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FASHION
MARKETING
RESEARCH
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WHAT IS MARKETING
RESEARCH?
It is the systematic design, analysis and reporting ofdata and findings relevant to a specific marketingsituation facing the company.
Marketing research covers investigation into allaspects of the marketing of goods and services, suchas product research and development, pricingresearch, advertising research, distribution research,and all the aspects of market analysis covered by
market research. Market research, as distinct from marketing research,
refers to a specific market, investigating aspects suchas market size, market trends, competitor analysis,
and so on.
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Marketing research, or market research, is a form ofbusiness research and is generally divided into twocategories: consumer market research and business-to-business (B2B) market research, which was previously
known as industrial marketing research. Consumermarketing research studies the buying habits of individualpeople while business-to-business marketing researchinvestigates the markets for products sold by onebusiness to another.
Consumermarket research is a form of applied sociologythat concentrates on understanding the behaviours, whimsand preferences, of consumers in a market-basedeconomy, and aims to understand the effects andcomparative success of marketing campaigns.
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PURPOSE OF MARKETING
RESEARCH
Today, businesses face great risks, andcompetition is aggressive. In such a scenario, inorder to maximize opportunities, the successful
business person must make the right decisionsat the right time.
Such decisions are problematic.
An understanding of the market and the needsand wants of present and future consumers israrely based on intuition alone.
Sound market information provides the basis formarketing decisions.
Properly designed marketing research will
provide all the information required.
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THE SCOPE OF MARKETING
RESEARCH
There is no area of marketing activity to whichthe techniques of marketing research cannot beapplied. Marketing research can provide
information on, and for: 1) The size and structure of a specific market
2) Current trends
3) Consumer preferences
4) Competitors activities 5) Advertising effectiveness
6) Distribution methods
7) Pricing research
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8) Development of new products
9) Development of new advertising and
promotion strategies 10) Monitor performance following
implementation of the above strategies
The technique used in the collection ofmarketing information depends largely onthe nature of the research problem, andtherefore varies from street interviews to
sophisticated techniques.
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The role of marketing research in managerial
decision making is explained further using the
framework of the DECIDE model:
D'- Define the marketing problem E'- Enumerate the controllable and
uncontrollable decision factors
C'- Collect relevant information
I'- Identify the best alternative
D'- Develop and implement a marketing plan
E'- Evaluate the decision and the decision
process
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TYPES OF RESEARCH
There are broadly two types of research:
1) Qualitative Research It uses
techniques such as group discussions,individual depth interviews, projectileinterviews and observation. Theinformation attempts to find out the how
and why of a situation rather than howmany. Analysis can be difficult owing tothe depth and complexity of the datacollected, so it should be carried out bytrained researchers.
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This research is invaluable for basic
exploratory studies, new product
development, and creative developmentstudies.
2) Quantitative Research: It provides
information to which numbers can beapplied. It is the best known face of
marketing research, and most people
recognize its survey method.
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AN OVERVIEW OF THE
MARKETING RESEARCH PROCESS
The stages in the research process are:
1) Define the research problem and set the
research objectives 2) Design the research. This includes:
a. Data sources
b. Select the sampling method c. Select the data collection method
d. Design the data collection form
(questionnaire)
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3) Test the research design (pilot) 4) Collect the data
5) Analyze the data and interpret the results
6) Present the findings
PROBLEM DEFINITION AND SETTINGRESEARCH OBJECTIVES
Defining the research problem is the most criticalstep in the research process. Unless the problem
is accurately defined, the information collected willbe of little or no use. What is the problem? Whatdo we want to find out to try to solve the problem?The preliminary planning has implications for thedesign of the research, and the quality of theinformation collected.
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MARKET RESEARCH
CHARACTERISTICS
Marketing research is SYSTEMATIC. Thus systematicplanning is required at all the stages of the marketingresearch process. The procedures followed at each stageare methodologically sound, well documented, and, as
much as possible, planned in advance. Marketingresearch uses the scientific method in that data arecollected and analyzed to test prior notions or hypotheses.
