Session 6 - Marketing Research v09

8/4/2019 Session 6 - Marketing Research v09

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Internal Branding

Market Research


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Coach Handbags a Case Study

Coach opened its doors in 1941 Family owned, leather goods shop

Made classically styled, high quality, leatherhandbags

In the early years they didnt need market research

Handbags were functional items

Woman didnt waste time on their purse-buyingdecisions

Offered bags in black & brown

Ornamentation was limited to a gold latch

Earned reputation as traditional sturdy standbys

Conservative professionals became the corecustomer

They were cruising

Then suddenly, by the mid 1990s sales started

slowing

What was happening in the market?


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More woman were entering the workforce They needed different types of bags for work

They wanted designer brands, fuelling the massluxury movement

They wanted more colourful and stylish bags

Prada, Gucci, Fendi and Chanel were responding

to these trends selling bags at $1000

Coach was looking downright plain

It was time for an extreme makeover

Where to Start?


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Coach began with market research Coach made consumer needs the focus of its

overhaul strategy

Eventually they would change the way professionalwoman shop for handbags

WOMAN looked at handbags not as fashionstatements but accessible luxuries

WOMAN wanted to fill usage voids

WOMAN took part in activities that range fromweekends away, to clubbing, to shopping

WOMAN wanted:

Weekend bags

Evening bags

Satchels

Clutches

Totes

Briefcases How to respond?


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Woman wanted more fashion in their handbags Coach designers used words such as sexy, fun,

sophisticated, playful, grounded, luxurious, andquality driven to describe their customers

They launched the Signature range

They continue to identify more usage voids such as

the wristlet They saw woman were growing more interested in

non-leather bags

Research showed that woman shopped mostly duringthe holiday periods. To fill both voids they launchedHamptons Weekend

They believed woman are mixing formal clothing withcasual clothes

This suggested an opportunity to get woman to useformal accessories in the day, hence the Madison

collection

How to remain relevant?


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EVERYTHING IS GIRLFRIEND TESTED

It updates its collections every month now

It introduces new colors, sizes and fabrics

They price bags lower than luxury brands but high enough to be

special Coach continues to watch their customers closely

Coach continues to look for trends to fill

They spend a whopping $ 3,000,000 p.a on research

They interview 14,000 woman



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Which Category are You?

BRIDGING THE GAP Meeting Consumer Expectations

To produce customer value and satisfaction you need good information onconsumer wants and needs

Your also need information on competitors, resellers, and other forces in the

marketing environment In todays age the issue is not more information but better information

Many companies sit on rich information but dont manage it well

Companies must design effective market information systems

What is more : information must be turned into intelligence


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Internal Branding is VitalDeveloping Marketing Information


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The Marketing Information System (MIS)

Marketing Managers & Other Information UsersAnalysis Planning Implementation Control

Marketing Environment

Target Markets, Channels, Competitors, Publics, Macro forces

Internal

Database

Info

Analysis

Marketin

g

research

Intelligenc

Internal

Database

Info

Analysis

Marketing

research

Develop Information

MARKETING INFORMATION SYSTEM

Assess Info

Needs DistributeInfo


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Internal Data

Electronic collections of consumerand market information

Various Sources are used in theorganisation:

Financial

Operation

Marketing Customer Service

Sales

Channel partners

Easy to access

Information is normally incomplete formarketing decisions

Maintaining data currency requireseffort

Data management is more difficultthan one thinks


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Some organisation make an art of it

Claim to have the largest customerdatabase in the world

40 million households

Phone, online, POS transactions

@ 7500 outletsSlice data by favourite topping,ordered last, side orders

Track commercials and response

Targets coupons to specificcustomers based on data


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Marketing Intelligence

Systematic collection and analysis ofpublic information about competitors,and market place developments

It is used to improve strategic decisionmaking, track competitors, identifyopportunities and threats

To develop competitive intelligencemany techniques available Interviewing competitor employees /

Job Posting

Benchmarking

Internet digging

Trade show lurking Suppliers, resellers, key customers

Annual reports, brochures, press, etc

Databases (Patent Office, Customs,Trademarks, Specialist)

Trash bin looting


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Market Research

There are always gaps in both internaldata & any market intelligencegathering activities

Companies have specific informationneeds

This means conducting formal studies

to achieve specific informationobjectives

Marketing Research is the systematicdesign, collection, analysis andreporting of data relevant to a specificmarket situation faced by the company

and/or the brand


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Define the problem and objectives

