marketing research. the process of defining a marketing problem and opportunity, systematically...

Marketing Research

Marketing Research

The process of defining a marketing problem and opportunity, systematically

collecting and analyzing information, and recommending action.

Uses of Marketing Research Movies

Shoeless Joe became Field of Dreams 3000 became Pretty Woman Sneak Previews help with selecting scenes

Pocahontas has scenes cut because preview audiences were confused

My Best Friend’s Wedding ending changed because preview audiences didn’t like the ending

Marketing Research

Helps identify and define things that might be wrong with your product/service

Improves the marketing of products/services Is not foolproof Can reduce some risk in marketing decisions

Difficulties in Marketing Research

If a researcher asks a “Yes/No” question, that’s all they’re going to get

Brand new products have nothing to be compared to

Personal questions “Actual Self” vs. “Ideal Self”

Definitions

Decision Conscious choice from among two or more

alternatives Decision Making

Act of consciously choosing between alternatives with formal, structured approaches

Marketing Research Approach Step #1: Define Problem Step #2: Develop the Research Plan Step #3: Collect Relevant Information Step #4: Develop Findings Step #5: Take Marketing Actions

Marketing Research Approach

Marketing Research ApproachStep 1: Define Problem Fisher-Price Example

NY nursery children play with toys in a room with a one-way mirror

Watch kids play with various versions of their toy

Marketing Research ApproachStep 1: Define ProblemSet Research Objectives Marketing objectives must be specific and

measurable Examples include increase sales, increase

profits, find out consumer wants, find out why your product is selling poorly Fisher-Price objective is to decide to market new

phone or not

Marketing Research ApproachStep 1: Define Problem

Set Research Objectives After objectives are set, you have to decide

what kind of research you will complete Kinds of Research

Exploratory Research – Can provide ideas about a relatively vague problem (Interview for new ideas) General Mills figured out first version of Hamburger

Helper wasn’t well liked by consumers. Interviewed for improvement ideas

Marketing Research ApproachStep 1: Define ProblemSet Research Objectives Kinds of Research

Descriptive Research – The frequency that something occurs or the extent of the relationship between 2 factors How many people buy your product and how

many buy competitions product

Marketing Research ApproachStep 1: Define ProblemSet Research Objectives Causal Research – Most advanced form of

research, looks at determining how much the change in one product changes another Changing toy design is related to changes in

amount of time kids play with that toy

Marketing Research ApproachStep 1: Define ProblemIdentify Possible Marketing Actions Decision makers create measures of success

Criteria or standards used in evaluating proposed solutions to a problem

Findings in your research lead to different marketing actions based on measures of success

Marketing Research ApproachStep 2: Develop Research Plan

Specify Constraints Constraints are restrictions that are placed on

potential solutions to a problem Examples are time and money used


Identify data needed for marketing actions Only focus on information that is relevant to

solve this particular problem


Determine How to Collect Data Concepts in marketing are ideas about

products or services In marketing research, new product concepts

are a picture or verbal description of a product or service that the firm might offer for sale Chatter Telephone with noisemaker, wheels, eyes


Determine How to Collect Data Methods are approaches that can be used to

collect data to solve all or part of a problem Sampling Statistical Inference


Determine How to Collect Data Sampling is selecting elements from an entire

population that are representative of that population

Probability Sampling uses exact rules to select sample so that each element has a specific known chance of being selected Sample is representative of entire population and

allows conclusions to be drawn about entire population


Determine How to Collect Data Nonprobability Sampling uses arbitrary

judgements to select samples so that chance of selecting a particular element may be unknown. Allows bias and can be dangerous in research

outcome


Determine How to Collect Data Statistical Inference draws conclusions about

the research population from a sample Population is entire group of people that the

researchers are wanting to find out information – MTSU students, dog owners, children between ages of 3-4

Sample is a portion of the population

Marketing Research ApproachStep 3: Collect Relevant Info.

Data are the facts and figures related to a problem Primary data are new facts and figures just

collected for problems Secondary data are facts and figures that you

already had before working on problem


Secondary Data Secondary data has two components –

Internal and External Internal data is what’s already been collected

and is stored inside the company Product sales data, customer service logs

External data is published outside company Information from U.S. Census Bureau, Nielsen

Media Research


Secondary Data Advantages

Time saving Low cost More detail than primary data

Disadvantages Out of date Categories may not be specific to your project May not be specific enough for your project

Primary Data Also has two components

Observing people Asking people questions


Primary Data Observational data is facts and figures

obtained by watching how people behave Best Western hotels found women decide when to

stop on road trips and where to stay – target more messages to women


Primary Data Questionnaire data are facts and figures

obtained by asking people about attitudes, awareness, intentions, and behaviors

Try to focus on project at hand


Primary Data Questionnaire data

Individual Interviews (research by asking one person a question

Focus Groups (groups of 6-10 past, present, or prospective customers) Use moderator to lead discussion Usually recorded One way mirrors Get ideas and concerns because of group

discussion, not just answer to question



Unique ways to collect data Results in very basic actions/questions Identify upcoming trends Example is Teenage Research Unlimited. They

collect data from 2,000 teens twice a year. They ask what they like, wear, listen to, watch, read. Identifies lifestyles, attitudes, trends, behavior. Directly asks what the teens think are “cool” products.



Sample includes past, present, and prospective customers

Large sample size


Primary Data Questionnaire Data – Types

Personal Interviews Mall Intercept Surveys Mail Surveys Telephone Interviews Email, Fax, Internet Surveys


Primary Data


Primary Data A panel is a sample of consumers that researchers

take a series of measurements over time Asks panel participants many questions about many

various products Conducted by research firm Company can look at this and see how consumers

change over time Disadvantage – research firms must replace participants

that quit


Primary Data Experiments obtain data by manipulating factors

under tightly controlled conditions to test cause and effect Want to see if changing an independent variable

(cause) changes the dependent variable that is being studied (the result)

Independent variables usually are the marketing mix elements (Ads, coupons)

Dependant variable is usually purchase behavior


Primary Data Experiments

Test markets offer product in a limited area for a limited time to help decide effectiveness of marketing actions. Wal-Mart opened 3 stand-alone supercenters in

1988 to test market, now has over 1,000 Disadvantage is outside factors


Primary Data Advantages

More specific than secondary data Disadvantages

More expensive than secondary data More time consuming that secondary data


Data mining Taking “hidden” information from large databases Finds links that may suggest marketing actions Example is Fingerhut magazine

People that move are 3 times as likely to buy more “home” products

Created special magazine for people that recently moved


“Collecting data is like collecting garbage. You’ve got to know what you’re going to do

with the stuff before you collect it.” Mark Twain

Marketing Research ApproachStep 4: Develop Findings

Analyze data collected to see if answers research objectives set in Step #1

Present findings Clear and easily understood Concise

Marketing Research ApproachStep 4: Develop Findings

Make action recommendations based on research findings

Implement the action(s) recommended Evaluate results

Determine if the recommended action needs to continue to be effective in the long run

Determine if the market research and analysis was effective

Always look for improvement

Marketing Research ApproachStep 5: Take Marketing Actions

marketing research. the process of defining a marketing problem and opportunity, systematically...

Documents

research lead

research planstep

kind of research

advanced form of research

research planidentify

marketing problem

marketing researchif

different marketing