Market Research
links the consumer, customer and public to the marketer through information
In what ways is Market Research Used
1) Identify and define marketing opportunities and problems
2) Generate, refine and evaluate marketing actions
3) Improve understanding of the ways in which specific marketing activities can be made more effective'
Role of Market Research
To provide reliable evidence which help managers to take better decisions
Market Observation
What kind of need do we want to satisfy? To whom? How?
Types of Market Research Observation and Definition
Market base / structure
� Market evolution
� Retail track
� Competitors analysis
� Consumer needs analysis
� Purchase process...etc.
What is Segmentation Strategy
Are there different types of clients? How many? How are they? How do they react towards my product?
Type of Segmentation Strategy Studies
� Segmentation studies
� Typology studies
Positioning Strategy
How does my target perceive my brand/product? What level of awareness do we have?
Types of Positioning Strategies
Positioning study
� Image study / track
What is marketing mix
Product
Price
Communication
Distribution
Types of Marketing Mix Studies
� Product:
- Product test
-Packaging test
� Price
-Demand elasticity analysis
-Price comparison analysis
� Communication
-Advertising Pre-test
- Advertising Post test
- Advertising racking
� Distribution
- Distribution costs analysis
- Areas of influence.
Primary Data
data originated by a researcher for the specific purpose of addressing the problem at hand.
Secondary data
that have already been collected for purposes other than the problem at hand. May or may not be related to the industry or activity concerned.
Purpose of Research Brief
-Helps the initiator to be more sure of how decision-making will be supported
� Agreement among all parties who may benefit from research
� Helps to plan and administer research
� Helps to reduce disputes
� Forms the basis for negotiation
Tasks of Writing a Brief
-Discussions with decision makers
�Secondary data evaluation (internal & external)
Types of Studies
Systematic Studies
Ad-Hoc
Type of Fixed Samples
Retail Panels
Consumer Panels
Type of Non-fixed Samples
� Omnibus survey
� General media survey
Type of Systematic Studies
Fixed Samples
Non-Fixed Samples
Type of Ad-Hoc Studies
-Market analysis
-Consumer / shopper analysis
-Product analysis
-Distribution analysis
Systematic Studies
Quantitative Research that Are conducted regularly (in pre-set periods of time", "in waves") and which use statistically representative samples of the universe under study.
Fixed Samples
The elements of the sample are always the same, known as "panelists".
Panel
constant sample, from which to gather information with a fixed frequency.
Non-Fixed Sample
The sample size remains the same in each wave but the elements that make it up are different
Ad-Hoc Studies
These may be either qualitative or quantitative. They are conducted by market research professionals on the request of a client or group of clients. These are non-systematic customized surveys.
Syndecated Research
to collect data about markets, consumer patterns and attitudes.
Summary of Syndecated Research
-Basic information that is available to all organisations
� Usefull for broad information, particularly of wider geographic areas and market comparisons
� Cost effective, provides context for business decisions
� Non specific, not flexible
Retail Panel
fixed sample of retailer shops that is statistically representative of the univers
What do Retail Panels do
enable organisations to obtain data about the retail market. It is a measurement of sales, rather than research into who made the purchases or why a purchase was made. Used with a barcode
Summary of Retail Panels
� Continual measurement of what is on offer in the market
� Useful when entering a new market, launching a new product or promotion, controlling performance...etc.
� Fast, accurate, quantitative indicators, shows trends.
� Non-exclusive. Only hard data, l
Information Retail Panels Provide
Market size and trends
- Product category sales and trends
-Brand sales, competitors and trends
-Impact of special offers (eg. discounts, coupons...etc)
- Impact of seasonal factors such as weather
-Performance of different product sizes and packages
-Ave
Consumer Panels
focus on continuous research of households or individual consumers rather than shops.
Questions the Consumer Panels Answer
- How many households buy a product or a brand during a specific period?
- What brands or products are people switching away from?
-How many units do people buy when they make a purchase?
How are Consumer Panelist Recruited
Proportionally by regions and keep a record of purchases
How are consumer Panels collected
through shopping diaries, home-base audits or electronic systems (optical pen, bar-code reader, etc.).
