1. ‘Information is the competitive advantage that drives success…just so long as the information is appropriate and adequate and we know how to use that information! Competitors can copy and better equipment, processes and products but they can’t replicate the company’s information and intellectual capital.’

2. ‘Most marketers don’t need more information, they need the right information and the managers need to be able to determine how to use this information appropriately and effectively so as to enhance performance.’

3. Marketing environment Strategic decision making Competitors Customer needs and wants RESEARCH NEEDS

6. Marketing Research Step1 1.Defining the problem and research objectives »Exploratory research »Gathering preliminary information that will help to better define problems and suggest hypotheses. »Descriptive research »Defining marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers. »Causal research »Marketing research to test hypotheses about cause and effect relationships.

7. Marketing Research Step 2 2. Developing the research plan for collection of information –Determining information needs »Secondary data: information that already exists, having been collected for another purpose. »Primary data: information collected for the specific purpose at hand. »Qualitative research Exploratory research used to uncover consumers’ motivations, attitudes and behaviour. »Quantitative research Research data which involves interviews from a sufficient volume of customers to allow statistical analysis.

8. Research approach PRIMARY INFORMATION Research instruments SECONDARY INFORMATION RelevantAccurateImpartialCurrent Contact methods Sampling plan

9. Sample TELEPHONE INTERVIEWING Large, honest MAIL QUESTIONNAIRE GrowthNo interviewer bias Speed Flexibility PERSONAL INTERVIEWING Quality

10. Marketing Research Step 3 3. Presenting the research plan –Outline of research construct. –Summarised written proposal.

11. Marketing Research Step 4 4. Implementing the research plan, collecting and analysing the data Interpreting and reporting the findings. –Present the relevant data so that the information can be used to make meaningful decisions. –Team effort between marketers and researchers and joint responsibility.

12. Table 9.6 Types of question

13. Table 9.6 Types of question (continued)

16. Defining the ‘market’ An economist’s interpretation of the market is based upon all the buyers and sellers who transact over products and services, based upon the structure, conduct and performance of the market. The marketer defines a market as a collection of all the potential and actual buyers of a product or service.

17. Defining the market A market is the set of buyers and the industry is the set of sellers. The size of the market is determined by the number of buyers who might exist and they have 3 characteristics: interest, income and access.

19. Types of market –Potential market Consumers have some stated interest in a product or service. –Available market Set of consumers who have the interest, income and access to the product or services. –Qualified available market Set of consumers who have the interest, income, access and qualifications for a particular product or service. –Served or ‘target’ market Part of the qualified market that the company decides to pursue. –Penetrated market Set of consumers that have already bought a particular product or service.

22. Types of demand The primary demand is the total demand for all brands of product and services. The selective demand is a specific demand for a given brand of product.

23. Estimating market demand Q= n x q x p –Where Q = total market demand n = number of buyers in the market q = quantity purchased by an average buyer per year p = price of an average unit

24. Forecasting future demand Environmental forecast –Inflation, Unemployment, Interest rates, Consumer spending and saving, Business investment, Government expenditure. Industry forecast –What is currently happening? Company sales forecast –Buyers’ intentions, Composite of sales force opinions, Expert opinion. –Test market method. –Time series analysis, Leading indicators, Statistical demand analysis, Information analysis.

25. Forecasting future demand Table 9.7 Common sales forecasting techniques

26. Marketing research in small businesses and non-profit organisations Often limited by budgetary constraints, but the following can be accomplished: –Observation of market, competitors and industry –Secondary data collection –Surveys –Experiments

27. Market research ethics Increasing consumer resentment has become a major problem in the research industry due to how the market research has been used and abused. –Consumers fear researchers may use sophisticated techniques to obtain information that may be intrusive and infringe consumer rights. –There is also the fear that the research findings may be manipulated and misinterpreted to suit the company paying for the research. To minimise abuse the research industry has developed broad standards such as ESOMAR’s International Code of Marketing and Social Research Practice.