2. R.Recognition of information needs
E Effective decision making
S. Systematic and objective
E Exude or disseminate information
A Analysis of information
R Recommendation for action
C Collection of information
H Helpful to managers
RESEARCH
3. Marketing Research: Definition
• Many definitions of Marketing Research:
– “Marketing research is the systematic design, collection, analysis
and reporting of data and findings relevant to a specific marketing
situation facing the company.”
– Marketing research is the process of designing, gathering,
analyzing, and reporting information that may be used to solve a
specific marketing problem.
4. Definition of Marketing Research
Marketing research is the systematic and objective
▪ identification
▪ collection
▪ analysis
▪ dissemination
▪ and use of information
For the purpose of improving decision making related to the
▪ identification and
▪ solution of problems and opportunities in marketing.
5. Need For Marketing Research
• Why do businesses need accurate and up-to-date information?
– To undertake marketing effectively
– Changes in technology
– Changes in consumer tastes
– Market demand
– Changes in the product ranges of competitors
– Changes in economic conditions
– Distribution channels
6. Purpose Of Marketing Research
• Gain a more detailed understanding of consumers’ needs:
– e.g., views on products’ prices, packaging, recent
advertising campaigns
• Reduce the risk of product/business failure:
– there is no guarantee that any new idea will be
a commercial success
– Can help to achieve commercial success
• Forecast future trends:
– it can also be used to anticipate future customer needs
7. Types of marketing research
•
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Marketing research techniques come in many forms, including:
Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using
measures such as brand awareness, brand preference, and product usage. (Young, 2005)
Advertising Research – used to predict copy testing or track the efficacy of advertisements for any
medium, measured by the ad’s ability to get attention (measured with AttentionTracking),
communicate the message, build the brand’s image, and motivate the consumer to purchase the
product or service. (Young, 2005)
Brand equity research - how favorably do consumers view the brand?
Brand association research - what do consumers associate with the brand?
Brand attribute research - what are the key traits that describe the brand promise?
Brand name testing - what do consumers feel about the names of the products?
Commercial eye tracking research - examine advertisements, package designs, websites, etc. by
analyzing visual behavior of the consumer
Concept testing - to test the acceptance of a concept by target consumers
Coolhunting - to make observations and predictions in changes of new or existing cultural trends in
areas such as fashion, music, films, television, youth culture and lifestyle
Buyer decision making process research - to determine what motivates people to buy and what
decision-making process they use; over the last decade, Neuromarketing emerged from the
convergence of neuroscience and marketing, aiming to understand consumer decision making
process
8. ❖ Copy testing – predicts in-market performance of an ad before it airs by analyzing
audience levels of attention, brand linkage, motivation, entertainment, and
communication, as well as breaking down the ad’s flow of attention and
flow of emotion. (Young, p 213)
❖ Customer satisfaction research - quantitative or qualitative studies that yields an
understanding of a customer's satisfaction with a transaction
❖ Demand estimation - to determine the approximate level of demand for the
product
❖ Distribution channel audits - to assess distributors’ and retailers’ attitudes toward
a product, brand, or company
❖ Internet strategic intelligence - searching for customer opinions in the Internet:
chats, forums, webpages, blogs... wherepeopleexpressfreely about their
experiences with products, becoming strong opinion formers.
❖ Marketing effectivenessand analytics - Building modelsand measuring results to
determine the effectiveness of individual marketing activities.
❖ Mystery consumerormystery shopping - An employeeorrepresentative of the
market research firm anonymously contacts a salesperson and indicates he or she
is shopping for a product. The shopperthen recordsthe entire experience. This
method is often used for quality control or for researching competitors' products.
❖ Positioning research- howdoesthe target market seethe brand relative to
competitors? - what does the brand stand for?
9. ❖ Price elasticity testing - to determine how sensitive customers are to price
changes
❖ Sales forecasting - to determine the expected level of sales given the level of
demand. With respect to other factors like Advertising expenditure, sales
promotion etc.
❖ Segmentation research- to determine the demographic, psychographic, and
behavioural characteristics of potential buyers
❖ Online panel - a group of individual who accepted to respond to marketing
research online
❖ Store audit - to measure the sales of a product or product line at a statistically
selected storesample in orderto determine market share, orto determine
whether a retail store provides adequate service
❖ Test marketing - a small-scale product launch used to determine the likely
acceptance of the product when it is introduced into a wider market
❖ Viral Marketing Research - refers to marketing research designed to estimate
the probability that specific communications will be transmitted throughout an
individual's Social Network. Estimates of Social Networking Potential (SNP)
are combined with estimates of selling effectiveness to estimate ROI on specific
combinations of messages and media.
10. Marketing research methods
• Methodologically, marketing research uses the following types of
research designs:
1. Based on questioning
■Qualitative marketing research - generally used for exploratory
purposes - small number of respondents - not generalizable to the
whole population - statistical significance and confidence not
calculated - examples include focus groups, in-depth interviews, and
projective techniques
■Quantitative marketing research - generally used to draw conclusions
- tests a specific hypothesis - uses random sampling techniques so as to
infer from the sample to the population - involves a large number of
respondents - examples include surveys and questionnaires.
Techniques include choice modelling, maximum difference preference
scaling, and covariance analysis.
11. 2. Based on observations
•Ethnographic studies - by nature qualitative, the researcher observes social
phenomena in their natural setting - observations can occur cross-sectionally
(observations made at one time) or longitudinally (observations occur over
several time-periods) - examples include product-use analysis and computer
cookie traces. See also Ethnography and Observational techniques.
