Marketing Research

1. Marketing Research

2. Definition • Marketing research involves the process and methods used to gather information, analyze it, and report findings related to marketing goods and services • Marketing Research Association

3. How is the Research Used? • Determine consumers’ attitudes and preferences • Test product features • Determine market size and growth potential • Learn about competitive products • Determine buying cycles • Understand how the company is perceived by the public

4. Types of Research Quantitative • Analysis of numerical data. • “How many” • “how much” • surveys Qualitative • Analysis of data such as words • “How” • “Why” • In-depth Interviews

5. Types of Marketing Research

6. Attitude & Opinion Research Discover how people feel about products, services, or ideas • Satisfaction surveys • Mail surveys • Telephone interviews • Rate “how satisfied” • Opinion polls • Gallup Organization • Politics, elections, business, economy, social issues, sports • Focus groups

7. Market Intelligence Information about an existing or potential market for market intelligence • Defines the size, location, and make-up of the market • Often done before a new product launch

8. Media (Advertising) Research Determines the effectiveness of the various media to advertise a good or service • Brand awareness • Advertising recall • Effectiveness of copy

9. Media (Advertising) Research • Nielsen Media Research, Inc. • Audience measurement information for television industry • Viewing habits of 13,000 people in 5,000 homes • Arbitron Ratings Company • Produces radio audience measurements • Audience measurement in 267 local markets serving 2,300 radio stations • Contacts listeners, diaries

10. Product Research Information about a product’s design, packaging, and usage • How customers react to a new product design or packaging • Information about how a competing product is designed and packaged

11. Knowledge Check.. Identify the type of research needed. • Starbucks needs information about a new Asian market. • Nike would like to know how consumers responded to a Super bowl commercial. • Coke needs to know how consumers react to a new can color. • Holiday Inn wants to know how pleased their past customers are.

12. The Research Process

13. Obtaining Data Primary data • Data obtained for the first time • Used for specific problem or issue Secondary data • Data already collected for some purpose other than the current study • Less expensive than primary data

14. Secondary Sources • Internet sources • U.S. and state government sources • Specialized research companies • Business publications and trade organizations • Company Data Base Advantages • Obtained easily • Inexpensive Disadvantages • May not be suitable for the problem under study • Sometimes inaccurate

15. Primary Data Instruments Survey Method • Most frequently used • The larger the sample, the more accurate the results • In person • Mail • Online

16. Primary Data Instruments Interview method • Face-to-face • Phone • Focus Groups • A group is interviewed all at once and observed • Can be expensive

17. Primary Data Instruments Observation method • Watched by cameras or observers • Mystery shoppers • Cannot measure attitudes or motivation • Faster than personal interviews • Cost effective Experimental method • Observes results of changing one or more marketing variables while keeping other variables constant under controlled conditions • New package designs, media usage, new promotions • Expensive

18. ALWAYS Remember • Marketing Research is a tool. • It assists marketing managers in their decision making. • IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!