approaches to marketing market research

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Transcript approaches to marketing market research

Module 3
Market Analysis
FRE 302 Fall 2016
Lecture 4
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Content

Market Plan
 What in it and what are the reasons we do this part of the plan?

Business Start-Up:
 Six Approaches to Marketing Management in the agribusiness
system
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Market Research:
 Steps
 Primary versus Secondary : Overview and Trade-Offs
 How do you decide?
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Custom Textbook
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Factsheets
Market Analysis p117
Readings p. 125
Market Research: Primary vs Secondary p. 29
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Market Plan
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What is included in the marketing plan?
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Product Service Overview
Industry Description & Analysis
Competitive Analysis
Target Customer and /or Segment
Market Strategy 4 Ps
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Varies in depth/breadth/content with the product or service
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Product/Service Description:
 Product/service features and benefits
 unique selling proposition
 Why buy idea
Industry Description & Analysis
 Snapshot of industry
 Attractiveness: stage, profit, size and growth potential.
Competitive Analysis
 Competitors in the industry
 Sustainable competitive advantage relative to competitors
(unique selling proposition)
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Mar
keti
ng
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Target Customer and /or Segment
 Customer with greatest potential to purchase the product or
service.
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Market Strategy 4 Ps (Marketing Mix)
 product, price, promotion, and place
 Details the coordinated approach of the four p’s and target
focus that leads to sales & growth for the business
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Why do we do the marketing plan?
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?
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Approaches to Marketing Management
in the agribusiness system
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Approaches to Marketing Management
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Production:
Product:
Selling –
Marketing
Societal
Social
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Approaches to Marketing Management
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Production:
 Produce as much as possible at lowest possible cost
 Min cost and max output
 Producer focus
 Demand is greater than supply
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Product:
 Make a high quality product and it will be demanded
 Hope consumers recognize quality and will pay a higher price
 Still producer focus
 Sometimes too product focused
Examples?
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Approaches to Marketing Management
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Selling
 Producer and consumer oriented
 Aggressive selling of the product to increase sales
 Not long term
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Marketing approach
 Shift away from selling to consumers needs
 Understanding users of a product
 Focus on meeting needs of consumers
Approaches to Marketing Management
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Societal marketing
 Balance need of consumer, producers and society
 Build social and ethical considerations into their marketing
practices.
 juggle conflicting criteria of company profits, consumer want
satisfaction, and public interest.
 Examples
 Local , consumer health, eco-friendly,
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Approaches to Marketing Management
Why
can’t you sell
brotherhood like you sell
soap?
Approaches to Marketing Management
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Social Marketing
Use of marketing principles and techniques to influence a target
audience to voluntarily take one a behaviour for the benefit of
individuals, groups, or society as a whole
influencing human behavior on a large scale, using marketing
principles for the purpose of societal benefit rather than commercial
profit
Approaches to Marketing Management
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Social Marketing:
What is different from societal or marketing approach VS social
 Product sold:
 goods and services vs. behaviour change
 Price:
 money vs cost to the target audience of changing behavior
(financial, or more often related to other “costs)
 Place:
 Distribute vs Move programs or products to places that the
audience frequents, in order to ease access
 Senior Vaccinations--at a senior citizen center; at a church; at
an elderly nutrition program ; “Golden Agers” night at a
restaurant
Approaches to Marketing Management
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Social Marketing:
What is different from societal or marketing approach VS social
 Goal:
 financial gain vs. individual/societal gain
 Competition:
 other organizations offering similar goods vs. current or
preferred behaviour
Approaches to Marketing Management
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Social Marketing:
What is similar between societal or marketing approach VS social
 Customer-orientated
 Target is segmented
 All 4Ps are considered
 Market research is key to success
 Benchmark results are measured for improvement
Commercial Exchange
You Give Me
$1.00
You Get
A Pepsi
 a thirst quencher
 good taste
 fun
 youthful feeling
 girl/boyfriend
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Social Marketing Exchange
You Give Me
Money
Time
Momentary
discomfort
You Get
An immunization
 better health
 avoidance of greater
discomfort (sickness)
 ability to go to school,
work, travel
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Examples : Social Marketing
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Improving public health (e.g. HIV/AIDS, tobacco use, obesity, teen
pregnancy, tuberculosis)
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Preventing injuries (e.g., traffic collisions, domestic violence, senior
falls, drowning)
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Protecting the environment (e.g., water quality, air quality, water
conservation, habitat protection)
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Contributing to communities (e.g., voting, volunteering, crime
prevention)
Examples : Social Marketing
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https://www.youtube.com/watch?v=Qo6QNU8kHxI
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Market Research
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The US candy manufacturing industry
includes about 1,600 companies with
combined annual revenue of $17 billion.
Major companies include Mars, Wrigley,
Nestle, and Hershey.
The total candy industry is fragmented:
largest 50 companies hold less than 40
percent of the market.
consolidation is occurring and each
major market has dominant companies:
Hershey and Mars
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soft drink consumption
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declining in Canada
 Canadians overall still gulp down an
average of 85 litres each per year.
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Of 732 girls and young women aged 12
through 19 who were surveyed, 78 percent
of the 12-year-olds reported drinking milk,
compared to 36 percent of 19-year-olds.
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Steps to market research
Decide the following:
1. Questions you need answers
 What business decisions do you want to make from this research?
 Information you need to collect in order to answer those
questions
2. How you're going to collect the information
 Primary & secondary
 Methods of each
3. How you're going to analyse it
 what will be done with the results
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Ask the correct question!
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Primary market research
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Primary market research
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Data collected directly from source for a specific purpose and then
analyzed
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Primary research for small business: Go out and finding out for
yourself about your potential market.
Methods
 online or offline focus groups
 online or offline surveys
 speak to existing clients
 speak to potential clients
 review product review
 observe the competition:
 Visit their store, count the customers and track their social
media sites.
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Primary market research
Advantage:
 Targeted for your specific business need & product
 Timely
 Relevant
 Proprietary
Disadvantage:
 Costly
 Time consuming
 Expertise required
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Must Drink More Milk
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https://www.yout
