MARKET RESEARCH Lesson 1.2

Market Research A process designed to identify solutions to a specific marketing problem by systematically gathering and analyzing data. Before adding a new product you should conduct an analysis to minimize risk

Primary Data Information collected for the first time to analyze a specific situation. The data can be subjective or measurable data  Subjective = useful, but cannot be statistically analyzed  Measurable = more reliable, because analysis can be conducted

Guidelines to Developing a Survey Keep it simple and easy to read Ask closed-end questions Get a large sample before tabulating results Give respondents some kind of reward or incentive, such as a coupon, for completing your survey. Construct the survey so that the results can be used in as many ways as possible.  Example-Names, addresses can be used for mailing list. Or ages can determine target customers age

Primary Research Methods Surveys  Personal interviews, phone interviews, and mail interviews.  You receive the most accurate info by speaking directly to the customer Observation  Actions of people are watched and recorded.  Customers and their buying habits can be observed and recorded by store personnel, cameras, or scanners

Primary Research Methods cont. Experimental Method  Observe the results of changing one or more marketing variable while keeping other variables constant  For Example  If we created gift baskets to sell during Valentine’s Day and wanted to compare the effectiveness of two different packaging designs.  Show two similar groups of consumers the gift baskets containing the same products but with different packaging. Then measure results of groups responses.

Secondary Data Information that has already been collected for purposes other than your current research project. Secondary Research Methods  Sales and Marketing Magazines – Obtain a survey already given out  The U.S department of Commerce – has a regional office that can provide you with pertinent information  Trade Associations – Serve specific industries and are great sources

Secondary Data Cont.  Business publications – include newsletters and pamphlets  Other Sources – local chambers of commerce and marketing departments of local colleges  Internal sources – information found inside the school store. Sales staff, customer records, sales data, financial statements, inventory records, customer complaints

The Research Process –Pg 14 Goal: We need to develop a way to conduct some primary and/or secondary research to find out which food products to sell in the school store. Step 1- Identify a need or define the stores problem Step 2 – Obtain primary and secondary data Step 3 – Organize data Step 4 – Analyze your data Step 5 – Recommend solutions Step 6 – Implement plan of action