market research

Purpose of market research - descriptive

Gathering and presenting factual statement and current data

Ex. Reporting sales dropped by 10% last month

Purpose of market research - diagnostic

Explaining data or figuring out cause

Ex. Finding out why sales dropped by 10%

Competitors lowered their prices

Purpose of market research - predictive

Attempting to estimate the results of planner marketing decision

Ex. Estimate how much extra revenue you’ll make if you launch a new product line

Market research process - 1. problem definition

marketers find the research business question they need to answer

Management decision problem

Broad based problem that requires marketing research to take proper actions Action-oriented (What should we do?) 

Ex. A coffee shop notices sales have dropped by 20% over the last quarter.

Management Decision Problem: "Should we introduce a new loyalty program or lower our prices to regain lost sales?"

Marketing research problem

Information-oriented (What information do we need?)

Ex. Determine why customers are buying less coffee and find out if offering a rewards program or lower prices would bring them back

Marketing research objective

Specific measurable goal (What specific data points will we collect?)

Market research process - 2. research design

Overall plan where u decide how to gather info and what method to use

Research design standard - Reliable

The research produces almost identical results in all trials

Research design standard - Valid

The research is accurate and is measuring what your intending it to instead of something else

Primary Data

Data collected yourself for your research “first hand”

Secondary Data

Data that was already collected before but you still use it for your research “second hand”

Secondary Data

Data that was already collected before but you still use it for your research “second hand”

Exploratory research

Starting out research gathered to get more information

Ex. Bakery owner sees ppl aren’t buying his cupcakes so he chats with a few ppl asking what snacks they usually buy to see if they want healthier or cheaper products

Conclusive research

Research conducted later in the process to verify and test your ideas

ex. Bakery owner has 200 customers vote if they’d buy more cupcakes if prices went down

Market research process - 3. Data collection

Where marketers gather info from the method they chose (focus groups, surveys, experiments, observation) in their research design without introducing bias

Probability

Every person from the overall target population has an equal random chance of being chosen for the sampling

Non probability

Ppl are chosen off convenience, judgment, not equal chance for sampling

Market research process - 4. Data analysis / interpretation

Making sense of the data collected, organizing and cleaning up the data

Market research process - 5. Presentation of results

Clear research findings and key takeaways through reports and presentations

Market research process - 6. Decision/ follow up

Use the research to implement marketing strategies and monitor the outcomes overtime

Simple random

Every person is randomly chosen

Systematic random

The first person is randomly chosen than others are chosen at intervals

Stratified

Study population divided into groups then each subgroup is randomly sampled