Marketing Research

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

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

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

Types of Marketing Research Attitude & Opinion Research Market Intelligence Media Research Product Research

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

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

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

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

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

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.

The Research Process Define Problem Collect Data Analyze Data Recommend Solutions

Obtaining Data Primary data Secondary 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

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

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

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

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

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