Full Edit Marketin Research

7/31/2019 Full Edit Marketin Research

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MARKETINGRESEARCH

4

Introduction to

Marketing


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SESSION OVERVIEW

How do companies gain an insight intotheir customers and markets?

What techniques of market research areappropriate?

How is data collected and managed?

How does good information reduce risksfor a company?


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Defining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer

throughINFORMATION


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Used to identify and

define market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Redefining Marketing Research


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THE NATURE AND IMPORTANCE OF

MARKETING RESEARCH

It is essentially about KEEPING IN TOUCH with themarketing environment

Many companies have created a CID - ConsumerInsight Department

Information is a source of competitive advantage


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Classification of Marketing Research

Problem-Identification Research

Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist or

are likely to arise in the future. Examples: market

potential, market share, image, market characteristics,sales analysis, forecasting, and trends research.

Problem-Solving Research

Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing,

promotion, and distribution research.


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Problem-Solving

Research

Determine the basis of

segmentation

Establish market potential andresponsiveness for various

segments

Select target markets

Create lifestyle profiles:

demography, media, and

product image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control score tests

PRODUCT RESEARCH


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Problem-SolvingResearch :

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes$ALE

PROMOTIONAL

RESEARCH Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising

effectiveness

Claim substantiation

0.00%APR


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Problem-Solving Research

DISTRIBUTION RESEARCH

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale

coverage

Channel marginsLocation of retail and wholesale outlets


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HOW DO YOU REALLY LEARN ABOUT

CONSUMERS?How does amarket researcher

categorise this

person?How do they

understand the

complexity of their

buying decisions?


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MARKET RESEARCH v MARKETING

RESEARCHTerminology often confused

Market Research refers to analysis of

markets

Marketing Research refers to analysis of

allof a companys marketing functions


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MAJOR USES OF MARKETING

RESEARCH Research into Customer Needs and Expectations

Customer Surveys

Customer Panels Similar Industry Studies

Key Client Studies

Research into Intermediaries

Employee Research


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THE MARKETING RESEARCH

PROCESSTo be useful, research must be accurate and

reliable

Similar to other scientific research processes


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PRIMARY RESEARCH

Key issues:

Research objectives

Sampling basisData collection methods

observation based

survey (interaction) based

Timing of research


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SOURCES OF SECONDARY

RESEARCH

Government departments and officialpublications e.g. General Household Survey

National media e.g. Financial Times country surveys Professional and trade associations

Trade, technical and professional media

Local chambers of trade and commerce

Year-books and directories, e.g. Dataquest

Companies' Annual Reports and Accounts Subscription services, e.g. Keynote, MEAL, Mintel etc.

Subscription electronic databases, e.g. Mintel OnLine


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PRIMARY v SECONDARY

RESEARCH

Begin with secondary research

quick, relatively inexpensive

but out of date and may not be specific

enough

Follow up with primary research

provides information to current needs

but is expensive and time consuming


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QUALITATIVE v QUANTITATIVE

RESEARCHQualitative Research:

rich in meaning, but usually limited to smallsamples

Quantitative Research:

large scale data may be reliable, butmeaning may not be valid

Both approaches should be used incombination


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ANALYSIS OF STATISTICAL DATA

Use appropriate techniques, e.g.

correlation analysis

regression analysis

cluster analysis etc

Beware when interpreting data!

e.g. low ownership of shoes in a

developing country - is this a problemor an opportunity?


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ANALYSIS OF QUALITATIVE DATA

Fewer tests of reliability

Some techniques for analysingcontent of focus group discussions etc

Qualitative analysis relies on depth ofinsight rather than statisticalsignificance


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WHO CARRIES OUT MARKET

RESEARCH? In house OK for small projects or where there is a

routine and constant level of work

Specialist research company (e.g.MORI) Likely to have much broader range of skills

Can handle peaks and troughs in activity

May be more objective Need close working relationship with

client company


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MARKETING INTELLIGENCEA relatively unstructured approach

to gathering information about the

marketing environment

Sources: regularly scanning newspapers

using specialised media cutting services

listening to employees

listening to intermediaries

employing consultants


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KNOWLEDGE MANAGEMENT

Typically a lot of information is collectedby a company (e.g. sales receipts,

customers comments, reports by salespersonnel etc)

Need to ensure that information iscollated, analysed and given to thepeople who can act on it

Information should contribute to aLearning Organisation


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LEARNING FROM CUSTOMERS

Comments

(favourable and

unfavourable!) are

a valuable sourceof knowledge

Need to be

analysed and

given to managerswho can act on

them


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DEMAND FORECASTING

Market research soon becomes historical data

The challenge is to use this to better plan for thefuture

Market research is essentially about understandingthe future and being prepared for it

Many simple and complex forecasting models havebeen developed - use a range of techniques

Must balance the needs for speed and rigour


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FORECASTING AND RISK

Accurate marketforecasts help toreduce a firmsexposure to risk

But danger ofparalysis byanalysis

Must balance needfor more data withneed for speed


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The Role of Marketing Research

Controllable

Marketing

Product

Pricing

Promotion

Distribution

Variables

Marketing

Research

Marketing

DecisionMaking

Providing

Information

Assessing

Information

Needs

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology

Laws &Regulations

Social & CulturalFactors

Political Factors

Consumers

Employees Shareholders

Suppliers

Customer Groups


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Client

Needs Find Seek Plan Act

Solve Problem

Achieve Goal

How WeHelp

ClarifyDecisions

Research

Analysis

EvaluateInterpretFacilitate

Recommend

MarketPlanResearch

AdviseAssistExecution

Opportunity scan

Option generation

Refine options

Decision

Power Decisions Methodology
http://www.powerdecisions.com/newsletter.cfm?articleID=225http://www.powerdecisions.com/tools.cfmhttp://www.powerdecisions.com/approach.cfmhttp://www.powerdecisions.com/tools.cfmhttp://www.powerdecisions.com/engagementshelpimplement.cfmhttp://www.powerdecisions.com/newsletter.cfm?articleID=225


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Marketing Research Suppliers &

Services Internal suppliers

External suppliers

Full-service suppliers

Syndicated services Standardized services

Customized services

Internet services

Limited-service suppliers

Field services Focus groups and qualitative services

Technical and analytical services

Other services


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MANY FORECASTS ARE WRONG

Why were

forecasts of visitor

numbers to

LondonsMillennium Dome

so wrong?

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