BUS M 300 1nd Edition Lecture 5 Outline of Last Lecture I Why Segment Markets II Steps in Segmenting and Targeting Markets A Step One Group Potential Buyers into Segments B Step Two Group Products to Be Sold into Categories C Step Three Develop a Market Product Grid and Estimate the Size of Markets D Step Four Select Target Markets E Step Five Take Marketing Actions to Reach Target Markets III Positioning the Product Outline of Current Lecture I What is Marketing Research II The Five step Marketing Research Approach A Define the Problem B Develop the Research Plan C Collect Relevant Information D Develop Findings E Take Marketing Actions III Research Types A Exploratory B Descriptive C Casual Current Lecture I What is Marketing Research Process of defining a marketing problem and opportunity Systematically collecting and analyzing information and recommending actions Marketing research is done because o Sellers want customers to buy their products or services II o Learning what customer wants makes it easier to sell them products o Helps sellers know how to attractively present product or service The Five step Marketing Research Approach A Define the Problem Set research objectives Identify possible marketing actions Research should be specific Don t confuse symptoms with real problem falling sales are symptom Examples awareness preference competitive strengths B Develop the Research Plan Specify constraints Identify data needed for marketing actions Determine how to collect data Research design specifies what information will be collected and what type of study or research type would be best used C Collect Relevant Information Obtain secondary data information already collected prior to the project o Internal company records budgets actual sales records customer communication records o External government data sources annual reports o Benefits low cost less effort less time o Limitations no control over data collection may be outdated may not meet data requirements Obtain primary data information newly collected for the specific purpose of the study project o Observational data o Questionnaire data o Experiments o Benefits more control over data more current more applicable o Limitations high cost inconvenient and time intense less accurate D Develop Findings Analyze the data Present the findings Research plays a key role in long term planning Make sense of data E Take Marketing Actions Make action recommendations Implement action recommendations Evaluate results III Research Types A Exploratory Not designed to provide conclusions Investigate or explore possible problems or opportunities Often word based in nature and can take a variety of forms Gives in depth information and leads to future research B Descriptive Uses data to describe show or summarize data about something specific Can be used to draw conclusions only about the exact persons in the study Often quantitative measurement numbers based and takes many forms Three forms of descriptive research personal observation unobtrusive measures mechanical observation Example survey asked of a group of students between two different chip types C Casual Experiment based and used to determine an actual cause and effect relationship Techniques for trying to understand cause effect relationships experiments test in a controlled environment and field studies test in the real world Example observing the effects of advertisement on brain activity