MARKETING

RESEARCH
Marketing Research
 Marketing research is the systematic gathering,
recording and analyzing of data about problems
relating to the marketing of goods and services.

 Market research will give you the data you need to

identify and reach your target market at a price
customers are willing to pay.
 Marketing research focuses and organizes
marketing information. It permits entrepreneurs to:
 Spot current and upcoming problems in the current
market
 Reduce business risks
 Identify sales opportunities
 Develop plans of action
Market Research
 Successful marketing requires timely and relevant
market information.
 An inexpensive research program, based on
questionnaires given to current or prospective
customers, can uncover dissatisfaction or possible
new products or services.
 Marketing research is not a perfect science. It deals
with people and their constantly changing feelings
and behaviors, which are influenced by countless
subjective factors.

 To conduct marketing research, you must gather

facts and opinions in an orderly, objective way to
find out what people want to buy, not just what you
want to sell them.
 Market research will identify trends that affect
sales and profitability.
 Population shifts
 Legal developments
 The local economic situation should be monitored to
quickly identify problems and opportunities

 Keeping up with competitors' market strategies also

is important.
 Why do market research?
 People will not buy products or services they do not
want.
 Learning what customers want and how to present it
drives the need for marketing research.
 Small business has an edge over larger businesses in this
regard.
 Small business owners have a sense of their customers'
needs from years of experience, but this informal
information may not be timely or relevant to the current
market.
Scope of Marketing Research

Market
Market Information about the
Analysis
Analysis marketplace.

Product
Product Information about how
Research
Research people perceive products.

Consumer
Information about the
Consumer
Analysis
Analysis
needs and motivations of
consumers.
Types of Market Research

By Source By Methodology By Objectives

- Primary - Qualitative - Exploratory

- Secondary - Quantitative - Descriptive
- Causal
(or experimental)
Types of Market Research: By Source

Primary Collection of data specifically for the problem or

project in hand
Secondary Based on data previously collected for purposes
other than the research in hand (e.g. published
articles, government stats, etc)
 Types of Market Research: By Methodology

Qualitative Quantitative
Type of Question Probing Simple
Sample Size Small Large
Information per respondent High Low(ish)
Questioner’s skill High Low(ish)
Analyst’s skill High High
Type of analysis Subjective, Objective,
Interpretative Statistical
Ability to replicate Low High
Areas probed Attitudes Choices
Feelings Frequency
Motivations Demographics
 Types of Market Research: By Objective

• Exploratory Preliminary data needed to develop an idea

further. Eg outline concepts, gather insights,
formulate hypotheses

• Descriptive Describe an element of an idea precisely. Eg

who is the target market, how large is it, how
will it develop
• Causal Test a cause and effect relationship, e.g. price
elasticity. Done through experiment
 The Market Research Process

1. Defining the 2. Developing 3. Collecting 4. Analysing 5. Presenting

problem and the research the the the findings
objectives plan information information

Steps
Distinguish between Decide on Information is Statistical Overall conclusions
the research type - budget collected manipulation of to be presented
needed e.g. according to the data rather than
- data sources
the plan (N.B. collected (e.g. overwhelming
- exploratory - research regression) or
approaches it is often done statistical
- descriptive subjective
by external methodologies
- causal - research analysis of focus
instruments firms)
groups
- sampling plan
- contact methods

Comments
If a problem is The plan needs This phase is Significant Can take various
vaguely defined, to be decided the most costly difference in forms:
the results can upfront but and the most type of analysis - oral presentation
have little flexible enough liable to error according to
- written conclusions
bearing on the to incorporate whether market supported by analysis
key issues changes/ research is
iterations quantitative or - data tables
qualitative
 Coca Cola Failure: Chronology

May 1985 Old Coke withdrawn

New Coke introduced
July Old Coke reintroduced as Coke Classic
Coca Cola Failure: Background and Research

- Early 80s, share losses to Pepsi

- New Product research carried out
• $4m cost
• 200,000 taste tests
• 60% of consumers preferred it in blind tests
- BUT research was narrowly defined
• considered taste not emotions
• dropping Old Coke not mentioned
U.S. Reaction to Old Coke’s Return

Political Senator David Prior of Arkansas on the

Senate Floor:
“A very meaningful moment in the history
of America, this shows that some
national institutions cannot be changed”
Media ABC interrupted its soap opera, General
Hospital on Wednesday afternoon to
break the news
Economic Coca Cola’s share price rose to its
highest level in 12 years