Market Research
• The systematic and objective process
of generating information for aid in making marketing decisions
• “the function which links
the consumer, customer, and public to the marketer through
information--information used to identify and define marketing opportunities
and problems; generate, refine and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process.”
• American Marketing Association
Marketing Environment
• MR
is concerned with examining the whole marketing environment
• Micro
environment
• Close
to the org
•
Customers, suppliers competitors, internal
processes
• Macro
environment
• Factors
external and distant to organisation: influences organisations through changes
in the micro env.
•
Politics, recession, economics, law, natural
disaster
•
Changes in macro environment influence all companies
(in one market) in a similar fashion, but the extent of influence is mediated
by the specific micro environments.
• MR
should also tell us about the customer
• What,
how much, how often, why does the consumer buy?
• Ultimately,
this is where marketing and consumer research interact.
• Consumer
research can be seen as subset of marketing research (though is also conducted
by non-marketers)
• Whilst
marketing research surveys the whole market environment (forecasts, competitors
etc.)
• Consumer
research is more specifically focused on individual and group consumption
Approaches
• Traditional
/ Rational approach (Quant.)
• Rational
consumers. Weigh all options and make rational decisions
• Consumer
behaviour can be empirically measured and thus predicted and influenced
Interpretivist (Qual.)
• Consumer
decisions are subjective, individualised, not necessarily rational.
• Cannot
be objectively and empirically measured. Cause and effect cannot be established.
Thus, focus on understanding, cannot predict or influence behaviour en masse.
• Modern,
dialectical approach (Mixed Method)
• Considers
consumers holistically and views consumer behaviour as very dynamic
•
Culture and environment (e.g. materialistic shifts)
•
Family
•
Peer groups
•
Demographics
•
Cognitive processes
•
Cognitive, affective, environmental
Using Market Research
• We can use Marketing Research to:
• Identify & Evaluate
Opportunities
• Analyze Market Segments
• Select Target Markets
• Plan & Implement Marketing Mixes
• Analyze Marketing Performance
• Performance Monitoring Research
• Identifying and Evaluating
Opportunities
• Mattel Toys investigates desires for
play experiences
• Home cooking is on the decline.
Purchase of precooked home replacement
meals is on the rise.
Market composition and segments
• MTV, monitoring demographic trends,
learns the Hispanic audience is growing rapidly
• Sears learns women, age 25-54 with
average household income of $38,000, are core customers. Targets this market
with "The Good Life at a Great Price. Guaranteed. Sears."
• Planning and Implementing the Market
Mix:
• Price: Supermarkets constantly
monitor prices
•
See
adverts for claims of: 10% cheaper, cheaper avg. basket, cheaper on brands etc.
• Distribution: Caterpillar Tractor
Co. investigates dealer service program.
• Promotion: How many consumers recall the “We buy any car” ;
“Go Compare” ; “Meerkats” ; “Holidays are coming”?
Evaluation of Marketing Performance
• Market
research should be continuous
• Environments
are dynamic, so strategy and 4Ps must change accordingly
• Evaluative research regularly
provides feedback for monitoring and control
• Indicates things are or are not
going as planned
• Research may be required to explain
why something “went wrong”
• This year’s market share is compared
to last year’s?
• Did brand image change after new advertising?
The Research Process
• Marketing research is the marketer’s
link to understanding the consumer and the external environment
• The SOLE purpose of marketing
research is to inform managerial decisions
• Every research project is
different...
Research Process
• Define the Problem
• Develop an Approach to the Problem
• Type of Study? Exploratory,
Descriptive, Causal?
• Mgmt & Research Questions,
Hypotheses
• Formulate a Research Design
• Methodology
• Questionnaire Design
• Data Collection
• Prepare & Analyze the Data
• Prepare & Present the Report
Step 1: Problem Formulation
• A well-defined study begins with a
clearly defined objective
“The
formulation of a problem is often more essential than its solution” - Albert Einstein
• The problem is rarely clear-cut
• Slight variations in research
questions can lead to substantial changes in the research process (so be
careful)
• Drives decisions related to research
design, measurement, sampling, analysis, etc.
Typical questions
•
What is the purpose of the study (i.e., to solve a
problem? Identify an opportunity?)
•
Is additional
background information necessary?
•
What are
specific research questions and what information is needed to make the
decision?
•
How will the
information be utilized?
•
Has a
decision already been made?
•
Should research
be conducted?
Step 2: Determine Research Design
• Dictated by the problem or research
question
• Exploratory Research
• “Discovery”
• Descriptive Research
• “Relationships”
• Causal Research
• Experiments
•
Typical
questions
•
How much is already known?
•
Can a hypothesis
be formulated?
•
What types of
questions need to be answered?
•
What type of
study will best address the research questions?
Step 3: Design Data Collection & Forms
• Secondary research – not necessary
• Survey Research
• Lots of ways to collect data
• Measurement
• Constructs / Variables
•
Typical
questions
•
Can existing data be used to advantage?
•
What is to be measured? How?
•
What is the source of the data?
•
Can objective answers be obtained by asking
people?
•
How should people be questioned?
•
Should the questionnaires be administered in person,
over the phone, or through the mail?
•
Should electronic or mechanical means be used to
make the observations?
•
Should structure or unstructured items be used to
collect the data?
•
Should the purpose of the study be made known to the
respondents?
•
Should rating scales be used in the questionnaire?
Step 4: Design Sample and Collect Data
• Determine your “target market”
• Determine necessary sample size
• Sampling Methodology
• Logistics
• Cost
• Ethics
•
Typical
questions
•
Who is the target population?
•
Is a list of
population elements available?
•
Is a sample
necessary?
•
Is a
probability sample desirable?
•
How large
should the sample be?
•
How should
the sample be selected?
•
Who will
gather the data?
•
How much
supervision is needed?
•
What
operational procedures will be followed?
•
What methods
will be used to ensure the quality of the data collected?
Step 5: Analyze and Interpret the Data
• Edit / clean / code the data
• Analyze
• Interpret
•
Typical
questions
•
Who will handle the editing of the data?
•
How will the
data be coded?
•
Who will
supervise the coding and keypunching?
•
What
tabulations / statistical tests / analysis techniques will be used?
Step 6: Write Up Research
• Know your audience
• Sell your findings
•
Typical
questions
•
Who will read the report?
•
What is their
technical level of sophistication?
•
Are
managerial recommendations called for?
•
What will be
the format of the written report?
•
Is an oral
report necessary?
•
How should
the oral report be structured?
What are the advantages and disadvantages of market research?
• Advantages
of Market Research
• Helps
focus attention on objectives
• Aids
forecasting, planning and strategic development
• May
help to reduce risk of new product development
• Communicates
image, vision, etc.
• Globalisation
makes market information valuable (HSBC adverts!!)
• Disadvantages
of Market Research
• Information
only as good as the methodology used
• Can
be inaccurate or unreliable
• Results
may not be what the business wants to hear!
• May
stifle initiative and ‘gut feeling’
• Always
a problem that we may never know enough to be sure!
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