Marketing ResearchMarketing Research

Monday, February 23Monday, February 23

Give a couple examples of Marketing Give a couple examples of Marketing Research.Research.

Why do you think Marketing Why do you think Marketing Research is important?Research is important?

What is Marketing What is Marketing Research?Research?

Gathering, recording, and analyzing Gathering, recording, and analyzing information about problems related to information about problems related to marketing goods and services.marketing goods and services.

Can apply to any area of marketingCan apply to any area of marketing– Creation of a new productCreation of a new product– Effectiveness of an advertising campaignEffectiveness of an advertising campaign

Primary emphasis is to obtain Primary emphasis is to obtain information about the preferences, information about the preferences, opinions, habits, trends, and plans of opinions, habits, trends, and plans of potential customers.potential customers.– Determine what customers want and needDetermine what customers want and need

Why is Marketing Research Why is Marketing Research Important?Important?

There is a huge failure rate of new productsThere is a huge failure rate of new products– Marketing research can make or break a Marketing research can make or break a

businessbusiness Helps businesses plan their future operations to Helps businesses plan their future operations to

try to increase sales and profits.try to increase sales and profits. Helps solve marketing problems or anticipate Helps solve marketing problems or anticipate

future marketing problemsfuture marketing problems Helps keep track of what is going on in the Helps keep track of what is going on in the

marketmarket– Determines major competitors, what Determines major competitors, what

competitors are offering, & what products competitors are offering, & what products consumers prefer.consumers prefer.

Who Uses Marketing Who Uses Marketing Research?Research?

Valuable for organizations of any sizeValuable for organizations of any size– Size of the business may affect how it Size of the business may affect how it

conducts the businessconducts the business State & Federal Government AgenciesState & Federal Government Agencies Trade AssociationsTrade Associations

– Manufacturers, wholesalers, and retailersManufacturers, wholesalers, and retailers– Collect industry data to help their members Collect industry data to help their members

understand the markets for their products.understand the markets for their products.

Du Pont, the chemical company, Du Pont, the chemical company, regularly uses marketing research to regularly uses marketing research to find out what customers think of its find out what customers think of its products. On one survey a researcher products. On one survey a researcher thought to ask, “Why did you choose thought to ask, “Why did you choose our product over the competition’s?” our product over the competition’s?” From the answers received, the From the answers received, the company discovered that its products company discovered that its products to be in some way better or purer to be in some way better or purer than those of the competition.than those of the competition.

Du Pont decided to use this Du Pont decided to use this information to create a new information to create a new advertising campaign. The advertising campaign. The advertising message was that Du advertising message was that Du Pont took special care to assure Pont took special care to assure purity in the manufacturer of its purity in the manufacturer of its products. Print advertisements products. Print advertisements featured photos of white-coated featured photos of white-coated scientist performing quality scientist performing quality assurance checks in sparking clean assurance checks in sparking clean laboratories.laboratories.

In the aftermath of the campaign, Du In the aftermath of the campaign, Du Pont’s market share rose to a new Pont’s market share rose to a new high. The company had learned the high. The company had learned the pleasant way that if you ask why, pleasant way that if you ask why, you can be surprised by the answer. you can be surprised by the answer. And if you’re in a business that takes And if you’re in a business that takes its marketing research seriously, you its marketing research seriously, you can turn what you learn into higher can turn what you learn into higher profits.profits.

Creativity Challenge: Creativity Challenge: Break into teams of Break into teams of 3 people, and speculate about the kinds of 3 people, and speculate about the kinds of distinctions consumers routinely make distinctions consumers routinely make among similar products. Why do they among similar products. Why do they choose a particular brand of batteries or choose a particular brand of batteries or canned vegetables or athletic shoes? Using canned vegetables or athletic shoes? Using one of these items or a product of your own one of these items or a product of your own choice, develop a list of reasons for a choice, develop a list of reasons for a particular preference. Then, test that list. particular preference. Then, test that list. Devise a simple survey (written or oral) to Devise a simple survey (written or oral) to find out what consumers really think. Use find out what consumers really think. Use your classmates as a test group. Any your classmates as a test group. Any surprise? Any ideas for capitalizing on surprise? Any ideas for capitalizing on them? them?

Types of Marketing Types of Marketing ResearchResearch

Advertising ResearchAdvertising Research Product ResearchProduct Research Market ResearchMarket Research Sales ResearchSales Research

Advertising ResearchAdvertising Research

Focuses on the advertising message Focuses on the advertising message and media. and media.

