introduction to market research...market research • advantages of market research • helps focus...
TRANSCRIPT
INTRODUCTION TO MARKET RESEARCH
WHAT IS MARKET RESEARCH?
• Process of defining a marketing problem or opportunity
• Collection and analysis of information
• Recommend marketing initiatives to improve a product
• Can be general (ie. A company’s branding image) or specific (ie. A product’s key features)
SECONDARY RESEARCH
INTERNAL SOURCES
• Company Accounts
• Internal Reports and Analysis
• Stock Analysis
• Retail Data - loyalty cards, till data, etc.
EXTERNAL SOURCES
• Government Stats • EU - Euro Stats • Trade Publications • Commercial Data • Available Surveys • Other Firms’ Research • Research Documents – publications, journals,
etc.
PRIMARY RESEARCH
WHAT IS PRIMARY RESEARCH
• First hand information
• Expensive to collect, analyse and evaluate
• Can be highly focused and relevant
• Care needs to be taken with the approach and methodology to ensure accuracy
• Types of question: • Closed – limited information gained • Open – useful information but difficult to analyse
WHAT IS PRIMARY RESEARCH?
• Surveys • Ie. feedback forms (Internet) • Can be sent/completed in many different ways
• In-depth Interviews (IDI) • An interview looking for explanations of purchasing/usage
behaviour
• Focus Groups • A group interview that takes place in a facility • Could be tactile (get to use/touch/see actual product)
PROS AND CONS OF PRIMARY RESEARCH
Type PROS CONS
Survey • Reach large sample • Not biased or
persuaded by others around them
• Less expensive
• Can’t probe • Mistakes in the data is hard
to follow up with
IDIs • Probe for more information
• Can learn new ideas • Watch body language • Can touch/see
product
• Time consuming • Expensive
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PROS AND CONS OF PRIMARY RESEARCH
Type PROS CONS
Focus Groups • Can feed off of each other, get insight into what’s considered important
• Watch body language • Can touch/see
product
• Swayed by others opinions • May not speak up • Very expensive
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SAMPLING METHODS
SAMPLING METHODS
• Random Samples: equal chance of anyone being picked • May select those not in the target group • Sample sizes may need to be large to be representative • Which means it can be very expensive
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SAMPLING METHODS
• Stratified/Segment Random Sampling • Samples on the basis of a representative strata or
segment (so those you are actually looking to find; have common traits)
• Still random but more focused • May give more relevant information • May be more cost effective
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SAMPLING METHODS
• Quota Sampling • Again – by segment • Not randomly selected – ie. First 10 through the door • Specific number on each segment are interviewed, etc. • May not be fully representative • Cheaper method
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SAMPLING METHODS
• Cluster Sampling • Primarily based on geographical areas or ‘clusters’ that
can be seen as being representative of the whole population (ie. Toronto vs Milton)
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SAMPLING METHODS
• Snowball Sampling • Samples developed from contacts of existing customers – ‘word of mouth’ type approach!
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QUANTITATIVE VS QUALITATIVE DATA
• Quantitative • Based on numbers • Doesn’t tell you why,
when, how
• Qualitative • Gives more detail – tells
you why, when and how!
PURPOSE
WHY MARKET RESEARCH?
• Exploratory: • Preliminary • What is the problem? • How large/small is the impact on the company/
product? • For example: Why is consumption of milk at an all-time
low?)
• Descriptive: • Describes characteristics of a population or profile • Already know the marketing problem • Looking for specific answers • For example: What is the size of the market? What is the
profile of the purchaser?
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WHY MARKET RESEARCH?
• Causal: • Determine cause-and-
effect relationships among variables
• For example: How will this price change impact adoption of my product?
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MARKET RESEARCH
• Advantages of Market Research • Helps focus attention on objectives
• Aids forecasting, planning and strategic development
• May help to reduce risk of new product development
• Communicates image, vision, etc.
• Globalisation makes market information valuable
MARKET RESEARCH
• Disadvantages of Market Research • Information only as good as the methodology used
• Can be inaccurate or unreliable
• Results may not be what the business wants to hear!
• May stifle initiative and ‘gut feeling’
• Always a problem that we may never know enough to be sure!
ETHICS IN MARKET RESEARCH
• What are some ethics do be aware of when doing market research? • Your information cannot be sold to other companies/
vendors
• Your personal information is confidential and not released to the public
• A disclosure is provided detailing any possible use of your information and data
• You won’t be solicited to purchase a product following provision of information
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ETHICAL SCENARIOS
Coca-Cola is conducting a taste test in the mall. They collect the tasters address and
email address and then sell that information (without telling the tasters) to other
companies who want to send advertisements to the tasters.
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ETHICAL SCENARIOS
Danone is offering free samples of their new yogurt in the Supermarket and asking tasters to fill out a quick survey following the taste. Some research has shown that the yogurt’s
anti-oxidant ingredients may cause an upset stomach to some people.
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ETHICAL SCENARIOS
Nine-year old Kelly is asked to complete an Internet survey in order to play an online
game. The survey is for Molson Canadian, a beer manufacturer and respondents are
supposed to be legal drinking age (19). The survey states that all respondents must be 19
years old.
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ETHICAL SCENARIOS
Lululemon is conducting in-store interviews with their willing customers to gather data regarding potential improvements to the store. During the
interview the Lululemon Representative shows the customer a number of new products Lululemon
has just come out with, hoping that the customer will show interest and purchase those items
following the interview.
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