Marketing research is OBJECTIVE It attempts to provideaccurate information that reflects a true state of affairs. Itshould be conducted impartially. While research is alwaysinfluenced by the researcher's research philosophy, itshould be free from the personal or political biases of theresearcher or the management.
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Marketing research involves theIDENTIFICATION, COLLECTION, ANALYSIS,andDISSEMINATIONof INFORMATION. Eachphase of this process is important. We identify
or define the marketing research problem oropportunity and then determine what informationis needed to investigate it., and inferences aredrawn. Finally, the findings, implications andrecommendations are provided in a format that
allows the information to be used formanagement decision making and to be actedupon directly. It should be emphasized thatmarketing research is conducted to assistmanagement in decision making and is not: ameans or an end in itself.
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OTHER FORMS OF
BUSINESS RESEARCH
Product research - This looks at what products can beproduced with available technology, and what newproduct innovations near-future technology can develop.
Advertising research - is a specialized form of marketingresearch conducted to improve the efficacy of advertising.
Copy testing, also known as "pre-testing," is a form ofcustomized research that predicts in-market performanceof an ad before it airs, by analyzing audience levels ofattention, brand linkage, motivation, entertainment, andcommunication, as well as breaking down the ads flow ofattention and flow of emotion.
Pre-testing is also used on ads still in rough form.
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MARKET RESEARCH
SERVICES
Standardized services are research studies
conducted for different client firms but in a
standard way. For example, procedures for
measuring advertising effectiveness have beenstandardized so that the results can be
compared across studies and evaluative norms
can be established.
Customized services offer a wide variety ofmarketing research services customized to suit
a client's specific needs. Each marketing
research project is treated uniquely.
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Limited-service suppliers specialize in one or afew phases of the marketing research project.Services offered by such suppliers are classifiedas field services, coding and data entry, dataanalysis, analytical services, and brandedproducts. Field services collect data throughmail, personal, or telephone interviewing, and
firms that specialize in interviewing are calledfield service organizations. These organizationsmay range from small proprietary organizationswhich operate locally to large multinational
organizations
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Coding and data entry services include editingcompleted questionnaires, developing a codingscheme, and transcribing the data on to diskettesor magnetic tapes for input into the computer.
Analytical services include designing andpretesting questionnaires, determining the bestmeans of collecting data, designing samplingplans, and other aspects of the research design.Some complex marketing research projectsrequire knowledge of sophisticated procedures,including specialized experimental designs, and
analytical techniques.
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Data analysis services are offered by
firms, also known as tab houses that
specialize in computer analysis ofquantitative data such as those obtained in
large surveys. With the proliferation of
software, many firms now have thecapability to analyze their own data, but,
data analysis firms are still in demand.
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Branded marketing research products
and services are specialized data collectionand analysis procedures developed to
address specific types of marketing
research problems. These procedures are
patented, given brand names, and
marketed like any other branded product.
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BUSINESS TO BUSINESS
MARKET RESEARCH
Business to business (B2B) research is inevitably morecomplicated than consumer research.
The researchers need to know what type of multi-faceted approach will answer the objectives, since
seldom is it possible to find the answers using just onemethod.
Finding the right respondents is crucial in B2B researchsince they are often busy, and may not want toparticipate.
Encouraging them to open up is yet another skillrequired of the B2B researcher.
Most business research leads to strategic decisions andthis means that the business researcher must haveexpertise in developing strategies that are strongly rootedin the research findings and acceptable to the client.
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There are four key factors that make B2Bmarket research special and different toconsumer markets:
The decision making unit is far more complex inB2B markets than in consumer markets
B2B products and their applications are morecomplex than consumer products
B2B marketers address a much smaller numberof customers who are very much larger in theirconsumption of products than is the case inconsumer markets
Personal relationships are of critical importance
in B2B markets.
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RESEARCH DESIGN
There are three types of research design:
1) Exploratory Research This is most
useful in the early stages of research,especially if the researcher is not familiar
with the subject area.
