1. Marketing Research

2. BMI3C Unit 4 Slide 2 Marketing Research the systematic collection, analysis, and interpretation of information to develop a market strategy or solve a marketing problem.

3. BMI3C Unit 4 Slide 3 Marketing Research Why? Marketing research firms provide businesses with professional researchers to make marketing more successful.

4. BMI3C Unit 4 Slide 4 Marketing Research Two types of information used in market research: primary data secondary data

5. BMI3C Unit 4 Slide 5 Gathering Secondary Data Secondary data: information that has already been collected and published by others. Secondary research: finding this information, and then analyzing it for a new purpose.

6. BMI3C Unit 4 Slide 6 Gathering Secondary Data PROS information is already gathered takes less time less expensive can be done with small firms (without hiring marketing firm)

7. BMI3C Unit 4 Slide 7 Gathering Secondary Data CONS information is “second-hand” may not be suitable for what you are researching may be difficult to “reinterpret”

8. BMI3C Unit 4 Slide 8 Gathering Secondary Data SOURCES books, periodicals, indexes, databases, the internet, consultants, marketing research professionals Statistics Canada

9. Gathering Secondary Data Assignment

10. BMI3C Unit 4 Slide 10 Gathering Secondary Data 1.Choose a city in Canada starting with the same letter as your first or last name. 2.Find four pieces of information about that city a marketer may use to promote it. 3.Give list to teacher.

11. BMI3C Unit 4 Slide 11 Doyle Research Associates Please make sure to cleanse your palette between samples! Answer all questions as truthfully as possible. Do not consult with those around you. Thank you for your participation!

13. BMI3C Unit 4 Slide 13 Gathering Primary Data Primary data: information newly collected by a researcher for a specific purpose. Two general types:

14. BMI3C Unit 4 Slide 14 Gathering Primary Data Qualitative Research used to gather people’s reactions and responses blind taste tests, opinion polls

15. BMI3C Unit 4 Slide 15 Gathering Primary Data Quantitative Research data is collected by surveying a sample of the target-market researchers use the results to predict opinions of entire market

16. BMI3C Unit 4 Slide 16 Gathering Primary Data Can you find examples of each on the survey you just did?

17. BMI3C Unit 4 Slide 17 Gathering Primary Data Researchers collect information using various techniques: test marketing internal information sources surveys observation focus-group interviews

18. BMI3C Unit 4 Slide 18 Gathering Primary Data Test Marketing test markets are sites that mirror the demographic composition of total market; eg. Peterborough, ON

19. BMI3C Unit 4 Slide 19 Gathering Primary Data Test Marketing used for packaged goods used for movies: private screenings, sneak previews

20. BMI3C Unit 4 Slide 20 Gathering Primary Data Test Marketing done in different ways: product placed in store, monitor sales change a factor in one store → are sales impacted?

21. BMI3C Unit 4 Slide 21 Gathering Primary Data Test Marketing location is kept secret so consumers don’t act differently. If people know something is being tested, they may skew the results.

22. BMI3C Unit 4 Slide 22 Gathering Primary Data Test Marketing expensive, and can give inaccurate results competitors who know you are conducting a test may try to sabotage process

23. BMI3C Unit 4 Slide 23 Gathering Primary Data Internal Information Sources This is usually where marketing research begins.

24. BMI3C Unit 4 Slide 24 Gathering Primary Data Internal Information Sources inventory and sales records: popularity of product, fluctuations in sales ($ and #), stock turnover

25. BMI3C Unit 4 Slide 25 Gathering Primary Data Internal Information Sources advertising and promotional records: effectiveness of ads, coupons, contests, product sample offers

26. BMI3C Unit 4 Slide 26 Gathering Primary Data Internal Information Sources production records: peak ordering periods, downtimes, to help schedule marketing and advertising plans

27. BMI3C Unit 4 Slide 27 Gathering Primary Data Internal Information Sources customer databases track purchasing patterns target specific promos to frequent customers

28. BMI3C Unit 4 Slide 28 Gathering Primary Data Internal Information Sources client cards and reward programs require personal information (gender, age, income, etc.) card usage is tracked

29. BMI3C Unit 4 Slide 29 Gathering Primary Data Internal Information Sources data mining looks for hidden connections between personal information and purchasing behaviour

30. The Market Research Project Big Assignment

31. BMI3C Unit 4 Slide 31 Gathering Primary Data Surveys A survey is a set of carefully planned questions used to gather data. These can be completed in writing or orally, in person, on the phone, through the mail, or on the internet.

32. BMI3C Unit 4 Slide 32 Gathering Primary Data Surveys Most surveys use closed- ended questions, which ask you to select an answer from two or more choices. quick and simple to answer easy to sort and analyze

33. BMI3C Unit 4 Slide 33 Gathering Primary Data Surveys Usually yes/no, multiple choice, agree/ disagree, rate on a scale types of questions.

