations are provided in a format that

allows the information to be used formanagement decision making and to be actedupon directly. It should be emphasized thatmarketing research is conducted to assistmanagement in decision making and is not: ameans or an end in itself.


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OTHER FORMS OF

BUSINESS RESEARCH

Product research - This looks at what products can beproduced with available technology, and what newproduct innovations near-future technology can develop.

Advertising research - is a specialized form of marketingresearch conducted to improve the efficacy of advertising.

Copy testing, also known as "pre-testing," is a form ofcustomized research that predicts in-market performanceof an ad before it airs, by analyzing audience levels ofattention, brand linkage, motivation, entertainment, andcommunication, as well as breaking down the ads flow ofattention and flow of emotion.

Pre-testing is also used on ads still in rough form.


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MARKET RESEARCH

SERVICES

Standardized services are research studies

conducted for different client firms but in a

standard way. For example, procedures for

measuring advertising effectiveness have beenstandardized so that the results can be

compared across studies and evaluative norms

can be established.

Customized services offer a wide variety ofmarketing research services customized to suit

a client's specific needs. Each marketing

research project is treated uniquely.


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Limited-service suppliers specialize in one or afew phases of the marketing research project.Services offered by such suppliers are classifiedas field services, coding and data entry, dataanalysis, analytical services, and brandedproducts. Field services collect data throughmail, personal, or telephone interviewing, and

firms that specialize in interviewing are calledfield service organizations. These organizationsmay range from small proprietary organizationswhich operate locally to large multinational

organizations


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Coding and data entry services include editingcompleted questionnaires, developing a codingscheme, and transcribing the data on to diskettesor magnetic tapes for input into the computer.

Analytical services include designing andpretesting questionnaires, determining the bestmeans of collecting data, designing samplingplans, and other aspects of the research design.Some complex marketing research projectsrequire knowledge of sophisticated procedures,including specialized experimental designs, and

analytical techniques.


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Data analysis services are offered by

firms, also known as tab houses that

specialize in computer analysis ofquantitative data such as those obtained in

large surveys. With the proliferation of

software, many firms now have thecapability to analyze their own data, but,

data analysis firms are still in demand.


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Branded marketing research products

and services are specialized data collectionand analysis procedures developed to

address specific types of marketing

research problems. These procedures are

patented, given brand names, and

marketed like any other branded product.


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BUSINESS TO BUSINESS

MARKET RESEARCH

Business to business (B2B) research is inevitably morecomplicated than consumer research.

The researchers need to know what type of multi-faceted approach will answer the objectives, since

seldom is it possible to find the answers using just onemethod.

Finding the right respondents is crucial in B2B researchsince they are often busy, and may not want toparticipate.

Encouraging them to open up is yet another skillrequired of the B2B researcher.

Most business research leads to strategic decisions andthis means that the business researcher must haveexpertise in developing strategies that are strongly rootedin the research findings and acceptable to the client.


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There are four key factors that make B2Bmarket research special and different toconsumer markets:

The decision making unit is far more complex inB2B markets than in consumer markets

B2B products and their applications are morecomplex than consumer products

B2B marketers address a much smaller numberof customers who are very much larger in theirconsumption of products than is the case inconsumer markets

Personal relationships are of critical importance

in B2B markets.


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RESEARCH DESIGN

There are three types of research design:

1) Exploratory Research This is most

useful in the early stages of research,especially if the researcher is not familiar

with the subject area.

Wide range of sources have to be lookedfor.

Aim is to uncover any variables and

investigation of environment.


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Descriptive Research Description of

the variables uncovered by the exploratory

stage. This could be used to investigate the

market share of a companys products or

the demographic characteristics of thetarget market (age, gender, income, etc.).

Data is usually obtained from second hand

sources or from surveys.


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Causal Research it is used

to determine the relationship

between variables, e.g. the

relationship between

advertising and repeatpurchases.


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DATA SOURCES

Primary Sources These consists ofinformation collected specifically for the

current research project. The collection of more up to date

information than is available fromsecondary sources.

Sources of information may includeconsumers, designers, buyers,manufacturers, retailers and so on,

depending upon the research problem.


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Secondary Sources These provide with a

starting point for data collection.

The research problem may be solved wholly orin part by using secondary data.

This reduces the cost as secondary data are

cheaper, and their sources usually more

accessible than is true of primary data.

Keeping the objectives of the research in mind

will help to ensure that time is spent efficiently

as a lot of data is available for the same.


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SECONDARY DATA

SOURCES

1) Internal Sources Information generated within acompany e.g. from accounts departments, sales figures,customer care, company reports, etc.

2) External Sources Information generated outside thecompany.

a) Government statistics Census data, familyexpenditure surveys, trade and manufacturing trends.

b) Trade information Trade press such as industrymagazines, trade surveys, competitors reports.

c) Financial institutions Many major banks publishreports on regional and national industries.

d) Commercial research Many market research

companies undertake continuous research.


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Primary Sources

PRACTICAL SAMPLING METHODS

Sampling involves selecting a smaller number ofpeople from the larger survey populations,whose characteristics and behavior are relevantto the larger group.

Deciding the sample size: - cost, time staff

availability, level of accuracy required, datacollection method, and location of thepopulation.

Sample size must be large enough to provide

accurate results, without being so large toincrease cost.


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Choice of Sampling Method

Two main methods:

1. Probability Methods they are the

best type of method. Sample frame isused e.g. telephone directory, etc.

3 types of probability methods:

A. Simple random method using thelottery method.


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B. systematic random sampling

division of population by sample size

n= 3000/ 50 = 60. If the sample size is 50, and the

population size is 3000.

If the random number picked is 35 asfirst item, then every 60th number

would be selected till the sample size

reaches 50.


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C. Stratified random sampling is

used when different groups inpopulation have different

characteristics. Then the population is

divided into similar groups and the

sample no. is either equal or unequal

as per requirement.


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2. Non probability methods do not

require sampling frame and judgment

element is required.

A. convenience sampling items that

are close and readily available.

B. judgment sampling representative

of the survey population.

C. quota sampling population id

divided into strata and elements are

chosen.


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Primary Data Collection

Methods

1. Observation occasions where one has

to just observe rather than interview or else.

2. Focus Groups is a form of qualitative

research (group discussion).

3. Experimentation difference is responses

is observed.

4. Surveys the results of the surveys are

extrapolated to the population as a whole.


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Data Collection Methods

1. Personal Interview

2. Telephone Interview

Mail (postal) questionnaire

Questionnaires -

- Preliminary Decisions

- Question Content

- Question Wording


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4. Response Format

- Dichotomous two possible

responses yes/no.

- Multiple Choices Several probable

answers are presented.

- Open end questions- freedom ofchoice in the response given.


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5. Question sequence organize the

questions. 6. Questionnaire layout clarity is the

aim.

7. Pre testing (pilot) and revision tested on the respondents.


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Role of marketing research in new

product development:

- creation of a customer profile

- preparing a profile of competitors

- preparation of market strategy report

- the merchandise plan


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Forecasting Fashion

- analyze the past and present consumer

- primary data collection techniques - secondary research data sources

- Focus groups of experts

- Soft wares to help in forecasting - Style testing

- Test marketing new styles, colors or

silhouettes.


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Thanks

Documents

Fashion Marketing Research Fme 02