Component of market research whereby
the characteristic of a good or service, that
will satisfy a recognized need or want, are
The target audience is identified (even if not
totally precise), and some notion of the product
category (or human need) is established, then
qualitative research is the first step
The purpose is to develop in-depth understanding
of the target consumer—their motivations,
perceptions, fears, and preferences.
Perceptions of competitive products can be
Unmet needs can be identified.
New product ideas can be sought.
Qualitative Explorations –
qualitative exploration serves to
identify new product possibilities as well as
refine the target-market definition for
Qualitative research is also useful in
determining the starting points for
testing identifies potentially
successful new products early on, so that
you can focus limited research and
development resources (and limited
marketing resources) on the new product
concepts with the greatest probability of
Decision Analyst provides a suite of
concept testing systems and services.
products must be optimal to have a
reasonable chance for success.
Product testing is an essential step (or
series of steps) in the development of a
Decision Analyst offers a range of
product-testing services to help ensure
that the new product will be successful.
Steps involved in Product
Marketing Strategy Development
research is a specialized form
of marketing research conducted to
improve the efficiency of advertising.
Advertising research is the systematic
gathering and analysis of information to
help develop or evaluate advertising
strategies, ads and commercials, and
A subset of marketing research.
Types of Advertising Research
Customized research is conducted for a specific
client to address that client’s needs. Only that
client has access to the results of the research.
Syndicated research is a single research study
conducted by a research company with its
results available, for sale, to multiple companies.
Methods of Advertising
can be conducted to optimize ads for any
medium optimize advertisement for any
medium: radio, television, print (magazine,
newspaper or direct mail), outdoor billboard
(highway, bus, or train), or Internet.
conducted after the advertising, either a single
ad or an entire multimedia campaign has been
run in-market. The focus is on what the
advertising has done for the brand, for example
increasing brand awareness, trial, frequency of
Provide either periodic or continuous in-market
research monitoring a brand’s performance.
Including brand awareness, brand preference,
product usage and attitudes. Some post-testing
approaches simply track changes over time, while
others use various methods to quantify the specific
changes produced by advertising - either the
campaign as a whole or by the different media
Overall, advertisers use post-testing to plan future
advertising campaigns, so the approaches that
provide the most detailed information on the
accomplishments of the campaign are most
Goal of Market Analysis
determine the attractiveness of a
market and to understand its evolving
opportunities and threats as they relate to
the strengths and weaknesses of the firm.
Dimensions of Market Analysis
(David A. Aaker)
size (current and future)
Market growth rate
Industry cost structure
Key success factors
The size of the market can be evaluated
Potential sales (if expanded)
Some information sources for determining
Financial data from major players
Market Growth Rate
simple means of forecasting the market
growth rate is to extrapolate ( infer or
estimate ) historical data into the future.
While this method may provide a firstorder estimate, it does not predict
important turning points.
A better method is to study growth drivers
such as demographic information and
sales growth in complementary products .
different firms in the market will have
different levels of profitability, the average
profit potential for a market can be used
as a guideline for knowing how difficult it
is to make money in the market.
Industry Cost Structure
The cost structure is important for identifying
key factors for success. To this end, Porter’s
value chain model is useful for determining
where value is added and for isolating the
The cost structure also is helpful for
formulating strategies to develop a
competitive advantage. For example, in
some environments the experience curve
effect can be used to develop a cost
advantage over competitors.
The following aspects of the distribution system are
useful in a market analysis:
Existing distribution channel
can be described by how direct they are to the
Trends and emerging channels
new channels can offer the opportunity to develop a
Channel power structure
for example, in the case of a product having little brand
equity, retailers have negotiating power over
manufacturers and can capture more margin.
in the market are important
because they often are the source of new
opportunities and threats .
The relevant trends are industrydependent, but some examples include
changes in price sensitivity , demand for
variety , and level of emphasis on service
and support .
Regional trends also may be relevant.
Key Success Factors
Elements that are necessary in order for the
firm to achieve its marketing objectives.
few examples are:
Access to essential unique resources
Ability to achieve economies of scale
Access to distribution channels
It is important to consider that key success
factors may change over time, especially as
the product progresses through its life cycle.