University of Plymouth’s Entrepreneurship Programme Introduction to Market Research Bob Baggott

What are your expectations for this session? How many of you are or are looking to set up in business or become self employed? What is your motivation for doing this?

Purpose of the Organisation/Business? To create Value for all its stakeholders Customers Employees Shareholders Suppliers and Agents Community

identifying/maximising marketing opportunities AIMS OF MARKETING satisfying customers identifying/maximising marketing opportunities targeting the ‘right’ customers staying ahead in dynamic environments endeavouring to beat or pre-empt competitors utilising resources/assets effectively increasing market share enhancing profitability

Money, credit, donations, labour, goods Exchange Between Buyer & Seller Something of value: Money, credit, donations, labour, goods Buyer (Customer) Seller (Provider) Something of value: Goods, services, ideas

Ways of creating Value Core competencies. What you do better than your competitors Corporate or Brand image. What values your products represent Customer service. How well you retain your customers Corporate Culture What values you promote internally

Marketing Strategies: are developed to achieve increased sales. involve selecting and analysing a target market and creating and maintaining an appropriate marketing mix to satisfy them. set out a marketing plan for the best use of the organisation’s resources and tactics to meet its objectives and achieve a competitive position. deal with 3 broad sets of variables 1) marketing mix, 2) target market strategy, 3) marketing environment.

MARKETING STRATEGY Defining Business Market analysis Opportunities/Threats Environmental analysis Core Competencies Marketing capabilities Resources / budgets Physical needs Marketing Planning Process Marketing Strategy Major decisions Long-term customer value CONSITENCY • SYNERGY Integrated Marketing marketing mix Ref: ‘The Basics of Strategy’ Adapted from Beamish & Ashford (2005) p.11

Marketing Planning links strategic decision-making to the development of marketing programmes is a systematic process of analysing the market place to assess marketing opportunities determines marketing objectives and develops a thorough marketing plan for implementation & control

macro, micro and internal environmental analysis 2. Planning THE PLANNING PROCESS 1. Analysis macro, micro and internal environmental analysis 2. Planning setting objectives of where the business wants to be and developing strategies for how to achieve them 3. Implementation selection and implementation of the best strategy 4. Evaluation and Control feed back and control mechanisms to ensure objectives are measured and achieved

THE MARKETING PLANNING PROCESS Gather data to research the market situation Analyse the current situation Determine marketing objectives and direction Establish segmentation, targeting & positioning Develop marketing strategies and plans Implement marketing tactics Control - monitor, evaluate and revise

A MARKETING PLAN offers a ‘road map’ for implementing a company’s strategies and achieving its objectives assists in management control and monitoring of implementation informs new participants in the plan of their role & function specifies how resources are to be allocated assigns responsibilities, tasks and timings raises awareness of problems, opportunities and threats assists in ensuring an organisation is customer focused, aware of market conditions, and realistic in expectations

Why conduct research? Research plays a key role in: Reducing risk in organisational decision making Formulating and revising Strategy Identifying and defining business opportunities and problems Generating, refining and evaluating business actions Monitoring business and marketing performance

Definitions Market Research The means used by those who provide goods and services to keep themselves in touch with the needs and wants of those who buy and use those goods and services (Market Research Society) The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services (American Marketing Association)

“... the function which links the consumer, customer & public to to the marketer through information information used to identify & define marketing opportunities and problems; generate, refine, & evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Marketing research Specifies the information required to address those issues designs the method for collecting information manages and implements the data collection process; analyses the results; and communicates the findings and their implications.” Ref: AMA definition as quoted by McDaniel & Gates (1996)

Types of Market Research Behavioural research Competitor research Product research Pricing research Promotional research Distribution research Economic and social research

Discussion What information might your organisation need to conduct its day to day business? What sources of Information are available to you?

THE MARKETING RESEARCH PROCESS Problem Definition Developing hypotheses Data Collection Analyse and interpret the information Report research findings Evaluate research Feedback

TYPES OF RESEARCH APPROACH 1. Exploratory Research generally undertaken to collect preliminary data to help clarify or identify a problem 2. Descriptive Research undertaken too provide better understanding of a particular issue or problem 3. Causal or Predictive Research tests cause-and-effect relationships to predict outcomes of possible actions

TYPES OF RESEARCH DATA 1. Qualitative Research the collection of data open to interpretation e.g. attitudes, opinions, where there is no intention of establishing statistical validity 2. Quantitative Research aimed at producing data that can be statistically analysed and whose results can be expressed numerically e.g. sales data

Secondary Research (Desk Research) DATA COLLECTION Secondary Research (Desk Research) Data and information that already exists, having been compiled either inside or outside of the organisation for some other purpose than the current investigation • usually done before primary research • saves time and money • not always relevant and often available to all • e.g. accounting records, census reports

DATA COLLECTION Primary Research (Field Research) Data and information that does not already exist in any form, and is undertaken or commissioned by an organisation for a specific purpose. • specific to the research question • unavailable to competitors • expensive and time consuming

PRIMARY DATA COLLECTION METHODS Interviews and Surveys Involve the collection of data directly from individuals. • Personal interviews • Group interview or focus group • Telephone interviews • Mail questionnaires

PRIMARY DATA COLLECTION METHODS Observations The observation by trained observed of particular individuals or groups to understand some aspect of behaviour. • Observing new product trials • Mystery shopper • Watching in-store shopping behaviour

PRIMARY DATA COLLECTION METHODS Experiments Conducting an experiment either in an artificial (e.g. laboratory) or real-life environment in order to manipulate independent variables and monitor the effect on the dependent variable. • Marketing mix changes • Side-by-side experiments • Can be unrealistic in laboratory settings

A MARKETING INFORMATION SYSTEM External Sources Published MR Government Stats Media Trade Associations Internal Sources Sales records Customer records Marketing Comms Commissioned MR Sales force info Marketing Information Database Marketing Decision Maker Decision Support System Ref: Brassington & Pettitt (2005), p.142

Customer and Competitor analysis Who are they ? Where are they ? What do they need (customers) ? What is our value proposition to them (customers) ? What do our competitors offer ? What is our competitive advantage ?

Purpose of the Organisation? To create Value for all its stakeholders Customers Employees Shareholders Suppliers and Agents Community

Ways of creating Value Core competencies. What you do better than your competitors Corporate or Brand image. What values your products represent Customer service. How well you retain your customers Corporate Culture What values you promote internally

Porter’s 3 Competitive strategies Organisations need to select one of these and pursue it consistently. Cost leadership Focus strategy Differentiation strategy

The Ladder of Growth International growth New distribution channels Acquisitions and alliances International growth New distribution channels Enter New markets Develop new products and services Win new customers Grow share of customer spend Increase customer retention