Marketing Research

Where we have been thus far...

• 4 P’S of Marketing• Market Strategy

Marketing – The 4 P’s

Product Pricing Placement Promotion

What we are going to sell

How much we

will charge

How we will

advertise the

product/service

How we will get product/

Service to the

customer

Marketing Strategy – 2 Steps

• Create Target Market

• Create Marketing Mix

Creating/Improving products

• What is a “New” Product• Depends on who you ask• Dominos example…“New” pizza• Apple’s “New” forthcoming tablet pc

• Many “new” products are simply improvements on existing products• Truly new products are rare• Truly new products do not have an existing substitute• What new products have been introduced in our

lifetime?

Creating/Improving products

Remember!•Companies should not assume what customers want and then try to convince them. •Good companies are customer focused…they figure out what customers want and then try to provide it.

• (Marketing Orientation)

Creating a New Product

• So…product creation should begin with researching what your target market desires

• MARKETING RESEARCH –finding solutions to problems through carefully designed studies involving consumers

Types of Research

Primary Research•Pros

• Targeted to company’s needs

•Cons• Time consuming• Costly

Secondary Research•Pro

• Can be cheaper• Quicker

•Cons• May not be relevant• Open to all

Types of Research Studies

Customer Survey

Focus Groups

Observations

Experiments

Customer Surveys

• Most common type of research study

• Gather information using carefully planned questions• Quantifiable is good

• Can be conducted in-person, over phone, through mail or over internet

Focus Groups

• Small number of consumers taking part in a group discussion

• Discussion topics might include customer’s • experiences with a product• reactions to new ideas• suggestions for product improvements

Observations

• Collect information by recording actions of consumers

• Common questions answered by observation• How do customers interact with packaging?• What routes do customers take through

store?

Experiments

• Two carefully controlled alternatives• Examples

• Compare sales of two products with different size, packaging, etc.

• Effect of promotions• Coupons• Customer “limits”

Steps in Marketing Research

1. Define the Marketing Problem• Are we rolling out a new product?• Trying to improve customer service?

2. Develop the plan3. Collect the information4. Analyze the information5. Present the findings

Work Session:

• Re-invent a product

1. What is the product’s name?2. How much is it?3. What changes would you make to it?4. How much will it cost the consumer?5. Who is your target market (who’s buying

it)?6. How will you promote it?

Create a Survey

• Create 10 questions.• Your respondents will be your

classmates.• Record their responses for your

analysis.

Surveys

• What were some issues with the surveys you took yesterday?

• What makes a survey a good survey?

• What were the types of questions you asked?

Market Research ProjectYou and your business partner own a shoe store and have decided to extend your shoe line to include sandals.1st task – Design your introductory sandals.Write a customer profile on your target market.2nd task – Create a 9 question survey, the 10th question will be your sandal illustration.3rd task – Distribute your survey to consumers within your target market. You will need to get 30 responses.4th task – Analyze your results and make changes to your design accordingly.5th task- Create a presentation that includes your design, survey questions, and your analysis including your results. Also, a 2nd design after your changes you made based on your survey results.

Market Research AssignmentYou have been asked to conduct a survey to determine what type of business casual merchandise to carry. •Your target market is teenagers.•10 question survey

– Data results should lead you to what you need to buy the store.

Example: What style of shoe do you prefer:A.FlatsB.Classic pumpsC.Ankle strap sandalsD.Ankle boots