1. © 2004 Bertram Group Consulting 1 Why You Can’t Afford Not to Do Marketing Research Greater KC Chamber of Commerce Brain Food Over Lunch October 12, 2004

2. © 2004 Bertram Group Consulting 2 Reducing Risk The purpose of marketing research is to provide guidance to reduce decision- making risk: –New product or service launches –Pricing –Promotional programs/materials –Line extensions –Entering new markets/channels

3. © 2004 Bertram Group Consulting 3 Objectives A problem or issue must be translated into a clear and measurable objective. –Hypothesis testing –Necessary to assess the value of the research –Forms the foundation for selecting the methodology and designing the research –Must be agreed to up front by all parties

4. © 2004 Bertram Group Consulting 4 Decisions and Actions What decision is to be made or what action is to be taken? –If the cost of the research exceeds the value of the decision, it is usually not worth doing the research What will you do differently if the answer is A vs. B? –if the answer is nothing, it probably is not worth the investment

5. © 2004 Bertram Group Consulting 5 Examples Classic Coke Inland Eastex Veterinary lab service

6. © 2004 Bertram Group Consulting 6 Secondary Data Information gathered previously by an external or internal source for a purpose other than the current project. –Sales data –Registration information –Syndicated studies –Website hits

7. © 2004 Bertram Group Consulting 7 Primary Data Information collected specifically for use in the current project to meet a stated objective. –Interviews (in person, phone, online) –Focus groups –Surveys –Observation

8. © 2004 Bertram Group Consulting 8 Qualitative Research The collection of non-quantifiable information by questioning knowledgeable respondents individually or in small groups. –Small sample size which does not statistically represent the population –Used to answer ”Why?” questions –Often precedes quantitative research –Should not be sole basis for decisions

9. © 2004 Bertram Group Consulting 9 Qualitative Research Techniques Elicitation: using active listening Projective: to uncover deeper understanding of things more difficult to talk about –Laddering –Thought balloon –Mind-mapping –Picture sort –Collaging –Ideation

10. © 2004 Bertram Group Consulting 10 Quantitative Research The collection of quantifiable information from large numbers of respondents. –Large sample size which is statistically representative of the population –Used to make generalizations about the population –Can be used as the basis of decisions

11. © 2004 Bertram Group Consulting 11 Quantitative Research Audits Statistical probabilities Perceptual mapping Conjoint analysis Multivariate analysis Simulation modeling

12. © 2004 Bertram Group Consulting 12 Competitive Intelligence The systematic collection and analysis of information residing in the public domain about competitors and the industry. –Does not employ clandestine or unethical practices –Creates a picture by fitting together the pictures of a puzzle –Process should be integrated with market research and strategic planning

13. © 2004 Bertram Group Consulting 13 Environmental Scanning Monitoring the external business environment for events and trends that have implications for your company and industry. –Allows proactive rather than reactive response to change –Serves as framework for strategic plan –Drives focus of competitive intelligence efforts and market research activities

14. © 2004 Bertram Group Consulting 14 Benchmarking A method of improving performance by identifying and implementing “best in class” demonstrated practices. –Identify the best according to specified performance measurements –Analyze their practice –Adapt their practice to your business and implement

15. © 2004 Bertram Group Consulting 15 Ideal Thorough search for and analysis of secondary data Qualitative exploratory research Quantitative research Blend with CI Evaluate within context of changing business environment Apply best practices as appropriate to your business

16. © 2004 Bertram Group Consulting 16 Vendors Turn Key Services Research design Facility/data collection arrangements Screener/recruiting Discussion guide/questionnaire Moderating/interviewing Overall project management –Interface with R&D/design, agencies as needed Client debriefing Analysis/reporting

17. © 2004 Bertram Group Consulting 17 Using Marketing Research Develop understanding of problem or issue Gather all available background information and secondary data State objective Determine what decisions or actions will follow Assess value of research – is cost justified by potential opportunity for growth or expense savings? Select appropriate vendor