05/10/2015. Chapter 3 - Marketing Research. Marketing Project Plan
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1 Chapter 3 - Marketing Research Copyright 2013 Pearson Canada Inc. Marketing Project Plan How do we begin the project? Identify product What do we need? We need to gather information We also need to do some research Marketing Research: Role and Scope 1 st. Information is collected about customers, competitors, and conditions in the market. 2 nd. The information is housed in a database where it can be reviewed and managed on an ongoing basis. The objective is to use the information in a manner that maximizes value for the customer. Market Research is a valuable tool that helps reduce and eliminate the uncertainty and risk associated with making business decisions. Copyright 2013 Pearson Canada Inc
2 Purpose of market research should be clearly defined prior to beginning research May use market research to answer the following types of questions: Who are potential customers? Demographic characteristics, etc. What products appeal to these customers? Product characteristics, niche opportunities When are customers purchasing products? Seasonal appeal, day of week or time of day Where do customers purchase similar products? Farmers markets, CSAs, retail Which promotional outlets should be used to reach these customers? Radio advertising, newspaper, bulk mail, etc. Marketing Research A function that links the consumer, customer, and public to the marketer through information information used to; define market opportunities and problems; generate, refine and evaluate marketing actions monitor marketing performance improve understanding of marketing as a process Information is used to develop an effective marketing strategy Copyright 2013 Pearson Canada Inc
3 Research Purposes Products Advertising Prices Packages Names and Logos Services Buying habits Colours Uses Awareness Familiarity New concepts Traffic patterns Wants Needs Politics Collection of Information covers three main areas Market Analysis-information about the marketplace Product Research-info about how people perceive product attributes Consumer Analysis- info about the needs and motivations of consumers Reliability Similar results being achieved if another study were undertaken under similar circumstances Validity A research procedure s ability to actually measure what it is intended to measure 3
4 Database Management Systems Continuous and orderly collection and exchange of information. Consumers Trends in the marketplace Brand market share Business- business customer sales Marketing Research Process Secondary Research Copyright 2013 Pearson Canada Inc Marketing Research Process Problem Awareness/Definition Secondary Primary Research Analysis / Interpretation Recommendations / Action 4
5 Problem Awareness The problem must be precisely defined. How do you define a problem? Develop a clearly worded statement that provides direction for further research on the topic to be investigated. Is there an underlying cause for the difficulty? Secondary data/exploratory research helps to define the problem. Copyright 2013 Pearson Canada Inc Two Types of Research Secondary Reviewing data that was collected by someone else for a different purpose but is helpful in answering our questions. Think - journal articles, annual reports, trade magazines, government surveys (StatsCan) Primary Collecting data which specifically answers the question we have directly from the source or person concerned. Think Surveys, census, questionaires Secondary data is data that has been previously collected by another researcher Can be used for market research, but because it has been collected for another purpose, its applicability may be limited However, secondary data offers savings in both time and cost Primary data is collected by the researcher with a specific goal in mind May be collected through surveys, focus groups, in-depth interviews, or through experiments 5
6 Secondary Data Collection Secondary data is data compiled and published for purposes unrelated to the specific problem under investigation, yet may have some impact on resolving the problem. Think Directional 1. Internal Data Sources Sales records, customer credit cards 2. External Data Sources Journals, Government offices, trade organizations Copyright 2013 Pearson Canada Inc Secondary Data: Pros and Cons Copyright 2013 Pearson Canada Inc Marketing Research Process Secondary Research Copyright 2013 Pearson Canada Inc
7 Secondary Research Secondary data is data compiled and published for purposes unrelated to the specific problem under investigation, yet may have some impact on resolving the problem. Copyright 2013 Pearson Canada Inc Two Secondary Types of Research 1. Internal Data Sources Sales records, customer credit cards, Marketing Intelligence, previous Research, Databases 2. External Data Sources Journals, Government surveys (Stats Canada), trade organizations, annual reports Marketing Decision Support Systems Database Marketing The creation of a large computerized file of customers and potential customers profiles and purchase patterns. The key tool for successful one-to-one marketing. 7
8 Two Secondary Types of Research Advantages Disadvantages Available at low or no Cost Inability to resolve specific problem Readily Available Reliability and accuracy questioned Only Source sometimes Data outdated in changing market Useful for exploratory Research Sources of Secondary Data Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media Primary Research Primary research involves data collected and recorded for the first time to resolve a specific marketing problem. In directing the marketing research, the marketer must: 1. Identify the precise nature of the problem. 2. Establish the objectives of the study and the hypotheses associated with it. Copyright 2013 Pearson Canada Inc
9 Primary Research Steps Copyright 2013 Pearson Canada Inc Qualitative vs. Quantitative Data Qualitative (Exploratory) small samples analysis and interpretation rely on feelings and instinct Unstructured Helps better define problem, make decision on low-risk project Information is Tentative Quantitative large samples analysis and interpretation rely on numbers and percentages Structured what, when, who, how many, and how often. Information is actionable 9
10 Data Collection Methods (Qualitative) Focus Groups Interviews Informal Discussion Group, 6 10 people. Personal Interviews. Copyright 2013 Pearson Canada Inc Data Collection Methods (Typically Quantitative) Survey Observation Experiment Structured questionnaires with fixed response answers. Phone, Mail, online. Observing behaviour by personal or electronic means. Manipulating variables under controlled conditions to observe respondents reactions. Copyright 2013 Pearson Canada Inc Data Analysis & Interpretation Data Analysis An evaluation of each question to record observations. Interpretation An assessment of accumulated data in relation to the problem, objectives, and hypotheses of the study. Copyright 2013 Pearson Canada Inc
11 Surveys are probably the most popular method for collecting primary data Variety of methods including: Mail survey Telephone survey Face-to-face interviews (in-person survey) Internet survey Dot survey Observation Informal interview See page 64 in text Choice of survey method will depend on factors such as: Number of responses surveyor wants Time frame in which data must be collected Characteristics of the population to be surveyed Budget Note that regardless of survey type, all survey data is hypothetical Respondents may say they value a certain product characteristic or are willing to pay more for certain attributes but their real-world behavior may not reflect what they say! Recommendations and Implementation Based on the analysis and interpretation of data, certain courses of action are recommended. Changing technology and faster turnaround times help streamline market research. Copyright 2013 Pearson Canada Inc
12 Experience Marketing Name Participation Mark 1% Situation You are the advertising manager for Honda Canada and are in need of a new advertising strategy (new message) for the Honda Civic. Objective: You need to attract a younger customer to the vehicle. The target market is years old, male and female. You do not know how to present the Civic to potential customers and would like to find out more about the attitudes, preferences, and behaviours of this age group. What information do you need to acquire? What marketing research procedures and techniques would you employ to secure the information? Honda Target Market Profile Visual Model Copyright 2013 Pearson Canada Inc
13 Venture Communications 4Wsw4 13
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