Download Marketing Research

Market & Marketing
Research
Lecture 4
Karen Knibbs
Marketing Practice – U14210
Lecture Objectives
By the end of the lecture, you should be able to:
Define the differences between
market and marketing research
 Understand the role and use of MR
information in marketing decision
making
 Explain the stages of the MR process
and elements of a M(K)IS

“Not everything that can be counted
counts, and not everything that
counts can be counted”
Albert Einstein
Useful statistics?!!




Only one person in two million will
live to be 116 or older.
Artificial Christmas trees have outsold
real ones every year since 1991
The hundred billionth crayon made
by Crayola was Periwinkle Blue

On average, 12 newborns will be
given to the wrong parents daily.

Most lipstick contains fish scales.
American Airlines saved $40,000
in 1987 by eliminating one olive
from each salad served in first
class.

40% of McDonald's profits come from the
 Odds of being killed by a dog are
sales of Happy Meals.
1 in 700,000
Definitions of MR I
Market Research Society (Sept. 2003) - UK
www.mrs.org.uk
Market Research is: The application of
scientific research methods to obtain
objective information on peoples attitudes
and behaviour based usually on
representative samples of the relevant
populations. The process guarantees the
confidentiality of personal information in
such a way that the data can only be used
for research purposes.”
Definitions of MR II
Kotler & Keller (2006)
Marketing Research involves: “the systematic design, collection,
analysis, and reporting of data and findings relevant to a specific
marketing situation facing the company.”
Brassington & Pettitt (2006)
Marketing Research: “links the organisation with the environment…
and involves specifying the problem [and opportunities], gathering
data, then analysing and interpreting… information to identify,
define…, generate, refine, and evaluate marketing actions, monitor
marketing performance and improve understanding of marketing as
a process…. It implements the research plan and [defines how]…
the findings and their implications can be communicated.”
Definitions of MR III
Chisnall (2004)
“… there was originally a difference between the scope of
activities [covered by market and marketing research]…
The responsibilities of marketing research extend
comprehensively, whereas market research is limited to
findings out information about the market for a particular
product.”
(Even the textbook gets it the wrong way around and contradicts itself! See page 7!)
 MR has a wider management focus and utility for the whole
organisation
 MR should be: systematic, applied, scientific, pragmatic, objective,
impersonal, factual
MR definition summary

Market Research aims to describe and
analyse markets



size, structure, growth etc
Strictly speaking, Marketing Research is
broader than Market Research
Marketing Research covers a much broader
range of topics

customers, products, competitors, channels,
suppliers etc
The Marketing Research
Process
Baines and Chansarkar (2002), as
cited in Baines et al, (2008), p143
Major Components of
Research Design
Baines et al (2008), p153
MR Research Dimensions

Continuous versus Ad hoc



Qualitative versus Quantitative



On-going research vs
One-off
Qual: Why? (motivations, attitudes, behaviours)
Quant: How many, how often?
Secondary versus Primary


Data that already exists and was collected for
another purpose vs
Data collected for the specific purpose at hand
Qualitative vs. Quantitative
Baines et al (2008), p152
Primary collection methods

Primary data can be collected in 4 ways:





observational research
focus-group research
survey research
experimental research
2 main research instruments used are:


questionnaires (open-end and closed-end)
mechanical instruments
• e.g. Eyetracking of screen use on internet/TV
Secondary Sources e.g.


Internal sales records, MIS, Market plans, databases,
customer feedback, experienced employees
Government reports / Chambers of Commerce
• often available on gov.uk website

Prof. bodies / Trade Associations
• MRS, ESOMAR etc..

MR Agencies: Industry Reports & Country-based reports




Mintel, AC Nielsen, NOP/GfK etc.
GMID/Euromonitor (available via www.port.ac.uk/library)
The internet: sources identified using search engines,
blogs and discussion groups.
Online marketing area specific articles/reports
• e.g. promotions: WARC, brandrepublic, CIM
Marketing Research in practice




Marketing research is concerned with
investigating and understanding buyer
behaviour
Buying behaviour is merely one element of
human behaviour; it is complex and influenced
by many factors
Motivations may be a mixture of business
specific, personal, economic, psychological,
sociological and demographic variables
Behavioural sciences give insights into
consumption
MR in the Marketing Process
MR information needed at all stages:
 new product idea generation and
product development
 marketing testing
 launch implementation
 brand performance management
 positioning and repositioning etc

Main divisions of MR
 Product
 Customer
 Pricing
 Sales
 Promotion
Overview of MR divisions
Type
Examples of
issues
needing
investigation
through MR
Types of
info.
Product
Customer
Failure,
reduced
demand,
portfolio
inequity, lack of
USP, poor
quality
Target segment
profile,
preference,
loyalty,
Macro/Micro
env. issues,
habits,
motivation
Demand, sales,
market share,
competitive
advantage
Demographics,
purchase
behaviours,
level of
influence of
int./ext. factors
Pricing
Sales
Promotion
Sensitivity,
ceiling, match
to other mix
elements,
competition,
incentives
needed, vs.
perception of
quality,
Increasing cost
of sales,
comparative
mkt
performance,
falling sales,
force
organisation,
distribution
methods
Relevant
methods to
audience, rising
costs, reduced
exposure/cover
age,
effectiveness,
integration,
Costs, profit
objectives,
mkt/competitive
prices, trade
/channel vs.
consumer
prices
Value, volume,
quantity sold,
mkt coverage,
latent potential,
buyer power
Media usage /
availability,
readership/
viewer rates,
public image,
awareness,
perceptual
positioning,
brand strength
Typical Information Needs
for marketing planning

