MARKET RESEARCHWednesday, October 15, 2014

MARKET RESEARCHThe gathering and analyzing of data to provide a business with information on consumers’ needs and wants

Used toPlanProblem solveControl

PLANNINGWhat factors will affect changes in consumer purchasing

What new markets can be targeted DomesticInternational

What are the effects of trends in our economy

PROBLEM SOLVINGProduct

What new products should be introduced?How should they be packaged?What features?

PriceHow much should we charge?How much are competitors charging?How much do prices effect our sales?

PROBLEM SOLVINGPlace

How do we get our products to our consumers?Is there a more efficient way?Would our customers prefer direct selling?

Promotion What should our advertising/promotion budget be?

How should we be allocating it amongst products

CONTROLHow do our sales compare with our targets

How does our market coverage compare with our targets?

What is our “corporate image”Present customersPotential customersDistributorsCompetitors

WHO DOES MARKETING RESEARCHMarketing decisions require information to help predict what will happen after we make those decisions

83% of manufacturers of consumer products have formal marketing research departments

93% of publishing and Broadcasting companies

85% of advertising agencies

ADVANTAGES OF IN-HOUSE RESEARCHYou know your company and the research problem better than anybody else

More contact and control while researching information

More likely to keep the information within the companyDon’t have to worry that somebody is going to sell the information to a competitor

ADVANTAGES OF OUTSOURCING RESEARCHCan obtain specialists in the field of question

Opportunity for unbiased researchOpportunity for saving money

FORMS OF RESEARCHThere are many different forms of research such asQuestionnairesField workStatisticsMathematical analysis

QUESTIONNAIRES Focus on for this classOpen and closed ended questionsOrder of questionsPoints to consider

CLOSED FORMAT QUESTIONSUsually take the form of multiple choiceSaves time and reduces the burden on people

May not be the exact answer people want to give

OPEN ENDED QUESTIONSAsks for opinions with no set of responsesTruly reflects the opinionRequires more thought and timeOpen to interpretationDifficult to analyse information

ORDER OF QUESTIONSAvoid randomization of questionsBegin with questions that raise an interestKeep similar questions togetherEnd with demographics

AgeSexLevel of income

POINTS TO CONSIDERQuestions must be clear Avoid

Leading questionsEmbarrassing questionsHypothetical questionsBiased questions