Marketing Research. BMI3C Unit 4 Slide 2 Marketing Research the systematic collection, analysis, and interpretation of information to develop a market

Marketing ResearchMarketing Research

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• the systematic collection, analysis, and interpretation of information to develop a market strategy or solve a marketing problem.

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Why?Marketing research firms provide businesses with professional researchers to make marketing more

successful.

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Two types of information used in market research:

•primary data•secondary data

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Gathering Secondary Gathering Secondary DataData

Secondary data: information that has already been collected and published by others.Secondary research: finding this information, and then analyzing it for a new purpose.

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PROS• information is already

gathered• takes less time• less expensive• can be done with small firms

(without hiring marketing firm)

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CONS• information is “second-

hand”• may not be suitable for what

you are researching• may be difficult to

“reinterpret”

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SOURCES• books, periodicals, indexes,

databases, the internet, consultants, marketing research professionals

• Statistics Canada


Assignment

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1. Choose a city in Canada starting with the same letter as your first or last name.

2. Find four pieces of information about that city a marketer may use to promote it.

3. Give list to teacher.

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Doyle Research Associates

Please make sure to cleanse your palette between samples!

Answer all questions as truthfully as possible. Do not consult with those around you.

Thank you for your participation!

https://mail.wcdsb.ca/exchweb/bin/redir.asp?URL=http://comics.com/the_born_loser/2009-03-25/

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Gathering Primary Gathering Primary DataData

Primary data: information newly collected by a researcher for a specific purpose.

Two general types:

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Qualitative Research• used to gather people’s

reactions and responses•blind taste tests, opinion polls

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Quantitative Research• data is collected by

surveying a sample of the target-market

• researchers use the results to predict opinions of entire market

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Researchers collect information using various techniques:

• test marketing• internal information sources• surveys• observation• focus-group interviews

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Test Marketing• test markets are sites that

mirror the demographic composition of total market; eg. Peterborough, ON

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Test Marketing• used for packaged goods• used for movies: private

screenings, sneak previews

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Test Marketing• done in different ways:

•product placed in store, monitor sales

•change a factor in one store → are sales impacted?

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Test Marketing• location is kept secret so

consumers don’t act differently. If people know something is being tested, they may skew the results.

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Test Marketing• expensive, and can give

inaccurate results• competitors who know you

are conducting a test may try to sabotage process

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Internal Information SourcesThis is usually where marketing research begins.

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Internal Information Sources

• inventory and sales records: popularity of product, fluctuations in sales ($ and #), stock turnover

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• advertising and promotional records: effectiveness of ads, coupons, contests, product sample offers

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• production records: peak ordering periods, downtimes, to help schedule marketing and advertising plans

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• customer databases•track purchasing patterns•target specific promos to frequent customers

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• client cards and reward programs require personal information (gender, age, income, etc.)•card usage is tracked

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• data mining looks for hidden connections between personal information and purchasing behaviour

The Market Research The Market Research ProjectProject

Big Assignment

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SurveysA survey is a set of

carefully planned questions used to gather data. These can be completed in writing or orally, in person, on the phone, through the mail, or on the internet.

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SurveysMost surveys use closed-

ended questions, which ask you to select an answer from two or more choices.

•quick and simple to answer

•easy to sort and analyze

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SurveysUsually yes/no,

multiple choice, agree/ disagree, rate on a

scale types of questions.

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SurveysSample closed-ended

questions

I would buy this brand again

agree uncertain disagree

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questions

Are you a smoker? yes no

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questions

Which brand names have you purchased in the last year? Dove Irish Spring Ivory Jergens Lever 2000 Other

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SurveysSample closed-ended questions

Rate our service using the following scale

poor excellent

Clean 1 2 3 4 5Friendly staff 1 2 3 4 5Value 1 2 3 4 5

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questions

What do you look for when you shop for a DVD player? simple remote ease of use plays MP3/JPG brand name

multi-disc warranty

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SurveysWhen researchers conduct

surveys they collect from a random sample of their target market population, giving each member an equal chance of being selected.

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SurveysIf a sample does not

accurately represent the target market, then the results may be misleading; the sample is said to be biased.

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SurveysIf the survey sample is

truly random, then the results could be projected onto the entire market.

see figure 4.17, page 140

Problem Survey Problem Survey QuestionsQuestions

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Problem Survey Questions

Have you ever been caught surfing to inappropriate sites at work?

Leading question

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How much time do you spend watching TV and doing housework?

Two questions in one

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Select your annual salary level. 20,000-40,000 40,000-60,000

60,000-80,000 80,000-

Nonmutually exclusive answers

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When was the first time you saw a commercial for our product?

Unanswerable question

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Why is our product better than our competitor’s?

Leading question

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How much do you pay for entertainment?

Ambiguous question

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How much do you pay for entertainment weekly?

$5 $10 $15 $20

Nonexhaustive question

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How much do you pay for entertainment and groceries weekly?

