Ch04_instructors Powerpoints w2014

© 2012 McGraw-Hill Ryerson Ltd.

Module 7: Market ResearchChapter 4


Module 7 - Learning Objectives

1. Explain the use and benefits of a marketing information system and market research

2. Outline the importance and challenges of market research to companies

3. Differentiate between exploratory, descriptive, and causal research

4. Identify the step-by-step market research approach5. List and describe the primary and secondary research tools

available to marketers

2


‘New Coke’

Coca-Cola’s NEW COKE - New Coke was introduced in North America in April 1985 as a new and improved, sweeter version of the traditional Coca-Cola Spent $4m on market research with 190,000 blind taste tests showing

that people preferred New CokeWithin 87 days, NEW COKE was pulled from the market. Coca-Cola drinkers did not realize their old product was being replaced. They liked the taste better (in blinded tests) but Coke underestimated the impact of its brand.


Women and Cars

Automobile industry faced an ongoing economic crisis, leading up to the 2009 recession. Companies did not conduct the proper research Focused on the ‘ok’ results from customer satisfaction surveys

Missed significant customer insights:•Customers wanted cars with better value (mileage, greener, amenities)•Women play a critical role in the purchase decision

•Government rescue of GM and Chrysler, significant financial downturn for others.


How do Marketing Departments get information? (p.82)


Market Research (p.82)Finding the answers to what you don’t knowMarket research is the process of collecting and analyzing information in order to recommend actions to improve marketing activities.

6


What types of marketing situations might require market research?

Product developmentProduct positioningPackaging developmentTarget marketPurchase behaviourAdvertising campaignsPrice elasticitySales force compensationDistribution options

And so on, and so on and so on and so on….


Why?

Goal: Obtain accurate information Sound decisions

– Minimize risk– Maximize outcomes – Invest in the most effective way


Market Research Example: 3M Post-it Flag Highlighter Video


Classifications of market research: (pages 83-85)

Why is milk consumption declining?•Existing literature•Experts interviews•Small number of consumer interviews

http://www.cdc-ccl.gc.ca/CDC/index-eng.php?id=3800



Researcher already has a general understanding of the marketing problem and is seeking more

conclusive data

• Demographic characteristics of current milk consumers

• Current usage patterns• Consumer attitudes towards

milk consumption



In the descriptive research, many consumers mentioned that they believed that milk was too fattening and high in cholesterol-Ran ads talking about how healthy milk was and essential to your diet. -Tracking research studies showed a correlation between the campaign, changing attitudes and increasing consumption


Six-Step Market Research Approach (p.86)

13

LO 4


Step 1: Define the Problem/Issue/Opportunity (p.85)

Precise definition of the problem and a formal proposal defining the task.

Requires clarifying research objectives.

14

LO 4


Step 2: Design the Research Plan (p.86-87)

1. Determine information needsBased on your problem definition, what do

you need to find out? 2. How will it be collected?

Secondary and/or primary research3. Select a sampling plan

15

LO 4


Decide on collection method (p.86)

16

Choose method to maximize accuracy

of results

Collection Methods:• Secondary research• In-depth personal interviews• Focus groups• Telephone surveys• Mall intercepts• Online questionnaires• Direct mail surveys


Sampling (p.87)

The process of gathering data from a subset of the total population rather than from all members of that particular population

Probability sampling involves precise rules to select the sample – RANDOM – representative of the sample we want to generalize to.

Non-probability sampling involves the use of arbitrary judgment of the market researcher – Not RANDOMIZED

-“person on the street” interviews- ask for volunteers- mall intercept

17


Step 3: Conduct Exploratory Research (p. 88-93)

Clarify scope and nature of problem Secondary data consists of internal data or data from published sources Primary data is newly collected data.

– Qualitative research uses focus groups and in-depth interviews

18

Secondary data first, then primary data


Types of Primary Research (p.90-93)

Qualitative – insightful and directional – not statistically significant

Quantitative – statistically accurate and more reliableFar more costly and time consuming


Focus Group Research (p.90)

Focus groupQualitativeInformal interview sessionSmall groupModerator

20


In-Depth Interview (p.90)QualitativeDetailed individual interviews

21


Online Research: Online Community

22http://www.communispace.com/ihg-chase-credit-card-co-creation-case-study/

Creation Of A New Credit Card using an Online Community


Online Research: Social Listening (p.93)

23

• Monitors online consumer conversations for insights

What ethical issues does the practice of social listening raise?

Through social listening, Kraft was able to identify 4 distinct segments:•Aficionados•Dieters•Moms/household chefs•Entertainers


Type of Primary Research

Qualitative – insightful and directional – not statistically significant

Quantitative – statistically accurate and more reliableFar more costly and time consuming


Step 4: Collect Quantitative Primary Research (p.92)

25

LO 4LO 5LO 6


Aurora Foods watches how consumers bake cakes in test kitchens to determine how easy their instructions are to follow.

Neilsen HomeScan monitors shopper behaviour in more than 250,000 households in 25 countries.

McDonalds introduced the McLobster sandwich to a few stores in Eastern Canada and monitored the results.

One Sobeys store sells prepackaged cucumbers in 3s and another store in a similar area only sells cucumbers in bulk.

Shopper’s Voice collects the responses to questions answered by the main grocery shopper in a household.

Survey

Panel

Experiment

Test Market

Observation


Step 5: Compile, Analyze, and Interpret Data (p.96)

Synthesize and simplify pages of data into actionable information.

27

LO 4


Step 6: Generate Report and Recommendations

Market data and information has little value unless recommendations are provided that lead to marketing actions

31


IAB Canada Activity

IAB Canada has a new research centre that profiles online digital marketing studies from Canada and around the world. Go to the website: www.iabcanada.com

1.What issue is IAB Canada solving by posting new research studies?2.Check the IAB Canada website at www.iabcanada.com and review one of its latest research studies. Identify interesting facts revealed by the study and what areas you think require further research.

32

Ch04_instructors Powerpoints w2014

Documents

Transcript of Ch04_instructors Powerpoints w2014