Aggregated marketing information in quarterly, annual summaries

Aggregated marketing information around product/markets (e.g.
sales data)

Analytical information for decision models (e.g. SWOT,
segmentation analyses)

Internally focused marketing information (e.g. sales, costs,
marketing performance indicators)

Externally focused marketing information (e.g. macro and industry
trends)

Historical information (e.g. sales, profitability, market trends)


Future-oriented marketing information (e.g. environmental scanning
information)

Quantitative marketing information (e.g. costs, profit, market share)

Qualitative marketing information (e.g. buyer behaviour, competitor
strategy information) (Ashill and Jobber, 2001).
Baines et al (2008), p160
Top 10 Marketing Metrics
20
Baines et al (2008), p332
Useful statistics? II
Company
Share of global
confectionery
market
Hershey Mars (US)
(US)
who now
own
Hershey
4.6%
14.5%
Cadbury
(UK)
Kraft (US)
who now
own
Cadbury
10.2%
4.7%
Source: Stanford & Helyar, (2010), Bloomberg News on businessmirror.com,
citing Euromonitor International statistics.
Example Metrics –
UK smoothies market
by value
2001
2003
share by brand
2005
2006
%
change
%
change
£m
%
£m
%
£m
%
£m
%
2001-03
2003-06
Innocent
3.5
16
11.2
27
47.4
60
83
62
+220
+641
PJ
Smoothies
8.6
40
14.1
34
14.3
18
25
19
+64
+77
Own-label
9.0
42
14.9
36
15.8
20
23
17
+66
+54
Others
0.4
2
1.2
3
1.5
2
3
2
+200
+150
Total
21.5
100
41.4
100
79.0
100
134.0
100
+93
+224
Which is the worst performing brand?
Source: Mintel report - Smoothies market - UK - October (2006)
For your assessed
presentations in week 6-7:

“Research needs – identify types of
primary/secondary information
needed to get a fuller understanding
of the CSF you’ve chosen and
environmental forces connected to it”
Consider
which
sources
your
group will
use?
Are the
sources
credible,
reliable,
rigorous?
Primary:
what
questions
need to be
asked of
whom and
how?
MR: key criterion

MR information has the purpose of
supporting marketing decisions





Organisations as they grow in size tend to lose
close customer contact
New markets entered may be geographically
distant and unfamiliar
New products require research into their
potential appeal to customers
Communications need researching - are the
right messages being given and received
Need to think clearly about the issue to be
decided, before spending money on MR
Marketing
Information
System (MIS)
Effective system of
organising,
structuring and
managing the
storage, access and
dissemination of
market research
data
Brassington & Pettitt,
2006
Rules for Building a MKIS
Marketing information systems (MKIS) – a system incorporating ad-hoc and
continuous market and marketing research surveys, together with secondary
data and internal data sources, for the purpose of decision-making by
marketers.
1. Get the top management involved
2. Set the objective for the system
carefully
3. Figure out what decisions your MkIS
will influence
4. Communicate the benefits of the
system to users
5. Hire and motivate the right people;
6. Free the MkIS from accounting
domination
7. Develop the system on a gradual and
systematic basis;
8. Run a new MkIS in parallel with
existing procedures
9. Provide results from the system to
users quickly after its initiation;
10. Provide information on a fast
turnaround basis;
11. Tie the MkIS with existing data
collection procedures;
12. Balance the work of the MkIS
between development and
operations;
13. Feed valid meaningful data into the
system not useless information;
14. Design a security system to ensure
different groups get different access
to the information.
Baines et al (2008), p161
Why MR is important



Traditionally, small firms
have close links with
their customers
Large-scale operations
have widened the gap
between producers and
consumers
Modern communities are
knowledgeable,
experienced and critical
•
Effective penetration of
markets requires specialised
and sophisticated
approaches to identify,
assess and satisfy market
demands.
•
Effective marketing
information and research
enables an organisation to
make better decisions on the
most appropriate market
entry and competitive
strategies.
Summary





Marketing research aids decision making by
providing management with specific kinds of
information which should form the foundation of all
strategic decision making and tactical planning
Marketing Research is vital in identifying, anticipating
and satisfying customer needs profitably
Accurate information enables intelligent decision
making in pursuit of organisational objectives
Information must be continuously collected,
monitored, analysed and communicated all around
the organisation (via a M(K)IS)
All businesses can conduct research, whether inhouse or via an external consultancy
Further reading suggestions
Baines, Fill & Page (2008)
Chapter 4, as per unit
handbook.



Anon, (2003).The data
protection act 1998 & Market
Research: guidance for MRS

members September 2003.
Market Research Society.

Online pdf access March 1st
2010 from:
http://www.mrs.org.uk/standards/
downloads/revised/legal/The%2
0Data%20Protection%20Act%2
01998%20and%20Market%20R
esearch.pdf
Brassington & Pettitt, (2006).
Principles of marketing. Harlow:
Pearson.
Chisnall (2004), Marketing
Research. Maidenhead:
McGraw-Hill.
Doyle, P (2000), Value Based
Marketing. Chichester: Wiley.
Kotler & Keller, (2006).
Marketing management. New
Jersey: Pearson International.




Euromonitor
GMID
Mintel
MRS.org.uk