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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.