Dr Mairead Brady,

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SETTING OUT TO MARKET
Dr Mairead Brady, School of Business, Trinity
College Dublin March 2008
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What is Market Research?

• Market research is the process of systematically
  gathering, recording and analyzing data and
  information about customers, competitors and the
  market. Its can help create a business plan,
  launch a new product or service, fine tune
  existing products and services, and expand into
  new markets. Market research can be used to
  determine which segment of the population will
  purchase a product/service, based on variables
  like age, gender, location, income level and
  lifestyle.

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Questions that need to be answered

• What is happening in the market? What are the
  trends? Who are the competitors?
• How do consumers or businesses talk about the
  services or products in the market?
• Which needs are important? Are the needs being
  met by current products or services?
• Is there a gap in the market and a market in the
  gap?

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Market Research

• Marketing is becoming a battle based more on
  information than on sales power.

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Marketing decisions draw on Marketing Research
STP

• Segmentation Decisions
• Which segment should we target?
• What benefits are most important to each segment?
• Which geographic area should we enter?
• What is the profile of our target market

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Age and Lifestyle
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Geographic
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Gender Segmentation
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Positioning Contradiction - NIKE
FASHIONABLE STYLE
contradiction
Trendy authentic sportswear
norm
HIGH PERFORMANCE FOOTWEAR
CASUAL DAY/ NIGHT WEAR
norm
contradiction
BASIC STYLE
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Brand Strength - Matrix ?
High Head
High Heart
Low Heart
Low Head
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Combining Marketing Research and the Marketing
Information System
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The Components of a Modern Marketing Information
System

• Marketing Information System (MIS)
• 10 useful questions for determining the
  information needs of marketing managers.
• What decisions do you regularly make?
• What information do you need to make these
  decisions?
• What information do you regularly get?
• What special studies do you periodically request?

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The Components of a Modern Marketing Information
System

• What information would you want that you are not
  getting now?
• What information would you want daily? Weekly?
  Monthly? Yearly?
• What magazines and trade reports would you like
  to see on a regular basis?
• What topics would you like to be kept informed
  of?
• What data analysis programs would you want?
• What are the four most helpful improvements that
  could be made in the present marketing
  information system?

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Forecasting and Market Demand Measurement
Ninety Types of Demand Measurement (6X5X3)
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Forecasting and Demand Measurement

• Which Market to Measure?
• Market
• Potential market
• Available market
• Target market (severed market)
• Penetrated market
• A Vocabulary for Demand Measurement
• Market Demand
• Market share
• Market penetration index
• Share penetration index

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Forecasting and Demand Measurement
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Forecasting and Demand Measurement

• Market Forecast
• Market Potential
• Product penetration
• percentage
• Company Demand
• Company Sales
• Forecast
• Sales quota
• Sales budget
• Company Sales Potential

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Forecasting and Demand Measurement

• Estimating Current demand
• Total Market Potential
• Area Market Potential
• Market-Buildup Method
• Industry Sales and Market Shares
• Estimating Future Demand
• Survey of Buyers Intentions
• Forecasting
• Purchase probability scale

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Forecasting and Demand Measurement

• Composite of Sales Force Opinions
• Expert Opinion
• Group discussion method
• Pooling of individual estimates
• Past-Sales Analysis
• Time-series analysis
• Exponential smoothing
• Statistical demand analysis
• Econometric analysis
• Market-Test Method

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Quantitative and Qualitative Data Collection and
Analysis

• The Market Research Process
• Advances in Data Collection Techniques
• Quantitative and Qualitative Techniques
• Forecasting and Market Demand Measurement

• The art of prophecy is very difficult especially
  with respect to the future (Mark Twain,
  1835-1910)

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The Marketing Research Process
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The Research Process

• Scanning, Risk Assessment and Monitoring
• Primary data - gathered directly from people you
  are interested in
• Secondary data - data published for its own
  reasons which is secondary to your purpose
• Exploratory, descriptive and causal
• Validity and Reliability

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Secondary-Data Sources
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Qualitative versus Quantitative Research
Comparative Dimension
Qualitative Research
Quantitative Research
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Key Aspects of Exploratory Research Techniques
Exploratory Technique
Focus Groups
Individual Interviews
Observation
Understand Symbolic Aspects of Consumption
Understand Functional Aspects of Consumption
Accurate Description of What People Actually Do -
Not What They Think They Do
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Qualitative Techniques The Customer

• Observation
• Experimental Research
• Eye Cameras
• Mystery Shopping
• Diaries
• Personal interviews/Focus Groups
• Online/Video links
• Projective techniques
• Critical Incident Analysis
• Cognitive mapping

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The Growing Role of Focus Groups
To gain insight into conducting and analyzing a
focus group.
The Popularity of Focus Groups About 25 percent
of all research expenditures is spent on focus
groups. Conducting Focus Groups Preparing for a
Focus Group The Setting focus group facility
often in a conference style room Recruiting
Participants mall intercept, telephone
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The Growing Role of Focus Groups

• Developing a Discussion Guide
• An outline of the topics to be covered
• Three stages
• Rapport is established
• Provoke intense discussion
• Summarize significant conclusions
• Preparing a Focus Group Report

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Other Qualitative Methodologies
Depth Interviews --mainly used in exploratory
research Unstructured(both questions and answers)
one-on-one interview with key respondents. Expens
ive No group pressure and no interaction more
time and attention for the respondent respondent
can be probed at length Needs a good interviewer
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Individual Depth Interviews

• Project beliefs or feelings onto a third party,
  to an inanimate object, or to a task situation
• word association
• sentence completion
• third-person role-playing
• thematic apperception test
• pictorial symbols

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Common types of projective techniques
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Quantitative Contact/Survey Methods

• Addressing the questions of why people behave the
  way they do
• Personal interviews and focus groups
• Telephone interviews
• Mail, email and fax surveys
• Online and Internet surveys

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Marketing Research System

• Contact Methods
• Mail questionnaire
• Personal interviewing
• Arranged interviews
• Intercept interviews
• Online methods
• Click-stream
• Cookies
• Automated
• telephone surveys

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Personal interviews
Telephone interviews

• Low response rate
• Misunderstandings
• Bias
• Geographical coverage
• Less expensive
• Factual details
• Fast and inexpensive

• Flexible
• Misunderstandings noted and clarified
• Costly
• Interviewer bias
• High response rate?

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Online Surveys

• www.surveymonkey.com
• Fast with lowner costs but .
• Demographics of target market
• Novelty and ease of answering
• Bias
• Cyber environment - authenticity
• Hits and webs tracking
• Dialogue with customers, interactive discussions
  and learning from customers
• Virtual product testing

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Syndicated Research - Market Research Companies

• An organisation that regularly provides a
  standardised set of data to customers is called a
  syndicated service
• http//www.gallup.com
• http//www.teleport.com/tbchad/stats1.html
• Online Surveys http//www.survey.net

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The Future Neuro Marketing

• MRI Scanning
• Inside the mind
• The Buy Button..
• Interactive TV
• Tracking, Monitoring and Scanning

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Setting out to Market

• The Voice of the Customer.speak loudly and
  clearly.
• Hire a professional..
• You are basing your whole business on this..