Marketing Research

Where we have been thus far...

• 4 P’S of Marketing• Market Strategy

Marketing – The 4 P’s

Product Pricing Placement Promotion

What we are going to sell

How much we

will charge

How we will

advertise the

product/service

How we will get product/

Service to the

customer

Marketing Strategy – 2 Steps

• Create Target Market • Create Marketing Mix

Creating/Improving products

• What is a “New” Product• Depends on who you ask• Dominos example…“New” pizza• Apple’s “New” forthcoming tablet pc

• Many “new” products are simply improvements on existing products• Truly new products are rare• Truly new products do not have an existing

substitute• What new products have been introduced in our

lifetime?

Creating/Improving products

Remember!• Companies should not assume what

customers want and then try to convince them.

• Good companies are customer focused…they figure out what customers want and then try to provide it. • (Marketing Orientation)

Creating a New Product

• So…product creation should begin with researching what your target market desires

• MARKETING RESEARCH –finding solutions to problems through carefully designed studies involving consumers

Types of Research

Primary Research• Pros

• Targeted to company’s needs

• Cons• Time consuming• Costly

Secondary Research• Pro

• Can be cheaper• Quicker

• Cons• May not be relevant• Open to all

Types of Research Studies

Customer Survey

Focus Groups

Observations

Experiments

Customer Surveys

• Most common type of research study

• Gather information using carefully planned questions• Quantifiable is good

• Can be conducted in-person, over phone, through mail or over internet

Focus Groups

• Small number of consumers taking part in a group discussion

• Discussion topics might include customer’s • experiences with a product• reactions to new ideas• suggestions for product improvements

Observations

• Collect information by recording actions of consumers

• Common questions answered by observation• How do customers interact with packaging?• What routes do customers take through

store?

Experiments

• Two carefully controlled alternatives• Examples

• Compare sales of two products with different size, packaging, etc.

• Effect of promotions• Coupons• Customer “limits”

Steps in Marketing Research

1. Define the Marketing Problem• Are we rolling out a new product?• Trying to improve customer service?

2. Obtain the data3. Analyze information4. Propose a solution5. Apply the results

CEREAL DEVELOPMENTMarket Research – Project

Cereal Development

• Gutierrez is hoping his product development department can create a new cereal that will help propel growth in an industry that has gone soggy.

Your Mission

• In this project you will be divided into teams of 3-4 to develop a concept for a new cereal to be sold by Kellogg’s. The project will require completion of three separate activities:

I. Plan and conduct market research (surveys or focus group) II. Analyze data from your market research III. Create a cereal product that will complement Kellogg’s existing brands and be successful in the marketplace (based on your market research)

a. In creating your cereal product, you will be coming up with an original brand name and package design

Start by…

• Developing questions for your survey• Consider varying the types of questions you

ask• Open-ended • close ended - likert, numerical, ordinal,

categorical

• Include demographics in your survey• Typically, these are better at the end of the survey

• Survey a large sample for best results• 24+

Timeline

I. Thursday, January 24 – Assign Teams & Discuss Market Research Strategies II. Friday, January 25 – Design and Begin Conducting Market Research III. Monday, January 28 – Begin Product Design IV. Tuesday, January 29 - Analyze Market ResearchV. Wednesday, January 30 – Work DayVI. Thursday, January 31 – Work DayVII. Friday, February 1 – Completed Design Due at End of PeriodVIII. Monday, February 4 & Tuesday, February 5 - Presentation of Cereal Concepts