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University of Plymouth’sEntrepreneurship

Programme

• Introduction to Market Research

Bob Baggott

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• What are your expectations for this session?

• How many of you are or are looking to set up in business or become self employed?

• What is your motivation for doing this?

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Purpose of the Organisation/Business?

• To create Value for all its stakeholders

• Customers• Employees • Shareholders• Suppliers and Agents• Community

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AIMS OF MARKETING

• satisfying customers• identifying/maximising marketing opportunities• targeting the ‘right’ customers• staying ahead in dynamic environments• endeavouring to beat or pre-empt competitors• utilising resources/assets effectively• increasing market share• enhancing profitability

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Buyer

(Customer)

Seller

(Provider)

Something of value:

Money, credit, donations, labour, goods

Something of value:

Goods, services, ideas

Exchange Between Buyer & Seller

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Ways of creating Value• Core competencies. What you do better than

your competitors

• Corporate or Brand image. What values your products represent

• Customer service. How well you retain your customers

• Corporate Culture What values youpromote internally

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Marketing Strategies:• are developed to achieve increased sales.

• involve selecting and analysing a target market and creating and maintaining an appropriate marketing mix to satisfy them.

• set out a marketing plan for the best use of the organisation’s resources and tactics to meet its objectives and achieve a competitive position.

• deal with 3 broad sets of variables 1) marketing mix, 2) target market strategy, 3) marketing environment.

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MARKETING STRATEGY

MarketingStrategy

Major decisionsLong-termcustomer value

Defining BusinessMarket analysisOpportunities/ThreatsEnvironmental analysis

Core CompetenciesMarketing capabilitiesResources / budgetsPhysical needs

Integrated MarketingIntegrated

marketing mix

Marketing PlanningProcess

CON

SITE

NCY

•

S

YNER

GY

Ref: ‘The Basics of Strategy’ Adapted from Beamish & Ashford (2005) p.11

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• links strategic decision-making to the development of marketing programmes

• is a systematic process of analysing the market place to assess marketing opportunities

• determines marketing objectives and develops a thorough marketing plan for implementation & control

Marketing Planning

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1. Analysismacro, micro and internal environmental analysis

2. Planningsetting objectives of where the business wants to be and developing strategies for how to achieve them

3. Implementationselection and implementation of the best strategy

4. Evaluation and Controlfeed back and control mechanisms to ensure objectives are measured and achieved

THE PLANNING PROCESS

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• Gather data to research the market situation• Analyse the current situation• Determine marketing objectives and direction• Establish segmentation, targeting & positioning• Develop marketing strategies and plans• Implement marketing tactics• Control - monitor, evaluate and revise

THE MARKETING PLANNING PROCESS

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• offers a ‘road map’ for implementing a company’s strategies and achieving its objectives

• assists in management control and monitoring of implementation

• informs new participants in the plan of their role & function• specifies how resources are to be allocated• assigns responsibilities, tasks and timings• raises awareness of problems, opportunities and threats• assists in ensuring an organisation is customer focused,

aware of market conditions, and realistic in expectations

A MARKETING PLAN

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Why conduct research?Research plays a key role in:

• Reducing risk in organisational decision making• Formulating and revising Strategy• Identifying and defining business opportunities

and problems• Generating, refining and evaluating business

actions• Monitoring business and marketing

performance

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Definitions Market Research• The means used by those who provide goods

and services to keep themselves in touch with the needs and wants of those who buy and use those goods and services (Market Research Society)

• The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services (American Marketing Association)

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“... the function which links the consumer, customer &

public to to the marketer through information

information used to identify & define marketing opportunities and problems; generate, refine, &

evaluate marketing actions; monitor marketing performance;

and improve understanding of marketing as a process.

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Marketing research Specifies • the information required to address those issues• designs the method for collecting information• manages and implements the data collection

process;• analyses the results; • and communicates the findings and their

implications.”

Ref: AMA definition as quoted by McDaniel & Gates (1996)

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Types of Market Research• Market research• Behavioural research• Competitor research• Product research• Pricing research• Promotional research• Distribution research• Economic and social research

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Discussion

• What information might your organisation need to conduct its day to day business?

• What sources of Information are available to you?

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Problem Definition

Developing hypotheses

Data Collection

Analyse and interpret the information

Report research findings

Evaluate research

THE MARKETING RESEARCH PROCESS

Feedback

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1. Exploratory Researchgenerally undertaken to collect preliminary data to help clarify or identify a problem

2. Descriptive Researchundertaken too provide better understanding of a particular issue or problem

3. Causal or Predictive Researchtests cause-and-effect relationships to predict outcomes of possible actions

TYPES OF RESEARCH APPROACH

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1. Qualitative Researchthe collection of data open to interpretation e.g. attitudes, opinions, where there is no intention of establishing statistical validity

2. Quantitative Researchaimed at producing data that can be statistically analysed and whose results can be expressed numerically e.g. sales data

TYPES OF RESEARCH DATA

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• Secondary Research (Desk Research)Data and information that already exists, having been compiled either inside or outside of the organisation for some other purpose than the current investigation • usually done before primary research• saves time and money• not always relevant and often available to all• e.g. accounting records, census reports

DATA COLLECTION

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• Primary Research (Field Research)Data and information that does not already exist in any form, and is undertaken or commissioned by an organisation for a specific purpose. • specific to the research question• unavailable to competitors• expensive and time consuming

DATA COLLECTION

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• Interviews and SurveysInvolve the collection of data directly from individuals. • Personal interviews • Group interview or focus group• Telephone interviews• Mail questionnaires

PRIMARY DATA COLLECTION METHODS

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• ObservationsThe observation by trained observed of particular individuals or groups to understand some aspect of behaviour.• Observing new product trials • Mystery shopper• Watching in-store shopping behaviour

PRIMARY DATA COLLECTION METHODS

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• ExperimentsConducting an experiment either in an artificial (e.g. laboratory) or real-life environment in order to manipulate independent variables and monitor the effect on the dependent variable.• Marketing mix changes • Side-by-side experiments• Can be unrealistic in laboratory settings

PRIMARY DATA COLLECTION METHODS

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A MARKETING INFORMATION SYSTEM

External SourcesPublished MR

Government StatsMedia

Trade Associations

Internal SourcesSales records

Customer recordsMarketing CommsCommissioned MR

Sales force info

Marketing Information Database

Marketing

Decision Maker

Decision Support System

Ref: Brassington & Pettitt (2005), p.142

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Customer and Competitor analysis

• Who are they ?• Where are they ?• What do they need (customers) ?• What is our value proposition to them

(customers) ?• What do our competitors offer ?• What is our competitive advantage ?

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Purpose of the Organisation?• To create Value for all its stakeholders

• Customers• Employees • Shareholders• Suppliers and Agents• Community

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Ways of creating Value• Core competencies. What you do better than

your competitors

• Corporate or Brand image. What values your products represent

• Customer service. How well you retain your customers

• Corporate Culture What values youpromote internally

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Porter’s 3 Competitive strategies

Organisations need to select one of these and pursue it consistently.

• Cost leadership

• Focus strategy

• Differentiation strategy

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The Ladder of Growth

Increase customer retention

Grow share of customer spend

Win new customers

Develop new products and services

Enter New markets

New distribution channels

International growth

Acquisitions and alliances

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