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Marketing Research

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Why Research? Research focuses and organizes information. It ensures that such information is timely and permits leadership to: Reduce business risks Spot current and upcoming problems in the environment Identify growth and development opportunities Develop plans of action Measure satisfaction/dissatisfaction Assess competencies, abilities, and weaknesses Analyze effectiveness gaps and voids Assess impact on stakeholders and their impact on you Benchmark best practices See what the competition is doing

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Defining Problems and Opportunities The research process begins with identifying and defining the problems and opportunities that exist such as: Launching strategic initiatives Low awareness of products and services Low utilization of available resources A poor company image and reputation Confusion about roles and responsibilities Problems with communication flow and information passage Poor quality Customer satisfaction and complaints Cost over-runs Ineffective advertising

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These questions must be asked to devise effective marketing strategies: Who are the major customers and competitors? What kind of people are they? What do they want? What do they need? How have they been treated in the past? By us? By others? Are we offering the kinds of things that are consistent with our strategy and mission? Are our image building programs working? What do employees think of our business? How does our business compare with great companies? If Jimmy cracks corn and no one cares, why did they write a song about it?

Market Research :
Market Research Primary Research First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Instruments must be designed Sampling accuracy is crucial (is there an average customer?) Examples: Descriptive: Survey, Interview, Focus Groups, Experimental: Observation, Beta testing

Market Research :
Market Research Disadvantages of Market Research Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and gut feeling Always a problem that we may never know enough to be sure! Consumers lie Expensive Takes time

Intent of market research :

Intent of market research What results are we looking for? Market potential Market unique characteristics Market share analysis Sales analysis Business trends Product trends Market segmentation and niche markets Features and benefits required for advertising Consumer preferences Price Thresholds - determine pricing models

Critical components :
Critical components Know thy self Know the customer Know the market Know them sneaky competitors Know the industry Know the government Know what you dont know

Targeted research topics :

Targeted research topics Advertising research Motivation research (turn-ons) Ad effectiveness Business Economics and Corporate research Forecasting Business Trends Pricing studies Acquisition/merger research Product research Product acceptance or potential Competitive product studies Testing of existing products Packaging design, etc. Sales and Market research Market potential Market share analysis Market characteristics Sales Analysis Distribution sales channel studies Test marketing/focus groups Promotional research and studies Financial research Turnover and ratio analysis (public companies annual reports)

Competitive research :
Competitive research Direct competition important Indirect competition critically important What to look for.. Map their strategy Differentiate your offering Find pricing advantages Develop barriers to entry How to fill the whole need for customer/consumer Financial stability Market share and focus on new markets where are they going?

Secondary Market research tools :

Secondary Market research tools The internet Competitive research White papers Press releases (statistics) Industry tradeshows Industry databases Industry analysts Internal records (sales, etc) Libraries Government SIC codes/Industry codes Demographics Commercial firms (competitors, partners, like companies) Press releases, conferences, tradeshows AC Nielsen, Dun and Bradstreet Trade, professional and business association publications

Other Decisions driven by market research :

Other Decisions driven by market research Overall company Mission and possibly Vision Product or service positioning Product or service innovations/extensions Investment in marketing at segments of market Understanding of potential distribution channels Branding Credibility Lock in or switching costs

What are you looking for :

What are you looking for Basic understanding, knowledge, facts, trends Markets are uncertain find your niche Technology is complicated find your focus Competitors are moving targets understand them Demographics who, what, when and why Where you fit in the product/service life cycle Introduction of new

idea, growth market, shakeout (M&A opportunity), mature market (commodity) or declining market Who are your target markets? The adoption process Innovators, early adopter, early majority, late majority or laggardsAnswers will effect your WHOLE marketing strategyif you dont understand these concepts and where you fit inenter at your own risk

One of your best research instruments SWOT Analysis :

One of your best research instruments SWOT Analysis Strengths Your competitive strengths (would include barriers to entry) Patents, management team, financial resources, market leader, etc. Weaknesses Your weaknesses (competitor strengths) Funding, branding, lack of partners, etc. Opportunities Market opportunities Logical product extensions, high growth market Threats Competitive threats Microsoft is a competitor Economic, demographic, etc. Baby boom retirement, interest rates, etc.

General starting points for market research :

General starting points for market research Business magazines Business Week Business journals Fast Company General business pubs Wall Street Journal Red Herring Economist Industry trade pubs PC Week Info Week Retail specific Government pubs SIC industry codes Online - Trade publications Library Start asking customers

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Answer These Questions: What do I want to know? What data do I need? Who can provide it? How will I collect it? How will I analyze it? How will I report it? What will I do with it?