Transcript Market research in Business

MARKET RESEARCH IS…
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“It ain’t the things we don’t know
that gets us in trouble. It’s the
things we know that ain’t so.”
Artemus Ward
UNIT 10 MARKET RESEARCH IN BUSINESS
 Market research enables a business to find out
information about its market, its customers and
aspects of the business environment such as what
competitors are doing.
 Businesses also use it to find out about customer views
on current marketing campaigns.
LEARNING OUTCOMES
After completing this unit, you should:
1.understand the main types of market research used to
make marketing decisions
2.be able to plan research
3.be able to carry out research
4.be able to interpret research findings
HOW YOU WILL BE ASSESSED
For this unit you are expected to carry out some market
research of your own.
You will then need to produce a market research report
setting out your findings.
An oral presentation coupled with a clear written report
will be an effective way of doing this.
BECAUSE MARKETING RESEARCH IS PART OF
MARKETING WE SHOULD UNDERSTAND:
What is marketing?
What is the
marketing concept?
What is marketing
strategy?
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WHAT IS MARKETING?
Marketing has been defined by the AMA as
an organizational function
and
a set of processes for
creating
communicating and
delivering value to customers
and for
managing customer relationships
in ways that
benefit the organization
and
its stakeholders.
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WHAT IS THE MARKETING CONCEPT?
The Marketing Concept is a business philosophy that holds that the key to achieving
organizational goals consists of the company’s being more effective than competitors
in creating, delivering, and communicating customer value to its chosen markets.
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WHAT IS MARKETING STRATEGY?
A Marketing Strategy consists of
selecting a segment of the market as
the company’s target market and
designing the proper “mix” of the
product/service, price, promotion, and
distribution system to meet the wants
and needs of the consumers within the
target market.
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LEARNING BY DOING:
LET’S APPLY MARKETING TO
A RESTAURANT
Target market segment?
Marketing strategy
 Location?
 Menu?
 Prices?
 Type?
 Advertising?
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RESTAURANT MARKETING DECISIONS
 What if you owned a restaurant located in Manchester near the
college?
 What would be your marketing strategy?
 How certain are you that you made the right decisions?
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RESTAURANT MARKETING DECISIONS
 What if the restaurant was located near a university in a foreign
country like China, Thailand, Italy, Iceland, or Peru?
 What would be your decisions?
 How certain are you that you made the right decisions now?
 So, what’s going on? Class comments?
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KEY POINT
To practice marketing; to implement the marketing concepts; to
implement marketing strategy, managers must make decisions.
Many decisions require additional information and marketing
research is needed in order to supply that information.
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WE NEED MARKETING RESEARCH TO:
 Make the “right” decisions to
 Implement marketing
 Practice the marketing concept and
 Make the right decisions to select the right marketing strategy
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WHAT IS MARKETING RESEARCH?
(BURNS AND BUSH DEFINITION)
Marketing research is the process of designing,
gathering, analyzing, and reporting information that may
be used to solve a specific marketing problem.
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MARKETING RESEARCH DEFINED
The systematic and objective
process of generating information
for aid in making marketing
decisions
WHAT IS MARKETING RESEARCH? AMA
DEFINITION
Marketing research: the function that links the
consumer, customer, and public to the marketer through
information – information used to identify and define
marketing opportunities and problems; generate, refine,
and evaluate marketing actions; monitor marketing
performance; and improve the understanding of
marketing as a process.
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REDEFINING MARKETING RESEARCH
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
A CLASSIFICATION OF MARKETING
RESEARCH
Fig 1.1
Marketing Research
Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Problem Solving
Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
MARKET RESEARCH VS. MARKETING
RESEARCH
Market research: the “systematic
gathering, recording, and analyzing of data
with respect to a particular market, where
‘market’ refers to a specific group in a
specific geographic area.”
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WHAT IS THE PURPOSE OF MARKET RESEARCH?
 What is market research?
 Why do companies carry out market research?
 How do companies carry out market research?
