Understanding Consumers and Markets through Research x461.1 Matt Disston

Grading Rubric Midterm exam 20% Final exam20% Attendance/Participation10% Proposal50% ______ 100%

Proposal 1.Summary 2.Background 3.Objectives 4.Research Approach or Scope of Work 5.Time, cost and critical path chart (cpm) 6.Technical Appendix 1.Secondary data 2.Focus Group Script 3.Questionnaire for the survey

Proposal Summary Summarize the purpose of the proposal Answer why this research will achieve the objectives Target audience for the Summary is the Vice President of Marketing Provide total cost estimate and time require to complete Write this section last

Proposal Background Describe the market situation What is the product? Why is this product/service perceived as being a good idea by management? Who are the customers? Who is the competition? Are there any special characteristics of this product or market? SWOT

Proposal Objectives What are the management objectives? How will the research tasks generate useful information? What are the most important “researchable questions” the research will answer once it is complete?

Proposal Research Approach/Scope of work This is a detailed, step by step list of tasks that describe the work to be completed Specify the product of each task – For example: – Task 1. Meet with the client – At the outset of the research we will meet with the client to clarify the research to be completed. The product of this task will be a scoping memo which specifies any requests for information and specifies any decision points for the client throughout the research effort. The Research Approach will have 5 or 6 tasks: – Task 1. Meet with the client – Task 2. Secondary research – Task 3. Focus Group – Task 4. Intercept Survey – Task 5. Analysis

Proposal Time, Cost and CPM Construct a budget based on the hours you expect to spend on each task Establish a billing rate for each employee position Provide an estimate of the number of hours, by employee for each task Each task should have a subtotal of the total budget CPM chart should illustrate when each will be undertaken and in what order

Critical Path Method -- CPM TaskWeek 1Week 2Week 3Week 4Week 5Week 6 Meet with Client XXXX Secondary Data Search XXXXX Focus Group XXXXXXXXXXXXX Decision Point Meeting X Intercept Interviews (500) XXXXXXX X Analysis XXXXXXX

Proposal Technical Appendix Examples of the secondary research you found on your topic Focus group script – Introduction, definitions, 30 – 40 questions grouped by topic Questionnaire – description of methodology 20 – 30 questions

Marketing Research Definition Market research is the formalized process of obtaining information to be used in marketing decisions. Product: Information! – not decisions, – not a marketing plan, – not a SWOT, – not a new business

Market Research Vocabulary 4Ps – Product – Price – Placement – Promotion Market share Market segment Measures of central tendency – Mean – Median – Mode Economics Per capita Rank order Primary data Secondary data Experimental data Segmentation Targeting Positioning Marketing “pain”

Market Research The Environment

Market Research Process -- MIS Research Schematic: Marketing Environment Marketing Research Department Marketing Manager MIS Internal Information External Information Organized Information Guidance Recurrent Requested Monitoring Decisions Requests and Refinement

Decision Support System Provides necessary information at the time a decision is made Incorporates business judgment in the form of business/computer models Provides output to the decision maker based on their input and the input of others in the company Example: Salesman’s Ipad at the point of sale

Case 1 What do you need to start a business? – Money? – A plan? – A product? – Marketing research? – You need A Customer! – No – No (Nice try!)

Case 1 I am a potential research client. I have developed a new design for a sport boat. It is called a Carabelli 30. I am manufacturing these boats in Brazil. I would like to expand my market. Carabelli 30 Should I export them to the United States? What research (information) do you recommend I have to make this decision? How do you propose to find it?

Case 1 Start with secondary information. – Sources: Internal (4P’s) – What are the specifications of the product? » Price » Cost » Features » How is it manufactured? » What are the strategic relationships to make the product? – Where is it sold? – How is it currently promoted? – What are the objectives of the management team?

Case 1 External – What are the characteristics of the customers who bought the product? » How do they use it? » How much did they pay? » What is the “value” they see? » Is there market segmentation? – What companies are the competitors? » Price, placement, promotion – What suppliers are required to build it and what are their requirements? – Are there governmental/export issues?

General Research Process 1.Establish the objective with the client – select the marketing opportunity/problem -- What is the customer’s “marketing pain”? 2.Express the objective(s) in terms of “researchable questions” 3.Agree on the measurements to use and the information needed to answer the “researchable questions” – what is the research design 4.Determine how to collect the information -- Data collection methodology 5.Design the data collection forms – questionnaire, competitor product specification sheets 6.Determine the sampling method/collect data 7.Analyze the data 8.Write the report

3 Conceptions of Marketing The production concept: consumers will buy goods that are widely available and inexpensive; focus is on improving efficiency in production & distribution The selling concept: consumers will not buy enough of your product if you leave them alone; focus on advertising & contact with potential customers The marketing concept: consumers will buy your products if you identify their needs & satisfy those needs better than competitors. Source: Kotler, Philip, John Bowen, and James C. Makens. Marketing for Hospitality and Tourism

Three Types of Data Data TypeBenefitDisadvantage Primary Specific to your questions Specific to your target market Proprietary data Researcher controls timing of data Expensive Takes time Secondary Useful in exploratory research Inexpensive Available now May not be exactly what you need – wrong time, location or interval Probably is old data Experimental Can show causality Deeper description of the variables Very expensive Requires absolute control of the variables – difficult

Market Research Analysis GenderNumberPercentage Male1067% Female533% Total15100% Income RankRespondent 1Milton 2Roger 3Red 4Muffy 5Buzz Nominal Ordinal

Market Research Analysis IncomeNumberPercent $0-24,999214% $25 – 49,999320% $50 – 74,999533% $75 – 99,99900% $ % Total15100% Interval

Market Research Analysis Beers DrunkNumberPercent % % % % % 15100% Ratio