Types of Consumer Panels
Households
� Individuals (men and women over 15)
� Teenagers
� Baby panel (women with children under 2)
� Motorist panel (car owners)
Benefit of Consumer Panels
understand the profile of users
Information Produced By Consumer Panels
� Product and brand penetration (how many households/ individuals buy the product)
� Brand switching
� Purchase frecuency and Average purchase per trip
� Brand and product performance by type of household /individuals
� Impact of special offers
� Differen
Summary of Consumer Panels
� Continual measure of what is demanded by consumers
� Useful when entering a new market, launching a new product or promotion, testing advertising and promotional impact.
� Fast, shows trends, good tool for measuring marketing performance.
� Non- exclusi
Why Qualitative Research
-To provide insights and understanding of the nature of marketing phenomena
-To understand
Test Units
individuals, organizations, or other entities whose response to the independent variables or treatments is being examined, for example, consumers or stores.
Dependent Variables
the variables which measure the effect of the independent variables on the test units, for example, sales, profits and market shares.
Extraneous Variables
all variables other than the independent variables that affect the response of the test units, for example, store size, store location and competitive effort.
Experimental Design
An experimental design is a set of procedures specifying:
�The test units and how these units are to be divided into homogeneous subsamples.
�What independent variables or treatments are to be manipulated.
�What dependent variables are to be measured.
�Ho
Surveys
based upon the use of structured questionnaires given to a sample of a population (behaviour, intentions, attitudes...).
Survey Process
�Define the target: segmentation variables
�Screening questionnaire: filters and quotas to make sure you are selecting the right target
�Design the main questionnaire
�Sampling
...
...
Why Quantitative Research
-To test specific -hypotheses and examine relationships To measure
Characteristics of Qualitative Research
-Information needed may be loosely defined -Research process is flexible, unstructured and may evolve
- Samples are small: not representative of the target group
-Data analysis is normally qualitative: by a sociologist or psychologist
-Flexible method (ch
Characterstics of Quantitative Research
-Information needed is clearly defined
-Research process is formal and structured -Sample is large and aims to be representative of target group
-Data analysis is quantitative: statistical criteria
-Rigid method (no changes are permitted) -Descriptive and
Areas of Application of Qualitative Research
�Analysis and optimization of concepts and products: Concept test and product test.
�Advertising Pre-test and post-test
�Purchasing process
�Understanding of Brand Image
�Analysis and optimization of promotions
�Analysis and optimization of packaging
�Beh
Areas of No Application of Qualitative Research
�Market analysis studies
�Market Segmentation
�Price studies
Types of Qualitative Research
-Focus Groups
-In-Depth Interviews
-Ethnographic Interviews
Steps in Qualitative Process
1) Problem Definition
2) Fill out the brief
3) Decide Type of QR needed
4) Decide who you want to talk to
5) Decide How Many Focus Groups You Need
6) Prepare Recruitment Questionnaire
7) Prepare the discusiion guide
8) Attend the group
9) Presentation of
Focus Groups
1) 7-9 homogenous participants
2) Conducted by a trained Moderator
3) 1-3 Hours
4) Loosely Structured Interview
In-Depth Interviews
- 1 interview with 1 consumer
-Loosely structured interviews
-30 min to hour
Ethnographic Interviews
-Accompany and observe
-Shopping/home
-Diary
When to Use Focus Group
-More information, less time
-Group dynamics
-New idea
When to use In-Depth Interviews
-No group influence
-Detailed information
-Delicate and sensitive issues
-Difficult to Recruit
When to Use Ethnographic Interviews
-What they do not what they say
-Target may have problems talking in group
How to select sample subjects
�Homogeneous group (age or lifestyle)
�They should not know each other
�No Marketing or Advertising experts (or working in this industry)
�Do not have to know in advance the exact topic of the research
�Do not have participated in any other researh in the
Types of Survey Techniques
1) Telephone
2) Personal
3) Mail
4) Online
Types of Quantitative Research
Survey Techniques
Quantitative Observation
Experiments
Structured Data Collection
a formal questionnaire is prepared and the questions are asked in a prearranged order.
Choosing the Questionnaire Wording
�Define the issue (Who, What, When Where)
�Use ordinary words
�Use unambiguous words
�Avoid implicit alternatives
�Avoid implicit assumptions
�Avoid generalisations and estimates
Types of Questions
1.Unstructured questions (open-ended)
2.Structured questions
Multiple choice questions
Dichotomous questions
Scale questions
Unstructured Questions
open-ended questions are questions that respondents answer in their own words.
Structured Questions
specify the set of response alternatives and the response format.
