market research the key to the customers wallet …

Market Research

The key to the customers wallet…..

Define Marketing Research

• The purpose of market research is to provide data that will help solve marketing problems

Marketing information is used to identify solutions:

Data vs. Information

– On average you sell 70 cups of coffee a day that’s (DATA)

– After researching you observe a pattern that’s (INFORMATION)

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Why is Marketing Research Important

• Marketing Research helps businesses anticipate future marketing potential.

– It can recognize a problem or possible opportunities.

Who Uses Marketing Research?

• Large businesses

• C.E.O

• Managers

• Advertising companies

• Employers• The Self Employed

Types of Marketing Research:

• Attitude research• Market research• Media research• Product research• Observational research

Attitude Research

• Research designed to obtain information on how people feel about certain products, ideas, or companies.

Market Research

• Involves gathering, recording, analyzing, and presentation of information related to marketing goods and services.

• It asks questions about market segment, advertising strategies, price….

Media Research

• Focus on the efficiency of the media used, was the media effective….is radio advertising working…..

Product Research

• Focuses on the product / package design

• Is the consumer likely to want one kind of product over another, e.g. (hand lotion texture, shampoo smells….)

Observational Research

• Observing the behavior of individuals buying / consumption behavior to draw conclusions on…

• May include focus groups…

• One similar example would be your secret shopper.

Assignment

• Observational Research

• In your group discuss the following questions to determine what each household might look like. Look at that list provided and write what your conclusions are.

Trends in Marketing Research

• The current trend today is towards a global marketplace.

• US business must consider global markets and it’s effects to stay competitive….

More Trends in Marketing

• Product quality and customer satisfaction are the keys to business success.

• Today consumers and expecting more and more! (customer service is expected …. it’s giving the customer an experience that is now making a difference)

Conducting Marketing Research

• There is a systematic approach to solving problems and finding solutions in the market research world….

Conducting Marketing Research

• In market research there are two types of information to consider…..

• Primary (what you do!)

• Secondary (what others do!)

Conducting Marketing ResearchPrimary Data

• Primary Data– Primary data is data collected for the first time

usually for the purpose of a particular study.

– Interviews (Face to face, over the phone)– Survey (Mall or mail)– Focus group (Gathering a group of people to view a

product)– Product test (Marketers will watch people using a

product)

Conducting Marketing ResearchSecondary Data

• Secondary Data– Secondary data is data that has been collected

previously for a purpose other than that current study.

– Population stats (www.cenus.gov)– House hold income (www.cenus.gov)– Industry forecasts (trade publications)

The Market Research Process

• There are 5 basic steps in the research process

1.Define the problem2.Obtain data3.Analyze the data4.Recommend solutions5.Apply results

Step 1: Defining the Problem

– Often the most difficult to do

– A problem may be declining sales……..

– Here marketers need to ask questions like

• why aren’t customers buying the product

• are there competitors

• is advertising working….

Step 2: Obtaining Data

• Data is collected and examined in terms of the problem or problems being studied.

– Here data is collected and examined to discover problems and opportunities

– Two types of categories of data as discussed

• Primary and Secondary

Step 2: Obtaining Data

Sources can include

• Interviews• Survey• Focus group• Product test• Observational research • Experimental research (researcher changes

variables and observes customers reaction, e.g. price / package change)

Step 3: Analyzing the Data

• Data Analysis: is the process of compiling, analyzing, and interpreting the results of primary and secondary data.– When analyzing the data we have to consider why

and what is going on and move towards a recommendation.

Step 4: Recommending Solution to the Problem

– Successful research means information should help to solve marketing problems

– A recommendation generally should be a written document that shows

• Tables, figures, charts

• Results of methods used to research

• Findings

• Recommendations

• Summary / conclusions

Step 5: Applying the Results

– Once research recommendations have been made managers have to apply results….

– Not all recommendations are correct so applying results have to be monitored carefully….

Assignment

• Cessna Market Article

• Read the following article and consider how Cessna should tap into the female market, apply the market research process.

Constructing a Survey

• We are going to create a survey method….


• One Important form of a survey that can be successful is a questionnaire.

• A questionnaire is set of questions designed to generate data necessary to accomplish

results and to help solve a problem.


• Step One: Determine Survey Objectives, Resources, and Constraints

– What do you want achieved– What is available to you (mall, no mall etc…)

– What is possible, (budget constraints etc….)


• Step Two: Determine the Data Collection Method

– via the Internet– telephone – mail, or self-administration

– Each research method will have an impact on questionnaire design

– A mall interview…..time constraints – Self-administered……must be short– A telephone interview needs verbal description – Internet survey can show pictures, videos….


• Step Three: Determine the Question Response Format

Open-Ended Questions – These are questions that a person replies in her or his

own words– Use WHAT, WHY, HOW questionsClosed-Ended Questions – These are questions that make a selection from a list of

responses– Yes/No, Agree/Disagree, – greater than, less than


• Step Three: Determine the Question Response Format

Multiple choice– These are questions that give the respondent several

choices– A,B,C,D,E…….Scaled-Response Questions – These are questions that gives the respondent a choice

that capture intensity of feeling– From 1 to 10, 1 being bad & 10 great……


• Step Four: Decide on the Question Wording

1.The wording must be clear

2.The wording must not bias the respondent

3.The respondent must be able to answer the questions

4.The respondent must be willing to answer the questions.


• Step Five: Establish Questionnaire Flow and Layout

• Step Six: Evaluate the Questionnaire

• Step Seven: Obtain Approval of All Relevant Parties

• Step Eight: Pre-test and Revise


• Step Nine: Prepare Final Questionnaire Copy

– Questionnaires should be easy to read, black ink on white paper and not complicated

• Step Ten: Implement the Survey

– Use the selected method of survey, e.g. interview, mail etc….


• Begin the Market Research Survey Project

Assignment

•Market Research Survey Project

• You and your partners will be conducting a market research survey of fellow peers to find out their attitudes and preferences on a particular topic / product.

Assignments

• Target Markets

• Consumers are marketed to in many ways; businesses divide segments up into categories. Listed in your packet are market segments, under each one, list two products/services that might be targeted to them.

market research the key to the customers wallet …

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