1. 4.4 Marketing Research

2. Market Research
The process of collecting, recording, and analyzing data about customers, competitors, and the market

3. Why conduct market research?
Reduce the risks of launching a new product
Predict future demand changes
Explain patterns in sales of existing products and market trends
To identify the favored designs, flavors, styles, promotions, and packaging

4. Marketing Research Secondary Research Primary Research
A collection of data from second-hand sources. Often called “desk” research.
Second-hand research should be conducted first. It is less expensive and reveal a lot of information.
Primary Research
A collection of first-hand data that is directly related to the researcher’s needs.
Primary Research can be expensive yet specific to your needs.

5. Primary Research Quantitative Research Qualitative Research
Research that leads to numerical results that can be analyzed and presented. The average person dines out 3X per week.
Qualitative Research
Research into the motivations behind buying behaviors and opinions.
All fast food restaurants are cheap.

6. Methods of Primary Research
Surveys
Interviews
Focus Groups
Observations
Test Marketing

7. Methods of Primary Research
Surveys - Directly asking consumers or customers about their opinions and preferences
4 things to consider
Who to ask
What to ask
How to ask
How accurate is it?

8. Issues with Surveys
Who to ask? You cannot ask everyone, so a SAMPLE is taken.
What to ask? Construct a unbiased questionnaire.
How to ask? Telephone, self-complete, interviews
How accurate is it? Assess the accuracy and validity research

9. Methods of Primary Research
Survey DESIGN
Don't ask too many questions – only the most important ones!
Group income levels unless it is absolutely necessary quantitative information
Open ended questions are difficult to tabulate
Closed questions are easy to tabulate but may not provide much insight
Avoid questions that lead to an answer

10. Methods of Primary Research
Interviews – Are conducted by interviewer usually in a public place or at the respondents home.
A skilled interviewer will
Avoid bias in when asking questions
Questions can be explained to the interviewee
Follow up questions can be asked
Expensive method

11. Methods of Primary Research
Focus Groups – A group who are asked about their attitude towards a product, service, advertisement, or new style of packaging.
Encourages active discussion
All members are free to talk
The discussions are usually filmed
Responses are typically seen as more accurate than a survey response

12. Methods of Primary Research
Observation – A qualitative method of collecting and analyzing information obtained through directly or indirectly watching and observing others.
Data is collected through direct observation
Cookies on a computer
Nielsen TV ratings
Traffic counts and congestion patterns
Loyalty cards

13. Methods of Primary Research
Test Marketing – Marketing a new product in a geographical region before a full-scale launch.
Promoting and selling to a limited geographical area
Record consumer reaction to product on a small scale
Reduces risk of a full-scale launch failing
Not always accurate if the test market does not share same characteristics of larger market

14. Secondary Data
Secondary data can provide a company with a great deal of information. But.....
Never completely up to date
May not provide specific answers to your question
Is available to your competitors too

15. Where do you get Secondary Data
Market intelligence analysis reports
Academic journals
Government publications
Local libraries and local government offices
Trade Organizations
Media reports and specialist publications
Internal company records
The Internet

16. Advantages / Disadvantages of Secondary Data
Typically inexpensive
May be out dated
Can assist with planning primary research
Originally collected for another purpose so it may not entirely suitable for your purposes
Can be obtained quickly
Data collection methods and accuracy may be unknown
Comparison of data from different sources
May not be available

17. Marketing Ethical Considerations
Researches should have permission of the people they will be studying
Data collection methods should not cause physical harm
Objectivity vs subjectivity should be considered
Surveys and observations should be kept anonymous
Researchers should not take advantage of easy-to- access groups
Presentation and analysis should be an accurate representation of what was told or gathered by researchers

18. Sampling Sample Sampling Error
A group of people taking part in market research selected to represent the target market.
Sampling Error
Error in research caused by using a sample for data collection instead of the whole target population

19. Who to ASK? Random Sampling
Each member of the target population has an equal chance to be selected.
You should:
Have a list of all the people in the target population
Sequential numbers are assigned
A list of random numbers are generated

20. Who to ASK? Stratified Sampling
The target population contains many layers (men, women, children, teenagers, elderly)
The sample should include representation from all the layers in the target population as a percentage of their group.

21. Who to ASK? Cluster Sampling
If the target population is geographically diverse, clusters of samples may be taken from a few different locations instead of every location.

22. Who to ASK? Quota Sampling
The population is segmented into mutually exclusive groups (example: women, men)
The selection of the sampling is not scientific. The interviewer or researchers determine how many to interview from each group.

23. Who to ASK? Snowball Sampling
The first respondent refers a friend, who refers a friend, who refers a friend.
This type is likely to be biased because friends tend to have similar lifestyles and opinions.

24. Who to ASK? Convenience Sampling
Selecting people because of ease of availability or because the volunteered
The sample may not represent the target population as a whole and may be biased towards a group of people.
For example, you interview people for 3 hours at the grocery store on Thursday afternoon. You may have an overly represented group of elderly.

25. Results from Surveys Averages can also be used:
Data from must be analyzed and presented.
Presentation methods include:
Tables
Line Graphs
Bar Charts
Pie Charts
Histograms
Pictograms
Averages can also be used:
Mean – the statistical average
Median- the middle point
Mode - most frequently occurring