DETERMINING WHEN TO CONDUCT MARKETING
RESEARCH
Time Constraints
Availability of Data
Is sufficient
time
available?
Information
already on
hand
inadequate?
No
Yes
No
Nature of the Decision
Yes
Is the
decision of
strategic
or tactical
importance?
Yes
No
Do Not Conduct Marketing Research
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
No
Conduct
Marketing
Research
POTENTIAL VALUE OF A MARKETING RESEARCH
EFFORT SHOULD EXCEED ITS ESTIMATED COSTS
Decreased uncertainty
Increased likelihood of
correct decision
Improved marketing
performance and resulting
higher profits
Value
Research expenditures
Delay of marketing
decision and possible
disclosure of information to
rivals
Possible erroneous
research results
Costs
ALWAYS REMEMBER
Marketing Research is a tool.
It assists marketing managers in their
decision making.
IT IS NOT A REPLACEMENT FOR
MANAGERIAL JUDGEMENT!!
MARKETING RESEARCH PROCESS
Step 1: Problem Definition
Step 2: Development of an Approach to the
Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
THE ROLE OF MARKETING RESEARCH
Fig 1.2
Customer Groups
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Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Environmental
Factors
Controllable
Marketing
Variables
Marketing
Research
•Product
•Pricing
•Promotion
•Distribution
Assessing
Information
Needs
Providing
Information
Marketing
Decision
Making
Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
•Economy
•Technology
•Laws &
Regulations
•Social & Cultural
Factors
•Political Factors
1. UNDERSTAND THE MAIN TYPES OF MARKET
RESEARCH USED TO MAKE MARKETING
DECISIONS
 Market research can be defined as the systematic gathering, recording and analysis of
data about problems relating to the marketing of goods and services.
 This can be broken down as follows:
 systematic
 carried out in a careful and organised way
 gathering and recording of data
 collection of data and setting this down in writing or (more likely) in computer
records
 analysing the data
 identifying patterns and trends
 problems relating to marketing
 these include what price to charge, how best to advertise the goods and services,
where to sell them from and so on
A SIMPLER DEFINITION OF MARKET RESEARCH
THAT IS EASY TO REMEMBER IS:
‘Keeping those who provide goods and services in touch with the requirements of
those who buy them’
 There are two main methods that be used for market research:
 primary research
 collecting new information
 secondary research
 using research that is already published.
OBSERVING BEHAVIOUR
https://www.targetcomponents.co.uk/shoptalk/get_retailing/10_tips_for_better_store_layout/ALL
http://www.mcvaninc.com/blog/bid/307182/Retail-Store-Layout-A-Powerful-Tool-to-Help-You-Increase-Sales
PRIMARY RESEARCH METHODS
Information that an organisation collects from its own research efforts is termed
‘primary’.
 This involves the collection of new information for a specific purpose.
In groups find 4 different types of primary research
 What are they?
 What are they used for?
 What are the advantages of using the research method?
 What are the disadvantages?
 Give an example of when a business could use them
 What marketing objective could they help to meet
PRIMARY RESEARCH METHODS
 Join with another team, discuss your findings
 You should have 6 different methods in your team
 The groups should now present back their methods until each method has
been covered
PRIMARY RESEARCH METHODS
 observation
 experimentation
 surveys
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face-to-face
postal
email
telephone
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e-marketing
research
focus groups
panels
field trials
piloting
http://readingcraze.com/index.php/types-of-primary-data/
PRIMARY DATA
You have been approached by a company who think that they could open a successful
business providing food, drink and social space for students near The Manchester
College
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In pairs pick 3 forms of Primary Data collection and decide;
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How you are going to collect relevant data
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What will you be asking
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What do you expect to find from your data
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What are the benefits of the methods you have chosen
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What are the drawbacks / limitations of the methods
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You should design and carry out 2 of your methods
The AIM of the research is to find out:
Should you open this business?
What will the business be like? Price, Products, Place, Promotions, People, Physical
evidence, Processes
http://www.wireuk.org/ten-steps-towards-designing-a-questionnaire.html