Plan market research

Plan Market Research

Session-I

Market Research DefinitionMarketing research is systematic approach of:

Identification Collection Analysis Dissemination use of information

School of Business Captain 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 Research

Identification of Information Needed

Collection of Data

Analysis of Data

Dissemination of Information

Use of Information

Identifying and Solving Marketing Problems

Sources of Marketing Research

Primary Source External

Secondary 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 directly at your research objective

Latest information from the marketplace

Can assess the psychology of the customer

Expensive Risk of questionnaire and

interviewer bias. Research findings may only

be usable if comparable backdate exists

Secondary Data

Cheap and accessible Quicker Only way to examine large

scale trends

Out-dated information Unknown biases Direct data conversion not

possible Different units of measurement

Session-II

Classification of Marketing Research

Problem Identification ResearchResearch 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 ResearchResearch undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

Marketing Research

Problem Identification Research

Problem Solving Research

• Market Potential Research• Market Share Research• Image Research• Market Characteristics

Research

• Forecasting Research• Business Trends Research

• Segmentation Research• Product Research• Pricing Research• Promotion Research• Distribution Research

A Classification of Marketing Research

Problem Solving Research

SEGMENTATION RESEARCH PRODUCT 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

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control score tests

Problem Solving Research

Problem Solving Research

DISTRIBUTION RESEARCH

Determine…

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets

.

Problem Solving Research

Problem Solving Research

Problem Solving Research

Pricing Research - importance of price in brand selection

- pricing policies

- product line pricing

- price elasticity of demand

- initiating and responding to price changes

Problem Solving Research

Promotional 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 Research

Distribution Research - determine type of distribution

- attitudes of channel members

- intensity of wholesale and retail coverage

- channel margins

- location of retail and wholesale outlets

Session-III

Market Research process

Market Research process

MarketResearch

Controllable Variables

• Product• Pricing• Promotion• Distribution

Market decision Making

Market segmentation | Marketing Programs | Target Markets

Performance and Control

Providing Information

Customer Groups• Consumers• Employees• Channel Members• Suppliers

Assessing Information Needs

Uncontrollable Environmental

Factors• Economy• Technology• Competition• Laws and

Regulation• Social and

Cultural Factors• Political Factors

Identification research

Examples• 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 research

E.G. The number of customers eating at a restaurant has reduced over the 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 research

1. Descriptive research is conducted to discover characteristics of a population. Who – When – What – Where & How.

2. Casual research is attempts to identify cause - effect relationship between variables. Normally the researchers would have considerable knowledgeable about the industry / subject.

Descriptive Research

Examples 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

Session-IV

Qualitative research

• help define a problem

• provide understanding of a problem

• generate ideas and hypotheses to identify variables to assess the problem.

Why do we use Qualitative research

Qualitative research

• Can ask sensitive questions

• Can ask open ended & probing questions

• Emphasis is on words & responses

What does a qualitative research involve?

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

Methodology of conducting a qualitative research

Qualitative research

Data analysis

• Data is not easily quantifiable• Data cannot be expressed statistically

Findings

• Findings may represent a sample• Findings are usually not conclusive

Quantitative research

Why 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 research

Methods to implement a quantitative research

• Only ask simple questions

• Ask precise & short questions

• Obtain precise responses

• Emphasis is on numbers

Quantitative research

Methodology 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 research

Data analysis

• Data is easily measurable • Data can be expressed statically

Findings

• 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 Organizations

Australian 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