seafood marketing research design

Marketing Research Design

RESEARCH APPLICATIONS IN SEAFOOD MARKETING Zaragoza (Spain), 10-14 December 2012

Philippos Papageorgiou

Fisheries & Aquaculture Consultant


Why use Marketing Research ?



I. Purpose, aims and objectives

II. The research planning process

III. Budgeting for research




Lecture Structure


MARKETING

Marketing Audit

(Analysis of current status and identification of opportunities)

Market Analysis

Market Segmentation

Marketing Strategy

Marketing Research

(Collection & Analysis of Market intelligence)

Qualitative information

Quantitative information

Marketing Mix

(Customer Persuation)

Product

Place

Promotion

Price

Marketing Oriented Organisation

What is Marketing ?



… the function that links the consumer, customer, and public to the marketer through information which is used to identify and define marketing opportunities and problems.


What is Marketing Research ?



It requires SYSTEMATIC 1) collecting data 2) analysis data

to aid in the marketing decision process

Market Research Marketing Research

The collections and

analysis of intelligence

about a market’s size and

trends

A more systematic collection

and analysis of intelligence on

a wider range of activites, for

the better intoduction of

products and services to the

the customer


Market VS Marketing Research ?




• locate, predict & respond to existing & potential customer needs & wants

Identify market opportunities

• Identify strengths & weaknesses, predict & react to competitor’s actions

Understand the competition

• Identify market dynamics through a more focused market segmentation process

Analyze market trends

• Asses business decisions taken & effectiveness of promotional tools used

Benchmark effectiveness

• Attract, maintain, and enhance relationships with key people ( ie: Relationship marketing)

Leverage stakeholder relationships





• Assist the Organisation achieve its objectives

Ultimate

Goal




1) Private Enterprise seafood producer and/or trader

Reduce Risk- exploit opportunities Focus efforts -Satisfy customers

Maximise Returns

2) Non Profit Organisation Producer’s Association,

Sustainability NGO, Academic / research institutions

Focus efforts Maximise Public Awareness –

lobbying power Improve status /ranking –

attract researchers and funds

3) Governmental Organisation Ministry / General Secretariat /

Advisory Committee / Export Council etc

Focus efforts Balance trade deficits, improve

health of population, create and sustain jobs etc

Types of Organisation’s Objectives




Production

Market

Consumption


The Industry




Market Competition

Within national markets of seafood products, as imported VS nationally produced goods

Within the seafood market, as farmed VS captured

(fresh/chilled (whole) VS processed, value-added etc)

Within the global food market, as ‘seafood’ supply VS ‘other food protein’ supply

VS

alternative food offerings

The Competition



It’s important not to confuse ‘customers’ with ‘consumers’. They are both important but with

distinctly different:

Needs

Wants

Perceptions

Roles


The Customers



– Consumer

– Household purchaser

– Wholesalers – Retailers

– HoReCa industry

– Processing industry


The Customers



Decision Making

Ad hoc basis, intuitive,

subjective

Process based, Systematic ,

Objective

INFORMATION



Educated



Decision Making

PROBLEM





OPPORTUNITY

t-1 to t+1

INFORMATION

1. Ability and willingness to act on the Information

2. Accuracy of Information

3. Level of uncertainty that exists without the Information

4. Variation in the possible results

5. Level of risk aversion

6. Competitors ability to react on decisions taken based on

Information

7. Cost (Time & Money)

The value of ‘’Information’’




Internal

Facts

Internal

Opinions

External

Facts

External

Opinions




Building blocks of business / market info

Internal Intelligence ( easily accessible / collectible)

Accurate – unbiased -

Complete

Inaccurate – biased -

incomplete

Decide course of action

External Intelligence




Building blocks of business / market info

5 Key factors to consider prior to initiate the Marketing Research process?

1. Relevance

2. Type and Nature of Information sought

3. Timing

4. Availability of resources

5. Cost – Benefit Analysis





I. Purpose, aims and objectives

II. The research planning process

III. Budgeting for research




Lecture Structure

The 3 parties of Marketing Research

Marketing Research process

The Client

(interested

party)

The Respondent

The Supplier

(designer – executioner)




The 8 Steps of the Marketing Research Process

I • Define the problem

II • Identify sources of intelligence and types of info

III • Develop the optimum research approach & methodology

IV • Design the Questionnaire

V

• Determine sample plan and sample size

VI • Conduct the research and collect the data

VII • Analyze and interpret data

VIII • Draw conclusions / make recommendations




I • Define the problem

Clarify the Objective / Purpose : ie, translate the decision problem into a marketing research problem

Collect and analyse background inform

Outline possible scenarios of rersearch results

Refine the research problem





Internal Primary Data

Internal Secondary

Data

External Primary Data

External Secondary

Data

Marketing Research

intelligence






Organisation’s focus groups / questionnaires etc Customer reviews / complaints/suggestions

