Marketing research - An overview


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Presentation made for students of Garware Institute, Kalina - PG Dip in Advertising and Media.
An overview of what is Market Research with different types of research. How they are useful,

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Marketing research - An overview

  1. 1. What is Market Research ? "Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services." Can also define it as “The systematic and objective process of generating „information‟ for aid in making marketing decisions.”
  2. 2. Why is Market Research required? • Help to strategize and review the marketing plan for a particular product / service. • This in- turn helps to save cost which on un necessary marketing plans. • Companies require information in order to introduce products and services that creates value in the mind of customers. • The research data can be built into the product, not used as an afterthought. • Market data can be implemented effectively, especially in regards to media buying. • Finding the right pricing structure to build accurate budgets.
  3. 3. What is expected through the Research? • Information that helps to gain a grasp on the (current/potential) consumer • Major insights required (they – customer) – – – – – – Who are the target customer? What motivates the customer to buy? How do the customer use the product? What is important for the customer in a product? Where are the customers located? And lots of other insights, which are required for a marketing strategy.
  4. 4. Plan Market Research • Understanding of Market/Marketing Research • Management Focus
  5. 5. Marketing Research  Marketing research is one of the principal tools for answering questions because it: ◦ Links the consumer, customer, and public to the market through information used to identify and define marketing ◦ Generates, refines, and evaluates marketing actions ◦ Monitors marketing performance ◦ Underlines the understanding of marketing as a process ◦ Provides Answers ◦ Helps set the Direction in understanding the Marketing Problems
  6. 6. The Marketing Research Process • • • • • • This process includes: specifying what information is required; designing the method for collecting information; managing and implementing the collection of data; analyzing the results; and communicating the findings and their implications.
  7. 7. Information Reduces Uncertainty I don’t know if we should enter the Indian Market?
  8. 8. Classification of Market Research • Quantitative (nos-based) Primary Research Secondary Research • Experiments • Surveys • Qualitative (content-based) • One – On – One • Focus group • Databases • Industry, Consumer News • Market Research • Demographics
  9. 9. Quantitative (numbers – based) • Survey • Provides reliable, hard statistics in such areas as attitudes, awareness ands usage. • Provides hard numbers to make difficult decisions. – Note: Sample size examples, 400-600 people
  10. 10. Qualitative Research • Focus Groups • Helps us gain some general impression on the consumer or product. Usually 8-12 people and a moderator. – Example: Current customer, non-customer groups, mom with kids, single men 18-24 yrs of age.
  11. 11. Categories of Marketing Research Advertising Research Product Research Sales Research Market Research
  12. 12. Marketing Research helps to Strategize Price Product 4Ps Promotion Place
  13. 13. Marketing Research • Focus on Marketing Problems • Primary Research- Seeks data that does not exist • Original information from Surveys • Secondary Research-Data that already exists • Background information (Secondary SourcesBooks, Internet, Government Databases, Libraries, magazines, newspapers,.. .from the Internet
  14. 14. Marketing research • The process of systematically gathering, recording, and analysing data concerning a particular marketing problem • Thus marketing research is used in specific situations to obtain information that is not otherwise available to decision makers
  15. 15. Marketing Research Techniques • Interviews • face-to-face • telephone • postal questionnaire • Attitude measurement • cognitive component (know/believe about an act/object) • affective component (feel about an act/object) • conative component (behave towards an object or act)
  16. 16. Market Research Design & Techniques Likert scale  strongly agree  agree  neither agree nor disagree  disagree  strongly disagree Semantic differential scales - differences between words e.g. practical v impractical Projective techniques  sentence completion  psychodrama (yourself as a product)  friendly martian (what someone else might do)
  17. 17. Market Research Methods • Group discussion and focus group • Postal research questionnaires • In-home scanning - hand-held light pen to scan barcodes • Telephone research • Observation • home audit • direct observation • In-store testing such as Taste Testing in a Supermarket
  18. 18. When Should Marketing Research be Used?  When alternative actions are available  When there are potentially different payoffs from the different actions  When there is uncertainty about which action to take  When you are potentially willing to alter actions based on the research results  When it is possible to collect the information  When the cost of the research is less than the added benefit
  19. 19. The Marketing Research Process 1. Set objectives 2. Define research Problem 3. Assess the value of the research 4. Construct a research proposal 5. Specify data collection method 6. Specify techniques of measurement 7. Select the sample 8. Data collection 9. Analysis of results 10. Present in a final report
  20. 20. Coca Cola Case Study • Example of how blind taste tests missed the point • In the mid 1980’s, 200,000 consumers took part in taste tests, old Coke vs. new Coke flavour • April 23rd, 1985 – Coke changes its flavour; Renames product to new Coke as results suggest new Coke taste is preferred • 1990- Diet Coke • 2000-New Coke Flavours – Zero Coke
  21. 21. • Research failed to show consumers felt a bond with their old Coke • Announcements that old Coke was coming off the shelves, spurred many to stock up their basements • One man bought $1000 worth of bottles
  22. 22. • July 11th, 1985: Old Coke returns • Old Coke is renamed Coca Cola Classic • Consumers rejoice; Coke company realises Coca Cola is more than just a soft drink • ‘Diet Coke’ targeted to Female Drinkers • Zero Coke targeted to Male Drinkers • Raspberry Coke
  23. 23. Limitations of Market Research • • • • Cost Limited time to collect data Customer commitment/validity of data Time lag between research and application