Marketing Research

Marketing ResearchMarketing Research4.044.04

Marketing ResearchMarketing Research‘‘the systematic gathering, recording the systematic gathering, recording

and analysing of data about and analysing of data about problems relating to the marketing of problems relating to the marketing of

goods and services’goods and services’

American Marketing AssociationAmerican Marketing Association

PurposePurpose

Types of Marketing ResearchTypes of Marketing Research

Focuses on the Focuses on the effectiveness of the effectiveness of the advertising message and advertising message and the effectiveness of the effectiveness of media placement.media placement.

Advertising ResearchAdvertising Research


Product ResearchProduct Research Used to evaluate product Used to evaluate product

design and acceptance, design and acceptance, competitive products, competitive products, package design, and package design, and product usage.product usage.


Market ResearchMarket Research Studies customer behavior (customer Studies customer behavior (customer

analysis) to gather information about analysis) to gather information about customer attitudes.customer attitudes.


Market ResearchMarket Research Studies the behavior of a consumer Studies the behavior of a consumer

market (market analysis) to market (market analysis) to investigate the potential markets for a investigate the potential markets for a product and to define the target product and to define the target market.market.


Sales ResearchSales Research The study of sales data to determine The study of sales data to determine

the potential sales for a product and the potential sales for a product and to solve problems related to future to solve problems related to future sales.sales.

Marketing Research ProcessMarketing Research Process

5 Steps5 Steps

The Marketing Research The Marketing Research ProcessProcess

Step 1 - Defining the ProblemStep 1 - Defining the Problem Identify and clearly state what the Identify and clearly state what the

problem is and what can be done to problem is and what can be done to solve the problem.solve the problem.

Determine which problems are the most Determine which problems are the most important to solve at a given time.important to solve at a given time.


Step 2 - Obtaining DataStep 2 - Obtaining Data Collect and examine information in Collect and examine information in

terms of the problem being studied.terms of the problem being studied. Primary data can be used and/orPrimary data can be used and/or Secondary data can be used.Secondary data can be used.


Step 3 - Analyzing the DataStep 3 - Analyzing the Data Compiling, analyzing, and Compiling, analyzing, and

interpreting the results of primary and interpreting the results of primary and secondary data.secondary data.

The results of each question can be The results of each question can be clearly read and interpreted.clearly read and interpreted.


Step 4 - Recommending Solutions Step 4 - Recommending Solutions to the Problem.to the Problem.

Solutions are usually presented in a Solutions are usually presented in a well written report.well written report.

Recommendations must be clear and Recommendations must be clear and supported by the research data.supported by the research data.


Step 5 - Applying the ResultsStep 5 - Applying the Results The required form of action is The required form of action is

decided upon and put into place.decided upon and put into place.

Primary ResearchPrimary Research

Market ResearchMarket Research Primary Research

First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and

methodology to ensure accuracy Types of question – closed – limited information

gained; open – useful information but difficult to analyse

Secondary ResearchSecondary Research

Internal SourcesInternal Sources Company AccountsCompany Accounts Internal Reports and AnalysisInternal Reports and Analysis Stock AnalysisStock Analysis Retail data - loyalty cards, till data, etc.Retail data - loyalty cards, till data, etc.

External SourcesExternal Sources Federal Government Statistics (i.e. census,

labor dept, etc.) Local: Chamber of Commerce, Economic

Development, City & County Government, etc. Trade publications Commercial Data - Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications, journals,

etc.

Sampling MethodsSampling Methods

Data SamplingData Sampling When designing a survey, marketers must

determine the number of people to include in their survey.

• Population: The entire target group of people under study.• Sample: Part of the target population that represents it

accurately.• Sampling - studying part of a ‘population’ to learn about the whole

• Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.

• Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.

Sampling MethodsSampling Methods Random SamplesRandom Samples – equal chance of – equal chance of

anyone being pickedanyone being picked May select those not in the target group May select those not in the target group

– indiscriminate– indiscriminate Sample sizes may need to be large Sample sizes may need to be large

to be representativeto be representative Can be very expensiveCan be very expensive

Sampling MethodsSampling Methods Stratified or Segment Random Stratified or Segment Random

SamplingSampling Samples on the basis of a representative Samples on the basis of a representative

strata or segmentstrata or segment Still random but more focussedStill random but more focussed May give more relevant informationMay give more relevant information May be more cost effectiveMay be more cost effective

Sampling MethodsSampling Methods Quota SamplingQuota Sampling

Again – by segmentAgain – by segment Not randomly selectedNot randomly selected Specific number on each segment are Specific number on each segment are

interviewed, etc.interviewed, etc. May not be fully representativeMay not be fully representative Cheaper methodCheaper method

Sampling MethodsSampling Methods Cluster SamplingCluster Sampling

Primarily based on geographical areas or Primarily based on geographical areas or ‘clusters’ that can be seen as being ‘clusters’ that can be seen as being representative of the whole populationrepresentative of the whole population

Multi-Stage SamplingMulti-Stage Sampling Sample selected from multi-stage Sample selected from multi-stage

sub-groupssub-groups Snowball SamplingSnowball Sampling

Samples developed from contacts Samples developed from contacts of existing customers – ‘word of mouth’ type of existing customers – ‘word of mouth’ type approach!approach!

Terminology of Marketing Terminology of Marketing ResearchResearch

Quantitative Research Quantitative Research - statistical - statistical basisbasis based on numbers – 56% of 18 year olds

drink alcohol at least four times a week - doesn’t tell you why, when, how

Market ResearchMarket Research Qualitative Research- Qualitative Research- subjective subjective

and personaland personal more detail – Does not tell you how

much!

What is MKIS?What is MKIS?‘‘MKIS (MIS) is a set of procedures and MKIS (MIS) is a set of procedures and

methods for the regular, planned methods for the regular, planned collection, analysis and presentation collection, analysis and presentation of information for use in marketing of information for use in marketing

decisions’decisions’

American Marketing AssociationAmerican Marketing Association

The components of a The components of a computerised MKIScomputerised MKIS

Model Bank

Data Bank

StatisticalBank MKIS Display

unitMarketingManager

The components of a The components of a computerised MKIScomputerised MKIS

Data bank - raw data e.g historical sales Data bank - raw data e.g historical sales data, secondary datadata, secondary data

Statistical bank - programmes to carry-Statistical bank - programmes to carry-out sales forecasts, spending projectionsout sales forecasts, spending projections

A model bank - stores marketing models A model bank - stores marketing models e.g Ansoff’s matrix, Boston Matrixe.g Ansoff’s matrix, Boston Matrix

Display unit - VDU and keyboardDisplay unit - VDU and keyboard

Market ResearchMarket Research

Documents

Marketing Research