Market Directions

Presents

Understanding
Market Research
 Market Research Objective
Critical Part of Marketing to Improve Management Decisions

 Provides relevant, accurate and timely information which generates

evidence about customer behavior.

 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.
The principal barrier to building customer satisfaction and value is an inability to
recognize that different customer segments have different needs and priorities
therefore, must be serviced differently.
Market Research Process
A systematic progression
combining cognitive thought
and objective analysis
facilitated^ by  activities which,
conclude with reasoning and
understanding or customers and
markets.
 
  
^to make easier or less difficult, help forward
 
*Reasoning based on inconclusive evidence;
conjecture or supposition  
**the mental power concerned with conclusions,
judgments or inferences.   
 
 Benefits of Market Research
Market Directions identified 16 benefits due to implementing market research within an
organization? Can you add to these benefits? Do you agree or disagree with any on our list?

1. Discovers what your customers want 10. Enables you to benchmark

and value  Strengths
2. Discovers loyalty drivers  Weakness
3. Discovers customer satisfaction levels  Opportunities
4. Discovers market opportunities and  Threats -- relative to competition
niche segments 11. Avoids cost of bad marketing campaign
 uncovers desires for product innovation 12. Saves costs by targeting right message
matched to emerging market needs to right audience
5. Discovers acceptable price points 13. Improves effectiveness of marketing
6. Builds customer relationships campaigns
 Provides a venue for actionable 14. Identifies customer experiences that
feedback increase loyalty, retention and lifetime
7. Supports Sales value.
 Generates Leads 15. Applies universal findings to sample
 implications of marketing actions markets and market segments
8. Keeps marketing plans on track  a forecasting tool that can
 Did we meet our goals? ‘predict’/model future behavior/actions
 Were our goals reasonable in relation 16. Is a learning and educational tool
to market?  value--- priceless
9. Identifies Competitive Position
 Successful Market Research
► Discovers
 what you don’t know about your
customers or prospects
 shifts in the market place--- trends
 shifts in consumer values
 a firm’s strengths, weaknesses,
opportunities and threats in
relationship to competition
 intentions of competitors
 stimuli that influences behavior or
action
 satisfiers and dissatisfiers
 conscious decision making
 customer similarities and differences
► Implicates
 memorable experiences
 demand for products or services that
do not yet exist
 your best customers
 new prospects
 new markets
 future reactions based on past
behavior
 unconscious processes
 customer expectations
 customer and marketer bias
 marketing actions
 marketing performance
 Market Research Instruments

 Should probe and ask direct  Include:

questions to determine:  Surveys
 Attitudes ► on-line, telephone, mail
► emotions, feelings and expectations  Interviews
 Images ► one on one, telephone
► the mental picture developed -- metaphors  Observations
-- associations ► in customer environment
 Decisions  Focus Groups
►what are the influencers? ► formal or informal
► on-line panels
 Behavior
►what actions are taken?  Databases
► database mining
 Demographics – ► lists, directories
►indicating the make-up, who, what,
 Internal Environment
where, etc.
► SWOT Analysis
 Go beyond first impressions Strengths, Weaknesses, Opportunities, Threats
 Applying Data Implications

► Data from a larger universe will help determine:

 Benchmarks
► How do we compare?
 Your position in the mind of the customer relative to the competition
 Market Size
 Market Potential
 Profiles
 Reasonable Goals and Objectives
► What do we need to do?
 Forecasts
 Trends
 Differences and Similarities
After hiring Market Directions’, an experienced, qualified market research firm and implementing our research
plan, YOU will be able to understand your customers better, identify market opportunities, make
informed marketing decisions, formulate business planning and use the data to justify more creative and
bolder business decisions.
 Benefits of Market Research
► Discovers what your customers want and value.
► Discovers loyalty drivers.
► Discovers competitive position.
► Basis for implications of marketing actions.
► Keeps marketing plans on track.
 Did we meet our goals?
 Were our goals reasonable in relation to market?
► Is a learning and educational tool.
► Applies universal findings to sample markets and market segments.
► Enables you to benchmark.
 Strengths, Weakness, Opportunities, Threats relative to competition
► Avoids cost of bad marketing campaign.
 Saves costs by targeting right message to right audience.
► Improves effectiveness of marketing campaigns.