MARKETING RESEARCH

Presented by Lijin Mathew

Definition : Marketing Research

“Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.”

Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

Marketing Research Process Evolves From Answers to Five Key Questions

• Why should we do research? • What research should be done? • Is it worth doing the research? • How should the research be designed to

achieve the research objectives?• What will we do with the research?

Need of marketing research

To undertake marketing effectively Changes in technology Changes in consumer tastes Market demand Changes in the product ranges of competitors Changes in economic conditions Distribution channels

Factors to be Investigated through Market Research

Trends in the market Segmentation of the market Information available SWOT analysis Effectiveness of Marketing

Purpose of Marketing Research

Gain a more detailed understanding of consumers’ needs: e.g., views on products’ prices, packaging, recent advertising campaigns

Reduce the risk of product/business failure: there is no guarantee that any new idea will be

a commercial success Can help to achieve commercial success

Forecast future trends: it can also be used to anticipate future customer needs

7 Characteristics of a Good Marketing Research

1. Scientific Method : Research should use principles of scientific methods ;careful observation, formulation of hypothesis, prediction and testing

2. Research Creativity : Research should develop innovative ways to solve a problem

3. Multiple Methods : Try to use 2 or 3 methods for getting more confidence and more accurate result

4. Interdependence of models and data : Researchers recognize that data are interpreted from underlying models that guide the type of information sought

5. Value and Cost of Information : Estimation of cost and value, it is easier to determine cost but value is harder, it depends on the reliability

and validity of information

6. Healthy Skepticism : Researcher shows a healthy skepticism towards glib assumptions

made by managers

7. Ethical Marketing : Marketing research benefits both the sponsoring company and its

customers

Marketing Research Methods1. Based on questioning Qualitative marketing research -

generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples

include focus groups, in-depth interviews, and projective techniques Quantitative marketing research -

generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents

2. Based on observations Ethnographic studies –

by nature qualitative, the researcher observes social phenomena in their natural setting - observations can occur “cross- sectionally” (observations made at one time) or “longitudinally” (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces. Experimental techniques -

by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, then manipulates at least one of the variables - examples include purchase laboratories and test markets

Marketing Research Techniques Types1. Qualitative Research2. Quantitative Research

Primary Market Research Secondary Market Research

1. Qualitative Research qualitative market research which mainly takes into account the

opinions and feelings of a customer about products and services It tries to get behind the customer’s mind

2. Quantitative Research This type of research work is based on hard facts and statistical data

rather than the feelings and opinions of the customers or consumers This type of research is useful both in terms of primary market research

and secondary market research Some of the common examples of quantitative research include exit

surveys, questionnaires, on-site fieldwork, the shopping bag survey,…

Primary Market Research Also called as “Field Research” Primary market research is a kind of market research which is done by

the business or company itself with the objective of gathering information that can be used to improve the products, services, and functions

It doesn’t use any information that is already made available through other sources

One can gather primary data or information through qualitative research methods as well as quantitative research methods

It is a method that only answers specific questions

5 Primary Market Research Techniques

1. Focus Groups : This method involves getting a group of people in a room or a

place and asking them insightful questions regarding the product, its development, their preferences, and feedback, etc

These types of focus groups can be run or conducted at any location feasible for the company or business

Participants in such focus groups are then compensated by either free coupons, vouchers, gifts or money, etc.

It is one type of qualitative research

2. Surveys and Questionnaire The term ‘surveys’ is a broad term that covers a lot of things

such as survey questionnaires, survey forms, survey interviews and customer satisfaction cards, etc.

It is a straightforward method of knowing whether or not the customer is satisfied with the business’s existing services and products or what kind of changes would the consumer like to see

3. Observation• There are two major observation techniques

• observation through interaction and communication with the subject

• observation through no interaction and communication with the subject

• This is more of a personal approach in comparison to surveys and questionnaires

• Its come under Quantitative research

4. Trials and experimentation This method of primary research involves scientific tests where

hypotheses and variables, etc. are used This is a quantitative type of market research

5. In-depth Interviews It is a qualitative research It takes into consideration the kinds of choices and preferences

a customer Interviews, unlike focus groups, involve interaction between

one moderator and one respondent and several types of modes and methods may be used to conduct them.

Secondary Market Research

secondary market research is a research technique that does not aim to gather new information, it relies on already available information from multiple sources

This research focuses on data or information that was collected by other people and is available for either free or paid use for others

It takes into account many different sources for collection of information including government data, office data, newspapers, magazines, the internet, etc

One of the benefits of doing secondary market research is that it is mostly free and takes less time

2 Main sources of Secondary Market Research Data1. Internal Sources

Internal sources are those kinds of secondary market research sources that already exist and are collected in the business’s database or file system

It include information that has already been collected by the company and proves useful for future projects, etc

Examples Balance Sheet Profit and Loss Account Inventory Records Sales Figures

2. External Sources External sources are those sources that present data that is

collected by other businesses or people These are collected from outside the business’s environment

and include multiple sources Examples

Government Sources Universities and Colleges Internet Competitor Data

Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem-Solving Research

• Market Potential Research• Market Share Research• Market Characteristics Research• Sales Analysis Research• Forecasting Research• Business Trends Research

• Segmentation Research

• Product Research• Pricing Research• Promotion Research• Distribution Research

Problem-Solving Research

1. Segmentation Research Determine the basis of segmentation Establish market potential and responsiveness for various segments Select target markets Create lifestyle profiles: demography, media, and product image characteristics

2. Product Research Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning Test marketing Control store tests

3. Pricing Research Pricing policies Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes

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4. Promotional Research Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness

5. Distribution Research

Types of distribution Attitudes of channel members Intensity of wholesale & retail coverage Channel margins Location of retail and wholesale outlets

Market Research ProcessStep 1: Defining the Problem and Objectives

Step 2: Develop the Research Plan

Step 3: Collect the Information

Step 4: Analyze the Information

Step 5: Present the Findings

Step 6: Making Decision

Areas Covered by Marketing Research

ControllableMarketing

• Product• Pricing• Promotion• Distribution

VariablesMarketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers• Market Segmentation

• Performance & Control

• Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors• Economy• Technology• Laws &

Regulations• Social &

Cultural Factors

• Political Factors

• Consumers• Employees• Shareholders• Suppliers

Customer Groups

MISTAKES TO AVOID WHEN DOING MARKET RESEARCH

Doing only primary market research or secondary market research Using only the web for research Limited Vision Not being able to identify your target audience Not giving consumers an incentive to communicate with you

Benefits of Market Research Tapping Opportunities Encouraging Communication Minimization of the risks Find out possible problems