2 types of marketing research - themarketingconcept.com · 2 types of marketing research 1 As...

29/01/2018

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© Dr. Stephen Fanning

2 types of marketing research

1 As needed - [sometimes referred to as Ad hoc research] a) Specific to a particular need at a particular timeb) Measuring changes to situational factors – internal/external

2 Everyday - [some times referred to as routine or systematised] a) Part of an ongoing & regular business monitoring and control

programme [Sales performance metrics]b) Established longitudinal benchmarking data

if it is not measured - it can’t be managedAn old adage

if it is not measured - it can’t be valued

Marketing research

the customer, organisation, the market, & the productCollects and analyses

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How market research can assist?• Market research can assist in:

– Uncovering consumer dreams, desires, & demands– Designing, & developing, new products– Conducting a product review

• Assessing core, expected, & augmented product layers– Positioning & re-positioning a product– Assessing competition & market characteristics– Assisting with continuous improvement process– Measuring operational efficiency & effectiveness

Market research reduces risk• Zaltman and Coulter (1995) suggests that up to 80% of all

product failures are as a consequence of poor research.• Therefore, market research is a vital management tool

– We are operating in a dynamic market - increased customer expectations, greater accountability and shorter product cycles

– The objective of MR is to provide reliable and accurate data, to enable managers to make informed decisions.

– Research quality improves the quality of decisions• Although, does not guarantee success

– Like all investments must be cost effective outcome focussed

The 5 stages of market research

Ad hoc market research generally follows a 5 stage process:1. Clearly define the research problem and objectives.2. Develop an appropriate methodology3. Data collection4. Interpreting data 5. Presentation of findings

as needed

Data can be new or existing

Primary data data that is not available from secondary sources and

must be collected for a specific situation Secondary data* data that has been previously collected. Secondary

data falls into two categories: internal external

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Qualitative V quantitative tools

Qualitative Discover the elements/qualities that are present

Quantitative Measure the frequency that the elements occur

Don’t get hung up on the tools focus on the outcome

© Dr. Stephen Fanning

Marketing AuditWhere is the organisation at the present?What are the current situational factors? How well does our total product meet the needs of our customers?

Marketing PlanArticulation of desired position and basis of competitionIdentification of market strategiesIdentification of market/revenue goals

Marketing Action PlansIdentification of tacticsIdentification of responsibilities and timeline

Marketing ControlMeasure performance against specificationsTake corrective action where necessary

Clarifying key terms The architect metaphorWhat types of marketing research must an architect conduct

??

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A business plan is like the working drawings of an architectDifferent disciplines have different plans & responsibilities

Just as an architect would have written specificationsEach component of the business plan would have specific outcomes. Each function agrees that this is the business that they are building.

Everyday research - making informed decisions

Former MBA student statesAll I do is research. I spend my day doing research. When I review the sales figures or the production forecast figures, I am researching. I am comparing this year with previous years. When I am in a meeting, I am listening to my managers, I am researching. When I am with a customer, I am trying to determine how we can serve them better, improve our products, I am researching. Before I did this XXXX I thought that market research was something that market researchers did. Then it dawned on me I am a market researcher I gather information, I make conclusions but the difference is I have to make decisions based on my research and the quality of my decisions is dependent on the quality of my research. I am a lot more focussed on quality of information now.

Note: qualitative and quantitative approaches

This is the most important slide you

will ever see

This is the most important slide you

will ever see

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Chief FinanceOfficer

The strategic planning group

ChiefInformation

Officer

ChiefMarketing

Officer

Chief Operations

Officer

Articulation of desired market position & basis of competition

Strategic Intent

Chief Executive

Officer

*C-Suite executives

Financeplan

Operationalplan

Informationplan

Marketingplan

The business planHR

Chief FinanceOfficer


ChiefInformation

Officer

ChiefMarketing

Officer

Chief Operations

Officer

Articulation of desired market position & basis of competition

Outlines the strategic intent of the organisation

Chief Executive

Officer

Financeplan

Operationalplan

Informationplan

Marketingplan

The business plan

HR

The strategic planning group comprises the chief executive officer and the senior discipline officers.They will generally meet at the beginning of the planning process and set out the parameters

“the meeting of the minds” Peter Balsarini


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The strategic planning group will often begin the business planning process with a review of the organisation’s philosophy the organisation’s values the statements of purpose.This may result in some degree of realignment


The marketing audit will be part of a longitudinal study [conducted on a regular basis]: • Quarterly, half yearly, yearlyTherefore, a process will be in place & information will be internal or external secondary data. May require as needed research

The business-marketing planning process

The 3 stages of the business-marketing planning process: 1. Collect & Analyse relevant

information2. Design & Develop the marketing

plan and action plans3. Implement & Evaluate the

specifications in the action plansWe will refer to this process as CADDIE

The 3 stages of CADDIE

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Two types of everyday marketing research:1. Strategic research is conducted

as part of the business planning process. This is referred to as conducting a marketing audit

2. Tactical research is conducted to evaluate the performance of the organisation against the objectives specified in the marketing plan & marketing action plans. When necessary take corrective action

Everyday marketing research

Strategic marketing research is conducted as part of the business planning process.

