Marketing Research

Marketing Research

Submitted byShahnawaz ShaikhASAN Business School

Contents Product Research Advertising Research Market and Sales Analysis

Product Research

DefinitionComponent of market research whereby the characteristic of a good or service, that will satisfy a recognized need or want, are identified.

Qualitative Explorations The target audience is identified (even if not

totally precise), and some notion of the product category (or human need) is established, then qualitative research is the first step

The purpose is to develop in-depth understanding of the target consumer—their motivations, perceptions, fears, and preferences.

Perceptions of competitive products can be explored.

Unmet needs can be identified. New product ideas can be sought.

Qualitative Explorations – cont’d The qualitative exploration serves to

identify new product possibilities as well as refine the target-market definition for those possibilities.

Qualitative research is also useful in determining the starting points for ideation.

Concept Testing Concept testing identifies potentially

successful new products early on, so that you can focus limited research and development resources (and limited marketing resources) on the new product concepts with the greatest probability of consumer acceptance.

Decision Analyst provides a suite of concept testing systems and services.

Product Testing New products must be optimal to have a

reasonable chance for success. Product testing is an essential step (or

series of steps) in the development of a new product.

Decision Analyst offers a range of product-testing services to help ensure that the new product will be successful.

Steps involved in Product Research Opportunity Identification Concept Screening Concept Testing Marketing Strategy Development Product Development Market Testing Product Introduction

Advertising Research

Definition Advertising research is a specialized

form of marketing research conducted to improve the efficiency of advertising.

Advertising research is the systematic gathering and analysis of information to help develop or evaluate advertising strategies, ads and commercials, and media campaigns.

A subset of marketing research.

Types of Advertising Research Customized

Customized research is conducted for a specific client to address that client’s needs. Only that client has access to the results of the research.

Syndicated Syndicated research is a single research study

conducted by a research company with its results available, for sale, to multiple companies.

Methods of Advertising Research Pre-market research

can be conducted to optimize ads for any medium optimize advertisement for any medium: radio, television, print (magazine, newspaper or direct mail), outdoor billboard (highway, bus, or train), or Internet.

Post-market research conducted after the advertising, either a single ad or

an entire multimedia campaign has been run in-market. The focus is on what the advertising has done for the brand, for example increasing brand awareness, trial, frequency of purchasing.

Pre-Market Research Consumer Jury. Rating Scales. Portfolio Tests. Psychological Tests. Physiological Tests. Sales Tests. Day-after recall Tests.

Post-Market Research Provide either periodic or continuous in-market

research monitoring a brand’s performance. Including brand awareness, brand preference,

product usage and attitudes. Some post-testing approaches simply track changes over time, while others use various methods to quantify the specific changes produced by advertising - either the campaign as a whole or by the different media utilized.

Overall, advertisers use post-testing to plan future advertising campaigns, so the approaches that provide the most detailed information on the accomplishments of the campaign are most valued.

Market and Sales Analysis

Goal of Market Analysis To determine the attractiveness of a

market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm.

Dimensions of Market Analysis (David A. Aaker) Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channel Market trends Key success factors

Market Size The size of the market can be evaluated

based on: Present sales Potential sales (if expanded)

Some information sources for determining market size: Government data Trade associations Financial data from major players Customer survey

Market Growth Rate A simple means of forecasting the market

growth rate is to extrapolate ( infer or estimate ) historical data into the future.

While this method may provide a first-order estimate, it does not predict important turning points.

A better method is to study growth drivers such as demographic information and sales growth in complementary products .

Market Profitability While different firms in the market will

have different levels of profitability, the average profit potential for a market can be used as a guideline for knowing how difficult it is to make money in the market.

Porter’s Five Competitive Forces

Industry Cost Structure The cost structure is important for identifying

key factors for success. To this end, Porter’s value chain model is useful for determining where value is added and for isolating the costs.

The cost structure also is helpful for formulating strategies to develop a competitive advantage. For example, in some environments the experience curve effect can be used to develop a cost advantage over competitors.

Porter’s Generic Value Chain

Distribution ChannelThe following aspects of the distribution system are useful in a market analysis: Existing distribution channel

- can be described by how direct they are to the customer.

Trends and emerging channels- new channels can offer the opportunity to develop a

competitive advantage. Channel power structure

for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margin.

Market Trends Changes in the market are important

because they often are the source of new opportunities and threats .

The relevant trends are industry-dependent, but some examples include changes in price sensitivity , demand for variety , and level of emphasis on service and support .

Regional trends also may be relevant.

Key Success Factors Elements that are necessary in order for the

firm to achieve its marketing objectives.few examples are: Access to essential unique resources Ability to achieve economies of scale Access to distribution channels Technological progress

It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle.

Thank You!!!