34. BMI3C Unit 4 Slide 34 Gathering Primary Data Surveys Sample closed-ended questions I would buy this brand again agree uncertain disagree

35. BMI3C Unit 4 Slide 35 Gathering Primary Data Surveys Sample closed-ended questions Are you a smoker?  yes  no

36. BMI3C Unit 4 Slide 36 Gathering Primary Data Surveys Sample closed-ended questions Which brand names have you purchased in the last year?  Dove  Irish Spring  Ivory  Jergens  Lever 2000  Other

37. BMI3C Unit 4 Slide 37 Gathering Primary Data Surveys Sample closed-ended questions Rate our service using the following scale poor excellent Clean12345 Friendly staff12345 Value12345

38. BMI3C Unit 4 Slide 38 Gathering Primary Data Surveys Sample closed-ended questions What do you look for when you shop for a DVD player?  simple remote  ease of use  plays MP3/JPG  brand name  multi-disc  warranty

39. BMI3C Unit 4 Slide 39 Gathering Primary Data Surveys When researchers conduct surveys they collect from a random sample of their target market population, giving each member an equal chance of being selected.

40. BMI3C Unit 4 Slide 40 Gathering Primary Data Surveys If a sample does not accurately represent the target market, then the results may be misleading; the sample is said to be biased.

41. BMI3C Unit 4 Slide 41 Gathering Primary Data Surveys If the survey sample is truly random, then the results could be projected onto the entire market. see figure 4.17, page 140

42. Problem Survey Questions

43. BMI3C Unit 4 Slide 43 Gathering Primary Data Problem Survey Questions Have you ever been caught surfing to inappropriate sites at work? Leading question

44. BMI3C Unit 4 Slide 44 Gathering Primary Data Problem Survey Questions How much time do you spend watching TV and doing housework? Two questions in one

45. BMI3C Unit 4 Slide 45 Gathering Primary Data Problem Survey Questions Select your annual salary level.  20,000-40,000  40,000-60,000  60,000-80,000  80,000- Nonmutually exclusive answers

46. BMI3C Unit 4 Slide 46 Gathering Primary Data Problem Survey Questions When was the first time you saw a commercial for our product? Unanswerable question

47. BMI3C Unit 4 Slide 47 Gathering Primary Data Problem Survey Questions Why is our product better than our competitor’s? Leading question

48. BMI3C Unit 4 Slide 48 Gathering Primary Data Problem Survey Questions How much do you pay for entertainment? Ambiguous question

49. BMI3C Unit 4 Slide 49 Gathering Primary Data Problem Survey Questions How much do you pay for entertainment weekly?  $5  $10  $15  $20 Nonexhaustive question

50. BMI3C Unit 4 Slide 50 Gathering Primary Data Problem Survey Questions How much do you pay for entertainment and groceries weekly?  $5  $10  $15  $20 Two questions in one

51. BMI3C Unit 4 Slide 51 Gathering Primary Data Problem Survey Questions How much do you think the average customer spends monthly on clothing? Unanswerable question

52. BMI3C Unit 4 Slide 52 Gathering Primary Data Problem Survey Questions Where do you use All Around the House cleaner most?  bathroom  kitchen  laundry Nonexhaustive question

53. BMI3C Unit 4 Slide 53 Gathering Primary Data Problem Survey Questions Why do you think our cereal is the best tasting one on the market? Leading question

54. BMI3C Unit 4 Slide 54 Gathering Primary Data Observation collecting information by recording people’s actions without interacting with them to see how they behave

55. BMI3C Unit 4 Slide 55 Gathering Primary Data Observation Often people do not know they are being watched. This is to ensure they act the way they usually do.

56. BMI3C Unit 4 Slide 56 Gathering Primary Data Observation more accurate and less biased than surveys more expensive

57. BMI3C Unit 4 Slide 57 Gathering Primary Data Observation less effective in large groups: difficult to observe many people at one time people respond to the actions of others » results in bias

58. BMI3C Unit 4 Slide 58 Gathering Primary Data Observation done using cameras, one-way mirrors, other methods of mechanical observation bar-code scanners, eye- tracking photography

59. BMI3C Unit 4 Slide 59 Gathering Primary Data Focus-Group Interviews A small group of people brought together to discuss a product or issue. Participants are carefully selected to represent a specific target market.

60. BMI3C Unit 4 Slide 60 Gathering Primary Data Focus-Group Interviews moderator guides the discussion in an unbiased manner. Sessions are often recorded for further review.

61. BMI3C Unit 4 Slide 61 TODAY’S TASKS 1.Choose classes to visit (see lists posted on bulletin board) 2.Compose letters to teachers (who, what, when, ask for response) 3.Start rough survey (show Mr. M. for approval)

62. Preparing a Research Report (refer to handout)

63. BMI3C Unit 4 Slide 63 Preparing a Research Report Statement of the Research Task what is the purpose/objective for your research? what are you trying to prove? should be specific and measurable your research should result in information that can be used to help your marketing strategy

64. BMI3C Unit 4 Slide 64 Preparing a Research Report Review of the Data Collection Methods how was your data collected? whom did you use for your research? Demographics, geographics, psychographics

65. BMI3C Unit 4 Slide 65 Preparing a Research Report Review of the Data Collection Methods include location and date of data collection margin of error should also be stated

