University of Plymouth’s
Entrepreneurship
Programme
• Introduction to Market Research
Bob Baggott
1
• What are your expectations for this
session?
• How many of you are or are looking to
set up in business or become self
employed?
• What is your motivation for doing
this?
2
Purpose of the
Organisation/Business?
• To create Value for all its stakeholders
•
•
•
•
•
Customers
Employees
Shareholders
Suppliers and Agents
Community
3
AIMS OF MARKETING
• satisfying customers
• identifying/maximising marketing opportunities
• targeting the ‘right’ customers
• staying ahead in dynamic environments
• endeavouring to beat or pre-empt competitors
• utilising resources/assets effectively
• increasing market share
• enhancing profitability
4
Exchange Between Buyer & Seller
Something of value:
Money, credit, donations, labour,
goods
Buyer
Seller
(Customer)
(Provider)
Something of value:
Goods, services, ideas
5
Ways of creating Value
• Core competencies. What you do better than your
competitors
• Corporate or Brand image. What values your
products represent
• Customer service. How well you retain your
customers
• Corporate Culture What values you
promote internally
6
Marketing Strategies:
• are developed to achieve increased sales.
• involve selecting and analysing a target market and
creating and maintaining an appropriate marketing
mix to satisfy them.
• set out a marketing plan for the best use of the
organisation’s resources and tactics to meet its
objectives and achieve a competitive position.
• deal with 3 broad sets of variables 1) marketing mix,
2) target market strategy, 3) marketing environment.
7
Integrated
Marketing
Integrated
marketing mix
•
Marketing
Strategy
Major decisions
Long-term
customer value
Core Competencies
Marketing capabilities
Resources / budgets
Physical needs
Marketing
Planning
Process
CONSITENCY
Defining Business
Market analysis
Opportunities/Threats
Environmental analysis
SYNERGY
MARKETING STRATEGY
8
Ref: ‘The Basics of Strategy’ Adapted from Beamish & Ashford (2005) p.11
Marketing Planning
• links strategic decision-making to the development of
marketing programmes
• is a systematic process of analysing the market place
to assess marketing opportunities
• determines marketing objectives and develops a
thorough marketing plan for implementation & control
9
THE PLANNING PROCESS
1. Analysis
macro, micro and internal environmental analysis
2. Planning
setting objectives of where the business wants to be and
developing strategies for how to achieve them
3. Implementation
selection and implementation of the best strategy
4. Evaluation and Control
feed back and control mechanisms to ensure objectives are
measured and achieved
10
THE MARKETING PLANNING
PROCESS
•
Gather data to research the market situation
•
Analyse the current situation
•
Determine marketing objectives and direction
•
Establish segmentation, targeting & positioning
•
Develop marketing strategies and plans
•
Implement marketing tactics
•
Control - monitor, evaluate and revise
11
A MARKETING PLAN
• offers a ‘road map’ for implementing a company’s strategies and
achieving its objectives
• assists in management control and monitoring of implementation
• informs new participants in the plan of their role & function
• specifies how resources are to be allocated
• assigns responsibilities, tasks and timings
• raises awareness of problems, opportunities and threats
• assists in ensuring an organisation is customer focused, aware of
market conditions, and realistic in expectations
12
Why conduct research?
Research plays a key role in:
• Reducing risk in organisational decision making
• Formulating and revising Strategy
• Identifying and defining business opportunities
and problems
• Generating, refining and evaluating business
actions
• Monitoring business and marketing performance
13
Definitions Market Research
• The means used by those who provide goods and
services to keep themselves in touch with the
needs and wants of those who buy and use those
goods and services (Market Research Society)
• The systematic gathering, recording and analysing
of data about problems relating to the marketing
of goods and services (American Marketing
Association)
14
“... the function which links the consumer, customer &
public to to the marketer through information
information used to identify & define marketing
opportunities and problems; generate, refine, & evaluate
marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.
