Marketing Research
Date: ___________________________
MARKETING RESEARCH
used to develop a marketing strategy or to solve a marketing problem.
ADVANTAGES OF MARKET RESEARCH
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Aids forecasting, planning and strategic development
Communicates image, vision, etc.
Globalisation makes market information valuable
DISADVANTAGES OF MARKET RESEARCH
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Can be inaccurate or unreliable
Results may not be what the business wants to hear!
Always a problem that we may never know enough to be sure!
TYPES OF DECISIONS
Intuitive Decision:
Hard Data:
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Marketing Research
Date: ___________________________
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PRIMARY DATA
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Primary data is the unanalyzed, current information collected by a researcher for a specific purpose.
Two types of primary data:
o Quantitative and Qualitative Information
– based on numbers – 56% of 10 year olds drink milk at least four times a
week - doesn’t tell you why, when, how
– more detail – tells you why, when and how!
FEATURES OF TEST MARKETS
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Different elements of the marketing mix are
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For example: The location selected must be similar to the profile of a typical city in target market.
Location of the test market is preferred to kept secret.
How successful will the Deli sandwiches be? (McDonald’s example)
Sites that mirror the
TYPES OF SURVEYS
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Face to Face
Phone
Mail
Internet
DESIGINING SURVEYS
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Close ended question
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Advantage: Consumers can answer these questions
. Hence, the easier it is to complete the more likely
a respondent is to finish it accurately.
o Other things to consider: If the questions are too challenging or too private, the respondent may
feel uncomfortable or make up an answer.
o Con - Respondent may feel limited as to how they should answer the question.
o Even simple questions can give different results.
o Example: Do you like Coca-Cola? Yes / No
Open ended questions
o Advantages:
o Con: They are very difficult to
o Example: What do you look for in a cell phone?
Marketing Research
Date: ___________________________
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Random Sampling
o Must ensure that the sample is random if not conclusions will be incorrect.
o Definition: Giving every member of a the target-market population the same chance of being
selected as any other member.
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See example … http://mcdonalds-survey.ca/
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OBSERVATIONS
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What is one advantage that observations have over surveys?
o Advantages over survey:
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What is one disadvantage of using observations over surveys?
o Con:
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Whose watching you?
o Individuals
o Bar-code scanners
o Eye-tracking photography
FOCUS GROUP/INTERVIEWS
INTERNAL
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Sales Records
Inventory Records
Advertising and Promotional Records
Production Records
This is good starting Companies can develop databases that provide both personal data and purchasing
records. This information can be used to target customers with sales promotions and advertisings.
DATA MINING
Businesses use this type of research to determine the relationship between personal information and purchasing
behaviour.
Marketing Research
Date: ___________________________
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Data mining example:
Data can tell how many customers on a business’s database have purchased greater than $50 worth of products in
 the last 3 months
 are female
 are between the ages of 30-35
 type of occupation
PROFILING JOHN
 DEMOGRAPHICS
 Age: 51
 Gender: male
 Income: $75,000 per year
 Family life cycle: married with three children
 Ethnicity and culture: Nova Scotian by birth, now lives in northern Ontario
 PSYCHOGRAPHICS
 John runs his own web design studio, plays the cello, and coaches his two daughters soccer team. He is an
active member of his community association, an avid gardener, and he and his wife spend their spare time
renovating their home.
SECONDARY RESEARCH
SECONDARY DATA
Definition:
SOURCES OF SECONDARY DATA
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Books
Periodicals (magazines, newspapers, journals, reports)
Indexes (articles over period of time)
Databases (provide lists of information organized by category, very specific or very broad)
o Example:
Internet
Consultants
Marketing research professionals
WHY USE SECONDARY DATA?
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To develop marketing strategy
Assist in decision making and problem solving
Gather data concerning changes in segments over time
Marketing Research
PRIMARY
Date: ___________________________
SECONDARY
HOW DO COMPANIES COLLECT INFORMATION ON YOU?
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Mail in rebates
Coupons
Internet
Magazine Subscriptions
Credit Cards
Loyalty Programs
(Optimum Card, HBC Card, Air Miles Card)
What kind of information is being gathered on these loyalty cards?
SAMPLING METHODS
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Random Samples
o Random sample of population – equal chance of anyone being selected
o May select those not in the target group – indiscriminate
o Sample sizes may need to be large
to be representative
o Can be very expensive
o EXAMPLE:
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Segment Random Sampling
o Samples on the basis of a representative segment
o Still random but more focussed
o May give more relevant information
o May be more cost effective
o EXAMPLE:
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Marketing Research
Date: ___________________________
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Quota Sampling
o Specific number on each segment are interviewed, etc (not randomly selected).
o May not be fully representative
o Cheaper method
o EXAMPLE:
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Cluster Sampling
o Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the
whole population
o EXAMPLE:
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Multi-Stage Sampling
o Sample selected from multi-stage sub-groups
o EXAMPLE:
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Snowball Sampling
o Samples developed from contacts of existing customers – ‘word of mouth’ type approach!
o EXAMPLE:
QUESTIONS
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Pg. 143 (1b, 3ab)
Pg. 152 (1)
Pg. 161 (9) – not doing the last part …