Managers & researchers must workclosely

Managers best understand theinformation needed

Researches best understand how toobtain the information

Market objectives are typically:

Exploratory Research (help betterdefine the problem)

Descriptive Research (to describespecific market characteristics)

Causal Research (to test validity ofhypothesis)


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Develop the Research Plan

Determine the exact information needed (translation) The plan for getting the information should outline:

The problem, objectives

The information to be obtained

How the results will help

Sources of existing information Research approaches

Contact methods

Sampling plans

Instruments researches plan to use

Costs

A research plan is a written proposal

Information could be secondary or primary

Examples of specific information could be:

Demographic, economic, and lifestyle characteristics

Usage patters, buying behaviour

Channel reactions


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Implement Gathering Secondary Information

Researchers typically begin here Internal database is the starting point

This is followed by external data sources

Industry associations

Government agencies

Online databases Business publications

News mediums

Previous research

This typically costs less primary data collection

Need to determine how relevant, accurate, current, and impartial isthe info.

It remains a good starting point as it often helps define objectivesclearer


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Implement Gathering Primary Information

In most cases companies must collect primary data

This info must be relevant, unbiased, accurate and current

Several research approaches exist

Research

Approaches

Contact

Methods

Sampling Plan Instruments

Observation Mail Unit Questionnaire

Surveys Telephone Size Mechanical

Experiments Personal Procedure

Online


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Observation

Observing people, actions and situations Good for exploratory research

Location for a retail store, might include competitions locales, trafficdistributions, neighbourhood demographic

Observation labs are commonly used where applicable (e.g. Huggieswipes)

Observations have limitations

Difficult to observe feelings, attitudes, and motives

Difficult to observe long term behaviours

Should be used with other research methods

Ethnographic research involves embedding researches trained observers

(Marriot)


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Surveys

Most widely used method Method best used to acquire descriptive information (peoples knowledge,

attitudes, preferences, buying behaviour)

Flexible can be used to obtain different information in varying situations

Problems include:

Participant is unable to answer Participant is unwilling top answer

Participant is worried about appearances

Participant might resent intrusion


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Experiments

Method best used to acquire causal information Select groups

Apply different treatments

Control unrelated factors

Check differences in group responses

Use Experiment to try and explain cause & effect


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Contact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity that

can be collected

Good Fair Excellent Good

Control ofinterviews

effects

Excellent Fair Poor Fair

Control of

sample

Fair Excellent Good Excellent

Speed of

collection

Poor Excellent Good Excellent

Response rate Fair Good Good Good

Cost Good Fair Poor Excellent


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Sampling Plan

Sample Segment of the population selected for market researchpurposes to represent the whole

Who to be surveyed (sampling unit) ?

I.e what information is needed and who is likely to have it

How many people should be surveyed (sample size)

Larger the more accurate; but cost more and reliability difficult toensure

How should be people be chosen (sampling procedure)

Simple random every member has equal chance of selection

Stratified random population divided into groups before randomsampling

Convenience selecting the easiests member to obtain theinformation from

Judgement Judgement is used by researcher to select the sample

Quota Find and interview a prescribed number of people in severalcategories


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Research Instruments

Choice between questionnaires and mechanical instruments Questionnaires

Closed end questions include all the possible answers, and subjectsmake choices between them

Open end questions allow respondents to answer in their own words

Take care in wording (simple, direct, unbiased) Order questions to create interest first. Ask the more difficult

questions later.

Mechanical instruments

People meters on televisions sets

Checkout scanners

Cameras to monitor eye movements


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Research Instruments

Choice between questionnaires and mechanical instruments Questionnaires

Closed end questions include all the possible answers, and subjectsmake choices between them

Open end questions allow respondents to answer in their own words

Take care in wording (simple, direct, unbiased)

Order questions to create interest first. Ask the more difficultquestions later.

Mechanical instruments

People meters on televisions sets

Checkout scanners

Cameras to monitor eye movements


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Implementing the research

Putting the research plan into action Collection

Expensive and most subject to error

Researches must ensure correct implementation of the plan

Guard and correct problems with respondents

Processing Isolating important findings

Check data accuracy and completeness

Analysing

Tabulate results and compute statistical measures


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Interpret and report the findings

Drawn conclusions and report them to management Dont overwhelm managers report the important facts that are useful for

taking decisions

Interpretation is combined work between researcher and managers


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Thank you

Session 6 - Marketing Research v09

Documents

Transcript of Session 6 - Marketing Research v09