MARKET RESEARCH IN

BUSINESS

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MARKET RESEARCH IS…

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2• a• b

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“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”

Artemus Ward

UNIT 10 MARKET RESEARCH IN BUSINESSMarket research enables a business to find out information about its market, its customers and aspects of the business environment such as what competitors are doing.

Businesses also use it to find out about customer views on current marketing campaigns.

LEARNING OUTCOMES

After completing this unit, you should: 1.understand the main types of market research used to make marketing decisions

2.be able to plan research 3.be able to carry out research 4.be able to interpret research findings

HOW YOU WILL BE ASSESSED

For this unit you are expected to carry out some market research of your own. You will then need to produce a market research report setting out your findings. An oral presentation coupled with a clear written report will be an effective way of doing this.

Ch 1 7

BECAUSE MARKETING RESEARCH IS PART OF MARKETING WE SHOULD UNDERSTAND:What is marketing?What is the marketing concept?

What is marketing strategy?

Ch 1 8

WHAT IS MARKETING?

Marketing has been defined by the AMA as an organizational function

and a set of processes for

creatingcommunicating and

delivering value to customers and for

managing customer relationships in ways that

benefit the organization and

its stakeholders.

Ch 1 9

WHAT IS THE MARKETING CONCEPT?The Marketing Concept is a business philosophy that holds that the key to achieving organizational goals consists of the company’s being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.

Ch 1 10

WHAT IS MARKETING STRATEGY?

A Marketing Strategy consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.

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LEARNING BY DOING: LET’S APPLY MARKETING TO

A RESTAURANTTarget market segment?

Marketing strategy Location? Menu? Prices? Type? Advertising?

Ch 1 12

RESTAURANT MARKETING DECISIONS

What if you owned a restaurant located in Manchester near the college?

What would be your marketing strategy? How certain are you that you made the right decisions?

Ch 1 13

RESTAURANT MARKETING DECISIONS

What if the restaurant was located near a university in a foreign country like China, Thailand, Italy, Iceland, or Peru?

What would be your decisions? How certain are you that you made the right decisions

now? So, what’s going on? Class comments?

Ch 1 14

KEY POINT

To practice marketing; to implement the marketing concepts; to implement marketing strategy, managers must make decisions.Many decisions require additional information and marketing research is needed in order to supply that information.

Ch 1 15

WE NEED MARKETING RESEARCH TO: Make the “right” decisions to Implement marketing Practice the marketing concept and Make the right decisions to select the right marketing

strategy

Ch 1 16

WHAT IS MARKETING RESEARCH?(BURNS AND BUSH DEFINITION)

Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

MARKETING RESEARCH DEFINED

The systematic and objective process of generating information for aid in making marketing decisions

Ch 1 18

WHAT IS MARKETING RESEARCH? AMA DEFINITION

Marketing research: the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.

Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

REDEFINING MARKETING RESEARCH

A CLASSIFICATION OF MARKETING RESEARCH

Marketing Research

Problem Identification Research

Problem Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Promotion Research

Distribution Research

Fig 1.1

Ch 1 21

MARKET RESEARCH VS. MARKETING RESEARCH

Market research: the “systematic gathering, recording, and analyzing of data with respect to a particular market, where ‘market’ refers to a specific group in a specific geographic area.”

WHAT IS THE PURPOSE OF MARKET RESEARCH?

What is market research?Why do companies carry out market research?How do companies carry out market research?

Is sufficient time

available?

Information already on

handinadequate?

Is the decision of

strategicor tactical

importance?

Does theinformation

valueexceed the

research cost?

ConductMarketingResearch

Do Not Conduct Marketing Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

Yes YesYesYes

No No No No

DETERMINING WHEN TO CONDUCT MARKETING RESEARCH

Value

Decreased uncertaintyIncreased likelihood of correct decisionImproved marketing performance and resulting higher profits Costs

Research expendituresDelay of marketing decision and possible disclosure of information to rivalsPossible erroneous research results

POTENTIAL VALUE OF A MARKETING RESEARCH EFFORT SHOULD EXCEED ITS ESTIMATED COSTS

ALWAYS REMEMBER

Marketing Research is a tool.It assists marketing managers in their decision making.

IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!

MARKETING RESEARCH PROCESS

Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

THE ROLE OF MARKETING RESEARCH

ControllableMarketing

•Product•Pricing•Promotion•Distribution

Variables

Marketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

• Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

•Economy•Technology•Laws & Regulations•Social & Cultural Factors•Political Factors

Customer Groups

• Employees• Shareholders

Suppliers•

• Consumers

Fig 1.2

1. UNDERSTAND THE MAIN TYPES OF MARKET RESEARCH USED TO MAKE MARKETING DECISIONS Market research can be defined as the systematic gathering, recording and

analysis of data about problems relating to the marketing of goods and services. This can be broken down as follows:

systematic carried out in a careful and organised way

gathering and recording of data collection of data and setting this down in writing or (more likely) in

computer records analysing the data

identifying patterns and trends problems relating to marketing

these include what price to charge, how best to advertise the goods and services, where to sell them from and so on

A SIMPLER DEFINITION OF MARKET RESEARCH THAT IS EASY TO REMEMBER IS: ‘Keeping those who provide goods and services in touch with the requirements of those who buy them’

There are two main methods that be used for market research: primary research

collecting new information secondary research

using research that is already published.

OBSERVING BEHAVIOUR

https://www.targetcomponents.co.uk/shoptalk/get_retailing/10_tips_for_better_store_layout/ALLhttp://www.mcvaninc.com/blog/bid/307182/Retail-Store-Layout-A-Powerful-Tool-to-Help-You-Increase-Sales

PRIMARY RESEARCH METHODS

Information that an organisation collects from its own research efforts is termed ‘primary’.

This involves the collection of new information for a specific purpose.

In groups find 4 different types of primary researchWhat are they?What are they used for?What are the advantages of using the research method?What are the disadvantages?Give an example of when a business could use themWhat marketing objective could they help to meet

PRIMARY RESEARCH METHODS

Join with another team, discuss your findings

You should have 6 different methods in your team

The groups should now present back their methods until each method has been covered

observationexperimentation surveys

face-to-face postal email telephone

• e-marketing research

• focus groups• panels • field trials • piloting

PRIMARY RESEARCH METHODS

http://readingcraze.com/index.php/types-of-primary-data/

PRIMARY DATA

You have been approached by a company who think that they could open a successful business providing food, drink and social space for students near The Manchester College

• In pairs pick 3 forms of Primary Data collection and decide;

• How you are going to collect relevant data

• What will you be asking

• What do you expect to find from your data

• What are the benefits of the methods you have chosen

• What are the drawbacks / limitations of the methods

• You should design and carry out 2 of your methods

The AIM of the research is to find out:

Should you open this business?

What will the business be like? Price, Products, Place, Promotions, People, Physical evidence, Processes

http://www.wireuk.org/ten-steps-towards-designing-a-questionnaire.html