The Answer is 42

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The Answer is 42
Demystifying market research How market
research can add value to your business
Diana Clayton CCC Marketing Research Ltd
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The moral of The Answer
Once you know what the question is, youll know
what the answer means.
And a few more gems from The Hitchhikers Guide
to the Galaxy
Have you got an answer? No, but Ive got a
different name for the problem!
What we demand is solid facts, no we dont,
what we demand is a total absence of solid
facts.
I think theyre very clever, theyre trying to
confuse us to death.
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So what is market research?
Marketing - a definition
The allocation of products, distribution and
promotional resources so as most profitably to
satisfy the needs of the customer.
Market research - a definition
The systematic collection, analysis and
interpretation of information on the market
place relevant to decisions taken in the
marketing of goods and services.
Important note Market research does not replace
decision making but reduces the risk involved in
taking decisions
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Demystifying Market Research
Sequential monadic
Multivariate analysis
Statistically significant
Sampling Universe
Modeling / simulation
Proto- monadic
CATI / CAPI
I wont talk jargon if you dont (but if you
really want to know what any of these mean - buy
me a beer!)
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Key steps in market research
? Understand your business and the market in
which it operates
? Define your problem/opportunity
? Set your marketing objectives
? Check information already available
? Define your research objectives
? Outline the action plan / ways in which the
results will be used
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Dos and Don'ts...
Do Market research - to identify or quantify
marketing opportunities or problems - to
reduce the risk in decision making
Dont do market research - just to prove a
point or put off a decision - if you cant
define your objectives - if the results cannot
be actioned - as a sledgehammer to crack a nut
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The Objectives are crucial...
to the success of your business and to any
market research you undertake
? Main Objectives - which is the core of the
business/research
? Secondary Objectives - which will support
any decisions you make or provide contextual
information
? Nice to Know - is generally useless and best
avoided
If you dont know why youre doing it -dont do it
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Some marketing objectives...
? To expand production capacity by investing in
new production facilities and capital
equipment
? To reorganise and reallocate existing
resources (human and physical) to maximise
profitability and reduce wastage
? To broaden the customer base by repositioning
the product and promoting it effectively to
the target market
? To increase distribution and provide the
necessary trade support, with the aim of
increasing brand share within the
marketplace
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Some market research objectives...
? To investigate customer requirements,
including satisfaction with existing
products and possible improvements and innovations
? To understand how the current organisation
operates, staff attitudes and requirements,
and assess the likely impact of proposed
organisational changes
? To identify the optimal positioning for the
product, establish the likely target market
and assess the best means of promoting the
product to this market
? To assess current brand strengths and weakness
in order to approach the trade with a
positive brand marketing proposition
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Now lets get started
An easy guide to collecting, analysing and
interpreting market information
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Free information
? Received wisdom or expert opinion -
available within your own company - by asking
around - trade shows, conferences, colleagues
and even competitors - professional/trade
organisations
? Internal information - sales statistics -
business plans (old) - old reports/market
research - government / industry statistics -
trade publications you subscribe to
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Free information (2)
? Press and publications - national press -
business pages - business journals - Management
Today, Marketing, - company reports - trade
press The Grocer (Focus on) Fast Food
Facts Frozen Chilled Foods Fine Food
Digest British Supermarkets Food Drink
News The Grocery Trader The Independent
Retailer and many more
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Free information (3)
? Associations Organisations - there are
literally hundreds of these - provide member
information but can access free information
? The Internet - business portals - company
web sites - publications web sites most
provide featured articles company
profiles report synopses industry fact
figures links to other organisations
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Some useful www.s
? www.readymealsinfo.com ? www.conveniencefoodsi
nfo.com ? www.ukfoodservice.com ?
www.alfamega.com
? www.foodnavigator.com ? www.just-food.com
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Published reports
? Alfa-mega Infostore CCC Marketing
Research - new series of monthly Consumer Trends
reports - Prepared Meals - Eating Out, Eating In
? Campden Chorleywood Food Research
Association ? Datamonitor ? Euromonitor ?
Foodservice Intelligence ? Keynote ?
Leatherhead ? Mintel ? Reuters ? Taylor Nelson
Sofres
Reports cost from 150
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Information overload
By now you can have more information than you can
deal with.
? Collect information in line with your
objectives - file the rest ? Develop a
system for monitoring and updating important
information ? Use a research agency/consultant
to reduce information and interpret for
management
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Information overload
Information collected in this way does not tend
to answer brand / product specific issues
Enormous help in redefining your own objectives
Leading to tailor made research
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Buying Market Research
Use colleagues associates to recommend research
agencies
Other contact points Market Research Society -
The Research Buyers Guide BMRA -
Selectline Marketing Week Showcase www.mrweb.com
- directory of agencies
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Buying Market Research
Guidelines
? Check agency has some knowledge of your
market ? Check they have the expertise, eg.
children, advertising product testing
etc. ? Ask them to come and talk to you at an
early stage ? Are they interested and
enthusiastic ? Could you work with them and put
them in front of senior management
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Buying Market Research
Guidelines (2)
? Give agency a written of full oral briefing ?
Dont expect them to work in the dark - show
them round, involve other members of your
team ? Provide timing and budget constraints as
far as possible ? Ask 1- 4 maximum agencies to
quote ? Develop a real working relationship with
your chosen agency
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Doing your own market research
DONT
? Unless you have in-house experience ? OK for
Desk research ? OK for limited initial
screening processes ? OK for some small scale
customer satisfaction eg. in-restaurant
? Work to your own strengths use market
research experts ? You will get better quality,
unbiased information ? You will obtain
objective, actionable results
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Demystifying market research (2)
A definite trend is evident These data are
practically meaningless! Three members of the
group made interesting comments The rest
didnt make any sense! It is believed that I
think! It is generally agreed that A couple
of my colleagues think so too! This figure is
correct to within an order of magnitude Wrong!
A statistically orientated projection of the
findings A wild guess!
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Diana Clayton
A short Biography Business Studies
(International Marketing) May Baker Ltd -
marketing assistant Philips Electrical Ltd -
commercial research manager MIL Research Ltd -
Director fmcg CCC Market Research -
Founder Cambridge Market Research Ltd - Managing
Director CCC Marketing Research Ltd - Managing
Director Full member MRS - ex-Council member,
Vice- Chairman, Committee Chairman lecturer
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For further information...
CCC Marketing Research Ltd 4 Astley
Avenue London NW2 4AD Tel [phone] Fax
020 8450 4959 clayton_at_cccresearch.com www.cccrese
arch.com