Download Marketing Research

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– Second level
Marketing Research
• Third level
– Fourth level
» Fifth level
Chapter 28
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– Second level
• Third levelInformation Systems
Marketing
– Fourth level
» Fifth level
Section 1
Objectives
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• Describe
the
purpose
of
marketing
– Second level
research
• Third level
– Fourth level
• Explain the
characteristics
and purposes
» Fifth level
of a marketing information system
• Identify procedures for gathering
information using technology.
Key Terms
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• Marketing
Research
– Second level
• ThirdInformation
level
• Marketing
System
– Fourth level
• Database Marketing
» Fifth level
• Database
Defining Marketing Research
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• One–of
the
largest
American
sports
shoes
Second level
manufacturers
• Third level wants to introduce its
– Fourth levelshoe in overseas
new, best-selling
» Fifth level
market. A famous basketball player in
the US wears the shoes ad the ad shows
him shooting hoops in location all
around the world.
Defining Marketing Research (cont)
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• The –ad
is
aired
in
3
European
countries,
Second level
translated
into
• Third
level each country’s official
level
language.– Fourth
However,
the sales are
» Fifth level
disappointingly low. What went
wrong?
The Answer
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• Even– though
the
ad
had
global
focus,
it
Second level
did not• Third
havelevelglobal appeal in Europe.
level
Marketing– Fourth
research
would have shown
» Fifth level
that basketball is not as popular in
Europe as it is in the US. Therefore, few
people could associate with the sport
associated with the product.
What is Marketing Research?
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• Marketing
Research
involves
– Second level
the process
and methods used
• Third level
– Fourth level
to
» Fifth level
– gather information
– Analyze it
– Report findings related to
marketing goods and services.
Marketing Research
• Companies
useMaster
it to:text styles
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– Second level
– Determine
consumers’ attitudes and
• Third level
preferences
– Fourth level
– Test product
features
» Fifth
level
– Determine market size and growth
potential
– Learn about competitive products
– Determine buying cycles
– Understand how the company is perceived
by the public.
Marketing Surveys…..
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– Second level
• Third level
– Fourth level
» Fifth level
Why is Marketing Research
Important?
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• Businesses
have
to
pay
attention
to
– Second level
consumers
habits in order to be
• Thirdbuying
level
successful– Fourth level
» Fifth level
• The information received helps
businesses increase sales and profits.
Why is Marketing Research
Important?
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• Research
answers
the
following
– Second level
questions:
• Third level
– Fourth level
What products
to produce
» Fifth level
What price to sell the products
Who will buy the products
How the products will be
promoted
– What is happening in the
marketplace
–
–
–
–
What is Marketing Information
System?
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• A set– of
procedures
and
methods
that
Second level
generates,
analyzes and
• Thirdstores,
level
level
distributes– Fourth
information
for use in making
» Fifth level
marketing and other business decisions
Data that should be part of MIS
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• Customer
Profile
data
– Second level
– Buying
behavior
• Third
level
– Fourth level
– Shopping
patterns
» Fifth level
– Customer demographics & lifestyle research
• Company Records
– Sales results
– Expenses
– Supplier data
Data that should be part of MIS
• Competitors’
such
as
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styles
– Prices
– Second level
• Third level
– Products
– Fourth level
– Market share
» Fifth level
• Government data, such as
– Price trends
– New regulations and laws
– Future projections for the economy
• Marketing research reports from research firms
Database Marketing
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Also known
as
Customer
relationship
– Second level
management
(CRM)
• Third level
level
• Process of– Fourth
designing,
creating, and
» Fifth level
managing customer lists.
• Customer lists contain information
about individuals characteristics and
transactions with a business.
Database
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• A collection
of
related
– Second level
information
about a specific
• Third level
– Fourth levelAmerican
topic. Example,
» Fifth level
Express maintains a database
of its card members, their
addresses, plus what they
buy, where they buy it,
where they eat out, and how
much money they spend.
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– Second level
• Third levelInformation Systems
Marketing
– Fourth level
» Fifth level
Section 2
Types, Trends, and Limitations of
Marketing Research
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• Objectives:
– Second level
– Identify
thelevel
methods of conducting
• Third
– Fourth
level
marketing
research
» Fifth level
– Discuss trends and limitations in marketing
research
Key Terms
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• Quantitative
research
– Second level
• Third level
• Qualitative
research
– Fourth level
• Attitude research
» Fifth level
• Market intelligence
• Media research
• Product research
Types of Marketing Research
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• Business
conducts
different
research
– Second level
based on
the
problem they are trying to
• Third
level
– Fourth level
solve.
–
–
–
–
–
–
» Fifth level
Quantitative Research
Qualitative Research
Attitude Research
Market Intelligence
Media Research
Product Research
Quantitative Research
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• Quantitative Research:
– Second level
• This type of research usually gathers information
• Third level
from large– numbers
of people.
Fourth level
• It answers questions,
» Fifth levelthat start with “how many”
or “how much”.
• This research relies heavily on surveys or
questionnaires to obtain information.
Qualitative Research
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Qualitative Research:
•
•
•
•
– Second level
This type of research usually gathers information
• Third level
from smaller
numbers of people (usually fewer
– Fourth level
than 100). » Fifth level
It tries to answer questions about “why” or “how”.
This research relies heavily on in-depth interviews,
rather than surveys.