$5 $10 $15 $20

Two questions in one

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How much do you think the average customer spends monthly on clothing?

Unanswerable question

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Where do you use All Around the House cleaner most?

bathroom kitchen laundry

Nonexhaustive question

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Why do you think our cereal is the best tasting one on the market?

Leading question

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Observation• collecting information by

recording people’s actions without interacting with them to see how they behave

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Observation• Often people do not know

they are being watched. This is to ensure they act the way they usually do.

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Observation• more accurate and less

biased than surveys• more expensive

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Observation• less effective in large groups:

•difficult to observe many people at one time

•people respond to the actions of others

» results in bias

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Observation• done using cameras, one-

way mirrors, other methods of mechanical observation

•bar-code scanners, eye-tracking photography

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Focus-Group Interviews• A small group of people

brought together to discuss a product or issue.

• Participants are carefully selected to represent a specific target market.

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Focus-Group Interviews• moderator guides the

discussion in an unbiased manner. Sessions are often recorded for further review.

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TODAY’S TASKSTODAY’S TASKS

1. Choose classes to visit(see lists posted on bulletin board)

2. Compose letters to teachers (who, what, when, ask for response)

3. Start rough survey(show Mr. M. for approval)

Preparing a Research Preparing a Research ReportReport

(refer to handout)

Types of Marketing Types of Marketing ResearchResearch

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Consumer ResearchConsumer Research

Consumer research is used to determine buying behaviour.

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Consumer ResearchConsumer ResearchAwareness, attitude and usage studies (AAU)measures consumer awareness of product

•unaided awareness:– list all the [whatever] you can think

of

•aided awareness:–check off all the [whatever] you’re

familiar with

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Awareness, attitude and usage studies (AAU)

total awareness

unaided awareness

aided awareness= +

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•attitudes about product help identify strengths & weaknesses

• STRENGTH: “the brand has been around for a long time”

• WEAKNESS: “the product is old-fashioned and boring”

•helps develop ad campaign

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•usage patterns help develop consumer profiles•use data to link groups to product use

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Consumer segmentation analysis

•group potential customers based on characteristics

•gear advertising and promos to this group

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Market dimension analysis

•researches the main issues about the product that influence a consumer segment•what is it that you find so appealing about the product?

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Product research•examines the details of the product and their impact •colour, package, flavour, size, texture, design, etc.

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Product research• assess making

modifications based on consumer feedbacka) is the technology

available, and will it be worth the increased cost?

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Consumer ResearchConsumer ResearchProduct research

• assess making modifications based on consumer feedbackb) will consumers see the

improvement as worth the extra cost?

c) will the new feature prompt consumers to change brands?

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Media research• segment customers

based on what they read, watch, listen to

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Media researchProvides:• marketers with the ability to

communicate with target mkts

• media outlets with audience numbers; used to set ad prices

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Consumer tracking devices

• determine consumer behaviour while shopping

•when consumers shop•where they shop•what they buy

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Consumer tracking devices

• uses computer-assisted devices

• data used to determine displays, store layout, advertising, inventory, etc.

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Motivational research• psychological research into

consumer buying behaviour• look at emotional and

rational reasons for buying decisions

• helps determine promotional methods

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Consumer satisfaction studies

• feedback cards, follow-up interviews, suggestion boxes

• identify gaps between customer satisfaction and ideal

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Consumer satisfaction studies

• results identify areas for product development, competitive differentiation

• ongoing

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Advertising research• provides information on

effectiveness of ads• done in focus groups before

going public• may modify ads as a result

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Advertising research• often day after recall (DAR)

is tested• promos also measured for

effectiveness: how many people used coupons? called the 1-800 number? Filled a ballot?

Competitive ResearchCompetitive Research

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Competitive research is used to determine what products are competing with your product, and how.

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Competitive Market Analysis

•uses a variety of tools to compare all products in a particular category

•identify competitors, their strengths

is a market segment worth entering?

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Competitive Intelligence•gather as much information

about competitors as possible•collect articles about

companies, reports, corporate profiles; samples of ads, PR material, promotions

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Competitive ResearchCompetitive ResearchPricing Research

• investigate pricing for a product: can you competitively price a product and still profit?

• looks at price vs. demand•a lower price (and lower profit)

may help grow market share, and eventually increased profits

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Competitive ResearchCompetitive ResearchComparative Worth Analysis is used:My product’s “value”: 22Competitor’s “value”: 20

Since my value is 10% greater, my price should be ~ 10% higher.

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Conjoint (Tradeoff) Analysis

•identify individual features of a product which make up the value equation

•identify which of these features are most valued and should be emphasized

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HOMEWORKHOMEWORKChapter 4 review questions

#1, 3, 4, 7, 8Due Tuesday

Documents

Marketing Research. BMI3C Unit 4 Slide 2 Marketing Research the systematic collection, analysis, and interpretation of information to develop a market