Note: Chapter 7-Marketing Research Flashcards
What is market research?
Gathering info to make marketing decisions
Primary data
Collected for and about a specific business
-Collecting primary data is usually expensive and time-consuming
5 ways to collect primary data
- Observation
- Interviews
- Dairies
- Surveys
- Experiments
Questionnaire
1 List of questions asked in the survey 2 Can be delivered to participants by mail, telephone, in person, internet 3 Many groups use informational surveys 4 Not scientifically chosen 5 Results not analyzed statistically 6 Results may still yield useful info
Diaries
Collect specific information that research participants keep for a set time
Researchers most often use diaries to
. Study how people use their time
. Conduct transport planning research
Two formats
Open format
- Allows participants to give more feedback
- Too expensive for most research products
- Labour-intensive to analyze responses
- Forced choice response
- Much easier to analyze
- Does not allow for additional information
Experiment
1.Scientific experiment in which control and experimental situation are set up
2.Results are compared
3.Procedures and requirements of scientific accuracy are followed
( taste test in common)
4.Researchers often combine experiments with observation
5.And survey to get the most useful information for making decisions
Who collects primary data?
- Primary data can be collected from an individual
- The business needing the info
- Marketing research firm
Sources of secondary data
Secondary data is compiled by:
- Business
- Government
- Professional and industrial organizations
Where is data stored?
Data is often stored in a database
- A computerized file of information
- Often accessible through the internet
Trend
-Direction of movement
Marketing Trend
-Direction of movement of consumer behavior
Trend Research
-Combine research on customers, competition, and opportunity in order to determine marketing trends.
Areas of Interest to Marketers
- Social Trends
- Demographic Trends
- Product Trends
- These trends affect consumer behavior
- New trends bring new business opportunities
- Businesses that find new trends first are often the most successful
Is marketing research always right?
- Marketing research can be either useful or misleading
- Sometimes the usefulness of the information depends on the person interpreting the results
Some reasons why market research can be misleading:
- make an error in estimating the target population
- error in measurement
- error in selecting population sample
- survey errors
- structure and language errors
- error in data analysis
- reporting errors
Marketing Research Process
- Define the problem
- Conduct background research
- State hypothesis
- Develop research plan
- Collect Data
- Analyze data
- Draw conclusions
- Make recommendations
Social Trends
Household where both parents worked
More households consisting to one parent
(cereal, convenience food, work clothes, child care, single portion packages.)
Demographic Trends
Changing the size of the segments of the population
Such as increase in people over the of 65
And the growing immigrant population
Trends lead to consumer needs
Such as
More services for older Canadians
More publications in different languages
Product Trends
The direction in the development of products such as Trends toward large, flat screen tv Snacks in bite-size portions Influences include New technology Customer demand
SALES FORECASTING
Prediction of future sales based on past sales, and analysis of the market for the specific time period
- Maybe quantitative- Based on facts and
figures
- Maybe qualitative- Based on the judgment
What is a sales forecast? The simplest method for completing a sales forecast is to use previous sales and add a %
Past sales + % increase factor= sales forcast
