What is Market Research ?

"Marketing research is a
systematic problem analysis,
model building and fact finding
for the purpose of improved
decision-making and control in
the marketing of goods and
services."

Can also define it as “The systematic and objective process of generating

„information‟ for aid in making marketing decisions.”
 Why is Market Research required?
• Help to strategize and review the marketing plan for a
particular product / service.
• This in- turn helps to save cost which on un necessary
marketing plans.
• Companies require information in order to introduce
products and services that creates value in the mind of
customers.
• The research data can be built into the product, not used as
an afterthought.
• Market data can be implemented effectively, especially in
regards to media buying.
• Finding the right pricing structure to build accurate
budgets.
 What is expected through the
Research?
• Information that helps to gain a grasp on the
(current/potential) consumer
• Major insights required (they – customer)
– Who are the target customer?
– What motivates the customer to buy?
– How do the customer use the product?
– What is important for the customer in a product?
– Where are the customers located?
– And lots of other insights, which are required for a
marketing strategy.
 Plan Market Research
• Understanding of Market/Marketing Research
• Management Focus
 Marketing Research
 Marketing research is one of the principal tools
for answering questions because it:
◦ Links the consumer, customer, and public to the market
through information used to identify and define
marketing
◦ Generates, refines, and evaluates marketing actions
◦ Monitors marketing performance
◦ Underlines the understanding of marketing as a
process
◦ Provides Answers
◦ Helps set the Direction in understanding the Marketing
Problems
 The Marketing Research Process
• This process includes:
• specifying what information is required;
• designing the method for collecting information;
• managing and implementing the collection of data;
• analyzing the results; and
• communicating the findings and their implications.
 I don’t know
if we should
enter the
Information Indian
Reduces Market?

Uncertainty
Classification of Market Research
• Quantitative (nos-based)
Primary • Experiments
• Surveys

Research • Qualitative (content-based)

• One – On – One
• Focus group

• Databases
Secondary • Industry, Consumer News
• Market Research
Research • Demographics
 Quantitative (numbers – based)
• Survey
• Provides reliable, hard statistics in such areas
as attitudes, awareness ands usage.
• Provides hard numbers to make difficult
decisions.

– Note: Sample size examples, 400-600 people

 Qualitative Research
• Focus Groups
• Helps us gain some general impression on the
consumer or product. Usually 8-12 people
and a moderator.
– Example: Current customer,
non-customer groups,
mom with kids,
single men 18-24 yrs of age.
Categories of Marketing Research

Advertising Product
Research Research

Sales Market
Research Research
Marketing Research helps to Strategize

Price

Product 4Ps Place

Promotion
 Marketing Research
• Focus on Marketing Problems
• Primary Research- Seeks data that does not
exist
• Original information from Surveys
• Secondary Research-Data that already exists
• Background information (Secondary Sources-
Books, Internet, Government
Databases, Libraries, magazines, newspapers,..
.from the Internet
 Marketing research
• The process of systematically gathering,
recording, and analysing data concerning a
particular marketing problem
• Thus marketing research is used in specific
situations to obtain information that is not
otherwise available to decision makers
 Marketing Research Techniques
• Interviews
• face-to-face
• telephone
• postal questionnaire
• Attitude measurement
• cognitive component (know/believe about an
act/object)
• affective component (feel about an act/object)
• conative component (behave towards an object or
act)
Market Research Design & Techniques
Likert scale
 strongly agree
 agree
 neither agree nor disagree
 disagree
 strongly disagree
Semantic differential scales - differences between
words e.g. practical v impractical
Projective techniques
 sentence completion
 psychodrama (yourself as a product)
 friendly martian (what someone else might do)
 Market Research Methods
• Group discussion and focus group
• Postal research questionnaires
• In-home scanning - hand-held light pen to scan
barcodes
• Telephone research
• Observation
• home audit
• direct observation
• In-store testing such as Taste Testing in a
Supermarket
When Should Marketing Research be
Used?
 When alternative actions are available
 When there are potentially different payoffs from
the different actions
 When there is uncertainty about which action to
take
 When you are potentially willing to alter actions
based on the research results
 When it is possible to collect the information
 When the cost of the research is less than the added
benefit
 The Marketing Research Process
1. Set objectives
2. Define research Problem
3. Assess the value of the research
4. Construct a research proposal
5. Specify data collection method
6. Specify techniques of measurement
7. Select the sample
8. Data collection
9. Analysis of results
10. Present in a final report
 Coca Cola Case Study
• Example of how blind taste tests missed the
point
• In the mid 1980’s, 200,000 consumers took
part in taste tests, old Coke vs. new Coke
flavour
• April 23rd, 1985 – Coke changes its flavour;
Renames product to new Coke as results
suggest new Coke taste is preferred
• 1990- Diet Coke
• 2000-New Coke Flavours – Zero Coke
• Research failed to show consumers felt a bond with
their old Coke
• Announcements that old Coke was coming off the
shelves, spurred many to stock up their basements
• One man bought $1000 worth of bottles
• July 11th, 1985: Old Coke returns
• Old Coke is renamed Coca Cola Classic
• Consumers rejoice; Coke company realises
Coca Cola is more than just a soft drink
• ‘Diet Coke’ targeted to Female Drinkers
• Zero Coke targeted to Male Drinkers
• Raspberry Coke
 Limitations of Market Research
• Cost
• Limited time to collect data
• Customer commitment/validity of data
• Time lag between research and application