MARKETING RESEARCH & ANALYTICS WEEK 1 What is Marketing Research? "Marketing research is defined as the systematic and objective process of generating information to aid in making marketing decisions." · Research should help solve a problem or make a decision. Marketing research is about: · Helping managers make decisions. · Reducing uncertainty · Generating, refining or testing marketing actions · Monitoring performance · Improving understanding of marketing Examples: Country Road conducts a customer satisfaction survey. Woolworths analyses sales, and data and compares it across stores. Categories of Research: PROBLEM-IDENTIFICATION RESEARCH Helps identify problems that are not necessarily apparent on the surface and yet exist. Market Potential, Market Share, Market Characteristics, Sales Analysis, Forecasting, and Business Trends. PROBLEM SOLVING RESEARCH Helps solve specific marketing problems Segmentation, Product, Pricing, Promotion, Distribution. Problem-identification research is undertaken to help identify the nature of problems or opportunities. Examples are: · Market potential · Market share . Market characteristics · Brand or company image · Sales of Lego to girls drop after 5 years of age A problem can be an opportunity. Problem-solving research is undertaken to get a solution to an already known problem.
Examples are: · Our sales are falling, with changing the price work? . How can we improve our low customer satisfaction? . How can Hassan make his students not hate stats? . How can Lego adapt their products to appeal to girls? · Girls don't identify with existing Lego products Why do Marketing Research? - Identify problems or opportunities. Help identify current problems or future opportunities (declining sales or changing trends) - Target markets Understand the demands of different groups - Implement marketing mix. Product Price Promotion Place - Analyse marketing performance Tracking performance over time or testing effectiveness of past activities Marketing Research Process 1. Defining the Problem 2. Planning the research design 3. Planning the sample 4. Collecting the data 5. Analysing the data 6. Formulating conclusions and writing the final report WEEK 2 Defining the research problem Sometimes the problem is clear and most times it is not. Ambiguous problem definition can lead to incorrect decisions. Symptoms v Problems Symptoms - What marketers/managers can observe - Declining sales Problems - The underlying cause of the symptoms - Often not directly observable - The price is too high or lack of advertising SOLVING THE PROBLEM REMOVES THE SYMPTOMS
OBSERVED SYMPTOM Loss of market share Decline in demand, new competitor, marketing mix Low customer satisfaction Customer service, product fault, false advertising Negative WOM Product faults, branding, competitor sabotage? Complaints about price Example: 3 Mobile UK POSSIBLE PROBLEMS (UNDERLYING CAUSES) Pricing, product, quality, communication of value Symptom: - Consumers don't use much mobile roaming data. Problem: - Consumers don't want to use their phones overseas? - OR, roaming charges are too expensive! Problem Definition Process How can we define problems in a better way that we do not end up solving wrong problem? - The problem definition should be made (problem to be solved) - Identify research objectives - Define research