Market research

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Marketing Key concepts Product ‡ Pricing Distribution ‡ Service ‡ Retail Brand management Account-based marketing Marketing ethics Marketing effectiveness Market research Market segmentation Marketing strategy Marketing management Market dominance Promotional content Advertising ‡ Branding ‡ Underwriting Direct marketing ‡ Personal Sales Product placement ‡ Publicity Sales promotion ‡ Sex in advertising Loyalty marketing ‡ Premiums ‡ Prizes Promotional media Printing ‡ Publication Broadcasting ‡ Out-of-home Internet marketing ‡ Point of sale Promotional merchandise Digital marketing ‡ In-game In-store demonstration Word-of-mouth marketing Brand Ambassador ‡ Drip Marketing This box: view · talk · edit

1 Top 9 of the market research sector 2009 4 See also 5 References 6 Other reading 7 External links [edit] History Market research began to be conceptualized and put into formal practice during the 1920s. [and] is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making. It is a very important component of business strategy. For starting up a business. need.[2] Market Research is a key factor to get advantage over competitors. as an offshoot of the advertising boom of the Golden Age of radio in the United States. includes social and opinion research. Market research provides important information to identify and analyze the market need. in that marketing research is concerned specifically about marketing processes. while market research is concerned specifically with markets. however. expert practitioners may wish to draw a distinction. Market research. It can also involve discovering how they act. market size and competition.Market research is any organized effort to gather information about markets or customers. Questionnaires and focus group discussion surveys are some of the instruments for market research. there are some important things: y Market information . or believe. Advertisers began to realize the significance of demographics revealed by sponsorship of different radio programs. Once that research is completed. [edit] Market research for business/planning Market research is for discovering what people want.[1] The term is commonly interchanged with marketing research.[3] Contents [hide] y y y y y y y 1 History 2 Market research for business/planning 3 Financial performance o defined by the ICC/ESOMAR International Code on Market and Social Research. it can be used to determine how to market your product.

search Marketing Key concepts Product ‡ Pricing Distribution ‡ Service ‡ Retail Brand management Account-based marketing Marketing ethics . the free encyclopedia Jump to: navigation. personality differences. demographic differences. or customer segments.Through Market information one can know the prices of the different commodities in the market. products. It is widely used for segmenting on geographic differences. during a period of time. y Market segmentation Market segmentation is the division of the market or population into subgroups with similar motivations. you will have to derive the figures from the number of potential customers. A few techniques are: y y y y y y y Customer analysis Choice modelling Competitor analysis Risk analysis Product research Advertising the research Marketing mix modeling Marketing research From Wikipedia. technographic differences. as well as the sources and varieties that have to be obtained to make the business work. y Market trends Market trends are the upward or downward movement of a market. Information about the markets can be obtained from different sources. etc. you need to measure marketing effectiveness. The market size is more difficult to estimate if one is starting with something completely new. For B2B segmentation firmographics is commonly used. customers. In this case. Lastly. one also needs information about one's competitors. [Ilar 1998] Besides information about the target market. varieties and formats. psychographic differences and gender differences. use of product differences. as well as the supply and demand situation.

generate. Marketing research specifies the information required to address these issues. monitor marketing performance. and evaluate marketing actions. and improve understanding of marketing as a process. either by target market: . in that market research is concerned specifically with markets. and analysis of data about issues relating to marketing products and services. analyzes the results.Marketing effectiveness Market research Market segmentation Marketing strategy Marketing management Market dominance Promotional content Advertising ‡ Branding ‡ Underwriting Direct marketing ‡ Personal Sales Product placement ‡ Publicity Sales promotion ‡ Sex in advertising Loyalty marketing ‡ Premiums ‡ Prizes Promotional media Printing ‡ Publication Broadcasting ‡ Out-of-home Internet marketing ‡ Point of sale Promotional merchandise Digital marketing ‡ In-game In-store demonstration Word-of-mouth marketing Brand Ambassador ‡ Drip Marketing This box: view · talk · edit Marketing Research is " the function that links the consumer. recording. designs the method for collecting information. and public to the marketer through information ² information used to identify and define marketing opportunities and problems. expert practitioners may wish to draw a distinction.[2] Marketing research is often partitioned into two sets of categorical pairs. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. however. The term is commonly interchanged with market research. while marketing research is concerned specifically about marketing processes. refine. manages and implements the data collection process. and communicates the findings and their implications. customer."[1] Marketing research is the systematic gathering.