15
Marketing research
Specifies
• the information required to address those issues
• designs the method for collecting information
• manages and implements the data collection
process;
• analyses the results;
• and communicates the findings and their
implications.”
Ref: AMA definition as quoted by McDaniel & Gates
(1996)
16
Types of Market Research
•
•
•
•
•
•
•
•
Market research
Behavioural research
Competitor research
Product research
Pricing research
Promotional research
Distribution research
Economic and social research
17
Discussion
•
What information might your organisation need to conduct
its day to day business?
•
What sources of Information are available to you?
18
THE MARKETING RESEARCH
PROCESS
Problem Definition
Developing hypotheses
Data Collection
Analyse and interpret the information
Report research findings
Evaluate research
Feedback
19
TYPES OF RESEARCH APPROACH
1. Exploratory Research
generally undertaken to collect preliminary
data to help clarify or identify a problem
2. Descriptive Research
undertaken too provide better
understanding of a particular issue or
problem
3. Causal or Predictive Research
tests cause-and-effect relationships to
predict outcomes of possible actions
20
TYPES OF RESEARCH DATA
1. Qualitative Research
the collection of data open to
interpretation e.g. attitudes, opinions,
where there is no intention of establishing
statistical validity
2. Quantitative Research
aimed at producing data that can be
statistically analysed and whose results can
be expressed numerically e.g. sales data
21
DATA COLLECTION
• Secondary Research (Desk Research)
Data and information that already exists,
having been compiled either inside or outside
of the organisation for some other purpose
than the current investigation
• usually done before primary research
• saves time and money
• not always relevant and often available to
all
• e.g. accounting records, census reports
22
DATA COLLECTION
• Primary Research (Field Research)
Data and information that does not already
exist in any form, and is undertaken or
commissioned by an organisation for a
specific purpose.
• specific to the research question
• unavailable to competitors
• expensive and time consuming
23
PRIMARY DATA
COLLECTION METHODS
• Interviews and Surveys
Involve the collection of data directly from
individuals.
•
•
•
•
Personal interviews
Group interview or focus group
Telephone interviews
Mail questionnaires
24
PRIMARY DATA
COLLECTION METHODS
• Observations
The observation by trained observed of
particular individuals or groups to
understand some aspect of behaviour.
• Observing new product trials
• Mystery shopper
• Watching in-store shopping behaviour
25
PRIMARY DATA
COLLECTION METHODS
• Experiments
Conducting an experiment either in an
artificial (e.g. laboratory) or real-life
environment in order to manipulate
independent variables and monitor the
effect on the dependent variable.
• Marketing mix changes
• Side-by-side experiments
• Can be unrealistic in laboratory settings
26
A MARKETING INFORMATION SYSTEM
External Sources
Published MR
Government Stats
Media
Trade Associations
Internal Sources
Sales records
Customer records
Marketing Comms
Commissioned MR
Sales force info
Marketing
Decision
Maker
Marketing
Information
Database
Decision
Support
System
27
Ref: Brassington & Pettitt (2005), p.142
Customer and Competitor analysis
•
•
•
•
Who are they ?
Where are they ?
What do they need (customers) ?
What is our value proposition to them
(customers) ?
• What do our competitors offer ?
• What is our competitive advantage ?
28
Purpose of the Organisation?
• To create Value for all its stakeholders
•
•
•
•
•
Customers
Employees
Shareholders
Suppliers and Agents
Community
29
Ways of creating Value
• Core competencies. What you do better than your
competitors
• Corporate or Brand image. What values your
products represent
• Customer service. How well you retain your
customers
• Corporate Culture What values you
promote internally
30
Porter’s 3 Competitive strategies
Organisations need to select one of these
and pursue it consistently.
• Cost leadership
• Focus strategy
• Differentiation strategy
31
32
The Ladder of Growth
Acquisitions
and alliances
International
growth
New
distribution
channels
Enter New
markets
Develop new
products and
services
Win new
customers
Increase
customer
retention
Grow share
of customer
spend
33
34