Marketing Research & Consumer Markets

Marketing Research Defined

• Definition: Marketing research is the process of collecting and analyzing data to address specific marketing issues.

• Focus Areas:

  • Product

  • Sales

  • Buyer behavior

  • Promotion

  • Distribution

  • Pricing

  • Packaging

• Purpose:

  • Help companies determine product launches, branding changes, and more.

  • Reduces risks in decision-making rather than making decisions for the marketers.

Importance of Marketing Research

• Contributes to marketing success in various ways:

  • Identifies target market demographics before product launches.

  • Assesses probability of success and alternative strategies.

• Helps avoid losses and resolve issues.

• Keeps marketers informed about competitor activities through comparative studies.

The Marketing Research Process

• Steps involved:

  1. State the Objectives:

     • Establish clear and measurable research objectives.

     • Examples: Location decisions, budget considerations, project size.

  2. Determine the Research Methodology:

     • Choose appropriate research methods for the objectives.

  3. Gather Data:

     • Collect comprehensive and relevant data based on the chosen methods.

  4. Interpret the Results:

     • Analyze data using suitable statistical tools.

  5. Present the Results:

     • Document and present findings clearly, including visuals (graphs, charts).

Research Methods

• Primary Research:

  • Sources information directly through:

    • Surveys

    • Experiments

    • Field Tests

    • Observations

    • Focus Groups

    • Interviews

• Secondary Research:

  • Uses pre-existing information, including:

    • Online materials

    • Existing research results

    • Company databases

    • Government publications

• Quantitative Research:

  • Involves numerical analysis (e.g., sales figures).

  • Helps determine demographics and sales growth areas.

• Qualitative Research:

  • Studies attitudes and views through focus group discussions and reviews.

Types of Research Methods

• Exploratory Research:

  • Better understands research problems and variables through trial studies.

• Descriptive Research:

  • Describes marketing characteristics and variables' interactions.

  • Requires prior understanding from exploratory studies.

• Causal Research:

  • Investigates cause-and-effect relationships between variables.

Data Gathering

• Gathering detailed and complete data is crucial.

• Companies can utilize their marketing activities for data collection.

Data Interpretation

• Statistical tools are needed for analyzing quantitative data.

• Factors to consider:

  • Number and relationship of samples.

  • Levels of data measurement (frequency, ranking).

Presentation of Results

• Present data in a structured report with visual aids.

• Ensure comprehensive documentation for future reference.

Consumer Market Defined

• Definition: A consumer market consists of individuals purchasing goods and services for personal use.

• Factors Influencing Purchase Decisions: Consumers consider multiple factors like style, color, and features.

Consumer Purchase Decision Process

1. Recognizing a Need: Identifies personal needs.

2. Information Search: Gathers information on products.

3. Evaluating Options: Compares options based on gathered information.

4. Making a Purchase Decision: Final choices are made.

5. Post-Purchase Evaluation: Reflects on the decision after purchase.

Factors Influencing Consumer Behavior

• Influenced by:

  • Cultural Factors: Traditions, norms, and values from society.

  • Social Factors: Reference groups and social roles that impact decisions.

  • Personal Factors: Individual characteristics like age and lifestyle.

  • Psychological Factors: Motivation, perception, learning, and beliefs.

Types of Consumer Buying Behavior

1. Variety-Seeking Buying: Minimal involvement for new experiences.

2. Habitual Buying: Low involvement with routine products.

3. Dissonance-Reducing Buying: Involves anxiety after making significant purchases.

4. Complex Buying: High involvement in expensive purchases (e.g., luxury goods).

Business Markets Defined

• Comprised of firms purchasing goods and materials for operational needs or resale.

• Large groups involved in decision-making due to high-cost purchases and specifications for buyers.

Characteristics of Business Markets

1. Derived Demand: Demand is based on consumer needs.

   • Example: Increased consumer demand for bread increases flour purchases.

2. Complex Buying Decisions: Significant money involved, often formalized by contracts.

3. Professional Purchasing Agents: Expertise is required due to complexity and risks.

Business Buying Decision Process

1. Recognition of Need: Businesses identify needs for goods/raw materials.

2. Determining Product Specifications: Requires input from engineers and technical experts.

3. Listing Possible Suppliers: Creates an extensive list of suppliers to find compliant offers.

4. Selection of Supplier: Choice based on compliance with specifications and price.

5. Periodic Review: Regular evaluation of supplier performance.

Types of Business Buying Situations

1. Straight Rebuy: Routine reorders with no changes.

2. Modified Rebuy: Adjustments made in specifications due to issues.

3. New Buy: Involves extensive research for selecting new suppliers.

Participants in the Business Buying Process

1. Users: Those who use the products and influence specifications.

2. Influencers: Experts who help define necessary specifications.

3. Buyers: Professional negotiators facilitating purchases.

4. Deciders: Individuals with authority to approve purchases.

5. Gatekeepers: Control information flow between markets and suppliers.