Criteria for Effective Segmentation

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Criteria for Effective Segmentation
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Hondas Segments
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Chapter 7Marketing Research
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Marketing Research

• Marketing research the process of collecting and
  using information for marketing decision-making

What is Marketing Research?
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MR Examples

• Minute Maid
• Sears Goodyear
• Ford Motor Company
• Food Marketing Institute Retail Studies
• Capital One
• Victorias Secret

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The Importance of Marketing Research

• Helps a Firm Better
• Determine the feasibility of its strategies.
• Three roles of MR
• Descriptive
• Diagnostic
• Predictive

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The Marketing Research Process
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THE MARKETING RESEARCH FUNCTION
Who conducts marketing research?
Syndicated Services
A.C. Nielsens
Full-Service Research Suppliers
Limited-Service Research Suppliers
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Primary Research

• Information that is collected to answer a
  specific research question
• Advantages
• Current
• Specific
• Control
• Confidentiality
• Disadvantages
• Expensive
• Data quality??

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Secondary Data

• Data previously collected for any purpose other
  than the one at hand.

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I. Define the problem

• Objectives Vs. problems
• Problem or Symptom?

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What can be learned from this exercise?

• The loss of market share meant something was
  wrong -- but what was it?????

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II. Research Design -- Types of Research

• What is a Research Design?
• Exploratory
• Descriptive
• Causal

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Formulate a hypothesis

• Hypothesis - conjectural statement

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Conducting Exploratory Research

• What is Exploratory Research?
• Seeking insight into the general nature of the
  problem
• Qualitative Research Observation, Mystery
  shopping, Focus groups, In-depth interviewing,
  Garbology.

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Descriptive Studies

• Description of the environment
• Who, When, What, How, Why?
• Surveys

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Surveys

• The most popular technique for gathering primary
  data in which a researcher interacts with people
  to obtain facts, opinions, and attitudes.

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Causal Studies

• Does one variable cause another?
• Experiment
• Test markets

A (Cause) ? B(Effect) Independent ? Dependent
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What is this type of research?

• Who are our users?
• Will an increase in service staff help
  profitability?
• What is the demographic profile of our target
  market?

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What is this type of research?

• What are the reasons for falling sales?
• Will a change in price improve loyalty?

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III. Sampling Procedure

• Sampling Process
• Population Total Group (Census)
• Sample

Population Size vs. Sample Size
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Types of Sampling

• Probability every member has a known, nonzero
  chance
• Random sampling
• Non-probability
• Convenience sampling
• Snowball sampling
• Judgment sampling
• www.cnn.com
• . www.cnn.com

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Margin of Error

• Lets say Product A is liked by 50
• Product B is liked by 47
• ME is plus/ minus 5

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Exploratory Research Techniques

• Focus groups
• Depth Interview
• Projective techniques
• Observation / Garbology
• ZMET Zaltman Metaphoric Elicitation Technique

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Focus Groups

• 8 12 individuals
• One hour.
• Good for concept testing, probing motivations

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Projective Techniques

• Psychological techniques that reveal underlying
  motivations

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Observation

• Observation
• Garbology

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Descriptive Survey Methods

• Personal Interviews
• Mail Survey
• Telephone Survey
• Web/Email Surveys

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Collecting Primary Data
Mail and Personal Online
Telephone Interview
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Collecting Primary Data
Survey Methods
Mail and Personal Online
Telephone Interview
Sampling and Respondents Cooperation
List Difficulty Nonresponse E-mail Requirement
Not-at-home Problem
Sample Limited Technology Issues
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Experiments

• To ascertain cause and effect

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IV. Collecting the Data

• Questionnaire
• Questionnaire Construction
• Open-Ended Question
• Dichotomous Question
• Multiple-Choice Question
• Likert Scaling

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Likert Scale
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Interpreting Research Findings

• Statistical Inference
• Generalization