Market Research

Overview Market Research  The collection and analysis of information that is relevant to the marketing strategy  Types include: Consumer, market, motivation, pricing, competitive, product and advertising research

Types of Data Primary  Current information that researchers collect and analyze for a specific purpose  Collected in a number of ways including test marketing, internal information sources, surveys, observation and focus groups

Types of Data continued… Secondary  Information that has been collected by others  Sources include websites, books, professionally prepared research reports  It is free  Disadvantage is that data wasn’t collected specifically for you so it may not meet all your needs e.g. Statistics Canada

Sources of Primary Data Test Marketing  Introducing a product to a specific area in small quantities  Area is usually selected based on demographics  Very expensive so must be done carefully if results are to be used e.g. Scotiabank – tested the chip card in this area

Internal Information Sources  Using information generated by the business and analyzing it  Can help identify who purchases what and when  Can also be shared with suppliers e.g. Air Miles – can track where you buy and can partner with other companies to send you coupons and information

Surveys  A set of carefully planned questions that are used to gather data  Most surveys use closed-ended questions Questions that require the respondent to select an answer from two or more choices e.g. Yes/No, Agree/Disagree, Select a, b, c, d  Questions are easy to answer and easy to score

Surveys continued… Open-Ended Questions  More complicated  Require respondents to develop their own answers  Difficult to answer and analyze

Observation  Watching the behaviour of others e.g. using two-way mirrors  Goal is to observe how people react in certain situations

Focus Groups  A company-arranged meeting of potential consumers  One of the most popular forms for consumer research  Usually an incentive for consumers to participate such as: Free meal, money, samples of product