Customer records (sales /period)

Sales/price relationships Sales of pr. A vs pr. B

Field research

Demographics

/ socioeconomics, Published Surveys & Reports

Industry news Other

Marketing Research

intelligence







Primary data

• Problem focused

• Unbiased

• Up-to-date

• Proprietary

• Costly

• Non readily available

Secondary data

• Readily available / accessible

• Free of charge or Relativelly Inexpenisve

• General Info

• Public

• Biased

• Non up-to-date

• Non compatible/ comparable

• Non problem/issue specific






Secondary Data sources in the seafood industry



III • Develop the optimum research approach &

methodology

3 types of marketing research:

Exploratory

Descriptive

Causal

Formulates the problem more precisely Clarifies concepts Gathers explanations Eliminates imparctical ideas Forms hypotheses

• More flexible • Qualitative info, why • Small sample size

Describes the users of a product Determines the volume of the users Forecasts demand trends (LONGITUDINAL VS CROSS SECTONAL)

• More rigid • Clearly defined who,

what, where, when, how.

• Quantitative info • Larger sample size

Explores cause-effect relationships between variables Test hypotheses

• Quite complex • Field research





Quantitative data Qualitative data






• Test hypotheses

• confirm findings of qualitative

results at representative samples

(already marketed products- in large markets - B2C)

• explore potential customers’ unmet

needs,

• understand motivations behind

purchase or usage behavior,

• formulate hypothesis about product

features and benefits

(initial phases of product development -in small markets -

B2B)


Closed-end questions Number

How many..? How often …? How much…?

YES/NO Do you …? Would you..?

Ranking How do you rate (1-5) ?

Open-end questions Descriptive

Why do you prefer…? Which ingredients would you prefer ….?







Closed-end questions Number

How many..? How often …? How much…?

YES/NO Do you …? Would you..?

Ranking How do you rate (1-5) ?

Open-end questions Descriptive

Why do you prefer…? Which ingredients would you prefer ….?

Easier to analyse,

Identify patterns,

forecast trends

BUT

Not in-depth

explanations

Harder to

analyse

BUT

richer

information






Quantitative & Qualitative


Seafood: from sea to plate



Questionnaire format


1- Objective / Purpose defined

2- Data required defined

Type of data

Type of research question

Research Tool

Most Common Telephone interviews

Written questionnaires (often online)

Face to face interviews

Other Product testing

Consumer panels Focus groups






Surveys

Personal interview (intercepts)

Mail In-house,

self-administered

Telephone, fax, e-mail, Web

Focus groups






Experimental

e.g. test marketing

Observational

Human & Mechanical

Individual depth interviews

Human observation


Key aspects

Wording

Easy to understand

Direct and unambiguous

(Who, What, When, Where, Why, How)

Sequence

Simple / non-threatening more complex / personal

Format

Readable fonds

No flip-over questions

Pre-test & refine





V • Determine sample plan and sample size

Goal: High reliability at low cost

1. Filter total population

2. Focus on segments (and subsegments) of interest






4. Decide on sampling mechanisms

Probability Sampling Simple random Sampling Cluster Sampling Stratified Sampling, Systematic Sampling Other

Non-Probability Sampling Judgmental Sampling Snowball Sampling Quota Sampling

Research Tools

Telephone interviews

Online questionnaires

Focus groups

Other…





3. Create sampling frame (population list of target segment)






5. Decide on sample size

VI • Conduct the research and collect the data

AIM: Reduce error levels

Sampling errors

Non-Sampling errors

Respondent Non respond Intentional (lie) Unintentional (poor understanding, fatigue, distraction etc)

Interviewer/Researcher

Intentional (Bias through leading the answer)

Unintentional (poor understanding, fatigue, distraction etc)

Quality Control Techniques RESEARCH APPLICATIONS IN SEAFOOD MARKETING Zaragoza (Spain), 10-14 December 2012





Data analysis cannot rescue

a badly designed or badly executed

marketing research

Data analysis can ruin

a well designed and well executed

marketing research






• Edit

• Correct

• Ommit

Prepare

• Database • From raw data to

analysis-friendly format

Transform • Univariate

• Multivariate • Dependence

• Interdependence

Analyse






Presentation

State the research objective

Describe the methodology

(Why and How)

Present results

Explain limitations

Present conclusions &

recommendations

Simple

Logic structure

Specific

Visually friendly






Preliminary results

Preliminary Conclusions

Client / Supplier cooperation

Final results

Final Conclusions

Recommendations






The Real World



Consumers = not homogenous

Consumer groups: - geographical location (culture, traditions etc)