or even pure judgment. and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in marketing. marketing research may also be described as the systematic and objective identification. intuition. analysis. reliable. Competitive marketing environment and the everincreasing costs attributed to poor decision making require that marketing research provide sound information. and it aims to understand the effects and comparative success of marketing campaigns.[4] Contents [hide] y y y y y y y y y y y y y y y y 1 Role of marketing research (MR) 2 Marketing research characteristics 3 Comparison with other forms of business research 4 Classification of marketing research 5 Types of marketing research 6 Marketing research methods 7 Business to business market research 8 Marketing research in small businesses and nonprofit organizations 9 International Marketing Research plan 10 Commonly used marketing research terms 11 Selecting a research supplier 12 Careers in marketing research 13 See also 14 Notes 15 References 16 External links [edit] Role of marketing research (MR) The task of marketing research(MR) is to provide management with relevant. and Business-to-business (B2B) marketing research Or. .y y Consumer marketing research. by methodological approach: y y Qualitative marketing research. accurate. and current information. valid. and Quantitative marketing research Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences. [3] Thus. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Sound decisions are not based on gut feeling. attitudes. alternatively. and behaviors of consumers in a market-based economy. collection.

Then. target market selection. and. In the absence of relevant information. relevant information on the alternatives and possible outcomes is collected. well documented. Last. They make decisions about potential opportunities. pricing. Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. technology. Then a detailed plan to implement the alternative selected is developed and put into effect. and distribution. The procedures followed at each stage are methodologically sound. environment. marketing performance. public policies and laws. whereas marketing managers are becoming more involved with research.Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. the outcome of the decision and the decision process itself are evaluated. marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers.[5] Next.[5] Traditionally. These decisions are complicated by interactions between the controllable marketing variables of product. The next step is to select the best alternative based on chosen criteria or measures of success. Further complications are added by uncontrollable environmental factors such as general economic conditions. market segmentation. and social and cultural changes. planning and implementing marketing programs. marketing research is systematic. . the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. promotion. along with the objectives and constraints. consumers' response to marketing programs cannot be predicted reliably or accurately. It helps remove some of the uncertainty by providing relevant information about the marketing variables. political environment. planned in advance. this information enhances the effectiveness of decisions made by marketing managers. competition. as much as possible. 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 The DECIDE model conceptualizes managerial decision making as a series of six steps. Thus systematic planning is required at all the stages of the marketing research process. and consumers. The decision process begins by precisely defining the problem or opportunity. and control. [edit] Marketing research characteristics First. However. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers. the roles are changing and marketing researchers are becoming more involved in decision making.

sales analysis. [edit] Comparison with other forms of business research Other forms of business research include: y Market research is broader in scope and examines all aspects of a business environment. market characteristics. economic trends. Product research .Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses. For example. p. it should be free from the personal or political biases of the researcher or the management. Research of this type provides information about the marketing environment and helps diagnose a problem. It should be conducted impartially.This looks at what products can be produced with available technology. Marketing research is objective. . In this case. industries. Research which is motivated by personal or political gain involves a breach of professional standards. It asks questions about competitors. 213) y y [edit] Classification of marketing research Organizations engage in marketing research for two reasons: (1) to identify and (2) solve marketing problems. Pre-testing is also used on ads still in rough (ripomatic or animatic) a specialized form of marketing research conducted to improve the efficacy of advertising. not apparent on the surface and yet exist or are likely to company image. and what new product innovations near-future technology can develop (see new product development). financial analysts usually carry out the research and provide the results to investment advisors and potential investors. Such research is deliberately biased so as to result in predetermined findings. by analyzing audience levels of attention. and numerous other factors that make up the business environment (see environmental scanning). Copy testing. While research is always influenced by the researcher's research philosophy. The findings of problem solving research are used in making decisions which will solve specific marketing problems. This distinction serves as a basis for classifying marketing research into problem identification research and problem solving research. perhaps. market structure." The objective nature of marketing research underscores the importance of ethical considerations. (Young. brand linkage. "Find it and tell it like it is. also known as "pre-testing. The motto of every researcher should be. technological advances. and communication. entertainment. government regulations." is a form of customized research that predicts in-market performance of an ad before it airs. It attempts to provide accurate information that reflects a true state of affairs. short-range forecasting. Problem identification research is undertaken to help identify problems which are. as well as breaking down the ad¶s flow of attention and flow of emotion. and business trends research. Sometimes the term refers more particularly to the financial analysis of companies. long range forecasting. or sectors. motivation. Advertising research .

Branded marketing research products and services are specialized data collection and analysis procedures developed to address specific types of marketing research problems. conducts an annual survey of consumers that is used to classify persons into homogeneous groups for segmentation purposes. analytical services. These services are also sold on a syndicated basis. Analytical services include designing and pretesting questionnaires. Some complex marketing research projects require knowledge of sophisticated procedures. and transcribing the data on to diskettes or magnetic tapes for input into the computer. Data analysis services are offered by firms. NRC Data Systems provides such services. and marketed like any other branded product. Coding and data entry services include editing completed questionnaires. For example. data analysis. y y y y y y Customized services offer a wide variety of marketing research services customized to suit a client's specific needs. This kind of expertise can be obtained from firms and consultants specializing in analytical services. and firms that specialize in interviewing are called field service organizations. procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established. personal.The Stanford Research Institute. including: y Ad Tracking ± periodic or continuous in-market research to monitor a brand¶s performance using measures such as brand awareness. and other aspects of the research design. The Starch Readership Survey is the most widely used service for evaluating print advertisements. but. many firms now have the capability to analyze their own data. that specialize in computer analysis of quantitative data such as those obtained in large surveys. and product usage. Each marketing research project is treated uniquely. Field services collect data through mail. Services offered by such suppliers are classified as field services. including specialized experimental designs. With the proliferation of software. developing a coding scheme. coding and data entry. 2005) . Some organizations maintain extensive interviewing facilities across the country for interviewing shoppers in malls. Standardized services are research studies conducted for different client firms but in a standard way. Initially most data analysis firms supplied only tabulations (frequency counts) and cross tabulations (frequency counts that describe two or more variables simultaneously). [edit] Types of marketing research Marketing research techniques come in many forms. given brand names. designing sampling plans. also known as tab houses. and analytical techniques such as conjoint analysis and multidimensional scaling. Limited-service suppliers specialize in one or a few phases of the marketing research project. brand preference. on the other hand. or telephone interviewing. The National Purchase Diary panel (NPD) maintains the largest diary panel in the United States. These procedures are patented. These organizations may range from small proprietary organizations which operate locally to large multinational organizations with WATS line interviewing facilities. (Young. determining the best means of collecting data. data analysis firms are still in demand. another well-known service is the Gallup and Robinson Magazine Impact Studies. and branded products.

This method is often used for quality control or for researching competitors' products.a group of individual who accepted to respond to marketing research online Store audit . ( determine what motivates people to buy and what decision-making process they use Copy testing ± predicts in-market performance of an ad before it airs by analyzing audience levels of attention.a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market .what are the key traits that describe the brand promise? Brand name testing .searching for customer opinions in the Internet: assess distributors¶ and retailers¶ attitudes toward a product. music. psychographic.what do consumers associate with the brand? Brand attribute research . and motivate the consumer to purchase the product or service.. as well as breaking down the ad¶s flow of attention and flow of emotion. entertainment. The shopper then records the entire experience. becoming strong "opinion formers" Marketing effectiveness and analytics .what do consumers feel about the names of the products? Commercial eye tracking research .to determine the expected level of sales given the level of demand.examine advertisements. youth culture and lifestyle Buyer decision processes research . or to determine whether a retail store provides adequate service Test marketing . Mystery Consumer or Mystery shopping . brand favorably do consumers view the brand? Brand association research . by analyzing visual behavior of the consumer Concept testing . package designs. Segmentation research . or company Internet strategic intelligence .to determine how sensitive customers are to price changes Sales forecasting . television. Positioning research .An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. web pages.y y y y y y y y y y y y y y y y y y y y y y y Advertising Research ± used to predict copy testing or track the efficacy of advertisements for any medium.what does the brand stand for? Price elasticity testing .to determine the demographic. sales promotion etc. films. p 213) Customer satisfaction research . communicate the determine the approximate level of demand for the product Distribution channel audits . build the brand¶s image. and behavioural characteristics of potential buyers Online panel . With respect to other factors like Advertising expenditure. (Young. measured by the ad¶s ability to get attention (measured with AttentionTracking).quantitative or qualitative studies that yields an understanding of a customer's of satisfaction with a transaction Demand estimation . motivation. brand. and measure the sales of a product or product line at a statistically selected store sample in order to determine market test the acceptance of a concept by target consumers Coolhunting .to make observations and predictions in changes of new or existing cultural trends in areas such as fashion. 2005) Brand equity research ..Building models and measuring results to determine the effectiveness of individual marketing does the target market see the brand relative to competitors? . forums. websites. etc. blogs. where people express freely about their experiences with products.