It measures two things:It measures two things:– The effectiveness of the advertising The effectiveness of the advertising

messagemessage– The effectiveness of media placementThe effectiveness of media placement

Testing the advertising MessageTesting the advertising Message– Focus Groups or Consumer PanelFocus Groups or Consumer Panel

A common technique to study how A common technique to study how effectively a message has been delivered effectively a message has been delivered

Product ResearchProduct Research Product ResearchProduct Research

– Centers on evaluating products design and Centers on evaluating products design and acceptance, competitive products, packaging acceptance, competitive products, packaging design and product usage.design and product usage.

Test MarketingTest Marketing– A method of collecting data on products A method of collecting data on products – Occurs when a new product is placed in one or Occurs when a new product is placed in one or

more selected geographic areas.more selected geographic areas.– Allows marketers to test customer response to Allows marketers to test customer response to

a product and to observe a product’s sale a product and to observe a product’s sale performance.performance.

– The results help the product manufacturer The results help the product manufacturer determine whether the product needs change determine whether the product needs change before being introduced to the market.before being introduced to the market.

Market ResearchMarket Research

Focuses on the customer and the Focuses on the customer and the market. market. – Customer analysisCustomer analysis

The study of customer behavior through The study of customer behavior through questionnaires and interviewsquestionnaires and interviews

– Market analysisMarket analysis The study of the behavior of a consumer The study of the behavior of a consumer

market to investigate the potential markets market to investigate the potential markets for a product and to define characteristics of for a product and to define characteristics of the target market.the target market.

Sales ResearchSales Research

The study of sales data to determine The study of sales data to determine the potential sales for a product and to the potential sales for a product and to solve problems related to future sales.solve problems related to future sales.– Sales ForecastingSales Forecasting

An effort to estimate the future sales of a An effort to estimate the future sales of a productproduct

Economic ForecastingEconomic Forecasting An attempt to predict the future general An attempt to predict the future general

economic conditions of a city, a region, the economic conditions of a city, a region, the country, or another part of the world.country, or another part of the world.

Methods of ResearchMethods of Research

Experimental MethodExperimental Method– SampleSample

Observational MethodObservational Method Survey MethodSurvey Method

Constructing the Constructing the QuestionnaireQuestionnaire

Questionnaires should provide data Questionnaires should provide data that have validity that have validity – data should measure what it is intended data should measure what it is intended

to measure.to measure. They should also have reliabilityThey should also have reliability

– the questions should ask the same type of the questions should ask the same type of information from all of the respondents.information from all of the respondents.

– They should be clear and easy to They should be clear and easy to understand so everyone interprets the understand so everyone interprets the questions in the same way.questions in the same way.

Constructing the Constructing the QuestionnaireQuestionnaire

Writing QuestionsWriting Questions– Open-ended or forced choice questionsOpen-ended or forced choice questions

Please answer Please answer Yes Yes or or No No to the to the following questions:following questions:– Did your server make you welcome?Did your server make you welcome?– Were the daily specials suggested?Were the daily specials suggested?– Was the service prompt?Was the service prompt?

Forced Choice QuestionsForced Choice Questions Please choose which of the following is most Please choose which of the following is most

important to you when choosing a important to you when choosing a restaurant:restaurant:

– PricePrice– Quality of FoodQuality of Food– LocationLocation– Variety of FoodVariety of Food

Please rate the followingPlease rate the following– CleanlinessCleanliness Excellent Good Fair Poor Excellent Good Fair Poor– AttitudeAttitude Excellent Good Fair Poor Excellent Good Fair Poor– QualityQuality Excellent Good Fair Poor Excellent Good Fair Poor– Value Value Excellent Good Fair Poor Excellent Good Fair Poor

Constructing the Constructing the QuestionnaireQuestionnaire

FormattingFormatting– The questionnaire should have different types of The questionnaire should have different types of

questions.questions.– Directions for completing the questionnaire must Directions for completing the questionnaire must

be clear for each section or group of questions.be clear for each section or group of questions.– Questionnaires must have excellent visual Questionnaires must have excellent visual

appearance and design.appearance and design.– Numbers should be placed on all sections and on Numbers should be placed on all sections and on

all questions (respondents are more likely to all questions (respondents are more likely to respond to all questions if they are numberedrespond to all questions if they are numbered

– May want to guide participants to the next page if May want to guide participants to the next page if there is more than one page of the survey.there is more than one page of the survey.

Distributing the Distributing the QuestionnaireQuestionnaire

MailMail EmailEmail In personIn person