The World of Marketing Research

Mark MichelsonMichelson & Associates, Inc.

Atlanta, Georgia

Introduction

Knowledge is power Accurate knowledge is power when it is organized to create

actionable plans Thoughts are things - they define our realities We are in the information age - accurate and timely

information has tremendous value Information without understanding is useless data Bad information will lead to failure

What is Marketing Research?

Marketing research involves a study of real customers and prospects. – An organized effort to gather and analyze information relevant to

marketing products/services to people. How to improve the process of meeting customer/prospect needs,

wants, desires, etc. How to improve stores, websites, products, and services.

– A process through which we gain a thorough understanding of ourselves, our competitors, our customers, and prospects.

Market research is a study of market conditions - trends, size of industry, competitive landscape.

What is Marketing Research?

Two uses for research information:– Decision Making

New product/concept development & testing Opportunity / feasibility analysis Market size / dimension

– Measuring/Monitoring Performance Customer satisfaction Competitive positioning Brand awareness

What is Marketing Research?

Two sources of information:– Secondary Research

Existing studies, census data, articles Internet, library, trade journals

– Primary Research Create your own questions Find your own answers by asking people what they think, feel,

know, etc. Common methods include:

– Focus groups, surveys

What is Marketing Research?

Two types of information:– Qualitative

“How do people feel about the color purple?” Not predictive of market behavior Qualify needs, wants, preferences Focus Groups, In-depth interviews

– Quantitative “How many people like the color purple?” Predictive if done correctly Surveys: Telephone, Mail, Intercept, Internet

The Process

Design DataCollection

DataPrep

Reporting

Objectives Secondary Data entry Key Findings

Questions Primary Data cleaning Graphs & charts

Methods Qualitative Data analysis Back-up materials

Timing Quantitative Formatting Presentation documents

Cost Observational Archive documents

Getting Started

Objectives– Determine what

information is relevant to your business

– Define what you need to know

– Understand what you will do with answers once you have them

– 4-6 objectives are normal

Study Design– Cost is important

– Time is critical

– Ease of participation

– Shorter is better

– Clarity in questions

– Easy analysis

Getting Started

Gathering Data– DIY

– Outsource

Methods– Use a mix of methods

– Start with Secondary research

– Use Primary research to fill in specific gaps

– Mix qualitative & quantitative

Which Methods Work Best?

Focus Groups– Explore how people feel about your concept and why

they feel that way.

– Show concepts, get immediate feedback

– Change questions on the fly

– 4-10 people make a group

– Recruit the right people - offer an incentive

– 1.5 to 2 hours on average

– Audio/video recording

Which Methods Work Best?

Observational Research (Ethnography)– Roots in anthropology - observe people doing

things in specific environments.– Record observations - video, paper, audio– Quantify observations to analyze– Enrich information with understanding of why

people do what they do - ask them.

Which Methods Work Best?

Surveys– Mail, telephone, intercept, internet – Establish measures of awareness, quality,

service, market share – Predict how many people will buy “x”– Statistically valid findings if...

Rules for Predictability

Sample must be chosen at random from defined population

Sample size determines confidence in data More confidence = more predictable

– n 100 = 90% ±5– n 400 = 95%±5– n >1,000 = 98% ±3

Marketing Strategy: Definition

What is it? Why is it? What is the value of it? What does it stand for? What’s in it for the customers? Why are you building the business?

Marketing Strategy: Positioning

What do people really buy? Why do they buy it? Why should they buy it from you? What is the competitive landscape? Create new categories 1st one to own a category wins

Marketing Strategy: Branding

Battle for share of mind Recognition of name/image Association with benefits/qualities Understanding of value Clarity and consistency in communications

Marketing Strategy: Selling

People like to buy - not be sold to Make it easy for people to buy from you Most people avoid risks Eliminate their fears People buy what they know - from

companies they trust– help them know your product/service and

company

Marketing Strategy: Retention

Customer satisfaction studies measure actual/real customer satisfaction.

Satisfaction = Experience / Expectation Best customers are repeat customers Proactively ask how you are doing and how

you can improve

Words of Wisdom

If you don’t ask, you’ll never know– No such thing as a stupid question

Keep it simple– Make it easy for participants

– Make sure you can analyze the data you gather

Timeliness is important - but not at the sacrifice of quality.

Qualify respondents to ensure quality information

Words of Wisdom

Test questionnaires before fielding data collection

Foresight is less expensive than hindsight “The important thing is to never stop

questioning” - Einstein

The World of Marketing Research

Mark MichelsonMichelson & Associates, Inc.

Atlanta, Georgia