Transcript Market research

SETTING OUT TO MARKET
Dr Mairead Brady,
School of Business,
Trinity College Dublin
March 2008
What is Market Research?
Market research is the process of
systematically gathering, recording and
analyzing data and information about
customers, competitors and the market. Its
can help create a business plan, launch a new
product or service, fine tune existing products
and services, and expand into new markets.
Market research can be used to determine
which segment of the population will
purchase a product/service, based on
variables like age, gender, location, income
level and lifestyle.
Questions that need to be
answered
What is happening in the market? What are
the trends? Who are the competitors?
 How do consumers or businesses talk about
the services or products in the market?
 Which needs are important? Are the needs
being met by current products or services?
Is there a gap in the market and a market in
the gap?
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Market Research
Marketing is
becoming a battle
based more on
information than
on sales power.
Marketing decisions draw on
Marketing Research: STP
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Segmentation
Decisions
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Which segment should we
target?
What benefits are most
important to each
segment?
Which geographic area
should we enter?
What is the profile of our
target market
Age and Lifestyle:
Geographic
Gender Segmentation
Positioning Contradiction - NIKE
FASHIONABLE STYLE
contradiction
Trendy authentic
sportswear
norm
CASUAL DAY/
NIGHT WEAR
norm
contradiction
BASIC STYLE
HIGH
PERFORMANCE
FOOTWEAR
Brand Strength - Matrix 
High Head
High
Heart
Low
Heart
Low Head
Combining Marketing Research and the Marketing
Information System
The Components of a Modern
Marketing Information System
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Marketing Information System
(MIS)
10 useful questions for
determining the information
needs of marketing managers.
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What decisions do you regularly
make?
What information do you need to
make these decisions?
What information do you
regularly get?
What special studies do you
periodically request?
The Components of a Modern
Marketing Information System
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What information would you want that you
are not getting now?
What information would you want daily?
Weekly? Monthly? Yearly?
What magazines and trade reports would
you like to see on a regular basis?
What topics would you like to be kept
informed of?
What data analysis programs would you
want?
What are the four most helpful
improvements that could be made in the
present marketing information system?
Forecasting and Market Demand
Measurement
Ninety Types of
Demand
Measurement
(6X5X3)
Forecasting and Demand
Measurement
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Which Market to Measure?
 Market
 Potential market
 Available market
 Target market (severed
market)
 Penetrated market
A Vocabulary for Demand
Measurement
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Market Demand
 Market share
 Market penetration index
 Share penetration index
Forecasting and
Demand Measurement
Forecasting and Demand
Measurement
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Market Forecast
Market Potential
 Product penetration
percentage
Company Demand
Company Sales
Forecast
 Sales quota
 Sales budget
Company Sales Potential
Forecasting and Demand
Measurement
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Estimating Current demand
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Total Market Potential
Area Market Potential
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Market-Buildup Method
Industry Sales and Market Shares
Estimating Future Demand
Survey of Buyers’ Intentions
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Forecasting
Purchase probability scale
Forecasting and Demand
Measurement
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Composite of Sales Force
Opinions
Expert Opinion
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Group discussion method
Pooling of individual estimates
Past-Sales Analysis
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Time-series analysis
Exponential smoothing
Statistical demand analysis
Econometric analysis
Market-Test Method
Quantitative and Qualitative
Data Collection and Analysis
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The Market
Research Process
Advances in Data
Collection
Techniques
Quantitative and
Qualitative
Techniques
Forecasting and Market
Demand Measurement
‘The art of prophecy is
very difficult
especially with
respect to the future’
(Mark Twain, 1835-1910)
The
Marketing
Research
Process
The Research Process
Scanning, Risk Assessment and Monitoring
Primary data - gathered directly from people you
are interested in
Secondary data - data published for its own
reasons which is secondary to your purpose
 Exploratory, descriptive and causal
 Validity and Reliability
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Secondary-Data Sources
Secondary-Data
Sources
A.
B.
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C.
