1. 2. 3. 4. 5. Objectives: Market research, product research, price research, sales promotion research and distribution research A wide variety of procedures used in marketing research The requirements for and benefits of market segmentation Geographic, demographic and psychographics segmentation The value of marketing information system 1
MARKETING RESEARCH AND MARKET SEGMENTATION
• Marketing research is defined as the investigation of factors related to the marketing activities of a company. Marketing research aims to reduce risk by providing information about the factors involved and possible outcomes of particular actions. Market research involves gathering information about the market for particular product or service (consumer attitudes, existing product usage etc.) Marketing research is systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services (effects of pricing, advertising and other marketing activities)
TYPES OF MARKETING RESEARCH
1. 2. Market research (market potential, demand and sales forecasting, market trends, market characteristics, market shares) Product research (customer acceptance, comparison between competitive products, package, design, new users, development of product range) Price research (elasticities of demand, cost analysis, credit policy, customer perception of price) Sales promotion research (effectiveness of advertising, sales people) Distribution research (location and design of distribution centres, packaging for transportation and shelving, dealer supply/advertising requirements, cost of different methods of transportation and warehousing) 3
3. 4. 5.
PRODUCT AND MARKET RESEARCH
• Product research is concerned with assessing and analysing the product itself, whether new, improved or already on the market, and customer reactions to it. New ideas are accepted/rejected according to the: profit potential, cost/risk, compliance with company objectives, availability of resources. Product research may examine: product form and attributes in relation to consumer tastes and needs; competitive products and existing products in the company portfolio. Market research information can be collected directly (sample market results or questionnaires) or from secondary sources (internal – past sales; external – Nielsen Index) Market research comprises the assessment of environmental factors, outside the organisation’s control, which will affect the demand for its product/services.
MARKETING RESEARCH PROCEDURE: SECONDARY DATA
• 1. 2. 3. 4. 5. • Marketing research involves the following five stages: Definition of the problem Design of the research Collection of the data Analysis of the data Presentation of a report Secondary data is data neither collected directly by the user nor specifically for the user, often under conditions that are now well known to the user. The collection of secondary data for marketing research is known as desk research. Desk research involves collecting data from internal and external sources (records inside the firm – production, inventory, sales volume, marketing, financial management; published information from external sources – publications of market research agencies, government statistics, publications of trade associations, professional journals). 5
MARKETING RESEARCH PROCEDURE: PRIMARY DATA
• The collection of primary data is sometimes known as field research. Techniques include: experimentation, observation, sampling, consumer panels, trade audits (retail audits), pre-tests, interviewing, questionnaires, post-tests, attitude scales and methods of analysis. Sampling – survey of the large total number of consumers will necessarily involve the selection of an appropriate sample from the total population, for reasons of practicality and cost effectiveness. Surveying a total population is only feasible...