Marketing Research Job Outlook market research has the largest amount of predicted growth o o Henry Ford Steve Jobs have criticized they don t know what they want until they see it Marketing Research is the process of designing gathering analyzing and reporting information that may be used to solve a marketing problem ex s include Product Development o o o Dealerships saw that men were buying then catered to them Now 60 of all new vehicles are purchased by women 53 of all used cars are purchased by women 85 of vehicle purchases are influenced by women 105 7 million women have driver s licenses 1 4 million more than men 62 of women rank safety as very significant Ex Picking out wine s we look at price assume that it dictates quality Pricing Strategy Customer Satisfaction wait times can signal quality When we don t have expectation as to how long it will take it seems longer Baggage claim making them walk farther less wait time Explained waits w mirrors in elevator o Distribution Analysis and Promotion Effectiveness Studies Origins in 1980s with TQM Movement Deming Juran o o Shift from transactional based economy market based economy Research is there to find customer reactions to the product to compare the product to competitors and to find problems with the product If decrease customer defection by 5 you can increase profits by 25 100 It s 5x as costly to attract new customers than it is to retain old ones Ex Heat maps for tracking traffic Coke freestyle machine collecting data on what drinks you get loyalty cards Important b c it gives managers answers to important questions o o One unhappy customer tells 9 12 others social media o o o On avg U S firms lose of their customers every 5 years Important b c it s foundation for marketing strategy decisions proactive process Cluster Analysis is a statistical technique that identifies customer segments o Six Distinct Consumer Segments Examples different types of eaters The researcher measures things like price sensitivity importance of quality and on time delivery Also identifies segments of customers that have similar characteristics Fauxsumerism is millennials enjoying Pinterest and Wish w o buying they re just as satisfied Right choicers 20 Kid fluenced 18 Friends of the farm 17 Food Elites 16 Passive eaters 15 Badge wearers 14 o Types of marketing research o o o McDonald s ALS Ice Bucket Challenge social media made it a public effort more money donated 1 Applied Research research designed to solve a specific problem usually for a specific company e g consulting we have issue that we need feedback on how to correct 2 Basic Research research designed to extend knowledge of marketing phenomena academia Q Have you ever had a bad service experience and not complained about it If not why not Receives 2 200 complaints day Of those 70 are service related Of those 945 receive follow up Of those 1 3 315 were dissatisfied with the recovery So 33 630 of the daily service complaints are addressed The real problem what if 1 890 only represents 5 of the dissatisfying experiences Service Provider Responsiveness 35 we don t expect McDonalds to do anything Sacrifice 25 all the work that goes into complaining Switching 15 Sympathy 9 I feel bad for the person guilt o o o o How do firms court potential customers offer you 10 for email o o How can firms most effectively break up with customers Marketing Research Process Research on customer firm relationship through a dating paradigm Dr Hopkins Reasons customers leave firms emailing daily Some of why we don t complain Dr Brady o o o o o 1 Problem Definition A problem well defined is solved Exploratory Research Qualitative Research helps in problem solving as it allows the researcher to better define the problem by getting a look at it first hand Starts with qualitative research then secondary data expert interviews and manager interviews all with the end goal of what exactly is the problem Hypothesis research reliability and validity Get information from which informs the strategic decisions they make 2 Research Design o o 1 Exploratory describes less structured data collection methods free flow want to clarify problem 2 Descriptive cross tabs regression describes the characteristics of a population qualitative research observation a flexible group discussion of a product ad or concept Secondary info Focus groups Surveys who buys what they buy when where how much can be mail telephone online personal interview face to face Experiments establish correlation or causation the cost of social norms 3 Casual identifies cause and effect between variables o o Social norms reciprocity VS Market norms get what you pay for Results charges if you were late to picking up kids from daycare they came late cause they thought they were paying for time o o 3 Sampling 4 Data Gathering Two types of Data 1 Secondary Data information that has been collected for a purpose other than the research at hand ex customer reviews 2 Primary Data information that has been gathered specifically for the research objective ex How their customers interacted with them on different social media sites Twitter Marketing is far more empirical quantitative than most believe o Sampling Survey methods listed above o o 5 Data Analysis through statistical analysis 6 Report Preparation Segmentation Targeting Positioning Repositioning Markets fall into consumer markets purchasers and household members who intend to consume or benefit from the purchased products and do not buy products for the main purpose of making a profit aka business to consumer markets and business markets individuals organization or groups that purchase a specific kind of product for resale direct use in producing other products or use in general daily operations aka business to business industrial or organizational markets market segments and target markets segmentation has the power to both market share through the introduction of new products and cost through avoiding wasteful spending on unattractive market segments Use segmentation data to identify potentially profitable customers Market Segmentation process of diving up a market into smaller groups called segments know examples of o When there are a lot of consumers how do you make sense of it all and cover all demand The groups are designed to have similar wants and needs The firms can use their marketing mix to tailor products for the different groups In developing a market strategy o o Cluster Analysis allows firms to
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