What is Market Research ?

"Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services."

Can also define it as “The systematic and objective process of generating ‘information’ for aid in making marketing decisions.”

Why is Market Research required?

• Help to strategize and review the marketing plan for a particular product / service.

• This in- turn helps to save cost which on un necessary marketing plans.

• Companies require information in order to introduce products and services that creates value in the mind of customers.

• The research data can be built into the product, not used as an afterthought.

• Market data can be implemented effectively, especially in regards to media buying.

• Finding the right pricing structure to build accurate budgets.

What is expected through the Research?

• Information that helps to gain a grasp on the (current/potential) consumer

• Major insights required (they – customer)– Who are the target customer?– What motivates the customer to buy?– How do the customer use the product?– What is important for the customer in a product?– Where are the customers located?– And lots of other insights, which are required for a

marketing strategy.

Plan Market Research

• Understanding of Market/Marketing Research• Management Focus

Marketing Research

Marketing research is one of the principal tools for answering questions because it: ◦ Links the consumer, customer, and public to the market

through information used to identify and define marketing

◦ Generates, refines, and evaluates marketing actions◦ Monitors marketing performance◦ Underlines the understanding of marketing as a process◦ Provides Answers◦ Helps set the Direction in understanding the Marketing

Problems

The Marketing Research Process

• This process includes:• specifying what information is required; • designing the method for collecting information;• managing and implementing the collection of data;• analyzing the results; and • communicating the findings and their implications.

I don’t knowif we should

enter the Indian

Market?

InformationReducesUncertainty

Classification of Market Research

Primary Research

• Quantitative (nos-based)• Experiments• Surveys

• Qualitative (content-based)• One – On – One • Focus group

Secondary Research

• Databases• Industry, Consumer News• Market Research• Demographics

Quantitative (numbers – based)

• Survey

• Provides reliable, hard statistics in such areas as attitudes, awareness ands usage.

• Provides hard numbers to make difficult decisions.

– Note: Sample size examples, 400-600 people

Qualitative Research

• Focus Groups• Helps us gain some general impression on the

consumer or product. Usually 8-12 people and a moderator.– Example: Current customer,

non-customer groups, mom with kids, single men 18-24 yrs of age.

Categories of Marketing Research

Advertising Research

Product Research

Sales Research

Market Research

Marketing Research helps to Strategize

4PsPrice

PlacePromotion

Product

Marketing Research

• Focus on Marketing Problems• Primary Research- Seeks data that does not

exist• Original information from Surveys• Secondary Research-Data that already exists• Background information (Secondary Sources-

Books, Internet, Government Databases, Libraries, magazines, newspapers,...from the Internet

Marketing research

• The process of systematically gathering, recording, and analysing data concerning a particular marketing problem

• Thus marketing research is used in specific situations to obtain information that is not otherwise available to decision makers

Marketing Research Techniques

• Interviews• face-to-face• telephone• postal questionnaire

• Attitude measurement• cognitive component (know/believe about an

act/object)• affective component (feel about an act/object)• conative component (behave towards an object or

act)

Market Research Design & Techniques

Likert scale strongly agreeagreeneither agree nor disagreedisagree strongly disagree

Semantic differential scales - differences between words e.g. practical v impractical

Projective techniques sentence completionpsychodrama (yourself as a product) friendly martian (what someone else might do)

Market Research Methods

• Group discussion and focus group• Postal research questionnaires• In-home scanning - hand-held light pen to scan

barcodes• Telephone research• Observation

• home audit• direct observation

• In-store testing such as Taste Testing in a Supermarket

When Should Marketing Research be Used?

When alternative actions are availableWhen there are potentially different payoffs from the

different actionsWhen there is uncertainty about which action to takeWhen you are potentially willing to alter actions

based on the research resultsWhen it is possible to collect the informationWhen the cost of the research is less than the added

benefit

The Marketing Research Process

1. Set objectives2. Define research Problem3. Assess the value of the research4. Construct a research proposal5. Specify data collection method6. Specify techniques of measurement7. Select the sample8. Data collection9. Analysis of results10. Present in a final report

Coca Cola Case Study

• Example of how blind taste tests missed the point

• In the mid 1980’s, 200,000 consumers took part in taste tests, old Coke vs. new Coke flavour

• April 23rd, 1985 – Coke changes its flavour; Renames product to new Coke as results suggest new Coke taste is preferred

• 1990- Diet Coke• 2000-New Coke Flavours – Zero Coke

• Research failed to show consumers felt a bond with

their old Coke

• Announcements that old Coke was coming off the

shelves, spurred many to stock up their basements

• One man bought $1000 worth of bottles

• July 11th, 1985: Old Coke returns• Old Coke is renamed Coca Cola Classic• Consumers rejoice; Coke company realises

Coca Cola is more than just a soft drink • ‘Diet Coke’ targeted to Female Drinkers• Zero Coke targeted to Male Drinkers• Raspberry Coke

Limitations of Market Research

• Cost• Limited time to collect data• Customer commitment/validity of data• Time lag between research and application