Marketing Research

Where we have been thus far... 4 P’S of Marketing Market Strategy

Marketing – The 4 P’s Product Pricing Placement Promotion What we are going to sell How much we will charge How we will advertise the product/ service How we will get product/ Service to the customer

Marketing Strategy – 2 Steps Create Target Market Create Marketing Mix

Creating/Improving products What is a “New” Product Depends on who you ask Dominos example…“New” pizza Apple’s “New” forthcoming tablet pc Many “new” products are simply improvements on existing products Truly new products are rare Truly new products do not have an existing substitute What new products have been introduced in our lifetime?

Creating/Improving products Remember! Companies should not assume what customers want and then try to convince them. Good companies are customer focused…they figure out what customers want and then try to provide it. (Marketing Orientation)

Creating a New Product So…product creation should begin with researching what your target market desires MARKETING RESEARCH –finding solutions to problems through carefully designed studies involving consumers

Types of Research Primary Research Pros Targeted to company’s needs Cons Time consuming Costly Secondary Research Pro Can be cheaper Quicker Cons May not be relevant Open to all

Types of Research Studies Customer Survey Focus Groups ObservationsExperiments

Customer Surveys Most common type of research study Gather information using carefully planned questions Quantifiable is good Can be conducted in-person, over phone, through mail or over internet

Focus Groups Small number of consumers taking part in a group discussion Discussion topics might include customer’s experiences with a product reactions to new ideas suggestions for product improvements

Observations Collect information by recording actions of consumers Common questions answered by observation How do customers interact with packaging? What routes do customers take through store?

Experiments Two carefully controlled alternatives Examples Compare sales of two products with different size, packaging, etc. Effect of promotions Coupons Customer “limits”

Steps in Marketing Research 1.Define the Marketing Problem Are we rolling out a new product? Trying to improve customer service? 2.Obtain the data 3.Analyze information 4.Propose a solution 5.Apply the results

CEREAL DEVELOPMENT Market Research – Project

Cereal Development Gutierrez is hoping his product development department can create a new cereal that will help propel growth in an industry that has gone soggy.

Your Mission In this project you will be divided into teams of 3-4 to develop a concept for a new cereal to be sold by Kellogg’s. The project will require completion of three separate activities: I. Plan and conduct market research (surveys or focus group) II. Analyze data from your market research III. Create a cereal product that will complement Kellogg’s existing brands and be successful in the marketplace (based on your market research) a. In creating your cereal product, you will be coming up with an original brand name and package design

Start by… Developing questions for your survey Consider varying the types of questions you ask Open-ended close ended - likert, numerical, ordinal, categorical Include demographics in your survey Typically, these are better at the end of the survey Survey a large sample for best results 24+

Timeline I. Thursday, January 24 – Assign Teams & Discuss Market Research Strategies II. Friday, January 25 – Design and Begin Conducting Market Research III. Monday, January 28 – Begin Product Design IV. Tuesday, January 29 - Analyze Market Research V. Wednesday, January 30 – Work Day VI. Thursday, January 31 – Work Day VII. Friday, February 1 – Completed Design Due at End of Period VIII. Monday, February 4 & Tuesday, February 5 - Presentation of Cereal Concepts