Market Research Definition Marketing research is systematic approach of: Identification Collection Analysis Dissemination use of information School of Business Cap tain Cook College
The Market Research cont.. Specifies the information necessary to address these issues Manages and implements the data collection process Analyses the results Communicates the findings and their implications
Defining Marketing ResearchIdentification ofInformation Needed Identifying and Solving Marketing ProblemsCollection of DataAnalysis of Data Use of Dissemination Information of Information
Sources of Marketing ResearchPrimary Source ExternalSecondary Source Internal External
Primary Research Sources Methods Observation Experiment Surveys Telephone and personal interviewing Electronic Panel of industry experts Focus groups Etc…
Secondary Research Sources Methods Internet Research Library Research Data Collection Organizations Newspapers Magazines Journals Periodicals. Etc..
Primary Data Can aim questions Expensive directly at your research Risk of questionnaire and objective interviewer bias. Latest information from Research findings may only the marketplace be usable if comparable Can assess the backdate exists psychology of the customer
Secondary Data Cheap and accessible Out-dated information Quicker Unknown biases Only way to examine large Direct data conversion not scale trends possible Different units of measurement
Classification of Marketing ResearchProblem Identification ResearchResearch undertaken to help identify problems whichare not necessarily apparent on the surface and yetexist or are likely to arise in the future. Examples:market potential, market share, image, marketcharacteristics, sales analysis, forecasting, and trendsresearch.Problem Solving ResearchResearch undertaken to help solve specific marketingproblems. Examples:segmentation, product, pricing, promotion, anddistribution research.
A Classification of Marketing Research Marketing Research Problem Problem Identification Solving Research Research• Market Potential Research • Segmentation Research• Market Share Research • Product Research• Image Research • Pricing Research• Market Characteristics • Promotion Research Research • Distribution Research• Forecasting Research• Business Trends Research
Problem Solving ResearchSEGMENTATION RESEARCH PRODUCT RESEARCH Determine the basis of Test concept segmentation Determine optimal Establish market potential product design and responsiveness for various segments Package tests Select target markets Product modification Create lifestyle profiles: Brand positioning demography, media, and and repositioning product image characteristics Test marketing Control score tests
Problem Solving ResearchDISTRIBUTION RESEARCHDetermine… Types of distribution Attitudes of channel members Intensity of wholesale & resale coverage Channel margins Location of retail and wholesale outlets.
Problem Solving ResearchPricing Research- importance of price in brand selection- pricing policies- product line pricing- price elasticity of demand- initiating and responding to price changes
Problem Solving ResearchPromotional Research- optimal promotional budget- sales promotion relationship- optimal promotional mix- copy decisions- media decisions- creative advertising testing- claim substantiation- evaluation of advertising effectiveness
Problem Solving ResearchDistribution Research- determine type of distribution- attitudes of channel members- intensity of wholesale and retail coverage- channel margins- location of retail and wholesale outlets
Market Research process Uncontrollable Customer Groups Environmental • Consumers Factors • Employees• Economy Controllable Variables• Technology • Channel Members• Competition • Suppliers• Laws and •Product Regulation • Pricing• Social and • Promotion Cultural Factors • Distribution• Political Factors Market Research Assessing Information Providing Needs Market decision Information Making Market segmentation | Marketing Programs | Target Markets Performance and Control
Identification researchExamples• Market potential• Market share• Market characteristics• Sales analysis• Short and long –range forecasting• Business trends analysis
Exploratory research• Screening alternatives• Secondary research• Experience research – experts – key people.• Pilot studies• Focus groups
Exploratory Diagnostic researchE.G. The number of customers eating at a restaurant has reduced overthe last 6 months. You need to urgently address the problem.Research may involve• Checking out the local competition• Checking the shift in local population• Checking out nearby car parks• Observing trends in eating out• Talking to existing customers• Examining service standards in the restaurant
Conclusive research1. Descriptive research is conducted to discovercharacteristics of a population.Who – When – What – Where & How.2. Casual research is attempts to identify cause - effectrelationship between variables.Normally the researchers would have considerableknowledgeable about the industry / subject.
