lecture 4 - market research Flashcards
what is the purpose market research
successful marketing means strategically planning and implementing the right offer for the right customer in the market
what is market research?
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)
what decisions do marketers make?
- 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
what is the purpose of market research?
- understanding customers wants and needs
- identifying competitors’ strengths and weaknesses
- establishing price points and pricing strategies
- developing marketing plans and strategies
what are other purposes of market research?
marketing strategy decisions involve uncertainty and risk
to reduce the risk of undesired outcomes of our decisions we conduct market research
what market research did sephora find?
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
what was the outcome of Sephora’s research?
They decided to leverage that behaviour and designed a smartphone app with benefits for in store shopping, store loyalty and usage
what market research did heineken find?
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
what was the outcome of Heineken’s research?
- 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
what are the two main types of market research?
- Ad-hoc research - focusing on specific marketing problem at one point in time
- continuous research - gathering information from external sources on an ongoing basis
what can data be data be broken down into?
primary
secondary
qualitative
quantitative
mixed methods research
what is the market research process?
define objectives
data collection (primary/secondary)
verification
data analysis
report findings (visualisation)
what are primary data examples
customer survey about:
- their experience
- a new product
- the effectiveness of a marketing communication
other primary data
- click through rates
- customer preferences
-etc
what are secondary data examples
- google trends
- google consumer behaviour
- social mention
- standard web analytics reports
- Ofcom research reports
-Comscore insights
what does primary market research include?
- research conducted for a new purpose, in which the data is published or in the public domain
- can be qualitative or quantitative, including surveys, in-depth interviews, experiments and observation
- allows researchers to control what information they collect by asking specific questions - leading to reliable results
- allow researchers to control what information they collect by asking specific questions - leading to reliable results
- drawbacks include potentially being expensive, time-consuming and containing biased data
what are the advantages of primary market research?
- can be more specific
- updated information
- more accurate and reliable
- specific to your research objectives
what are the disadvantages of primary market research?
high costs
time consuming
What does secondary market research include?
- research using data that has already been collected for another purpose
- can be qualitative or quantitative, including newspaper articles, public databases, and published research studies
- is usually cheaper and less time-consuming for researchers to conduct
- information might be biased, out-dated, and difficult to analyse
what are the advantages of secondary market research?
low cost
can conduct a longitudinal data collection without waiting
can be obtained quickly
data from different sources and compare
what are the disadvantages of secondary market research?
may be outdated & collected for another purpose
data collection quality and compliance may be unknown
what is qualitative market research?
- in-depth and exploratory research used to understand attitudes, values, behaviours and beliefs
- used to identify unique meanings behind issues, such as customers’ wants and needs (among other factors) that quantitative research cannot do
- key qualitative methods include in-depth interviews, focus groups and ethnography
what is quantitative market research?
- descriptive and structured research to understand differences or relationships between two or more variables
- used to produce generalisable results with large samples - that qualitative research cannot do
- popular quantitative research methods include surveys, questionnaires and experiments
what is mixed methods research in marketing?
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
what is Big data?
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
what is a digital footprint?
A digital footprint is data that is left behind when users have been online.
what are the two types of digital footprints?
passive
active
what is a passive footprint?
A passive footprint is made when information is collected from the user without the person knowing this is happening
what is an active digital footprint?
where the user has deliberately shared information about themselves either by using social media sites or by using websites
what are social media algorithms?
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