- age - gender - family size -education - income - other

Differentiating factors: - local favorite species

- geographical origin of imports consumption per capita market share per retail channel away-from-home consumption

Target market wider food market

Segmenting the Market




Product = set of characteristics (actual & perceived)

Each characteristic =>

one /more consumer groups

The modification of a product is often easier than the modification of the consumer needs and requirements


Segmenting the Market



• Product Modification

– Targeting of new markets and customer segments by New product development : • Frozen • Filleted • Gutted • Pre-cooked • Pre-packed • Labeled (Quality certification) • Branded


Addressing needs




The case of salmon




The case of salmon

Emphasis =>

a) Market understanding and meeting of needs

b) Marketing

• Market segmentation (studies-research)

• Identification of customer needs

• Resource allocation on R&D

• Use & exploitation of contemporary marketing tools and channels



1980’s

1990’s

2000’s


The case of seabass & seabream



0

2

4

6

8

10

12

14

16

18

0

50000

100000

150000

200000

250000

300000

Eu

ro's

/kg

metr

ic t

on

s

Production bass price bream price

AVG Cost 3,3 - 4 €/kg .

Production & Prices






Emphasis => Production

•Production volume increases

•Cost reduction (economies of scale)




Efforts for product differentiation





Decision Problem (marketing)

Marketing Research



Solution



Budgeting Marketing Research




Why is it hard to convince top management?



Unclear research objectives.

Misalignment of research objectives and business goals.

Lack of a system to track how investments in market/ing research correlate with business results.

Management’s little exposure to market/ing research and lack of experience with how to use it.

Poor execution of business and marketing strategies, despite accurate insights.

Changes in the market driven by competitors’ actions that invalidate research results



What is the value of research?



New

Product A



0 €

3 mil €

1.5 mil €

= 0 € INFORMATION

What is the value of research?



New

Product B



0 €

3 mil €

INFORMATION < 400.000 €

-1 mil €

40% x 1 mil € = 400.000 €



COST

Sample

Size

Research

Tool

Methodology Quant vs Qual



Sample size



8 major groups 100

1/2 Urban / suburban

1/4 super market / traditional fishmonger

1/8 regular / non regular seafood byuers



Available Research Budget 10.000 €

Research Design - 3.000 €

Data Editing – Stat.Analysis-Reporting - 3.000 €

Collection (fieldwork) = 4.000 € Collection costs /response =5 €

Sample size = 800


Help Client to best budget research

A) Ask Client to narrow down the scope of the research by answering:

What business problem triggered the need for the research?

How will the research impact the overall business strategies for customer acquisition and retention? What is the priority?

What decisions will be made based on the research?

What hypotheses, if any, need to be tested?

What type of information is expected to be gathered through the research?

What recommendations for action are expected?

B) Discuss with Client how certain methodological issues (sample source, sample

size, method of analysis) will determine the cost and impact the outcome

C) Involve Client in the research design (surveys, focus groups/IDI discussion guide,

secondary data source)





A) Control for research scope

From ‘nice-to-know’ to ‘need –to-know’

A well designed and executed research does not have to be expensive

B) Reduce sample size

Do not cross the point where the gains in estimate accuracy don’t justify the increased cost.

C) Use customer database

Use existing customer feedback –customer records

D) Use online data collection tools

+ inexpensive, large potential sample

– Not representative of total population

E) Hire small Research Agencies

Experience with low overhead costs





F) Pool reasearch

Use Omnibus surveys (omnistudies)

A well designed and executed research does not have to be expensive

A quantitative marketing research method where data on a wide variety of subjects is collected during the same interview. Multiple research clients will provide proprietary content for the survey (paying to 'get on the omnibus'), while sharing the common demographic data collected from each respondent.

++ cost savings (sampling and screening costs shared among clients)

++ timeliness (large samples – periodic data collection) .




A) Seek for supplier’s assistance to narrow down the scope of the research

by answering:

What issue triggered the need for the research?

How will the research impact the overall organisation’s strategy ?

What is the organisation’s priority?

What type of information is expected to be gathered through the research?

What recommendations for action are expected?

B) Discuss with supplier’s how certain methodological issues (sample source,

sample size, method of analysis) will determine the cost and impact the outcome

C) Clearly define research milestones and deliverables (Lay out of the final report, information to be presented, etc )

The case for Public Organisations / NGO’s etc




The case for Public Organisations / NGO’s etc



No marketing department – no market/ing expertise

PR department – expertise

Rigid and time consuming procurement procedures

Inflexible budget

Standardised Procurement Procedures

Terms of Reference

Tender

Offers

Contracting

Monitoring/ Steering

Research Agency

The cost of ignorance is often higher than the cost

of market/ing research








Fisheries & Aquaculture Consultant

seafood marketing research design

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