Marketing Research

DO NOW Nivea Pearl Beauty Launch – Page 263 read we will discuss.

Market Research This is the process of collecting, recording and analyzing data about the customers, competitors and the market. Market Research is a key element to ensuring your products success, as it will set direction for how you promote, what colors you use and price levels. Can be done in house or by market research firms at a cost.

Market Research Why do we need it? It eliminates some of the associated risks with launching a new product. Before most companies launch products or enter new markets they need to understand their market.

Market Research Businesses may want to understand what is happening in the market and therefore they will research the buyer behavior of there market. To explain patterns with existing products. Ie why are the sales of our products down, Talk to the market.

Market Research To find out what the consumers want from your product. Ie the types of promotion, package designs, flavors etc.

Info found Market Size and consumer tastes and trends The product and its perceived strengths and weaknesses. The promotion used and its effectiveness Competitors and there claimed USP Distribution methods preferred by consumers. Consumer preferences for packaging of product.

Activity 15.1 We know who our customers are page 265

DO NOW Read market research article. And answer the questions below. Highlight Key points. why is Market Research important? According to the article. What does Market Research help you determine?

The Market Research Process Management Problem Identification: what do you want to know, research without a method is pointless. You must ask the right questions and really understand what it is you want to research. Having an understanding of the problem means no time wastage on unnecessary fact finding missions.

Problems that might be investigated What size is the potential market for this business. Why are our sales falling How can we break into the market in another country How do we most effectively meet the challenges of our competitors. Which customer groups by our products and who don’t and why.

Research Objectives Much like corporate objectives and Marketing objectives they must be aligned with the problem at hand. They need to provide the organization doing the research with all the right information so they can solve the problem.

Research Objectives What might be some effective Marketing Objectives? How Many people are likely to buy our products in Europe? If the price of Ultra-Soil is reduced, how much will this increase sales volumes? If we Advertise Ultra-Soil on TV, what impact will this have on our Sales and Market Share? What would the impact of new packaging on the sales of Ultra-Soil?

Sources Of Data Primary research – the collection of first hand data that is directly related to a firms need. Secondary Research – Collection of data from second hand sources. Which method should marketers use first? - Secondary, because often you don’t have to outlay any money upfront or even leave your office to obtain information about the market you wish to enter. Read page 266

Secondary Research Sources of: - Government Publications – Census, economic trends, social trends. - Local Libraries and Local Councils – number of households in an area. - Trade Organizations – ie - Market Intelligence reports – detailed reports on individual markets.

Secondary Research Newspapers and specialist publications - Ie Marketing Magazine, industry magazines (FMCG), NZ Herald and others. Internal Company records – all information in the company i.e. sales data, employee EQ etc The Internet – Information generally associated with the other secondary sources, but the accuracy needs to be checked.

Advantages of Secondary Research Often doesn’t cost any money to get. Identifies the nature of the market and assists with the planning of primary research. Obtainable Quickly. Allows comparison from different sources.

Disadvantages of Secondary Research May not be updated regularly Collected for a different purpose so therefore may not be suitable for your needs. Accuracy maybe hard to determine. Might not be available for NPD.

Primary Research Qualitative Research – Research into the in-depth motivations behind consumer buying behavior or opinions. Quantitative Research – Research that leads to numerical results that can be statistically analyzed.

Qualitative Research What motivates the consumer to buy your product? Is it the fact you use a celebrity to endorse it, do they think by using the product it will make them a better person. Qualitative primary research is primarily done through the use of Focus Groups. A group of people asked about there attitudes to products.

Focus Groups Normally done by someone independent to the organization. Each member of the group is encouraged to share there view. Normally used to get feedback out new products, packaging, brand and advertisements.

Focus Groups The information collected during these discussions is vitally important to an organization for its product development. Note: There can be time wasting by members of the group, the data can be hard to analyze and often the researchers can lead the consumer to answering the way the business wants it creating a bias in the results.

Quantitative Research Observation and Recording – this is done generally in store and marketers will record what is happening, number of consumers that come to store etc. Test Marketing – Providing your product to consumers before a full launch to see if it will work in the market, you can record sales and see the impact of your new product.

Quantitative Research Consumer Surveys – asking consumers for their opinions and preferences. Can be both qualitative and quantitative research. EG – How many times do you eat chocolate a week? - Would our product being fair trade influence your decision to buy? Why or Why not?

Key Elements to a survey Who do we ask? What do we ask? How do we ask? How accurate is it?

Primary Research Advantages Up to date Relevant Confidential Disadvantages Costly Time consuming Doubts over accuracy and validity.