Marketing Research
Marketing Research
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• the systematic collection,
analysis, and interpretation
of information to develop a
market strategy
or solve a
marketing
problem.
Marketing Research
Why?
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Marketing research firms
provide businesses with
professional researchers to
make marketing
more
successful.
Marketing Research
Two types of information
used in market research:
•primary data
•secondary data
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Gathering Secondary Data
Secondary data: information
that has already been collected
and published by others.
Secondary research: finding
this information, and then
analyzing it for a new purpose.
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Gathering Secondary Data
PROS
•
•
•
•
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information is already gathered
takes less time
less expensive
can be done with small firms
(without hiring marketing firm)
Gathering Secondary Data
CONS
• information is “second-hand”
• may not be suitable for what
you are researching
• may be difficult to “reinterpret”
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Gathering Secondary Data
SOURCES
• books, periodicals, indexes,
databases, the internet,
consultants, marketing
research professionals
• Statistics Canada
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Gathering Secondary
Data
Assignment
Gathering Secondary Data
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1. Choose a city in Canada
starting with the same letter
as your first or last name.
2. Find four pieces of information
about that city a marketer may
use to promote it.
3. Give list to teacher.
Doyle Research Associates
Please make sure to cleanse your
palette between samples!
Answer all questions as truthfully as
possible. Do not consult with those
around you.
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Thank you for your participation!
Gathering Primary Data
Primary data: information
newly collected by a researcher
for a specific purpose.
Two general types:
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Gathering Primary Data
Qualitative Research
• used to gather people’s
reactions and responses
• blind taste tests, opinion polls
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Gathering Primary Data
Quantitative Research
• data is collected by surveying a
sample of the target-market
• researchers use the results to
predict opinions of entire market
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Gathering Primary Data
Researchers collect information
using various techniques:
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• test marketing
• internal information sources
• surveys
• observation
• focus-group interviews
Gathering Primary Data
Test Marketing
• test markets are sites that
mirror the demographic
composition of total market; eg.
Peterborough, ON
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Gathering Primary Data
Test Marketing
• used for packaged goods
• used for movies: private
screenings, sneak previews
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Gathering Primary Data
Test Marketing
• done in different ways:
• product placed in store,
monitor sales
• change a factor in one store
→ are sales impacted?
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Gathering Primary Data
Test Marketing
• location is kept secret so
consumers don’t act differently.
If people know something is
being tested, they may skew
the results.
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Gathering Primary Data
Test Marketing
• expensive, and can give
inaccurate results
• competitors who know you are
conducting a test may try to
sabotage process
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Gathering Primary Data
Internal Information
Sources
This is usually where marketing
research begins.
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Gathering Primary Data
Internal Information
Sources
• inventory and sales records:
popularity of product,
fluctuations in sales ($ and #),
stock turnover
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Gathering Primary Data
Internal Information
Sources
• advertising and promotional
records: effectiveness of ads,
coupons, contests, product
sample offers
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Gathering Primary Data
Internal Information
Sources
• production records: peak
ordering periods, downtimes, to
help schedule marketing and
advertising plans
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Gathering Primary Data
Internal Information
Sources
• customer databases
• track purchasing patterns
• target specific promos to
frequent customers
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Gathering Primary Data
Internal Information
Sources
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• client cards and reward
programs require personal
information (gender, age,
income, etc.)
• card usage is tracked
Gathering Primary Data
Internal Information
Sources
• data mining looks for hidden
connections between personal
information and purchasing
behaviour
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The Market Research
Project
Big Assignment
Gathering Primary Data
Surveys
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A survey is a set of carefully
planned questions used to gather
data. These can be completed in
writing or orally, in person, on the
phone, through the mail, or on the
internet.
Gathering Primary Data
Surveys
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Most surveys use closedended questions, which ask you
to select an answer from two or
more choices.
• quick and simple to answer
• easy to sort and analyze
Gathering Primary Data
Surveys
Usually yes/no,
multiple choice, agree/
disagree, rate on a
scale types of
questions.