66. BMI3C Unit 4 Slide 66 Preparing a Research Report Analysis of Data after collecting data, it must be collated as data is tabulated, significant correlations need to be found do two or more elements have an effect on each other? this process is often referred to as data mining or number crunching

67. BMI3C Unit 4 Slide 67 Preparing a Research Report Interpretation of Data use tables, charts and graphs to interpret analyzed data visual representation: a picture is worth a thousand words

68. BMI3C Unit 4 Slide 68 Preparing a Research Report Summary of Findings summarize what was found in conducting research highlight important information and suggest how it could be used

69. Types of Marketing Research

70. BMI3C Unit 4 Slide 70 Consumer Research Consumer research is used to determine buying behaviour.

71. BMI3C Unit 4 Slide 71 Consumer Research Awareness, attitude and usage studies (AAU) measures consumer awareness of product unaided awareness: –list all the [whatever] you can think of aided awareness: –check off all the [whatever] you’re familiar with

72. BMI3C Unit 4 Slide 72 Consumer Research Awareness, attitude and usage studies (AAU) total awareness unaided awareness aided awareness =+

73. BMI3C Unit 4 Slide 73 Consumer Research Awareness, attitude and usage studies (AAU) attitudes about product help identify strengths & weaknesses STRENGTH: “the brand has been around for a long time” WEAKNESS: “the product is old-fashioned and boring” helps develop ad campaign

74. BMI3C Unit 4 Slide 74 Consumer Research Awareness, attitude and usage studies (AAU) usage patterns help develop consumer profiles use data to link groups to product use

75. BMI3C Unit 4 Slide 75 Consumer Research Consumer segmentation analysis group potential customers based on characteristics gear advertising and promos to this group This is a large component of the final project mark!

76. BMI3C Unit 4 Slide 76 Consumer Research Market dimension analysis researches the main issues about the product that influence a consumer segment what is it that you find so appealing about the product?

77. BMI3C Unit 4 Slide 77 Consumer Research Product research examines the details of the product and their impact colour, package, flavour, size, texture, design, etc.

78. BMI3C Unit 4 Slide 78 Consumer Research Product research assess making modifications based on consumer feedback a)is the technology available, and will it be worth the increased cost?

79. BMI3C Unit 4 Slide 79 Consumer Research Product research assess making modifications based on consumer feedback b)will consumers see the improvement as worth the extra cost? c)will the new feature prompt consumers to change brands?

80. BMI3C Unit 4 Slide 80 Consumer Research Media research segment customers based on what they read, watch, listen to

81. BMI3C Unit 4 Slide 81 Consumer Research Media research Provides: marketers with the ability to communicate with target mkts media outlets with audience numbers; used to set ad prices

82. BMI3C Unit 4 Slide 82 Consumer Research Consumer tracking devices determine consumer behaviour while shopping when consumers shop where they shop what they buy

83. BMI3C Unit 4 Slide 83 Consumer Research Consumer tracking devices uses computer-assisted devices data used to determine displays, store layout, advertising, inventory, etc.

84. BMI3C Unit 4 Slide 84 Consumer Research Motivational research psychological research into consumer buying behaviour look at emotional and rational reasons for buying decisions helps determine promotional methods

85. BMI3C Unit 4 Slide 85 Consumer Research Consumer satisfaction studies feedback cards, follow-up interviews, suggestion boxes identify gaps between customer satisfaction and ideal

86. BMI3C Unit 4 Slide 86 Consumer Research Consumer satisfaction studies results identify areas for product development, competitive differentiation ongoing

87. BMI3C Unit 4 Slide 87 Consumer Research Advertising research provides information on effectiveness of ads done in focus groups before going public may modify ads as a result

88. BMI3C Unit 4 Slide 88 Consumer Research Advertising research often day after recall (DAR) is tested promos also measured for effectiveness: how many people used coupons? called the 1-800 number? Filled a ballot?

89. Competitive Research

90. BMI3C Unit 4 Slide 90 Competitive Research Competitive research is used to determine what products are competing with your product, and how.

91. BMI3C Unit 4 Slide 91 Competitive Research Competitive Market Analysis uses a variety of tools to compare all products in a particular category identify competitors, their strengths is a market segment worth entering?

92. BMI3C Unit 4 Slide 92 Competitive Research Competitive Intelligence gather as much information about competitors as possible collect articles about companies, reports, corporate profiles; samples of ads, PR material, promotions

93. BMI3C Unit 4 Slide 93 Competitive Research Pricing Research investigate pricing for a product: can you competitively price a product and still profit? looks at price vs. demand a lower price (and lower profit) may help grow market share, and eventually increased profits

94. BMI3C Unit 4 Slide 94 Competitive Research Comparative Worth Analysis is used: My product’s “value”: 22 Competitor’s “value”: 20 Since my value is 10% greater, my price should be ~ 10% higher.

95. BMI3C Unit 4 Slide 95 Competitive Research Conjoint (Tradeoff) Analysis identify individual features of a product which make up the value equation identify which of these features are most valued and should be emphasized

96. BMI3C Unit 4 Slide 96 HOMEWORK Chapter 4 review questions #1, 3, 4, 7, 8 Due Tuesday