Wide range of sources have to be lookedfor.
Aim is to uncover any variables and
investigation of environment.
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Descriptive Research Description of
the variables uncovered by the exploratory
stage. This could be used to investigate the
market share of a companys products or
the demographic characteristics of thetarget market (age, gender, income, etc.).
Data is usually obtained from second hand
sources or from surveys.
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Causal Research it is used
to determine the relationship
between variables, e.g. the
relationship between
advertising and repeatpurchases.
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DATA SOURCES
Primary Sources These consists ofinformation collected specifically for the
current research project. The collection of more up to date
information than is available fromsecondary sources.
Sources of information may includeconsumers, designers, buyers,manufacturers, retailers and so on,
depending upon the research problem.
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Secondary Sources These provide with a
starting point for data collection.
The research problem may be solved wholly orin part by using secondary data.
This reduces the cost as secondary data are
cheaper, and their sources usually more
accessible than is true of primary data.
Keeping the objectives of the research in mind
will help to ensure that time is spent efficiently
as a lot of data is available for the same.
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SECONDARY DATA
SOURCES
1) Internal Sources Information generated within acompany e.g. from accounts departments, sales figures,customer care, company reports, etc.
2) External Sources Information generated outside thecompany.
a) Government statistics Census data, familyexpenditure surveys, trade and manufacturing trends.
b) Trade information Trade press such as industrymagazines, trade surveys, competitors reports.
c) Financial institutions Many major banks publishreports on regional and national industries.
d) Commercial research Many market research
companies undertake continuous research.
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Primary Sources
PRACTICAL SAMPLING METHODS
Sampling involves selecting a smaller number ofpeople from the larger survey populations,whose characteristics and behavior are relevantto the larger group.
Deciding the sample size: - cost, time staff
availability, level of accuracy required, datacollection method, and location of thepopulation.
Sample size must be large enough to provide
accurate results, without being so large toincrease cost.
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Choice of Sampling Method
Two main methods:
1. Probability Methods they are the
best type of method. Sample frame isused e.g. telephone directory, etc.
3 types of probability methods:
A. Simple random method using thelottery method.
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B. systematic random sampling
division of population by sample size
n= 3000/ 50 = 60. If the sample size is 50, and the
population size is 3000.
If the random number picked is 35 asfirst item, then every 60th number
would be selected till the sample size
reaches 50.
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C. Stratified random sampling is
used when different groups inpopulation have different
characteristics. Then the population is
divided into similar groups and the
sample no. is either equal or unequal
as per requirement.
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2. Non probability methods do not
require sampling frame and judgment
element is required.
A. convenience sampling items that
are close and readily available.
B. judgment sampling representative
of the survey population.
C. quota sampling population id
divided into strata and elements are
chosen.
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Primary Data Collection
Methods
1. Observation occasions where one has
to just observe rather than interview or else.
2. Focus Groups is a form of qualitative
research (group discussion).
3. Experimentation difference is responses
is observed.
4. Surveys the results of the surveys are
extrapolated to the population as a whole.
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Data Collection Methods
1. Personal Interview
2. Telephone Interview
Mail (postal) questionnaire
Questionnaires -
- Preliminary Decisions
- Question Content
- Question Wording
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4. Response Format
- Dichotomous two possible
responses yes/no.
- Multiple Choices Several probable
answers are presented.
- Open end questions- freedom ofchoice in the response given.
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5. Question sequence organize the
questions. 6. Questionnaire layout clarity is the
aim.
7. Pre testing (pilot) and revision tested on the respondents.
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Role of marketing research in new
product development:
- creation of a customer profile
- preparing a profile of competitors
- preparation of market strategy report
- the merchandise plan
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Forecasting Fashion
- analyze the past and present consumer
- primary data collection techniques - secondary research data sources
- Focus groups of experts
- Soft wares to help in forecasting - Style testing
- Test marketing new styles, colors or
silhouettes.
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Thanks