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Gathering Primary Data
Surveys
Sample closed-ended questions
I would buy this brand again
agree
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uncertain
disagree
Gathering Primary Data
Surveys
Sample closed-ended questions
Are you a smoker?
q yes q no
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Gathering Primary Data
Surveys
Sample closed-ended questions
Which brand names have you
purchased in the last year?
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q Dove
q Jergens
q Irish Spring q Ivory
q Lever 2000 q Other
Gathering Primary Data
Surveys
Sample closed-ended questions
Rate our service using the
following scale
poor
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Clean
Friendly staff
Value
1
1
1
excellent
2
2
2
3
3
3
4
4
4
5
5
5
Gathering Primary Data
Surveys
Sample closed-ended questions
What do you look for when you
shop for a DVD player?
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q simple remote
q plays MP3/JPG
q multi-disc
q ease of use
q brand name
q warranty
Gathering Primary Data
Surveys
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When researchers conduct
surveys they collect from a
random sample of their target
market population, giving each
member an equal chance of being
selected.
Gathering Primary Data
Surveys
If a sample does not
accurately represent the target
market, then the results may be
misleading; the sample is said to
be biased.
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Gathering Primary Data
Surveys
If the survey sample is truly
random, then the results could be
projected onto the entire market.
see figure 4.17, page 140
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Problem Survey
Questions
Gathering Primary Data
Problem Survey Questions
Have you ever been caught
surfing to inappropriate sites at
work?
Leading question
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Gathering Primary Data
Problem Survey Questions
How much time do you spend
watching TV and doing
housework?
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Two questions in one
Gathering Primary Data
Problem Survey Questions
Select your annual salary level.
q 20,000-40,000
q 60,000-80,000
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q 40,000-60,000
q 80,000-
Nonmutually exclusive
answers
Gathering Primary Data
Problem Survey Questions
When was the first time you saw a
commercial for our product?
Unanswerable question
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Gathering Primary Data
Problem Survey Questions
Why is our product better than
our competitor’s?
Leading question
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Gathering Primary Data
Problem Survey Questions
How much do you pay for
entertainment?
Ambiguous question
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Gathering Primary Data
Problem Survey Questions
How much do you pay for
entertainment weekly?
q $5 q $10 q $15 q $20
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Nonexhaustive question
Gathering Primary Data
Problem Survey Questions
How much do you pay for
entertainment and groceries
weekly?
q $5 q $10 q $15 q $20
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Two questions in one
Gathering Primary Data
Problem Survey Questions
How much do you think the
average customer spends monthly
on clothing?
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Unanswerable question
Gathering Primary Data
Problem Survey Questions
Where do you use All Around the
House cleaner most?
q bathroom q kitchen q laundry
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Nonexhaustive question
Gathering Primary Data
Problem Survey Questions
Why do you think our cereal is the
best tasting one on the market?
Leading question
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Gathering Primary Data
Observation
• collecting information by
recording people’s actions
without interacting with them to
see how they behave
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Gathering Primary Data
Observation
• Often people do not know they
are being watched. This is to
ensure they act the way they
usually do.
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Gathering Primary Data
Observation
• more accurate and less biased
than surveys
• more expensive
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Gathering Primary Data
Observation
• less effective in large groups:
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• difficult to observe many people
at one time
• people respond to the actions
of others
» results in bias
Gathering Primary Data
Observation
• done using cameras, one-way
mirrors, other methods of
mechanical observation
• bar-code scanners, eyetracking photography
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Gathering Primary Data
Focus-Group Interviews
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• A small group of people brought
together to discuss a product or
issue.
• Participants are carefully
selected to represent a specific
target market.
Gathering Primary Data
Focus-Group Interviews
• moderator guides the discussion
in an unbiased manner. Sessions
are often recorded for further
review.
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TODAY’S TASKS
1. Choose classes to visit
(see lists posted on bulletin board)
2. Compose letters to teachers
(who, what, when, ask for response)
3. Start rough survey
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(show Mr. M. for approval)
Preparing a Research
Report
(refer to handout)
Types of Marketing
Research
Consumer Research
Consumer research is used
to determine buying
behaviour.
