Chap 4- Marketing Research

8/8/2019 Chap 4- Marketing Research

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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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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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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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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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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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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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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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Chap 4- Marketing Research

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