Multiple Choice Questions
the researcher provides a choice of answers and respondents are asked to select one or more of the alternatives given.
Order Bias
tendency to tick an alternative merely because it occupies a certain position in the list
Dichotomous Question
only two response alternatives: yes or no, agree or disagree and so on.
Questionnaire Design Process
�Set the objectives (from general to specific)
�Which type of questionnaire (personal, telephone, online...)
�Structure the questionnaire according to the objectives
�Only ask questions needed for each objective (1 or more), to make the decision at hand.
Questionnaire Objectives
It must translate the information needed into a set of specific questions that the respondents can and will answer.
Population
The total collection of units from which we wish to gather certain information. It may be finite (less than 100,000 elements) or infinite (more than 100,000 elements).)
Census
Every element of the Universe
Sample
A subgroup of the elements of the population who are used to study the behaviour of the entire population
Sample Size depends on
The importance of the decision to be made (the bigger the sample the more precise the result)
�The number of levels or subgroups to analyse
�Budget and timing
When calculating sample error we make two assumptions
� P=Q=50% (when we ask a question we have the same probability to obtain different answers)
� Confidence level 95,5% (probability that the real value of the population is within two standard errors) (K=2)
How to find Sample Size
n= (k2
p
q)/e2
Typical Sample Sizes for Marketing Research
Market Potential (500-2500)
Product Test (200-500)
Adverting (150-300<)
Sampling Frame
representation of the elements of the target population. It consists of a list or set of directions for identifying the target population
How to select respondents
Sampling Techniques (Probability/Non Probability)
Probability Sampling
-Simple random sampling
�Stratified sampling (population is broken down in different sub-populations or strata that -a priori- could bring different results and then the elements are selected from these strata by a random procedure)
Non-Probability Sampling
�Convenience
�Judgmental sampling
�Quota sampling
�Population is broken down into different sub-populations or strata that -a priori- could bring different results
�Elements are selected from these strata based on convenience
Launch of Survey Steps
1) Decide Type of QR needed
2) Decide who you want to talk to
3) Decide sample size
4) Choose sampling method
5) Decide type of interview
6) Prepare recruitment questionnaire
7) Prepare main question
8) Sup�rvise fieldwork
9) Presentation of results
Steps in Product Launch
1) Basic Information
2) Concept development
3) Product development
4= Packaging Development
5) Advertising Development
6) Pre test market
7) Post test market
Habits and Use Test
-Helps RD develop product
-Identifies Prod. Improv.
-Useful for concept development
-Online or home vist
-3-4 years
Info from Habits and Use Test
Habits;
-Usage
-Buying
-Transport
-Storing
-Consumer
Segmentation Study
-Understand key consumer needs and purchase drivers
-Understand what products cover those needs
-Understand how consumer can be grouped
-Before launch
-3-4 years
Info obtained from Segmentation Study
Market and Product segmentation
Concept Test
-Do it online
-Sample size 100
Timing: 4 weeks
-Measuring: Purchasing intent, frequency, quality
Product test
Blind Test
Identified Test
Blind Test
-Where: In hall or home
Sample Size: 100
Preference and Purchase Intent
Timing: 5 weeks
Packaging Test
Online
Identifies your best pack
Produces Benchmark
Sample Size is 100
Timing is 5 weeks
Advertising Test
Pre Test:
1) Done inhall or online to give estimate of sales potential
2) Sample size 100
3) Likes and dislikes, message is understand, sales potential
Post Test:
1) Done after
2) Sample size 100
3= Recall and measure similar parameters as before
When do you want market test
1) Market Lunch
2) Current product has to be substituted for another
3) Decision to be taken represents important risk
Types of Market Test
Volumetric
Market Test
Quantitative Observation
recording the behavioral patterns of people in a systematic manner to obtain information about the phenomenon of interest.
Types of Quantitative Observation
Personal observation
Electronic observation
Trace analysis
Audit
Personal Observation
A researcher observes actual behavior as it occurs.
Electronic Observation
Electronic devices record the phenomenon being observed.
Audit
The researcher collects data by examining physical records or performing inventory analysis.
Trace Analysis
Data collection is based on physical traces, or evidence of past behavior.
Independent Variable
variables or alternatives that are manipulated and whose effects are measured and compared, for example, price levels.
Kantar Household Panels
measure consumer purchasing of FMCG markets. They act as a highly effective market-tracking vehicle, covering all types of outlets,