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Consumer Research
Awareness, attitude and
usage studies (AAU)
measures consumer awareness of
product
• unaided awareness:
–list all the [whatever] you can think of
• aided awareness:
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–check off all the [whatever] you’re
familiar with
Consumer Research
Awareness, attitude and
usage studies (AAU)
total
unaided
aided
=
+
awareness awareness awareness
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Consumer Research
Awareness, attitude and
usage studies (AAU)
• attitudes about product help
identify strengths &
weaknesses
• STRENGTH: “the brand has been around for a long time”
• WEAKNESS: “the product is old-fashioned and boring”
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• helps develop ad campaign
Consumer Research
Awareness, attitude and
usage studies (AAU)
• usage patterns help develop
consumer profiles
•use data to link groups to
product use
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Consumer Research
• group potential customers
based on characteristics
• gear advertising and
promos to this group
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This is a large
component of the final
project mark!
Consumer segmentation
analysis
Consumer Research
Market dimension analysis
• researches the main issues
about the product that
influence a consumer segment
•what is it that you find so
appealing about the product?
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Consumer Research
Product research
• examines the details of the
product and their impact
•colour, package, flavour, size,
texture, design, etc.
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Consumer Research
Product research
• assess making modifications
based on consumer feedback
a) is the technology available,
and will it be worth the
increased cost?
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Consumer Research
Product research
• assess making modifications
based on consumer feedback
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b) will consumers see the
improvement as worth the
extra cost?
c) will the new feature prompt
consumers to change brands?
Consumer Research
Media research
• segment customers based on
what they read, watch, listen
to
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Consumer Research
Media research
Provides:
• marketers with the ability to
communicate with target mkts
• media outlets with audience
numbers; used to set ad prices
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Consumer Research
Consumer tracking devices
• determine consumer behaviour
while shopping
• when consumers shop
• where they shop
• what they buy
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Consumer Research
Consumer tracking devices
• uses computer-assisted devices
• data used to determine displays,
store layout, advertising,
inventory, etc.
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Consumer Research
Motivational research
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• psychological research into
consumer buying behaviour
• look at emotional and rational
reasons for buying decisions
• helps determine promotional
methods
Consumer Research
Consumer satisfaction
studies
• feedback cards, follow-up
interviews, suggestion boxes
• identify gaps between customer
satisfaction and ideal
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Consumer Research
Consumer satisfaction
studies
• results identify areas for product
development, competitive
differentiation
• ongoing
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Consumer Research
Advertising research
• provides information on
effectiveness of ads
• done in focus groups before
going public
• may modify ads as a result
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Consumer Research
Advertising research
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• often day after recall (DAR) is
tested
• promos also measured for
effectiveness: how many people
used coupons? called the 1-800
number? Filled a ballot?
Competitive Research
Competitive Research
Competitive research is used to
determine what products are
competing with your product,
and how.
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Competitive Research
Competitive Market
Analysis
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• uses a variety of tools to
compare all products in a
particular category
• identify competitors, their
strengths
is a market segment worth entering?
Competitive Research
Competitive Intelligence
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• gather as much information
about competitors as possible
• collect articles about companies,
reports, corporate profiles;
samples of ads, PR material,
promotions
Competitive Research
Pricing Research
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• investigate pricing for a product:
can you competitively price a
product and still profit?
• looks at price vs. demand
• a lower price (and lower profit)
may help grow market share,
and eventually increased profits
Competitive Research
Comparative Worth Analysis is
used:
My product’s “value”: 22
Competitor’s “value”: 20
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Since my value is 10% greater,
my price should be ~ 10% higher.
Competitive Research
Conjoint (Tradeoff)
Analysis
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• identify individual features of a
product which make up the value
equation
• identify which of these features
are most valued and should be
emphasized
HOMEWORK
Chapter 4 review questions
#1, 3, 4, 7, 8
Due Tuesday
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