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Market Research
The key to the customers wallet…..
Define Marketing Research
• The purpose of
market research is to
provide data that will
help solve marketing
problems
Marketing information is used to
identify
solutions:
Data vs. Information
– On average you sell
70 cups of coffee a
day that’s (DATA)
120
100
80
60
– After researching
you observe a
pattern that’s
(INFORMATION)
40
20
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Why is Marketing Research
Important
• Marketing Research
helps businesses
anticipate future
marketing potential.
– It can recognize a
problem or possible
opportunities.
Who Uses Marketing Research?
•
•
•
•
•
•
Large businesses
C.E.O
Managers
Advertising companies
Employers
The Self Employed
Types of Marketing Research:
•
•
•
•
•
Attitude research
Market research
Media research
Product research
Observational research
Attitude Research
• Research designed to obtain information on
how people feel about certain products,
ideas, or companies.
Market Research
• Involves gathering,
recording, analyzing,
and presentation of
information related to
marketing goods and
services.
• It asks questions about
market segment,
advertising strategies,
price….
Media Research
• Focus on the efficiency of the media used, was the
media effective….is radio advertising working…..
Product Research
• Focuses on the product /
package design
• Is the consumer likely to
want one kind of product
over another, e.g. (hand
lotion texture, shampoo
smells….)
Observational Research
• Observing the behavior of individuals
buying / consumption behavior to draw
conclusions on…
• May include focus groups…
• One similar example would be your secret
shopper.
Assignment
• Observational
Research
• In your group
discuss the following
questions to
determine what
each household
might look like.
Look at that list
provided and write
what your
conclusions are.
Trends in Marketing Research
• The current trend
today is towards a
global marketplace.
• US business must
consider global
markets and it’s
effects to stay
competitive….
More Trends in Marketing
• Product quality and customer satisfaction
are the keys to business success.
• Today consumers and expecting more and
more! (customer service is expected …. it’s giving the
customer an experience that is now making a difference)
Conducting Marketing Research
• There is a systematic approach to solving
problems and finding solutions in the
market research world….
Conducting Marketing Research
• In market research there are two types of
information to consider…..
• Primary (what you do!)
• Secondary (what others do!)
Conducting Marketing Research
Primary Data
• Primary Data
– Primary data is data collected for the first time
usually for the purpose of a particular study.
– Interviews (Face to face, over the phone)
– Survey (Mall or mail)
– Focus group (Gathering a group of people to view a
product)
– Product test (Marketers will watch people using a
product)
Conducting Marketing Research
Secondary Data
• Secondary Data
– Secondary data is data that has been collected
previously for a purpose other than that current
study.
– Population stats (www.cenus.gov)
– House hold income (www.cenus.gov)
– Industry forecasts (trade publications)
The Market Research Process
• There are 5 basic steps in the research
process
1.Define the problem
2.Obtain data
3.Analyze the data
4.Recommend solutions
5.Apply results
Step 1: Defining the Problem
– Often the most difficult to do
– A problem may be declining sales……..
– Here marketers need to ask questions like
• why aren’t customers buying the product
• are there competitors
• is advertising working….
Step 2: Obtaining Data
• Data is collected and examined in terms of the
problem or problems being studied.
– Here data is collected and examined to discover
problems and opportunities
– Two types of categories of data as discussed
• Primary and Secondary
Step 2: Obtaining Data
Sources can include
•
•
•
•
•
•
Interviews
Survey
Focus group
Product test
Observational research
Experimental research (researcher changes
variables and observes customers reaction, e.g.
price / package change)
Step 3: Analyzing the Data
• Data Analysis: is the process of compiling,
analyzing, and interpreting the results of
primary and secondary data.
– When analyzing the data we have to consider why
and what is going on and move towards a
recommendation.
Step 4: Recommending Solution
to the Problem
– Successful research means
information should help to
solve marketing problems
– A recommendation generally
should be a written document
that shows
• Tables, figures, charts
• Results of methods used to
research
• Findings
• Recommendations
• Summary / conclusions
Step 5: Applying the Results
– Once research recommendations have been made managers
have to apply results….
– Not all recommendations are correct so applying results have
to be monitored carefully….
Assignment
• Cessna
Market
Article
• Read the following
article and consider
how Cessna should
tap into the female
market, apply the
market research
process.
Constructing a Survey
• We are going to create a survey method….
Constructing a Survey
• One Important form of a survey that can be
successful is a questionnaire.
• A questionnaire is set of questions designed
to generate data necessary to accomplish
results and to help solve a problem.
Constructing a Survey
• Step One: Determine Survey Objectives,
Resources, and Constraints
– What do you want achieved
– What is available to you (mall, no mall etc…)
– What is possible, (budget constraints etc….)
Constructing a Survey
• Step Two: Determine the Data Collection Method
– via the Internet
– telephone
– mail, or self-administration
– Each research method will have an impact on questionnaire
design
– A mall interview…..time constraints
– Self-administered……must be short
– A telephone interview needs verbal description
– Internet survey can show pictures, videos….
Constructing a Survey
• Step Three: Determine the Question Response
Format
Open-Ended Questions
– These are questions that a person replies in her or his
own words
– Use WHAT, WHY, HOW questions
Closed-Ended Questions
– These are questions that make a selection from a list of
responses
– Yes/No, Agree/Disagree,
– greater than, less than
Constructing a Survey
• Step Three: Determine the Question Response
Format
Multiple choice
– These are questions that give the respondent several
choices
– A,B,C,D,E…….
Scaled-Response Questions
– These are questions that gives the respondent a choice
that capture intensity of feeling
– From 1 to 10, 1 being bad & 10 great……
Constructing a Survey
• Step Four: Decide on the Question Wording
1.The wording must be clear
2.The wording must not bias the respondent
3.The respondent must be able to answer the
questions
4.The respondent must be willing to answer the
questions.
Constructing a Survey
• Step Five: Establish Questionnaire Flow and
Layout
• Step Six: Evaluate the Questionnaire
• Step Seven: Obtain Approval of All Relevant
Parties
• Step Eight: Pre-test and Revise
Constructing a Survey
• Step Nine: Prepare Final Questionnaire Copy
– Questionnaires should be easy to read, black ink on
white paper and not complicated
• Step Ten: Implement the Survey
– Use the selected method of survey, e.g. interview, mail
etc….
Constructing a Survey
• Begin the Market Research Survey Project
Assignment
• Market
Research
Survey
Project
• You and your
partners will be
conducting a
market research
survey of fellow
peers to find out
their attitudes
and preferences
on a particular
topic / product.
Assignments
• Target
Markets
• Consumers are
marketed to in many
ways; businesses divide
segments up into
categories. Listed in
your packet are market
segments, under each
one, list two
products/services that
might be targeted to
them.