Marketing Research

Monday, February 23 Give a couple examples of Marketing Research. Give a couple examples of Marketing Research. Why do you think Marketing Research is important? Why do you think Marketing Research is important?

What is Marketing Research? Gathering, recording, and analyzing information about problems related to marketing goods and services. Gathering, recording, and analyzing information about problems related to marketing goods and services. Can apply to any area of marketing Can apply to any area of marketing –Creation of a new product –Effectiveness of an advertising campaign Primary emphasis is to obtain information about the preferences, opinions, habits, trends, and plans of potential customers. Primary emphasis is to obtain information about the preferences, opinions, habits, trends, and plans of potential customers. –Determine what customers want and need

Why is Marketing Research Important? There is a huge failure rate of new products There is a huge failure rate of new products –Marketing research can make or break a business Helps businesses plan their future operations to try to increase sales and profits. Helps businesses plan their future operations to try to increase sales and profits. Helps solve marketing problems or anticipate future marketing problems Helps solve marketing problems or anticipate future marketing problems Helps keep track of what is going on in the market Helps keep track of what is going on in the market –Determines major competitors, what competitors are offering, & what products consumers prefer.

Who Uses Marketing Research? Valuable for organizations of any size Valuable for organizations of any size –Size of the business may affect how it conducts the business State & Federal Government Agencies State & Federal Government Agencies Trade Associations Trade Associations –Manufacturers, wholesalers, and retailers –Collect industry data to help their members understand the markets for their products.

Du Pont, the chemical company, regularly uses marketing research to find out what customers think of its products. On one survey a researcher thought to ask, “Why did you choose our product over the competition’s?” From the answers received, the company discovered that its products to be in some way better or purer than those of the competition. Du Pont, the chemical company, regularly uses marketing research to find out what customers think of its products. On one survey a researcher thought to ask, “Why did you choose our product over the competition’s?” From the answers received, the company discovered that its products to be in some way better or purer than those of the competition.

Du Pont decided to use this information to create a new advertising campaign. The advertising message was that Du Pont took special care to assure purity in the manufacturer of its products. Print advertisements featured photos of white- coated scientist performing quality assurance checks in sparking clean laboratories. Du Pont decided to use this information to create a new advertising campaign. The advertising message was that Du Pont took special care to assure purity in the manufacturer of its products. Print advertisements featured photos of white- coated scientist performing quality assurance checks in sparking clean laboratories.

In the aftermath of the campaign, Du Pont’s market share rose to a new high. The company had learned the pleasant way that if you ask why, you can be surprised by the answer. And if you’re in a business that takes its marketing research seriously, you can turn what you learn into higher profits. In the aftermath of the campaign, Du Pont’s market share rose to a new high. The company had learned the pleasant way that if you ask why, you can be surprised by the answer. And if you’re in a business that takes its marketing research seriously, you can turn what you learn into higher profits.

Creativity Challenge: Break into teams of 3 people, and speculate about the kinds of distinctions consumers routinely make among similar products. Why do they choose a particular brand of batteries or canned vegetables or athletic shoes? Using one of these items or a product of your own choice, develop a list of reasons for a particular preference. Then, test that list. Devise a simple survey (written or oral) to find out what consumers really think. Use your classmates as a test group. Any surprise? Any ideas for capitalizing on them?

Types of Marketing Research Advertising Research Advertising Research Product Research Product Research Market Research Market Research Sales Research Sales Research

Advertising Research Focuses on the advertising message and media. Focuses on the advertising message and media. It measures two things: It measures two things: –The effectiveness of the advertising message –The effectiveness of media placement Testing the advertising Message Testing the advertising Message –Focus Groups or Consumer Panel  A common technique to study how effectively a message has been delivered

Product Research Product Research Product Research –Centers on evaluating products design and acceptance, competitive products, packaging design and product usage. Test Marketing Test Marketing –A method of collecting data on products –Occurs when a new product is placed in one or more selected geographic areas. –Allows marketers to test customer response to a product and to observe a product’s sale performance. –The results help the product manufacturer determine whether the product needs change before being introduced to the market.

Market Research Focuses on the customer and the market. Focuses on the customer and the market. –Customer analysis  The study of customer behavior through questionnaires and interviews –Market analysis  The study of the behavior of a consumer market to investigate the potential markets for a product and to define characteristics of the target market.

Sales Research The study of sales data to determine the potential sales for a product and to solve problems related to future sales. The study of sales data to determine the potential sales for a product and to solve problems related to future sales. –Sales Forecasting  An effort to estimate the future sales of a product Economic Forecasting Economic Forecasting  An attempt to predict the future general economic conditions of a city, a region, the country, or another part of the world.

Methods of Research Experimental Method Experimental Method –Sample Observational Method Observational Method Survey Method Survey Method

Constructing the Questionnaire Questionnaires should provide data that have validity Questionnaires should provide data that have validity –data should measure what it is intended to measure. They should also have reliability They should also have reliability –the questions should ask the same type of information from all of the respondents. –They should be clear and easy to understand so everyone interprets the questions in the same way.

Constructing the Questionnaire Writing Questions Writing Questions –Open-ended or forced choice questions Please answer Yes or No to the following questions: Please answer Yes or No to the following questions: –Did your server make you welcome? –Were the daily specials suggested? –Was the service prompt?

Forced Choice Questions Please choose which of the following is most important to you when choosing a restaurant: Please choose which of the following is most important to you when choosing a restaurant: –Price –Quality of Food –Location –Variety of Food Please rate the following Please rate the following –Cleanliness Excellent Good Fair Poor –Attitude Excellent Good Fair Poor –Quality Excellent Good Fair Poor –Value Excellent Good Fair Poor

Constructing the Questionnaire Formatting Formatting –The questionnaire should have different types of questions. –Directions for completing the questionnaire must be clear for each section or group of questions. –Questionnaires must have excellent visual appearance and design. –Numbers should be placed on all sections and on all questions (respondents are more likely to respond to all questions if they are numbered –May want to guide participants to the next page if there is more than one page of the survey.

Distributing the Questionnaire Mail Mail In person In person