Transcript Marketing Issues and Concepts

Market Research
Market Research
Marketing Issues and Concepts
Market research is a broad and far reaching process
 Not just used to find out if consumers will buy your product or not its
concerned with:
 Reaction to your marketing mix!
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Market research is in its self a growth industry with more and more
companied out sourcing to specialist companies.
Market Research
Marketing Issues and Concepts
So, Why are companies prepared to pay high premium for market research ?
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To reduce risk with a new product launch
To help predict future changes
To help explain patterns in sales
To assess the most favored designs/methods/styles and promotions that
consumers prefer
Market Research can also be used to discover …
 Market size
 Strengths and weaknesses of a product
 Effectiveness of promotions
 Competitors positions in the markets
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Marketing Issues and Concepts
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IMPORTANT that you know about primary and secondary research and
the different methods used.
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Primary:
 Quantatative research – leads to numerical results that can be
analysed
 Observations
 Test marketing
 Consumer surveys
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Marketing Issues and Concepts
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Who to ask ?
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Sample size …
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The larger the sample the more confident you can be of a true result. This is
especially true in an example of a food brand trying to survey consumer reaction
to a new product.
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Major stumbling block to the size of the sample is ?
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The cost and time taken to do it.
What are the main sampling methods? – REMEMBER these are all PRIMARY
methods!
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Marketing Issues and Concepts
 Random
sampling – list of a target market is drawn up and
people at random chosen off the list, electronically or
every nth person (systematic random sampling).
 Stratified
sampling - dividing the population into subgroups and sampling from those sub-groups that are going
to be interested in the product.
 E.g. a new magazine aimed at 12-16 year old boys, there is
no point asking different 20 year old women
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Marketing Issues and Concepts
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Quota sampling -– Interviewees are selected according to the different
proportions that certain consumer groups make of the whole survey population.
e.g. consumer of denim jeans:
male – 65%
female – 35%
Age
14-20 = 35%
21-30 = 35%
31-40 = 20%
over 41 = 10%
The sample would then be in the same proportion. If 200 were interviewed,
130=males (65%), 70 = females (35%) and of that, 70 would be between 14-20 (35%)
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Marketing Issues and Concepts
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Cluster sampling – when a full sampling frame is not available, a
product is only going to appeal to a certain group.
 E.g. a local newspaper researching readers opinions.
Cluster sampling will just take a sample from this group. Random
methods can be used to select a sample from this group.
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Marketing Issues and Concepts
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What and how to ask the right questions are very important
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Do you ask the questions or do you leave it to the person to fill in on their
own ?
 Depends really on the type of product you are testing for
You need to consider how accurate are your answers going to be?
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ALL need to be valid questions !
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How do you lay out the questionnaire for your and the respondents
convenience?
Market Research
Marketing Issues and Concepts
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So, how reliable is Primary research?
 Sample
Bias?
 Questionnaire Bias – “pressured responses?
 Other forms of Bias – not wanting to be honest in your
responses!
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Non Probability Sampling …
Cannot be used to make judgments on the whole of the population!
Results not very accurate, but cheaper and quicker to use!
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Convenience Sampling – who is the easiest to sample?
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Snowballing Sampling – a friend of a friend of a cousin of a brother …
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Judgemenal Sampling – Using your own knowledge on who to ask!
Experience can give you a “gut feeling”
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Ad Hoc Quota – “pick a number”! – say 60% of women!
Market Research
Marketing Issues and Concepts
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Secondary – the use and analysis of data that already exist. “second hand”
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Government statistics
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Local libraries
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Trade Organisations
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Market Intelligence Reports (Mintel, Keynotes)
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Newspaper reports and specialist publications
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Internal Company records.
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Marketing Issues and Concepts
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What happens to the data ?
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Raw data is translated into information in a number of different ways such as bar
charts, tables, formal reports, pie charts, histograms etc…
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Methods and use of presentation …
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Pg 278 – be aware of what the graphs are most useful for!
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But, you may be asked to calculate or identify the following off data!
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Arithmetic Mean (Average) – Total all of the results and divide by the number of results
8.65
0 1
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2
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6.5
7.5
10
10 10 11 12 12 15 16 18 20
Mode – The value that appears the most in a range of data (easier to sort data for this!)
10
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Median – The middle point of ranked data – so it is divided into 2 equal parts
7.5
Pg 287 – Case Study 2
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