Marketing Research

Primary Research

FEATURES OF TEST MARKETS Different elements of the marketing mix are changed and monitored. Provide a real world example for the marketer. Location of the test market is preferred to kept secret.

Whose watching you? Individuals Bar-code scanners Eye-tracking photography

INTERNAL Sales Records Inventory Records Advertising and Promotional Records Production Records

Data Mining Businesses use this type of research to determine the relationship between personal information and purchasing behaviour.

Example… Data can tell how many customers on a business’s database have purchased greater than $50 worth of products in - the last 3 months - are female - are between the ages of type of occupation

PROFILING A CUSTOMER PROFILING A CUSTOMER Demographics –Age –Gender –Family Life Cycle –Income Level –Ethnicity & Culture Psychographics Consumers’ beliefs –Opinions –Interests

PROFILING JOHN DEMOGRAPHICS Age: 51 Gender: male Income: $75,000 per year Family life cycle: married with three children Ethnicity and culture: Nova Scotian by birth, now lives in northern Ontario PSYCHOGRAPHICS John runs his own web design studio, plays the cello, and coaches his two daughters soccer team. He is an active member of his community association, an avid gardener, and he and his wife spend their spare time renovating their home.

Secondary Research

How do companies collect information on you???? Mail in rebates Coupons Internet Magazine Subscriptions Credit Cards Loyalty Programs (Optimum Card, HBC Card, Air Miles Card)

COLLECT THE POINTS ACTIVITY: Loyalty cards Where’s your loyalty?

Sampling Methods

Random Samples –Random sample of population – equal chance of anyone being selected –May select those not in the target group – indiscriminate –Sample sizes may need to be large to be representative –Can be very expensive –EXAMPLE:

Sampling Methods Segment Random Sampling –Samples on the basis of a representative segment –Still random but more focussed –May give more relevant information –May be more cost effective –EXAMPLE:

Sampling Methods Quota Sampling –Specific number on each segment are interviewed, etc (not randomly selected). –May not be fully representative –Cheaper method –EXAMPLE:

Sampling Methods Cluster Sampling –Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population –EXAMPLE: Multi-Stage Sampling –Sample selected from multi-stage sub-groups –EXAMPLE: Snowball Sampling –Samples developed from contacts of existing customers – ‘word of mouth’ type approach! –EXAMPLE: