3.

Types of marketing research

a. Market/customer research

b. Product, price, promotion research

c. Channel research
-Roles of Marketing Channels
d. Sales research
e. Advertising research
f. Policy Research
4. Information collected through market research
a. Size of current market

b. Size of potential market

c. Growth rate
d. Consumer demographics
 e. Consumer tastes and preferences
Consumer preferences are expectations, likes, dislikes, motivations and inclinations
that drive a customer to purchase specific products.

Why Customer Preference is Critical for Marketers

A family may choose a restaurant because they love a particular type of food that it
serves. A shopper purchases an item from a clothing store because of the color
choices–or the sale price tags. One news junkie may prefer The New York Times in
digital form rather than the traditional paper.

That means you can use the knowledge about the likes and dislikes of your target
consumer to tailor your brand and products to be more appealing. PossibleNOW’s
technology and services can help you collect and react to your customers’ preferences.

Business leaders continuously perform consumer research to identify changes in

customer expectations. By staying updated on changing tastes and preferences, you
can develop marketing campaigns and products that resonate with your company’s
target market and help your brand stand out from the competition.

Why is Consumer Preference Important?

Knowing consumer preference equips you to achieve:

4. Guaranteed Customer Satisfaction: You are in a better position to deliver

consistent customer satisfaction when you know what your customers want.
5. Effective Marketing Strategies: Knowing consumer expectations provides useful
information for crafting and executing campaigns that appeal to your target
market.
6. Improved Brand Image: Attract more consumers by modifying your brand’s look
and operation to match the desires of your customers.
7. Customer Loyalty: Providing the best possible customer experience guarantees
you more repeat customers.
f. Consumer satisfaction
Customer satisfaction (CSAT) is a measure of how well a company’s products,
services, and overall customer experience meet customer expectations. It reflects your
business’ health by showing how well your products or services resonate with buyers.
Customer satisfaction is important because it illustrates whether your customer base likes what
you’re doing. Research shows that high satisfaction leads to greater customer retention, higher
lifetime value, and a stronger brand reputation.
Low customer satisfaction scores are important, too. They can reveal customer pain points and
provide data-backed insights on how to improve your product, service, and overall customer
experience.

When you take a data-centric approach to customer satisfaction, you can:

 Save an unhappy customer from leaving your brand for a competitor.

 Discover customer pain points and learn how to improve your product, service, or
overall customer experience.
 Drive repeat purchases by ensuring customer happiness.
 Monitor and improve brand reputation by discovering how likely customers are to
recommend your company to a friend.
 Build customer trust by showing customers that their feedback matters.
How to measure customer satisfaction: 4 key metrics 

1. CSAT surveys
CSAT surveys are typically one- to two-question surveys offered at the end of a
business transaction. A classic question is, “How satisfied are you with the product?”
with answers ranging from “very satisfied” to “very unsatisfied.”
2. Net Promoter Score® (NPS) surveys
The goal of a Net Promoter Score® (NPS) survey is to determine whether customers
are promoters, detractors, or passives. To measure this, send a survey asking
customers how likely they are to promote your brand on a 1-to-10 scale.
3. Customer service data
Collect customer service data around specific features on your site, resolution times,
and support requests. If you’re seeing an increase in tickets around a particular task, for
example, that’s a sure sign that something needs fixing.
4. Quantitative customer satisfaction metrics
To understand customer satisfaction from every angle, perform both qualitative and
quantitative research.

g. Consumer expectations
CONSUMER EXPECTATIONS
Consumer Expectations are a set of ideas about a product, service, or brand that
consumers anticipate or hold in their minds.

HOW DO CONSUMER EXPECTATIONS FORM?

*Customer experience
A previous experience with the brand and services can influence current
customer expectations.
*Idea of reputation
It is built up through the idea of the word of mouth recommendations from
family, relatives, and friends.
 a. You can’t achieve success in business without winning over your target
audience, which is why understanding customer expectations is so
important. – Henry Ford
h. Consumer buying behavior
WHAT IS CONSUMER BUYER BEHAVIOR?
Consumer buying behavior is a set of actions, steps, or processes followed by
consumers in a marketplace before (and after) buying a product or a service.
Consumer Buying Behaviour Process
1. Problem recognition
During this stage, the consumer becomes aware of an
unfulfilled need or want.
2. Information search
The consumer gathers information relevant to solving
his problem.
3. Evaluation
The various alternatives are evaluated against the
consumer’s wants needs, preferences, financial
resources etc.
4. Purchase
In this stage, the consumer will commit to a particular choice and make the final
decision. The choice maybe influenced by price and availability.
5. Post purchase evaluation
In this stage, the consumer evaluates whether the purchase actually satisfied her
need or not.

i. Price sensitivity
WHAT IS PRICE SENSITIVITY?
Price sensitivity - is the degree to which the price of a product affects consumers'
purchasing behaviors. Generally speaking, it's how demand changes with the
change in the cost of products.
Price sensitivity is commonly measured using the price elasticity of demand, which
states that some consumers won't pay more if a lower-priced option is available.
This concept determines the variation between the product's demand and the price
change. It shows the change in the demand with a variation in the price of the
product. The quantity demanded could increase, decrease, or remain stable with a
change in the cost of the particular article.

HOW TO CALCULATE PRICE SENSITIVITY?

The formula for calculating Price Elasticity is generally used to calculate Price Sensitivity
and is mentioned as follows:
Price Sensitivity Formula = % Change in Quantity / % Change in Price
Here,
1. Change in Quantity - denotes the alteration in purchased quantity by the buyer.
2. Change in Price - means the increase/decrease in the price of the same product
compared to its earlier price.

Why it is important?
It is an essential measure in deriving the product or service prices and
understanding consumer behavior in the market. It is a crucial tool to judge
the value required by the customer and the pricing of the product by the
company. So it doesn’t hurt either party. 

j. Internal and external marketing environment

What Is Marketing Environment? - Marketing environment is the combination of
external and internal factors and forces that affect the company’s ability to establish a
relationship and serve its customers. Internal Marketing Environment - The internal
environment of the business includes all the forces and factors inside the organization
which affect its marketing operations. Five M's of the Business: • Men: The people of
the organization including both skilled and unskilled workers. • Minutes: Time taken for
the processes of the business to complete. • Machinery: Equipment required by the
business to facilitate or complete the processes. • Materials: The factors of production
or supplies required by the business to complete the processes or production. • Money:
Money is the financial resource used to purchase machinery, materials, and pay the
employees. External Marketing Environment - The external environment constitutes
factors and forces which are external to the business and on which the marketer has
little or no control. 2 types of external marketing environment: • Micro Environment -
The micro-component of the external environment is also known as the task
 environment. • Macro Environment - The macro component of the marketing
environment is also known as the broad environment.
k. SWOT of the firm and its competitors
SWOT of the firm and its competitors - SWOT analysis is a tool that can assist you in
identifying the current strengths of your business and developing a winning future
strategy. SWOT can also reveal business areas that are restricting your growth or that, if
left unchecked, your competitors may exploit.
Helpful strategies by generating a SWOT analysis that makes up of your business
planning:
• better understand your business
• identify areas of the business that need improving
• decide if you should introduce a new product or service
• understand your market and competitors
• predict changes you will need to deal with to ensure your business is successful.
l. Market demand
Market demand - Market demand is the precise amount of a good or service that customers can afford
to and desire to purchase at the stated cost of that good or service.

Why is market demand important? - Market demand is important to consider when releasing a new
product or service because it allows companies to address consumers' needs.

7 Types of Market Demand:

• Negative demand - Economic experts define negative demand as the event in which a product does
not perform as the business expects and instead is not a product or service that customers either need
or can afford.

• Unwholesome demand - Unwholesome demand is when consumers desire and can afford the product,
but it is a product that may harm consumers. Businesses can help protect customers by educating
consumers on how to enjoy their products safely.

• Non-existing demand - Non-existing demand is a phenomenon where consumers do not purchase any
of a certain product. This can result from consumers' limited budgets or fulfillment of other products.

• Latent demand - Latent demand is a special situation in which consumers need a type of product but it
does not yet exist in the marketplace.

• Declining demand - Declining demand is when consumers' desire or requirement for a product reduces
steadily over time. Businesses can manage this type of demand by improving the products and staying
current with trends within their market.

• Irregular demand - Economic experts define irregular demand as the fluctuation of a consumer's ability
to purchase a product or service or their need for a product or service.

• Full demand - Full demand is the perfect scenario for businesses where their supply is equal to the
demand. This means that consumers are buying products or services at the same rate that the product
or service is available.
5. Developing information for market research/techniques of
market research- Data needed for market
research/demographics

References:
Collection of primary data
 i. Survey

ii. Questionnaire
A questionnaire is a research tool featuring a series of questions used to collect
useful information from respondents. These instruments include either written
or oral questions and comprise an interview-style format.

iii. Interview
iv. Observation

v. Experiment
Schedules – disregard this

Gathering of secondary data

Sources: -Public records

-Government publications -Historical documents

-Trade journals -Unpublished documentaries, and biographies

-Internal records

-Yearly business reports