•Experimental techniques - by nature quantitative, the researcher creates a
quasi-artificial environment to try to control spurious factors, then
manipulates at least one of the variables - examples include purchase
laboratories and test markets
12. A Classification of Marketing Research
Problem-Identification Research
• Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
are likely to arise in the future. Examples: market
potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.
Problem-Solving Research
• Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.
13. A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem-Solving
Research
Market Potential Research
Market Share Research
RMeasrkeeatrcChharacteristics
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research
14. Problem-Solving Research
SEGMENTATION RESEARCH
▪ Determine the basis of
segmentation
▪ Establish market potential and
responsiveness for various
segments
▪ Select target markets
▪ Create lifestyle profiles:
demography, media, and
product image characteristics
PRODUCT RESEARCH
▪ Test concept
▪ Determine optimal product design
▪ Package tests
▪ Product modification
▪ Brand positioning and repositioning
▪ Test marketing
▪ Control store tests
15. Problem-Solving Research
PRICING RESEARCH
▪ Pricing policies
▪ Importance of price in brand selection
▪ Product line pricing
▪ Price elasticity of demand
▪ Initiating and responding to price
changes
$ALE
PROMOTIONAL RESEARCH
▪ Optimal promotional budget
▪ Sales promotion relationship
▪ Optimal promotional mix
▪ Copy decisions
▪ Media decisions
▪ Creative advertising testing
▪ Evaluation of advertising effectiveness
0.00% APR
17. Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
18.
19.
20.
21.
22.
23.
24.
25.
26.
27. The Role of Marketing Research
• Product
• Pricing
• Promotion
• Distribution
Controllable
Marketing
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Information
Needs
Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
Uncontrollable
Environmental
Factors
• Economy
• Technology
• Laws &
Regulations
• Social & Cultural
Factors
• Political Factors
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
29. Selected Marketing Research
Career Descriptions
Vice-President of Marketing Research: The senior position in
marketing research. The vice president (VP) is responsible for the
entire marketing research operation of the company and serves on
the top management team. This person sets the objectives and
goals of the marketing research department.
Research Director: Also a senior position. The research director has
the general responsibility for the development and execution of all
the marketing research projects.
Assistant Director of Research: Serves as an administrative assistant
to the director and supervises some of the other marketing
research staff members.
(Senior) Project Manager: Has overall responsibility for design,
implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory
and application of statistical techniques. Responsibilities include
experimental design, data processing, and analysis.
Fig 1.4
30. Selected Marketing Research
Career Descriptions
•
•
•
Vice President of Marketing
Research
Part of company’s top
management team
Directs company’s entire market
research operation
Sets the goals & objectives of the
marketing research department
Research Director
•Also part of senior
management
•Heads the development
and execution of all
research projects
Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members
Senior Project Manager
•Responsible for design, implementation, &
research projects
31. Analyst
• Handles details in execution of
project
• Designs & pretests questionnaires
• Conducts preliminary analysis of
data
Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Fieldwork Director
•Handles selection, training,
supervision, and evaluation of
interviewers and field workers
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report
Statistician/Data Processing
• Serves as expert on theory and
application on statistical techniques
• Oversees experimental design, data
processing, and analysis
Selected Marketing Research Career
Descriptions
32. Criteria for Selecting a Research Supplier
▪
▪
▪
▪
▪
▪
▪
▪
What is the reputation of the supplier?
Do they complete projects on schedule?
Are they known for maintaining ethical standards?
Are they flexible?
Are their research projects of high quality?
What kind and how much experience does the supplier have? Has
the firm had experience with projects similar to this one?
Do the supplier's personnel have both technical and non-technical
expertise?
Can they communicate well with the client?
Competitive bids should be obtained and compared on the basis of
quality as well as price.
33. What you should include in your market research plan?
Doing business without having a marketing plan is like driving
without directions. You may eventually reach your destination, but
there will be many costly and time-consuming mistakes made along
the way.
Many entrepreneurs mistakenly believe there is a big demand for their
service or product, but, in reality, there may not be, or your prices may
be too high or too low, or you may be going into a business with so
many restrictions that it's almost impossible to be successful. A market
research plan will help you uncover significant issues or roadblocks.
34. Conduct a comprehensive situation analysis.
One of the first steps in creating your marketing plan is to create a SWOT
analysis (strengths, weaknesses, opportunities and threats), which is used to
identify your competition, to know how they operate, and then to understand their
strengths and weaknesses.
•Strengths to include in your plan should encompass competitive advantages.
These advantages can include the talent, proficiency and expertise of you and/or
your executive team that can help improve the position of your company in the
marketplace.
•Weaknesses are factors that reduce the ability of your company to independently
achieve its objectives, such as outdated production tools, unreliable delivery and a
lack of planning.
•Opportunities are ways that your business can grow and become more profitable.
•Threats would be things that prevent you from entering into a primary market,
such as political developments or a labor shortage.
35. Develop clear marketing objectives.
In this section you will describe the desired outcome for
your marketing plan with realistic and attainable
objectives, the targets, and a clear and concise time
frame. The most common way to approach this is with
marketing objectives, which may include the total
number of customers and the retention rate, the
average volume of purchases, total market share, and
the proportion of your potential market that makes
purchases.
36. Make a financial plan.
A financial plan is essential for creating a solid
marketing plan. The financial plan answers a range of
questions that are critical components of your business,
such as how much you intend to sell, what will you
charge, how much will it cost to deliver your services or
produce your products, how much will it cost for your
basic operating expenses and how much financing will
you need to operate your business.
37. • Know what you’re talking about
– What’s your product?
–Who are you selling to in existing
markets?
• Look for answers to specific questions
– But don’t always expect specific answers
•Not everything can be found on the
Internet
Keys to Successful Marketing
Research
