WHAT IS MARKET RESEARCH?

Think of marketing research as a search for information that will help the company succeed in capturing market share.. Marketing research is the systematic gathering, recording and analyzing of data (information facts statistics) about problems relating to the marketing of goods and services. Relevant (important pertinent ) Accurate which means true precise and correct Timely information should be uptodate

Marketing research is the function which links the consumer, customer to the marketer through information these information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor (observe) marketing performance; and improve our understanding of marketing as a process. The definition is easier to comprehend if the four ways research can be used are explained individually:

1. Identify and dene marketing opportunities and problems means using research to explore the opportunities and threats in the external environment. Opport and threats that the company can face in the external envir.. 2. Generate, rene and evaluate marketing actions means using research to determine whether the company is meeting consumer needs.Are they offering the kinds of goods or services at the best place, at the best time with an affordable price ? 3. Monitor marketing performance means using research to conrm whether the company is meeting the goals and targets it has set already . 4. Understanding marketing as a process means using research to learn to market more effectively What is the purpose of Marketing Research? To link the consumer to the marketer by providing information that can be used in making effective marketing decisions It permits entrepreneurs to: Spot current and upcoming problems in the current market Reduce business risks Identify sales opportunities Develop plans of action Types of Marketing Research There are different types of Marketing Research and each type has its place in attempting to answer questions and meet the needs of an organization. Marketing research can be broken down many ways. One of the most common is to group research into quantitative versus qualitative methodology. Qualitative Research Qualitative research is usually exploratory in nature and is useful for uncovering insights into research questions that may not be well defined or no previous research has been done in the area. Methodologies include focus groups, in-depth one-on-one interviews, observation, etc. Qualitative research is defined by: Smaller sample sizes (i.e. < 30 respondents)

 Non-random sample (i.e. respondents chosen based on their willingness to attend) Longer interviews in order to uncover and explore attitudes and perceptions Results are not projectable to any group or population For example, lets assume that research conducted on behalf or the beef industry has shown that consumers rate enjoyment higher than either convenience or nutrition when deciding which protein to choose for in-home dinners. In order to gain an understanding of exactly what enjoyment means to consumers, a focus group methodology is chosen. Typically, this consists of recruiting 10-12 respondents who will attend a session at a central location. A moderator will facilitate these sessions using a moderators guide thathas been developed in order to guide these respondents into the topics that need to be addressed. The session may last one to two hours or more and these sessions are typically video- or audio-taped. The final deliverable is report summarizing the findings of the session with sample verbatims that give a flavor respondents answers to specific topics or questions. Quantitative Research Quantitative research is used when there may already be a body of knowledge about the questions or topics of study. Methodologies include telephone, mail, internet or in-person surveys. Quantitative research is defined by: Larger sample sizes (i.e. 100 respondents or more) Random sample (i.e. each respondent has an equal chance of being selected) Structured/formalize/closed-ended survey design Interviews may be as short as a few minutes, or much longer Results are projectable to a group or population

primary Research primary, research is where one client bears the total cost of the research and all of the research findings are proprietary to that client. Advantages of this type of research are the proprietary nature of the findings and the ability to customize the questionnaire in order to get the exact findings wanted. The main disadvantage of this type of research is the cost. Secondary Research Secondary research may include research that has been widely published and freely available or reports from industry source available for a fee. Research results may be gathered from multiple sources and the final report is then offered for sale to interested parties.

Numbers Methods : survey mail questionnaires most effective method Qualitative Requires very highly skilled people Interview focus groups 6-12 number limited max 1h round table One lead the discussion Open ended interview 1-10 as many questions as possible

Market research is the study of markets (or groups of people) you would like to sell your product to. In other words, it is learning about your customers. Who are they? What do they want or need? What are their lifestyles? These are the types of questions you will need to ask yourself when you begin any marketing research project. When you set up your marketing plan, you had a customer base in mind. Is this who is actually buying your product? You can learn a lot about who your real customers are and what untapped markets you may have available from market research. Market research offers many benefits to your business, but should not be undertaken lightly. Look at what you canlearn from Market Research and consider carefully what you need to know before you undertake the Market Research Process One of the most effective ways to learn about your customer is to visualize what they may actually look like. Are they young or old? How are they dressed? Are they single or married? Where do they work? What do they do? Try to imagine what their priorities might be in relation to your product or service. For example, some people pay 5 cents more per gallon of gas because the gas station is conveniently located and therefore saves them time. It is important to think like a customer. Look at your product from their point-of-view. Once you have an idea of who your customer is, you need to determine their Customer Characteristics. This step helps you define more specifically your market and what they are like. Although many types of people may be interested in your product or service, you must now narrow it down and determine who the majority of your customers will be. We will call this group your Primary Market. Your Primary Market will often have similar interests, tastes, needs, income levels, and occupations. This group will provide the majority of profits for your business. Your Secondary Market will consist of the next highest buying group with similar interests and needs. Tabulating the group descriptions gives you a good picture of who your target market is. Once you have an idea of who your primary customers are, you need to go directly to the source to find out what your customers buying habits really are. There are a number of types of Market Research that you can use, each with their costs and benefits. What tools you eventually use should be considered in light of your resources and needs. While detailed information can be of interest, it can also be costly. Make certain you have weighed thebenefits of the methods you have chosen with care before embarking on a market research project. Market research is something every business should use even if it is only a modest effort. The information gained will give you valuable information that will help you provide an excellent product that is well received by potential customers.

