Market research

UNDERSTAND MARKET RESEARCH Prepared by Market Directions

Market Research Defined Provides relevant, accurate and timely information which generates evidence about customer behavior, perceptions and personas.  Relevant – what information do we need to make a decision?  Accurate – measures drivers, influencers,-- correct respondents.  Timely -- point in time predicts or supports past and future events.  Information – collect data which addresses issues.

“Market research is the systematic approach to segmenting customers by needs, values, characteristics, demographics and/or product use.”

Organizations need the insight to recognize that different customer segments have different needs and priorities therefore, must be serviced differently.

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Types of Market Research Primary Research –

• Requires the gathering of specific reactions to your product or service. It is information collected for a specific purpose/project. It is used for measurement purposes. It is original and significant.

Secondary Research – •

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Involves a close look at industry trends and information about what your market is doing.

Refers to data that has been previously gathered for a purpose other than your project. It is like doing research in the library for a term-paper.

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Quantitative Research – • Deals with numbers -- statistics and answers questions about how many, how much or how often.

Qualitative Research – • Deals primarily with the feelings and attitudes that drive behaviors.

Cannot be applied to whole population with statistical significance.

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The number of areas market research supports directly with evidence for go-tomarket strategy.

Market Research: Qualitative/Quantitative?

Qualitative Focus Group

On-site

In-depth Interview

On-line Panels

Phone

Mail

On-line

New Product Concept

Great

Great

Great

Great

Poor

Poor

Good

Features & Benefits

Great

Great

Good

Great

Poor

Poor

Good

Brand Awareness

Good

OK

Good

OK

Great

Great

Great

Advertising Effectiveness

Poor

OK

Poor

Great

Great

Great

Great

Copy Testing

Great

Good

Poor

OK

Poor

OK

OK

Demographics

Poor

Poor

Poor

Good

Great

Great

Great

Customer Satisfaction

Poor

Great

Poor

Poor

Great

Great

Great

Customer Loyalty & Retention

Poor

Good

Poor

Good

Great

OK

Good

Media

Great

Great

OK

OK

OK

Poor

OK

Packaging

Great

Great

Good

OK

Poor

OK

OK

Pricing

Good

Good

OK

Good

Great

Good

Good

Behavior

Great

Great

Great

Great

Good

Poor

OK

Public Opinion

Good

Good

Poor

Good

Great

Great

Great

Market Research Project

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Quantitative – Surveys - Census

Market Research Process Understand

Speculate

Reason Interpret

Inquire Who will Buy? How much will they buy?

How much should we charge?

Where should we sell?

How will the product be used?

How do customers perceive value?

How do we reach customers?

What are the market threats?

What are the market opportunities?

Analyze

Measure

Investigate ^to make easier or less difficult, help forward

Debate

Explore

Examine Probe 6

Observe

A systematic progression beginning with questions, curiosity, or speculation* combining cognitive thought and objective analysis, facilitated^ by activities which, conclude with reasoning** and understanding.

*Reasoning based on inconclusive evidence; conjecture or supposition **the mental power concerned with conclusions, judgments or inferences.

Benefits of Market Research Market Directions identifies 16 benefits from implementing market research within an organization?

1. Discovers what your customers want and value

10. Applies universal findings to sample markets and segments

2. Discovers loyalty drivers

11. Enables you to benchmark

3. Discovers competitive position 4. Basis for marketing plans

12. Strengths, Weakness, Opportunities, Threats--relative to competition

5. Gathers evidence in support of actions

13. Avoids cost of bad marketing campaign

6. Keeps marketing plans on track

14. Saves costs by targeting right message to right audience

7. Did we meet our goals?

15. Improves effectiveness of marketing campaigns

8. Were our goals reasonable in relation to market?

9. Do we need to change direction as environment changes?

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16. Is a learning and educational tool?

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Benefits of Marketing Research After hiring an experienced, qualified market research firm you should be able to recognize and understand your customers better, identify market opportunities, make informed (evidential) marketing decisions, formulate business planning and use the data to justify more creative and bolder strategies.

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Research Activities Business/Economic & Corporate Research • Industry/market characteristics • Market share analysis

Product • • • • •

Concept development and testing Brand name generation and testing Test market Packaging design Competitive product studies

Pricing • • • • •

Cost analysis Profit analysis Price elasticity Demand analysis Competitive pricing analysis

Distribution • • • •

Plant/Warehouse Channel performance Channel coverage Export and international

Research Activities Promotion

Motivation Media Copy Advertising effectiveness/testing • Public image • Studies of premiums, coupons, deals, etc.

• • • •

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Buying Behavior • • • • •

Brand preference Brand attitudes Product satisfaction Purchase behavior Brand awareness

People • • • • • •

Customer Service Employee Satisfaction Training Technology Skill Level “Buy In”

Deciding What’s Right for You Consider: • • • • • •

Budget Time-frame Skill set What you already know Interview internal front-line representatives Objectivity- Research Hypothesis • • • •

No preconceived ideas Do not go out to ‘prove’ you are right Open to new information and new insight Ready to implement change

Ask: How will we react if we discover……..?

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Mary Malaszek 617.323.1862 617.669.4037 cell www.marektdirectionsmr.com mary@mktdirections.com

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Understand Market Research