pob stage 2 lecture 3 students
TRANSCRIPT
Principles of Business: Stage 2
Lecture 3: Market Research and Planning
Overview
2
One of the most important elements of marketing isunderstanding your customers’ needs and wants.However, in the complex world we live in it is easiersaid than done. In this lecture, we will explore theworld of marketing research and how we can create aconsumer insight. Thereafter, we will look at theplanning process that enables an organisation to takean insight and turn it into a strategy to beimplemented.
We will start of by evaluating the role of marketingresearch and look at the various techniquesresearchers have at their disposal. Thereafter, we willmove onto the role of strategic planning. This willinvolve looking at the steps organisations take todevelop and execute a plan.
Learning Outcomes
3
• Determine the importance of carrying out market research.
• Describe the main qualitative and quantitative research methods.
• Determine the marketing planning process based on market and customer insight.
Market Research
Money won’t buy you happiness but it will pay
the salaries of a large research staff to study the
problem.
If you steal from one author it’s plagiarism; if you steal from many it’s research.
Overview of Market Research
Marketers make many decisions in their role within a business, and
to do so effectively, they need to have the
most current and accurate data possible.
They analyze demographic data and use the information to create detailed reports.
In turn, they use these reports to identify
which products and services to focus on,
what advertising steps to take, and what
decisions should be made—or completely
rejected.
The Importance of Market Research: 5 Reasons
Market research
centers your business on
your consumers.
It keeps the business
focused on what will make it
successful.
It allows the business to pursue the
most lucrative growth
strategy.
It keeps you relevant and
future focused.
Improves decision-making
capabilities and reduces
risk.
What is Market Research?
Marketing research is defined as the systematic design, collection, analysis and reporting of data and findings relevant to a
specific marketing situation facing the company.
View Video:
www.youtube.com/watch?v=cjk0dbB0uMw
Uncovers insights about a
situation.
Validates a hypothesis.
Enables robust
decision-making; no assumptions
Collecting data: What sources would you use?
Talk to others
Collect new
insights
Expert Opinion
Evaluate past data
Collecting data: Where can you go?
View video: https://www.youtube.com/watch?v=Urrc95jrQcU&list=PLR7PU0468uL-7cZ3IGqyiN-onrRcbksVf
Market Research System and Process
Syndicated-service research firms
Custom marketing research firms
Specialty-line marketing research firms
Source: Bovee, et al 2013
Define the problem
• Define the problem
• Specify decision alternatives
• State research objectives
For example
In the highly competitive mobile communications
industry, marketing research is focusing on which new
services customers might be willing to pay extra for, such
as television viewing and music downloading.
Source: Kotler, et al 2013
12
Develop the research plan
Data sources
Contactmethods
Researchinstruments
Samplingplan
Research approach
Source: Kotler, et al 2013
Primary and Secondary Research
Primary research consists of a collection of original
primary data collected by the researcher. It is often undertaken after the
researcher has gained some insight into the issue by
reviewing secondary research or by analyzing previously
collected primary data. It can be accomplished through
various methods, including questionnaires and telephone
interviews in market research, or experiments and
direct observations in the physical sciences, amongst
others.
Secondary research (also known as desk research) involves
the summary, collation and/or synthesis of existing research rather than primary research,
where data is collected from, for example, research subjects or
experiments.[1]
Sometimes secondary research is required in the preliminary
stages of research to determine what is known already and what
new data is required, or to inform research design. At other
times, it may be the only research technique used.
Primary and Secondary Research
Source: Kotler, et al 2013
Traditional Approach
The traditional marketing research approach means that desk research comes first,
providing information for the qualitative research, which in turn feeds into the
quantitative work.
View video: www.youtube.com/watch?v=GQfvocbRV3E
Research Methods
QuestionnairesQualitative Techniques
Technological
Consider open vs closed questions
Respondents’ answers are limited to a fixed set of
responses. Most scales are closed ended. Other types of
closed ended questions include:Yes/no questions - The
respondent answers with a "yes" or a "no".
Multiple choice - The respondent has several option
from which to choose.Scaled questions - Responses are graded on a continuum
(example : rate the appearance of the product on a scale from 1 to 10, with 10 being the most
preferred appearance).
No options or predefined categories are suggested. The respondent supplies their own
answer without being constrained by a fixed set of
possible responses. Examples of types of open ended questions
include:Completely unstructured - For example, "What is your opinion
on questionnaires?"Word association - Words are presented and the respondent mentions the first word that
comes to mind.
Closed Questions Open Questions
Do’s and Do not’s of Questionnaires
• Ensure questions are free of bias
• Make questions simple
• Make questions specific
• Avoid jargon
• Avoid sophisticated words
• Avoid ambiguous words
• Avoid negatives
• Avoid hypotheticals
• Avoid words that could be misheard
• Use response bands
• Use mutually exclusive categories
• Allow for ‘other’ in fixed response questions
Source: Kotler, et al 2013
19
Qualitative Research Approaches
Observation
Focus group
Interviews
Ethnographic
Ethnographic Approach
Source: Kotler, et al 2013
Deep Dive into Ethnography
View video: https://www.youtube.com/watch?v=9tHgNXzS2EY
Technology Based Techniques
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS
Source: Kotler, et al 2013
Lets move into strategic planning
Planning at 3 levels
Strategic planning meshes
the company’s capabilities and
resources to what is happening in the marketplace. This planning helps the company decide—
over the long term—how it wants
to act, where it wants to be, and
what it wants to do. Without strategic
planning, a company would be directionless and
ineffective.
Operational planning
focuses on deciding how the company will implement the
functional plans. For example, what are the specifications of the three products
that will be developed to support the
functional and strategic
objectives?
Functional planningEach functional area in a company develops its functional plans, not just the marketing department. For example, if one of the strategic plans is to grow revenue by 5% in five years, then a functional plan supporting that goal might be to develop three new products to increase revenue.
Consider how you would use market research in each of these areas
What does it involve?
Planning in 3 Steps
Analyse the market &
environment
Set the marketing objectives
Develop marketing strategies
Analyse the market and environment
Source: Kotler, et al 2013
Setting Marketing Objectives
After performing the SWOT analysis, the next step is to use that information to help set the marketing objectives.
Analyzing the implications of the SWOT analysis is what drives the objectives and strategies. After the marketing managers have a good understanding of the internal and
external environment, they will begin to develop marketing objectives and strategies.
Possible objectives:
• Growing market share
• Growing revenues or sales
• Increasing brand awareness
• Developing a certain number of new products
• Increasing referral rates
• Increasing levels of customer satisfaction
Source: Kotler, et al 2013
Objective Coordination & Budgets
Strategic objective coordination
Keep in mind that possible objectives must be
coordinated with the overall strategic objectives but should be specific to the marketing
department. For example, if the strategic
objective of the company is to increase profitability by 15% in the next three years, then the marketing department’s objective might be to reduce sales and marketing costs by
5% as a way to help contribute to meeting that
goal.
Marketing budget
As part of this process a marketing budget is also
developed, that details revenues, including how many units are
forecast to be sold at what price, market shares, distribution, and
promotions costs.
Source: Kotler, et al 2013
Developing Marketing Strategies
Essential work for next week
• Please consult the OLE for details of:– Essential readings*
– Seminar/workshop preparation work*
– Recommended further readings
– Any additional learning
* Essential readings and preparation work must always be completed in time for the next session.
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Appendix – Sources for illustrations
Slide 4:www.wikipedia.org
Slide 5:www.marketingprofs.com
Slide 8:www.artslide.com
Slide 16:www.emeraldinsight.com
End of presentation
© Pearson College 2013