Qualitative: Gathering descriptive information, usually representing verbal or narrative data through open-ended interviews or focus groups. Open-ended interviews are composed of questions that can not be answered with a simple yes or no. This type of interview gives you a lot of information, but is time consuming for both you and the person you are interviewing. The greatest benefit to you is that you will learn a lot about the group you are studying including common trends, emotional motivators, and general likes and dislikes of your primary market. Focus groups should be lead by professionals skilled in leading small groups of 6 to 12 people through a series of questions ranging from specific to general in nature. Usually, focus group sessions last for at least an hour. Since focus groups must be lead by trained professionals to be most effective, they are the most expensive form of market research. Quantitative: Gathering numerical information that can be analyzed statistically through surveys. Surveys take longer to develop, but are generally easier to administer than other types of market research. Since they take less time to complete, people are usually more willing to answer them. Also, surveys provide excellent information if they are well-constructed with thoughtful questions. The easiest and most cost effective way to conduct surveys is either by telephone or where the product is sold.

Qualitative market research seeks information about the opinions and behaviors of the subjects in the market of interest. Qualtitative research is conducted to:

Obtain helpful background information on a market segment Explore concepts and positioning of a business or product Identify attitudes, opinions and behavior shared by a target market Prioritize variables for further study Fully define problems Provide direction for the development of questionnaires

The most common qualitative research techniques are:

Personal Interviews, which:

Are conducted on a one-on-one basis Use an unstructured survey Use open-ended questions Have extensive probing questions

Are usually recorded on audio tape Are nterviews typically lasting at least one hour Have a small sample size Focus Groups, which:

Are groups of 8-12 people Are led by a moderator who follows a script Are audio or video recorded Have meetings lasting from 1-2 hours Have a minimum of two groups scheduled per target market Factors the group dynamics into the data collection

Quantitative research gathers statistically valid market information. Some common uses for quantitative research are to:

Substantiate a hypothesis or prove a theory Minimize risk Obtain reliable samples for projecting trends

Some of the most common quantitative techniques are:

Personal Surveys Advantages: Interviewer can observe reactions, probe and clarify answers Usually nets a high percentage of completed surveys Flexibility of location and time for gathering information Interviewer can use visual displays Allows for good sampling control Disadvantages:

Costly Time consuming May contain interviewer biases Telephone Surveys

Advantages:

Fast Lower cost than personal surveys Small response bias Wide geographic reach compared to personal surveys

Disadvantages: Survey length is limited. Difficult to reach busy people. Difficult to discuss certain topics. Can be expensive compared to mail surveys. Mail Surveys

Advantages: Wide distribution and low cost Interviewer bias is eliminated Anonymity of respondents Respondent can answer at leisure Disadvantages:

Accurate lists are not always available. Response is not necessarily representative of the target population. Limited to length of survey. Not timely. Clarifying and probing of answers is not possible. Question order bias. Unable to guarantee a specific total sample.

Brands and branding

Whats a brand? = the name given to a product or group of products so that it can be easily recognized. Professional marketers should be able to: Create, Maintain, Protect and to Enhance brands. A brand is the combination of: a- Awareness, familiarity and recognition: how many people know the brand? b- Promise: what people expect from a brand (what they want to find in a brand, how they want it to be ) c- Preference: when consumers like one band more than another. d- Image: what people think about the brand, how they see it.

e- Equity: the value of a brand to its owners. The main factors of building a successful brand: 1- Quality: [what we expect from a product] Higher quality = higher profitability = higher market share. 2- Positioning: the position of the brand in the mind of the consumer [it is built on the brands image, name, service, packaging, guarantee] 3- Repositioning: Due to competition. [New brands are born in the same market so you have to reposition your brand so keep your clients.] 4- Communications: Promotional mix [Advertising, publicity, exhibition, personal sale, direct marketing] 5- First move advantage: the company has a clear positioning because it was the first one to enter the market. 6- Long term perspective: the profit earned in a short period of time should be invested into the long time perspective. 7- Internal marketing: its the marketing inside a company, to motivate, to empower and to reinforce the employees behaviors.

GLOBAL BRANDS
Indirect export: relies on agents (exclusive agents, each one has his own sales area) Direct export: relies on an export manager Licensing agreement: with another company in another country to produce and market your product [product under license] Joint venture: the other company is treated as an equal partner Direct investment: the construction of factories in the other country