Marketing ResearchMarketing Research

Primary ResearchPrimary Research

FEATURES OF TEST FEATURES OF TEST MARKETSMARKETS

• Different elements of the marketing mix are changed and monitored.

• Provide a real world example for the marketer.

• Location of the test market is preferred to kept secret.

Whose watching you?Whose watching you?

• Individuals

•Bar-code scanners

•Eye-tracking photography

INTERNALINTERNAL •Sales Records

• Inventory Records

•Advertising and Promotional Records

•Production Records

Data MiningData Mining Businesses use

this type of research to determine the relationship between personal information and purchasing behaviour.

Example…Example…

Data can tell how many customers on a business’s database have purchased greater than $50 worth of products in

- the last 3 months

- are female

- are between the ages of 30-35

- type of occupation

PROFILING A CUSTOMERPROFILING A CUSTOMER

• Demographics–Age–Gender–Family Life Cycle– Income Level–Ethnicity & Culture

• Psychographics

• Consumers’ beliefs–Opinions– Interests

PROFILING JOHNPROFILING JOHNDEMOGRAPHICS• Age: 51• Gender: male• Income: $75,000 per

year• Family life cycle:

married with three children

• Ethnicity and culture: Nova Scotian by birth, now lives in northern Ontario

PSYCHOGRAPHICS

John runs his own web design studio, plays the cello, and coaches his two daughters soccer team. He is an active member of his community association, an avid gardener, and he and his wife spend their spare time renovating their home.

Secondary ResearchSecondary Research

How do companies collect How do companies collect information on you????information on you????

• Mail in rebates

• Coupons

• Internet

• Magazine Subscriptions

• Credit Cards

• Loyalty Programs (Optimum Card, HBC Card, Air Miles Card)

COLLECTCOLLECT THE POINTSTHE POINTS

ACTIVITY: Loyalty cards

Where’s your loyalty?

Sampling MethodsSampling Methods

Sampling MethodsSampling Methods

• Random Samples– Random sample of population – equal chance of anyone

being selected

– May select those not in the target group – indiscriminate

– Sample sizes may need to be large to be representative

– Can be very expensive

– EXAMPLE:

Sampling MethodsSampling Methods

• Segment Random Sampling– Samples on the basis of a representative segment

– Still random but more focussed

– May give more relevant information

– May be more cost effective

– EXAMPLE:

Sampling MethodsSampling Methods

• Quota Sampling– Specific number on each segment are interviewed, etc (not

randomly selected).

– May not be fully representative

– Cheaper method

– EXAMPLE:

Sampling MethodsSampling Methods

• Cluster Sampling– Primarily based on geographical areas or ‘clusters’ that

can be seen as being representative of the whole population

– EXAMPLE:

• Multi-Stage Sampling– Sample selected from multi-stage sub-groups– EXAMPLE:

• Snowball Sampling– Samples developed from contacts of existing customers

– ‘word of mouth’ type approach!– EXAMPLE: