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MarketingResearch
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Understanding customer needs
How do we look insidethe customers mind and
understand his needs.
How do we know what
he actuallywants? How does he use our
products and what
further benefits he
requires ?
How does the customer
goes about his buyingprocess ?
Have we provided the
right goods and
services ?
Is it possible just
to wire up a customers
mind and downloadwhat he needs?
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How small businesses understand
customer needs?
Listening to customers
Observing neighborhood
shops, markets
Talking to salesmen,representatives
Newspapers, Radio, TV,
magazines
Forming intuitive opinionabout the products,
prices, promotion etc
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How large businesses understand
customer needs?
Large businesses keep
in touch with their
customers and
environment through.Marketing Research
Marketing Research
links the consumer to the
company through
information Information is the
source of competitive
advantage
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Marketing Research
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Marketing Research
Marketing Research is
the systematic method
of collecting, analyzing
and interpreting datafor marketing
decisions.
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Marketing Research vs. Market Research
Market Research issimply research into a
specific market for extheir size, requirements,
growth rates, market
segments etc.
It is a narrower
concept.
It is a part of
Marketing Research.
Marketing research ismuch broader.
Marketing Research
refers to analysis of
allof a companysmarketing activities forex success of new launches,
effectiveness of advertising,
pricing position etc.
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Purpose of Marketing Research
Customer needs and
expectations
Customer loyalty drivers
Customer attrition causes
Market Size
Market Segments
Market growth avenues
Market emerging trends
Market Competition
Assessing Marketing Mix Forecasting and Planning
Evaluation of Strategies
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Use of Marketing Research
Understanding the right
range of products to
maximize consumer
sales
Do we have an efficientassortment (most
appropriate product
mix)?
What is the optimalnumber of SKUs within a
category or brand?
Where will volume go if
SKUs are deleted?
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Use of Marketing Research
Understanding whether our
brands are priced correctly
Can we afford a price
increase without losing
sales?How price sensitive are
our consumers?
What pricing strategies will
maximize sales?
What are the pricesensitivity points?
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Use of Marketing Research
Understanding whatconsumers are
purchasing in and acrossstores
Is my category growingor declining?
What percent ofhouseholds buy acategory or brand?
Where did volume
increases come from? Where are the
opportunities forcategory growth?
Which products drivecategory growth?
What are the long termforecasts aboutconsumers andcategories?
Which sectors/categoriesare growing or declining?
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Use of Marketing Research
Competitive Analysis-
Understanding ourperformance withreference to ourcompetitors
What are my marketshares and trends?
How successful are mycompetitors at buildingvolume and loyalty?
What other categories
interact with mine that
are important?
How does my price
compare withcompetitors prices?
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Use of Marketing ResearchCustomer Loyalty-U
nderstanding consumerloyalty to brands andcategories
Are consumers loyal to asize/form/flavor?
What else do consumersbuy categories andbrands?
What is mix of basket perpurchase?
How does pricing andpromotion affect loyalty?
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Use of Marketing Research
Distribution-
Understanding the ease ofavailability, reach and
penetration of products
Which retailer representsgreatest sales opportunity?
What alternate channels
are consumers using for
our brands?
Where are the distributiongaps and opportunities?
How effective is my sales
force?
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Use of Marketing Research
New Launches-
How many householdshave tried the newproduct?
How did trial consumersrespond to advertisingand promotions?
Has the new brandincreased the categoryand brought in newcategory buyers?
What are the strengths
and weaknesses of myconcept and brand?
How likely is my new
product to succeed?
What should I do next new SKUs, new
packaging etc?
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Use of Marketing Research
Measuring Advertising
Effectiveness-Understanding the
impact and worth of ad
spends
How our promotions
compare to competition?
What is the overall sales
lift associated with
individual promotion
points?How are different
promotion mechanics
driving incremental brand
volume and profit?What is the optimum level
of discount to achieve
volume/profitability
objectives?
Are there key times of theyear when promotions are
more effective?
How much cannibalization
across the portfolio occurs
when items are promoted?
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Marketing Research Process Marketing Research Process is a framework or blueprint
for conducting the marketing research project. It details the process necessary for obtaining the
information needed to structure or solve the marketingproblem.
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Stage1a) Define the Problem
IfIhad1 hourto save the world, I
wouldspend55 minutes defining
the problem and5 minutes finding
the solution.- EinsteinStart point for research is
usually a gap in market
information with the
company. for ex
1. What are the attributes
that buyers evaluate
while choosing a SUV ?
MARKETING
RESEARCH
PROCESS
2. What is the present size
of liquid dish washermarket in India and the
MS of the players?
3. What is the effect of age
and income level on the
car buying behaviour ofconsumers in India ?
4. What will be the
expected market size of
liquid dish washers in 5
years ?
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Stage1b) Marketing
research objectives
Normative description of
market characteristics Measurement of market
characteristics
Analysis of market data
Predictive Model
MARKETING
RESEARCH
PROCESS
MARKETING
RESEARCH
PROCESSStage2) Developing Research
Plan
Data Collection Methods
Timeline Plans Expenses Plan
Balance between objectives
and extensiveness.
Sample Size,Sample Time,
Confidence Level
Cost, Reaction Time
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Stage3) Data Collection
Two types of datacollection techniques-
Primary and Secondary.
MARKETING
RESEARCH
PROCESS
a) Primary Research
Field Research
Generate new information
directly from targetpopulation
Questionnaires, focus
groups, user groups, postal
survey, telephone survey,
customer interviews, internetfeedback, test markets
Provides information specific
to companys research
objectives and current needs
It is expensive and timeconsuming
Types of question closed
limited information gained;
open useful information but
difficult to analyse
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PRIMARY v SECONDARY
RESEARCH
Begin with secondary research
quick, relatively inexpensive
but out of date and may not be specificenough
Follow up with primary research
provides information to current needs
but is expensive and time consuming
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SOURCES OF SECONDARY
RESEARCH
Government departments and official publicationse.g. General Household Survey
National media e.g. Financial Times country surveys
P
rofessional and trade associations Trade, technical and professional media
Local chambers of trade and commerce
Year-books and directories, e.g. Dataquest
Companies' Annual Reports and Accounts Subscription services, e.g. Keynote, MEAL, Mintel etc.
Subscription electronic databases, e.g. Mintel OnLine
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PRIMARY RESEARCH
Key issues:
Research objectives
Sampling basis Data collection methods
observation based
survey (interaction) based
Timing of research
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QUALITATIVE v QUANTITATIVE
RESEARCH
Qualitative Research:
rich in meaning, but usually limited to
small samples
Quantitative Research:
large scale data may be reliable, but
meaning may not be valid
Both approaches should be used incombination
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ANALYSIS OF STATISTICAL
DATA Use appropriate techniques, e.g.
correlation analysis
regression analysis cluster analysis etc
Beware when interpreting data!
e.g. low ownership of shoes in a
developing country - is this a problem or
an opportunity?
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ANALYSIS OF QUALITATIVE
DATA
Fewer tests of reliability
Some techniques for analysing content of
focus group discussions etc
Qualitative analysis relies on depth of
insight rather than statistical significance
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WHO CARRIES OUT MARKET
RESEARCH?
In house
OK for small projects or where there is a routine
and constant level of work
Specialist research company (e.g. MORI) Likely to have much broader range of skills
Can handle peaks and troughs in activity
May be more objective
Need close working relationship with client
company
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MARKETING
INTELLIGENCE A relatively unstructured approach togathering information about the marketing
environment
Sources:
regularly scanning newspapers
using specialised media cutting services
listening to employees listening to intermediaries
employing consultants
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KNOWLEDGE
MANAGEMENT Typically a lot of information iscollected by a company (e.g. salesreceipts, customers comments, reports by sales
personnel etc)
Need to ensure that information is
collated, analysed and given to the
people who can act on it Information should contribute to a
Learning Organisation
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LEARNING FROM
CU
STOMERS Comments(favourable and
unfavourable!) are a
valuable source ofknowledge
Need to be analysed
and given to
managers who canact on them
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DEMAND FORECASTING Market research soon becomes historical data
The challenge is to use this to better plan for the future
Market research is essentially about understanding the future and being prepared for it
Many simple and complex forecasting models have been developed - use a range oftechniques
Must balance the needs for speed and rigour
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FORECASTING AND RISK
Accurate market
forecasts help to
reduce a firms
exposure to risk But danger of
paralysis by analysis
Must balance need for
more data with needfor speed
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