Market Research

Overview

Market Research The collection and analysis of

information that is relevant to the marketing strategy

Types include: Consumer, market, motivation, pricing,

competitive, product and advertising research

Types of Data

Primary Current information that

researchers collect and analyze for a specific purpose

Collected in a number of ways including test marketing, internal information sources, surveys, observation and focus groups

Types of Data continued…

Secondary Information that has been collected by others

Sources include websites, books, professionally prepared research reports

It is free Disadvantage is that data wasn’t collected

specifically for you so it may not meet all your needs e.g. Statistics Canada

Sources of Primary Data

Test Marketing Introducing a product to a specific

area in small quantities Area is usually selected based on

demographics Very expensive so must be done

carefully if results are to be used e.g. Scotiabank – tested the chip card

in this area

Internal Information Sources

Using information generated by the business and analyzing it

Can help identify who purchases what and when

Can also be shared with suppliers e.g. Air Miles – can track where you buy

and can partner with other companies to send you coupons and information

Surveys

A set of carefully planned questions that are used to gather data

Most surveys use closed-ended questions Questions that require the respondent

to select an answer from two or more choices

e.g. Yes/No, Agree/Disagree, Select a, b, c, d

Questions are easy to answer and easy to score

Surveys continued…

Open-Ended Questions More complicated Require respondents to develop

their own answers Difficult to answer and analyze

Observation

Watching the behaviour of others e.g. using two-way mirrors

Goal is to observe how people react in certain situations

Focus Groups

A company-arranged meeting of potential consumers

One of the most popular forms for consumer research

Usually an incentive for consumers to participate such as: Free meal, money, samples of product