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Internal Sources
Company profit-loss statements, balance sheets,
sales figures, sales-call reports, invoices, inventory
records, and prior research reports.
Government Publications
Statistical Abstract of the United States
County and City Data Book
Industrial Outlook
Marketing Information Guide
Periodicals and Books
Business Periodicals Index
Standard and Poor’s Industry
Qualitative versus Quantitative Research
Comparative Dimension
Qualitative Research
Quantitative Research
Types of questions
Probing
Limited probing
Sample size
Small
Large
Information per respondent
Substantial
Varies
Administration requirements
Special skills
Fewer special skills needed
Type of Analysis
Subjective
Statistical
Hardware
Tape recorders,
video, pictures
Questionnaires, computers,
printouts
Ability to replicate
Training the researcher
Low
Psychology,sociology
marketing, consumer
behavior
Exploratory
High
Statistics, decision models,
marketing research
Type of research
Descriptive or casual
Key Aspects of
Exploratory Research Techniques
Exploratory Technique
Focus Groups
Understand
Functional
Aspects of
Consumption
Individual Interviews
Understand
Symbolic
Aspects of
Consumptio
n
Observation
Accurate Description
of What People Actually
Do - Not What They
Think They Do
Qualitative Techniques – The
Customer
Observation
 Experimental Research
 Eye Cameras
 Mystery Shopping
 Diaries
Personal interviews/Focus Groups
Online/Video links
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Projective techniques
Critical Incident Analysis
Cognitive mapping
The Growing Role of
Focus Groups
To gain insight into conducting
and analyzing a focus group.
The Popularity of Focus Groups
About 25 percent of all research expenditures is spent on
focus groups.
Conducting Focus Groups
Preparing for a Focus Group
The Setting: focus group facility often in a conference
style room
Recruiting Participants: mall intercept, telephone
The Growing Role of Focus Groups
Developing a Discussion Guide
•An outline of the topics to be covered
•Three stages:
• Rapport is established
• Provoke intense discussion
• Summarize significant conclusions
Preparing a Focus Group Report
Other Qualitative Methodologies
Depth Interviews --mainly used in exploratory research
Unstructured(both questions and answers) one-on-one
interview with key respondents.
*Expensive
*No group pressure and no interaction
*more time and attention for the respondent
*respondent can be probed at length
*Needs a good interviewer
Individual Depth Interviews
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Project beliefs or feelings onto a third
party, to an inanimate object, or to a
task situation
word association
sentence completion
third-person role-playing
thematic apperception test
pictorial symbols
Common types of projective techniques
Quantitative – Contact/Survey
Methods
Addressing the questions of why people
behave the way they do
 Personal interviews and focus groups
 Telephone interviews
 Mail, email and fax surveys
 Online and Internet surveys
Marketing Research System
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Contact Methods
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Mail questionnaire
Personal interviewing
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Arranged interviews
Intercept interviews
Online methods
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Click-stream
Cookies
Automated
telephone surveys
Personal
interviews
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Flexible
Misunderstandings
noted and clarified
Costly
Interviewer bias
High response rate?
Telephone
interviews
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Low response rate
Misunderstandings
Bias
Geographical
coverage
Less expensive
Factual details
Fast and inexpensive
Online Surveys
www.surveymonkey.com
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Fast with lowner costs but ….
Demographics of target market
Novelty and ease of answering
Bias
Cyber environment - authenticity
Hits and webs tracking
Dialogue with customers, interactive
discussions and learning from customers
Virtual product testing
Syndicated Research - Market
Research Companies
An organisation that regularly provides a
standardised set of data to customers is
called a syndicated service
http://www.gallup.com
http://www.teleport.com/~tbchad/stats1.
html
Online Surveys http://www.survey.net
The Future: Neuro Marketing
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MRI Scanning
Inside the mind
The Buy Button…..
Interactive TV –
Tracking, Monitoring and Scanning
Setting out to Market
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The Voice of the Customer….speak
loudly and clearly…….
Hire a professional…..
You are basing your whole business on
this…..