primary and secondary. [edit] Marketing research methods Methodologically.not generalizable to the whole population statistical significance and confidence not calculated . maximum difference preference scaling. but seldom comes in a form that exactly meets the needs of the researcher. Secondary research costs far less than primary research. and projective techniques Quantitative marketing research . Conclusive research is conducted to draw some conclusion about the problem. A similar distinction exists between exploratory research and conclusive research. All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research. It is essentially.y Viral Marketing Research . a convenience sample of small size can be collected. reviewing literature or books. Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. etc. This is unstructured and qualitative in nature. Exploratory research information is collected by focus group interviews. Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research.generally used for exploratory purposes small number of respondents . if the findings are very hard to interpret for the marketing managers.examples include focus groups. It is conducted on data published previously and usually by someone else.tests a specific hypothesis . There are two main sources of data .involves a large number of respondents examples include surveys and questionnaires. It should draw definitive conclusions only with extreme caution. marketing research uses the following types of research designs:[6] Based on questioning: y y Qualitative marketing research . structured and quantitative research.refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individual's Social Network. Techniques include choice modelling. Secondary research already exists since it has been collected for other purposes.generally used to draw conclusions . discussing with experts. in-depth interviews. If a secondary source of data is unable to serve the purpose. Based on observations: . It is original and collected to solve the problem in hand. Conclusive research draws conclusions: the results of the study can be generalized to the whole population. Exploratory research provides insights into and comprehension of an issue or situation. Primary research is conducted from scratch. and covariance analysis.uses random sampling techniques so as to infer from the sample to the population . Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media. and the output of this research is the input to management information systems (MIS).

Small scale surveys and focus groups are low cost ways to gather information from potential and existing customers. [edit] Marketing research in small businesses and nonprofit organizations Marketing research does not only occur in huge corporations with many employees and a large budget. then manipulates at least one of the variables . by nature quantitative.) is available to the public in libraries or on the internet and can be easily accessed by a small business owner. Experimental techniques -. etc. Below are some steps that could be done by SME (Small Medium Entreprise) to analyze the market [8]: . [edit] Business to business market research Business to business (B2B) research is inevitably more complicated than consumer research. since seldom is it possible to find the answers using just one method.examples include product-use analysis and computer cookie traces. There are four key factors that make B2B market research special and different to consumer markets:[7] y y y y The decision making unit is far more complex in B2B markets than in consumer markets B2B products and their applications are more complex than consumer products B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets Personal relationships are of critical importance in B2B markets. and may not want to participate. Most secondary data (statistics. The researchers need to know what type of multi-faceted approach will answer the objectives. Marketing information can be derived by observing the environment of their location and the competitions location. but not least. the researcher creates a quasi-artificial environment to try to control spurious factors. by nature qualitative. most business research leads to strategic decisions and this means that the business researcher must have expertise in developing strategies that are strongly rooted in the research findings and acceptable to the client. See also Ethnography and Observational techniques. Finding the right respondents is crucial in B2B research since they are often busy.y y Ethnographic studies -. Encouraging them to ³open up´ is yet another skill required of the B2B researcher.observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) . the researcher observes social phenomena in their natural setting . Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client. then conduct a focus group (qualitative research design) to explore the issues. demographics. They may start with secondary research to get background information.examples include purchase laboratories and test markets Researchers often use more than one research design. Last.

[edit] Commonly used marketing research terms Market research techniques resemble those used in political polling and social science research.g. I/O. Why and How)question. Which. Return of Investment. Physical Evidence and also Political & social situation to analyze global market situation). Combine those analysis with the SME's business plan/ business model analysis (e.etc.Promotion. 6. It asks. International Marketing Research relies more on primary data rather than secondary information. Validity refers to the extent to which a measure provides data that captures the meaning of the operationalized construct as defined in the study. Formulating market strategy & also investigating the possibility of partnership/ collaboration (e. This is time consuming and can be confusing. [edit] International Marketing Research plan International Marketing Research follows the same path as domestic research. market size. literacy and access to technology.). but there are a few more problems that may arise. ³Are we measuring what we intended to measure?´ y Applied research sets out to prove a specific hypothesis of value to the clients paying for the research. etc. Financial assumption. Business process. Profiling & SWOT analysis of potential partners. Business description. market share. which is consist of: Place. Cost/Benefit Analysis. Conceptualization means the process of converting vague mental images into definable concepts.etc.etc.) 7.1. market competition (e.g. Operationalization is the process of converting concepts into specific observable behaviors that a researcher can measure. Cashflow. Where. 2. growth. Implement the marketing mix concept.. In this case. current competitor-channel relationship analysis. Analyze market trends. Price. Gathering the primary data can be hindered by language. 5. drivers of customers loyalty and satisfaction. 4. Balance sheet & business Ratio. Revenue model. cultures. Product. and expectations from the same company. B/C Analysis. Who. a cigarette company might commission research that . Business strategy.). Analyze Macro & Micro Economic data (e. For example.g. Sales by sector/industries.). Economic growth. evaluating business partnership. Customers in international markets may have very different customs. Meta-analysis (also called the Schmidt-Hunter technique) refers to a statistical method of combining data from multiple studies or from several types of studies. Determine market segment.interest rate. Projected profit & Loss. When. or mapping identities of key channels. Process. GDP. SWOT analysis. 3. satisfaction levels. CPI. Reliability refers to the likelihood that a given operationalized construct will yield the same results if re-measured. brand perception. Business expansion.Price change. Precision refers to the exactness of any given measure. number of investment/ divestment. Social anlysis.g. Note as important : Overall analysis is should be based on 6W+1H (What. market target. Financial analysis (Company History. Provide secondary and or primary data (if necessary). People. market forecast and market position. secondary information must be collected from each separate country and then combined. Supply & Demand.

Sugging (from "SUG". a firm should keep some basics in mind. should be based on sound information. BBA) is as operational supervisor. analyst. For example. These people are responsible for supervising a well-defined set of operations. [edit] Selecting a research supplier A firm that cannot conduct an entire marketing research project in-house must select an external supplier for one or more phases of the project. data editing. [9] When developing criteria for selecting an outside supplier. Decisions about marketing research suppliers. a small firm that needs one project investigated may find it economically efficient to employ an outside source. a firm should ask itself why it is seeking outside marketing research support. Many researchers have ethical misgivings about doing applied research. but with the real purpose of obtaining buyer motivation and buyer decision-making information to be used in a subsequent sales call. senior analyst. A good practice is to get a written bid or contract before beginning the project. and word of mouth. research director. project manager. The firm should compile a list of prospective suppliers from such sources as trade publications. for selling under the guise of market research) forms a sales technique in which sales people pretend to conduct marketing research.g. including field work. Frugging comprises the practice of soliciting funds under the pretense of being a research organization. Competitive bids should be obtained and compared on the basis of quality as well as price. What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier have? Has the firm had experience with projects similar to this one? Do the supplier's personnel have both technical and nontechnical expertise? In other words. Another entry-level position for BBAs is assistant project manager. professional directories. and coding. junior analyst and operational supervisor. in addition to technical skills.y y attempts to show that cigarettes are good for one's health. statistician/data processing specialist. are the personnel assigned to the task sensitive to the client's needs and do they share the client's research ideology? Can they communicate well with the client? [9] The cheapest bid is not always the best one. When deciding on criteria for selecting an outside supplier. field work director. just like other management decisions.[9] [edit] Careers in marketing research Some of the positions available in marketing research include vice president of marketing research. assistant director of research.. and may be involved in programming and data analysis.[10] The most common entry-level position in marketing research for people with bachelor's degrees (e. An assistant project manager will learn and assist in questionnaire . Or a firm may not have the technical expertise undertake certain phases of a project or political conflict-of-interest issues may determine that a project be conducted by an outside supplier.

however. As these job titles indicate. Take courses in statistics and quantitative methods. Acquire effective written and verbal communication skills. review field instructions. Those with MBA or equivalent degrees are likely to be employed as project managers. Acquire computer skills. usually the marketing research manager. Take courses in psychology and consumer behavior. Technical specialists such as statisticians obviously need strong backgrounds in statistics and data analysis. Other positions. and analyzing primary and secondary data for the purpose of market forecasting.[10] . The junior analyst and the research analyst learn about the particular industry and receive training from a senior staff member. In the marketing research industry.[10] A small number of business schools also offer a more specialized Master of Marketing Research (MMR) degree. comparing and contrasting new research with established norms. The research analyst responsibilities include checking all data for accuracy. To prepare for a career in marketing research. students usually: y y y y y y Take all the marketing courses. and monitor timing and costs of studies. An MMR typically prepares students for a wide range of research methodologies and focuses on learning both in the classroom and the field. Think creatively. call for managing the work of others and require more general skills. people with a variety of backgrounds and skills are needed in marketing research. The typical entry-level position in a business firm would be junior research analyst (for BBAs) or research analyst (for MBAs or MMRs). The junior analyst position includes a training program to prepare individuals for the responsibilities of a research there is a growing preference for people with master's degrees. including coordinating with the marketing department and sales force to develop goals for product exposure. such as research director.