Descriptive ResearchExamples are:• Describe the size of the market.• The buying power of consumers.• The availability of distributors.• Consumer profiles.
Descriptive research example for a restaurant• What days do the customers prefer to eat out?• Why do customers eat out?• How often do customers eat out on weekends?• What kind of dishes do customers prefer?• How customers get to the restaurant?
Casual or predictive research• Example – What would happen if the restaurant offered: • 20% discount on Saturdays to customers who had visited the restaurant on previous occasions. • A 10% discount coupon advertised in local newspaper, which can be used on any day.
Casual or predictive research Example to measure the success of the promotion:• Weekly earnings for a period before each promotion• Weekly earnings for a period during each promotion.• Weekly earnings again after each promotion
Qualitative research Why do we use Qualitative research• help define a problem• provide understanding of a problem• generate ideas and hypotheses to identify variables to assess the problem.
Qualitative researchWhat does a qualitative research involve?• Can ask sensitive questions• Can ask open ended & probing questions• Emphasis is on words & responses
Qualitative researchMethodology of conducting a qualitative research• Use focus groups to collect data• Conduct interviews• Use projective techniques• Unstructured and flexible approach• Data & responses captured in loose format• Methods cannot be duplicated
Qualitative researchData analysis• Data is not easily quantifiable• Data cannot be expressed statisticallyFindings• Findings may represent a sample• Findings are usually not conclusive
Quantitative researchWhy do we use Quantitative Research• To obtain descriptive / detailed data• To obtain precise & consistent data• To obtain conclusive data• To confirm variables are correct
Quantitative researchMethods to implement a quantitative research• Only ask simple questions• Ask precise & short questions• Obtain precise responses• Emphasis is on numbers
Quantitative researchMethodology to conduct quantitative research• Use surveys to collect data• Use observations to collect data• Use experiments to collect data• Usually based on a large number of people• Structured, planned and controlled• Data captured in standardised format• Procedure can be duplicated
Quantitative researchData analysis• Data is easily measurable• Data can be expressed staticallyFindings• Findings usually represent sample• Findings are usually conclusive
Stakeholders in Marketing Research• The public• The respondent• The client• The market researcher• The supplier• Etc…
Objectives of a Research Project• Give the project a name.• Show clearly the purpose of the research.• Identify and list what kind of information is needed (primary or secondary).• Suggest where to obtain the information.• Give an idea of the scope of the project (it’s extent).
Methods to Conduct a Research• Select an appropriate data collection method/s (surveys, observations, focus groups, interviews).• State whether it’s primary or secondary research or both.• Determine whether quantitative or qualitative techniques will be used or both.• Determine what data recording medium to use (questionnaire, discussion guide, discussion list or some other medium).• Prepare field work program including time lines
Overall data collection• Choose what hypotheses to use to construct questions.• Design a questionnaire.• Decide what measurement, scaling and pre-coding are required.• Decide wether or not to pre-test questionnaires / run trials
Data sources• Identify whether sources are people or places, and where they are to be found.• Identify whether sources are primary or secondary.• Indicate what sampling methods to use, composition of focus groups.• Identify what sample size, how many people or how big the focus group
Data collection activities• Use of survey questionnaires, focus groups or interviews.• Identify how you will administer the questionnaires.• Identify how the fieldwork program will be set up.• Identify what interviewing guidelines you will use along with ethical issues to consider.
Starting and completion dates• Identify whether completion date allows for fieldwork data collection.• Show time lines for data analysis and reporting• Identify starting time.• Prioritize tasks.• Make notes on any other constraints you may need to consider
Market Research OrganizationsAustralian Market and Social Research organization(http://www.amsrs.com.au/)Association of Market and social research organizations(http://www.amsro.com.au)CASRO: The Council of American Survey Research Organizations(www.casro.org)MRA: Marketing Research Association (www.mra-net.org)QRCA: Qualitative Research Consultants Association (www.qrca.org)RIC: Research Industry Coalition (www.research industry.org)
Legislations• Anti-discrimination legislation• Equal opportunity• Equity and diversity• Marketing codes of practice and conduct• Privacy laws• Trade Practices Act