Winter 2013 introducing MARKETING RESEARCH

Overview Marketing Research What goal are we all trying to achieve? 1 Marketing Research and it’s impact 2 Relationship btw research and planning 3 Examples of Mkt Research studies

BUSINESS GOAL The true competitive advantage comes from the understanding you have of your customer, that your competitors don’t have. This information HAS TO come from the customer. We obtain this information through marketing research.

COMPETITVE ADVANTAGE Get the Customer. Keep the Customer. Grow your Customer. The difference between competitors is how we achieve these goals.

Marketing Research Definition, Purpose, and Impact 1

Businesses make millions of decisions that impact the success or failure of their business. These decisions require additional information in order to be effective. Marketing Research is what those businesses use to obtain, analyze, and interpret information. In situations where the outcome is negative it can help figure out what went wrong. Information reduces uncertainty. Why? Marketing Research This job is more difficult with the explosion of information over the last decade.

Customer Relationship Management CRM Developing long term relationships with customers helps businesses succeed. Having knowledge of both your customer and your market makes key decisions easier. Information including: Demographics and Psychographics Buying and Service Histories Preferences Complaints Proper marketing research can make this information readily available.

Target Decisions Who are our target customers? What are their demographics? Should we aim towards more than one target audience? What are the strengths and weakness of our competitors who court the same audience? Product Decisions What modifications should be made? What products should be added or deleted from our line? What changes need to be made in packaging? Should we expand, contract, or maintain our present line? Why? Decisions Aided by Research The answers to these question can mean the difference between an iPod and a Zune.

Price Decisions Should we price at, above, or below the competition? What special price incentives should we use to stimulate sales? Will the market bear a price sufficient to yield a profit? Promotion Decisions What kinds of advertising appeal, slogan and theme should be used? What media should we use? How large should the budget be? How effective is our advertising? Why? Decisions Aided by Research The answers to these question can mean the difference between an iPod and a Zune.

How Many? What are companies actually doing

2 Relationship Research and Planning Necessary to have accurate information to make the correct decisions.

Framework Questions that can be answered by research are usually broad in nature. Questions can include: Which new markets should we penetrate? What products should we introduce? What new opportunities should we pursue Decisions that can be made from the information gathered are usually more narrow in nature and can help determine items such as: Advertising Effectiveness Product Positioning Sales Tracking & Performance Monitoring Anticipating & Initiating changes in Marketing Practices. Planning and Decision Making These types of decisions guide a business to success.

MARKETING PLANNINGMARKETING RESEARCH TASK Marketing AnalysisOpportunity Assessment Market SegmentationBenefit and Lifestyle Studies Competitive AnalysisPerformance Analysis Target MarketingTarget Marketing Analysis PositioningPerceptual Mapping New Product PlanningConcept, Product, Testing Distribution DecisionsCycle Time, Retailing, Logistic Research & Assessment Pricing DecisionsDemand Analysis Sales Forecasting Integrated Marketing Comm.Advertising Effectiveness Studies Attitudinal Research Sales Tracking Program ImplementationPerformance Analysis Marketing ControlProduct Analysis Decision Making Marketing Research Tasks

PROBLEM IDENTIFICATIONPROBLEM SOLVING Marketing potential researchSegmentation research Market share researchProduct research Image researchPricing research Market characteristicsPromotion research Sales analysis researchDistribution research Forecasting research Business trends research Marketing Research Activities

Planning and Research Process for a New Product Identify Opportunity Focus Groups Market Definition Study Idea Generation Design Consumer Measurement Product Engineering Forecasting Sales Potential Launch Tracking Studies Evaluate Market Response Analysis Store Audits Product Refinement Tests Stages Product Life Cycle

3 Samples Marketing Research Marketing Research should be conducted when the value exceeds the estimated cost.

» The Worst Survey Question in Existence This question was on an application form for the Northwest International Women’s Conference. There were no instructions on how many choices to check. BAD Examples

» And another worthy example: The instructions stated the following: Your participation in this National Survey on marine mammals is requested. You will find the questions easy to answer. Estimated to complete the survey is 2-3 minutes. Please mark your answers in the space provided. BAD Examples

» To get the information you need: You need to do the following: Listen Select among viable alternatives Fit the technique to the problem and not vice versa Communicate effectively Avoid complicating scenarios Be careful and conscientious Qualities Good Researcher

CONCLUSIONS What is Marketing Research? Why is it important? When to do and when not to do research? IN CLASS ASSIGNMENT You will be conducting a survey on one of the following topics: Gun Control Immigration Abortion Fiscal Cliff Intelligent Design Once you’ve chosen your topic, come up with the following: Target Demographic Expected Outcomes Take that information and go to the street—ASK THEM! Once you’ve questioned at least 20 people in your target. Collate the information and provide the following for homework week 2. Conclusions / In Class Assignment / Homework

STREET ANALYSIS For week 2 I would like you to provide a written analysis of the information you collected. Provide your original field notes, an informational graph that gives a visual representation of your outcomes and an analysis of the information and your conclusions. Initially I would recommend providing some background on your topic and the target demographic and expected outcomes you originally assumed. Make sure to note if they were correct and did the information back you up or not. Explain why you believe it did or didn’t. Your analysis should be typewritten, MLA format and make sure to SPELL CHECK. I will collect them at the beginning of next week’s class. Homework