lecture 4 - market research

Question 1

what is the purpose market research

Answer 1

successful marketing means strategically planning and implementing the right offer for the right customer in the market

Question 1

what is market research?

Answer 1

The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation
(Adapted from Zaltman, 1997)

The gathering of data and information on the market and consumer reactions to product, pricing, promotional and distribution decisions (Jobber and Ellie-chadwick, 2016, p.178)

Question 2

what decisions do marketers make?

Answer 2

• what opportunities to pursue
• which segment to target
• what value proposition we want to offer
• how do we want to differentiate ourselves
• how do we implement these decisions

Question 3

what is the purpose of market research?

Answer 3

1. understanding customers wants and needs
2. identifying competitors’ strengths and weaknesses
3. establishing price points and pricing strategies
4. developing marketing plans and strategies

Question 4

what are other purposes of market research?

Answer 4

marketing strategy decisions involve uncertainty and risk

to reduce the risk of undesired outcomes of our decisions we conduct market research

Question 5

what market research did sephora find?

Answer 5

Sephora retains customers at the point of purchase

sephora found out that shoppers were checking retail competitors prices on their smartphones while looking at products in Sephora aisles

Question 6

what was the outcome of Sephora’s research?

Answer 6

They decided to leverage that behaviour and designed a smartphone app with benefits for in store shopping, store loyalty and usage

Question 7

what market research did heineken find?

Answer 7

Heineken introduces non-alcoholic beer

market research:
5000 survey people aged between 21 and 35 years (2016) in 5 countries
findings:
75% reported that they actively moderate their alcohol consumption, some foregoing alcoholic beverages entirely
primary reason:
- health and natural ingredients
- desire to feel in control
- fear of bad behaviour living on social media

Question 8

what was the outcome of Heineken’s research?

Answer 8

• new product development
• ad campaign moderate drinkers wanted
• revenue from its non-alcoholic beer grew 7.7% outpacing the 3.3% growth in revenue for the company overall performance

Question 9

what are the two main types of market research?

Answer 9

• Ad-hoc research - focusing on specific marketing problem at one point in time
• continuous research - gathering information from external sources on an ongoing basis

Question 10

what can data be data be broken down into?

Answer 10

primary
secondary
qualitative
quantitative
mixed methods research

Question 11

what is the market research process?

Answer 11

define objectives
data collection (primary/secondary)
verification
data analysis
report findings (visualisation)

Question 12

what are primary data examples

Answer 12

customer survey about:
- their experience
- a new product
- the effectiveness of a marketing communication

other primary data
- click through rates
- customer preferences
-etc

Question 13

what are secondary data examples

Answer 13

• google trends
• google consumer behaviour
• social mention
• standard web analytics reports
• Ofcom research reports
  -Comscore insights

Question 14

what does primary market research include?

Answer 14

1. research conducted for a new purpose, in which the data is published or in the public domain
2. can be qualitative or quantitative, including surveys, in-depth interviews, experiments and observation
3. allows researchers to control what information they collect by asking specific questions - leading to reliable results
4. allow researchers to control what information they collect by asking specific questions - leading to reliable results
5. drawbacks include potentially being expensive, time-consuming and containing biased data

Question 15

what are the advantages of primary market research?

Answer 15

• can be more specific
• updated information
• more accurate and reliable
• specific to your research objectives

Question 16

what are the disadvantages of primary market research?

Answer 16

high costs
time consuming

Question 17

What does secondary market research include?

Answer 17

1. research using data that has already been collected for another purpose
2. can be qualitative or quantitative, including newspaper articles, public databases, and published research studies
3. is usually cheaper and less time-consuming for researchers to conduct
4. information might be biased, out-dated, and difficult to analyse

Question 18

what are the advantages of secondary market research?

Answer 18

low cost
can conduct a longitudinal data collection without waiting
can be obtained quickly
data from different sources and compare

Question 19

what are the disadvantages of secondary market research?

Answer 19

may be outdated & collected for another purpose
data collection quality and compliance may be unknown

Question 20

what is qualitative market research?

Answer 20

1. in-depth and exploratory research used to understand attitudes, values, behaviours and beliefs
2. used to identify unique meanings behind issues, such as customers’ wants and needs (among other factors) that quantitative research cannot do
3. key qualitative methods include in-depth interviews, focus groups and ethnography

Question 21

what is quantitative market research?

Answer 21

1. descriptive and structured research to understand differences or relationships between two or more variables
2. used to produce generalisable results with large samples - that qualitative research cannot do
3. popular quantitative research methods include surveys, questionnaires and experiments

Question 22

what is mixed methods research in marketing?

Answer 22

what does “mixed methods” market research include?
- integrating different sources of data, such as qualitative and quantitative and/or primary and secondary information
- used to obtain an in-depth understanding into an issue affecting companies (e.g. competitors’ activities)
- can be very expensive and time-consuming to collect and analyse large quantities of information

Question 23

what is Big data?

Answer 23

the basic idea behind big data is that everything we do is increasingly leaving a digital trace (or data) which as marketers can use and analyse.
Big data therefore refers to our ability to make use of the ever-increasing volumes of data

Question 24

what is a digital footprint?

Answer 24

A digital footprint is data that is left behind when users have been online.

Question 25

what are the two types of digital footprints?

Answer 25

passive
active

Question 26

what is a passive footprint?

Answer 26

A passive footprint is made when information is collected from the user without the person knowing this is happening

Question 27

what is an active digital footprint?

Answer 27

where the user has deliberately shared information about themselves either by using social media sites or by using websites

Question 28

what are social media algorithms?

Answer 28

they are a way of sorting posts in a users’ feed based on relevancy instead of publish time. Social networks prioritise which content a user sees in their feed first by the likelihood that they’ll want to see it. By default, social media algorithms take the rains of determining which content to deliver to you based on your behaviour