This is referred to as conducting a marketing audit & explores the situational factors facing the organisation [COMP]: Customer Organisation Market Products

Everyday marketing research - strategic


the customer, organisation, the market, & the productCollects and analyses


the characteristics of the customersCollects and analyses

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The situational factors [COMP] influence the consumer and the organisationa consumer perspective Influences the consumer’s

buyer decision processan organisational perspective Influences the business-

marketing planning process

The marketing audit – COMP factors

A customer audit begins with an identification of the customer segments. This information is important as it will help determine: Which segments does the organisation intend to

target [approach] Which segments does the organisation not

intend to target [avoid]

The marketing audit – customer audit

Customer segments Identify the customer segments and the

characteristics of the segments. Determine the methodology for undertaking the

market segmentation process

The marketing audit – customer audit The marketing audit – customer audit

Segmentation variables Geographical: location, city V urban, suburb, city, country,

proximity to business Demographic: age, gender, occupation, income,

disposable income, family life cycle Psychographic: lifestyle and values, aspirational goals Behavioural: usage, loyalty, outcomes sought Price/benefit: perceptions of product quality and value

hence products at different price intervals Cultural: culture influences values and in-turn

consumption activities. Importance varies from product to product

VALS: on the basis of values, attitudes, and lifestyles

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Segment characteristics• Present & likely• sales, growth, profitability, lifetime value expectations – [quality, value] collective satisfaction product requirements [dreams, desires, demands]


Segment characteristics Identify income characteristics of segments [ability

& willingness to purchase] Identify preferred payment methods, mediums, Location [in-store & on-line] Buying patterns [frequency] Motivators to enter the buyer decision process


Segment characteristics Satisfaction [episodic, cumulative, collective] Retention [NPS] Social media habits Word of mouth and referrals Competition within segment Consumer behaviour Involvement [e.g., family members, friends,

groups, society] Bargaining power of customers

[see Porter’s 5 competitive forces in this chapter


Segment conclusionsAfter considering the organisation’s capabilities & constraints Organise the customer segments into a hierarchy

of attractiveness


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the characteristics of the organisationCollects and analyses

Identifying the organisation’s objectives Past and current objectives: 3 financial objectives 3 strategic objectives 3 communication objectives

The marketing audit – organisation audit

Past and present organisational objectives: Past performance on the 9 objectives of

marketing practitioners [3Xfinancial, 3Xstrategic, 3Xcommunication objectives] – budget and actual achievements any gaps that exist


Current capabilities and constraints Key success factors, organisational

competencies, culture, patents, technological skills, processes, employee performance, relative costs, marketing channel effectiveness, barriers to exit a market


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Revenue analysis: Size, growth, pricing, strategies, total sales and

margins by product, life cycle, market position, market-share by segment, cost of sales, shareholder value analysis


Brand analysis Customer relationship analysis, brand strength

[uniqueness, relevance], brand stature [esteem, knowledge], brand equity [value as an asset], brand awareness, brand associations



the characteristics of the marketCollects and analyses

Characteristics of the market Financial [size, profitability, growth, market

patterns, potential, profitability, life cycle issues] Competencies [Strategic imperatives, Key

Success Factors] B2B & B2C communication channels Structure of market channels [distribution] Emerging trends and developments

The marketing audit – market audit

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Characteristics of the market Past and present objectives: Current capabilities and constraints Revenue analysis: Brand analysis Potential competitors [new entrants] Competitor market power The types of market competition Models of market competition Macro external factors PESTEL


Competitor market power Competitive nature and rivalry of the industry Threat of potential entrants [entry-exit barriers] Threat of substitute products Bargaining power of buyers [influence of

consumers] Bargaining power of suppliers


Competitive nature and rivalry of the industry


The types of market competition Brand competition Product competition Generic competition Total budget competition


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Models of market competition


Macro external factors PESTELE Political Economic Socicultural Technology Environmental Legal Ethical



the characteristics of the productCollects and analyses

Product information would include: Product sales Total sales X product Total sales X territory Sales by [hour/day/week/month/year/ or other

suitable unit of measure e.g., weather] Number of transactions Average sell price Margins X product

The marketing audit – product audit

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Product information would include: Product inventory [e.g., value of inventory on hand – usage

rates]

Product adoption & life cycle Product considerations

Strategy, product line – mix, positioning, uniqueness, value proposition, augmentation, involvement, contact, product components, decision type, recipient[s], category, classification, awareness

Threat of substitute products

The marketing audit – product audit

The information is then analysed To determine The market attractiveness The ability to compete [in the market]

This information will be passed on through the Chief Marketing Officer to the strategic planning group


The strategic planning group Will synthesise the information from

the various discipline reports Finance Operations Information Marketing


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The strategic planning group Although the report will be in detail,

the Chief XXX Officers will often present the information in a SWOT framework Strengths Weaknesses Opportunities Threats

The business-marketing planning processDiscipline reports + SWOT summary presentation

The next step would be an iterative process where the strategic planning group & the discipline groups craft the business plan and the various discipline plans


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