ube.com/watch?v
=N0e2J3FGwps
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http://www.bdc.ca/EN/articles-tools/technology/free-low-cost-applications/Pages/online-surveytools-free-low-cost-options.aspx
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Primary market research example: Google consumer
survey
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create online surveys to be shared with Google’s publisher
network
$.10 per response.
target the entire US, a certain age group, interest or type of buyer.
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http://www.google.com/insights/consumersurveys/home
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Video
https://www.youtube.com/watch?v=90MIiBvXYcw
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Secondary market research
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Secondary market research
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Study of published information
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Advantage
 Cheap
 Easy to obtain
 Quick to complete
Disadvantage
 Less targeted – use what you have an build the rest!
 Access is public so competitors also have this information
 Dated
 Rely on other’s collection methods
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Secondary market research – the realities
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Build what you can from hard values and estimate from there
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No single source that answers all your questions
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You are building a case of data to information
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Review transferability – geographic or product or markers
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You will not get perfect or sometimes even near-perfect match to
what you want..
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Some information is not available so be prepared to read and
analyze what is available
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Evaluating secondary market research
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assess how appropriate they will be for your research.
 bias or agenda, which may not be obvious at first glance.
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Consider
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Authority - Accuracy – Scope
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Evaluating secondary market research
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Authority
 Anyone with an internet connection has the potential to publish
and distribute information - it's up to you to assess
 Differentiate – hired, passionate amateur, researcher, unproven
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Review the
 authorship ??
 credentials? institutional affiliation
Why was it done?
Who paid for it?
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Evaluating secondary market research
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Accuracy
 peer-reviewed publication?
 consistent with what you already know about the subject?
 responsibility for the accuracy clear? Wikipedia!
 source of the data in charts clear? Don’t be misled!
 transparency of data collection method & quality control
 is it valid and reliable?
 does the method make sense? What is wrong?
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currency ..how?
objectivity .. how?
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Evaluating secondary market research
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Scope
 Review the
 Coverage??
 Range & consistent?
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Purpose??
 Why? educate? sell? advocate a viewpoint?
 Target: general or specialized audience?
 Fact versus opinions?
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Where do I to find QUALITY secondary market research
information? UBC Library business & mgmt subject
pages
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See these pages…
Food & Beverage Product Industries
http://guides.library.ubc.ca/foodproducts?hs=a
Entrepreneurship
http://guides.library.ubc.ca/friendly.php?s=entrepreneurship
Industry & Market Research
http://guides.library.ubc.ca/industry?hs=a
Sustainable Business
http://guides.library.ubc.ca/sustainable?hs=a
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Where do I to find QUALITY secondary market research
information? Databases via UBC & beyond
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Passport GMID International statistical and market research reports
for over 200 countries, covering consumer products and services,
demographic and lifestyle reports and economic data.
Print Measurement Bureau Survey data on Canadians' usage of over
3500 products and services. See the Help section for tutorials and
guides.
Canadian Industry Statistics /Industry Canada's reports and data on
Canadian Industries.
Business Source Complete Business articles, market research
reports, company SWOT analyses.
Euromonitor
Market Research.com
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Where do I to find QUALITY secondary market research
information? Bloomberg Financial and Market
Information
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http://www.bloomberg.com/visual-data/
http://www.bloomberg.com/visual-data/industries/q/marketleaders
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Where do I to find QUALITY secondary market research
information? Reports & Trade Journals
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Food in Canada
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Supermarket News
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Stats Canada
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Ag Canada
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Newsletters
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Where do I to find QUALITY secondary market research
information? Government agencies
Government agencies are valuable sources of economic,
industry, consumer, and regulatory information.
Benefits: Reputable and geographically specific
Be Aware: Date coverage varies; idiosyncratic vocabulary
and organization
TIP: use google advanced to
limit to government
domains
site:gc.ca
site:gov.bc.ca
site:gov
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Where do I to find QUALITY secondary market research
information? Statistics Canada website: Community
Profiles
Customize the data
displayed (income,
population, etc.)
Customize the
region
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Where do I to find QUALITY secondary market research
information? Government / Library: E-STAT
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E-STAT is available through the library. It provides access to Statistics
Canada’s time series for industries, economic indicators and
consumers:
These reports
are
customizable
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Where do I to find QUALITY secondary market research
information? Governments: Agriculture and Agri-food
Canada
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Includes
Sector Profiles
Economic & Market Outlook
Profile of the Canadian food chai
Consumer intelligence
Regulations
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Where do I to find QUALITY secondary market research
information? Reputable web sources: Associations
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The most likely sources are noted in your guide: provide industry
specific information, statistics, reports, position papers, press
releases, membership directories, newsletters – but not all is free
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Example:
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example
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Example
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Bacon, hot dogs and sausages in the same category of cancer risk as
tobacco smoking.
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Why is the Market Research so Important in business
plan?
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Evidence
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Build the Case
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??
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Build the evidence or case to
 support industry, competitive & customer statements
 define believable competitive advantage & sales forecast
 understand customer needs
 construct realistic financials
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How do you decide what market research approach to
use?
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Common Marketing Research Mistakes
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Using only secondary research.
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Using only web resources.
 use common search engines to gather information
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Surveying only the people you know.
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Relying only on anecdotal feedback
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End of slides
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