Most market research depends on both
quantitative and qualitative methods.
Attitude Research
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• Attitude
Research
is
also
known
as
– Second level
Opinion
Research
• Third
level
Fourth level
• Designed –to
obtain information on how
» Fifth level
people feel about certain products,
services, companies or ideas.
• This is often conducted by mail surveys
or telephone interviews.
Attitude Research (cont.)
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• Opinion
polls
are
another
example
of
– Second level
attitude• Third
research.
level
– Fourth level
– The Gallup
Organization conducts opinion
» Fifth level
polls on politics, elections, business and the
economy, social issues, and public policy.
– Consumer panels, also called focus groups,
provide information on research issues.
Market Intelligence
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• Market
Intelligence
is
concerned
with:
– Second level
– the size
andlevel
location of a market,
• Third
– Fourth level
– the competition,
and
» Fifth level
– the segmentation within the market for a
particular product or service.
Market Intelligence
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• Market
Intelligence
also
uses
existing
– Second level
market• data
and new research to
Third level
level of present and
assemble –aFourth
profile
» Fifth level
potential customers, competitors, and
the overall industry.
• It also helps define the target markets
for a particular product or service and
how to reach potential customers.
Sales Forecasting
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• Sales– forecasting
is
an
attempt
to
Second level
estimate
thelevel
future sales of an existing
• Third
product. – Fourth level
» Fifth level
• Based on its research findings, the
business can then try to increase its
market share through changes in the
product, pricing, promotion, or
distribution strategies.
Economic Forecasting
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• Economic
Forecasting
is
an
attempt
to
– Second level
predict• the
economic conditions
Third future
level
level a country or other
of a city, –aFourth
region,
» Fifth level
part of the world.
• This research requires extensive
knowledge of economic statistics and
trend indicators.
Economic Factors (cont)
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• Federal
agencies
collect
information
on
– Second level
key economic
• Third levelindicators, such as new
– Fourth level
building construction,
inflation rates,
» Fifth level
money supply and consumer and
producer price indexes.
• Businesses use research on general
economic conditions to help plan for
long-range expansion.
Media Research
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• Media
Research,
also
known
as
– Second level
advertising
focuses on issues of
• Third research,
level
– Fourth level
media effectiveness,
selection,
» Fifth level
frequency, and ratings.
• Media research studies brand awareness,
advertising recall, brand image,
effectiveness of advertising copy, and
audience size for a particular type of
advertising.
Media Advertising Measures
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• Important
statistics
for
media
– Second level
measurement
• Third levelinclude audience,
– Fourth
level and ratings.
frequency,
reach,
» Fifth level
– Audience is the number of homes or people
exposed to a particular advertising medium
– Frequency is the number of times a viewer
in the audience sees or hear an ad.
Media Advertising Measures (cont.)
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– Reach is the percentage of the target
– Second level
audience that will see or hear an ad at least
• Third level
once. – Fourth level
Fifth total
level number of audience
– Ratings are»the
impressions delivered over a set period of
time.
• Another way to measure advertising research
on the various media is to subscribe to
Standard Rate and Data Service (SRDS).
Researching Print Advertisements
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• To determine
the
ad’s
effectiveness,
– Second level
readers• are
about the extent to
Third asked
level
– Fourth
level
which they
noticed
the ad, remembered
» Fifth level
it and associated it with the advertised
brand.
• The ad is also measured on its ability to
change the consumer’s beliefs, attitudes,
or intended behavior.
Researching Print Advertisements
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• Readership
in
print
media
is
measured
– Second level
by surveys
• Thirdor
levelestimated by circulation.
– Fourth level
• Mediamark
Research and Simmons
» Fifth level
Market Research Bureau provide
audience data.
Researching Broadcast Media
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• Most– Second
broadcast
ad
testing
research
is
level
done on
television
commercials.
• Third
level
– Fourth level
• Testing research
can use both
» Fifth level
quantitative and qualitative research
method.
Researching Broadcast Media (cont)
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• Nielsen
Media
Research,
Inc.
provides
– Second level
audience
measurement
information for
• Third
level
– Fourthindustry.
level
the television
Nielsen
» Fifth level
estimates the audience by measuring the
viewing habits of 13,000 people in
5,000 homes.
• Nielsen uses “people meters”
Product Research
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• Product
research
centers
on
evaluating
– Second level
product
design,
• Third
level package design, product
– Fourth
level
usage, and
consumer
acceptance of new
» Fifth level
and existing products.
• This is also done to collect information
about competitive products.
• Concept testing is often used in the early
stages of product development.
Trends in Marketing Research
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• In this
environment,
product
quality
and
– Second level
customer
satisfaction
are the keys to
• Third
level
– Fourth level Research that measures
business success.
» Fifth level
these qualities has become the fastest
growing form of marketing research.
Trends in Marketing Research
(cont)
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• Another
important
trend
is
the
use
of
– Second level
both internal
and external information
• Third level
– Fourth
in managing
a level
business
» Fifth level
• Total quality management (TQM)
programs place a premium on gathering
and using database research in
improving business operations.
Limitations of Marketing Research
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• The amount of information that can be
– Second level
gathered is limited by the amount of money
• Third level
and time a–company
Fourth level can afford to spend.
» Fifth level
• Marketing research
information also has its
limitations. Customers in a test market
situation may say they want a particular
product but that does not mean they will buy
it when it is on the market.