session 6 - marketing research v09
TRANSCRIPT
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8/4/2019 Session 6 - Marketing Research v09
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Internal Branding
Market Research
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Coach Handbags a Case Study
Coach opened its doors in 1941 Family owned, leather goods shop
Made classically styled, high quality, leatherhandbags
In the early years they didnt need market research
Handbags were functional items
Woman didnt waste time on their purse-buyingdecisions
Offered bags in black & brown
Ornamentation was limited to a gold latch
Earned reputation as traditional sturdy standbys
Conservative professionals became the corecustomer
They were cruising
Then suddenly, by the mid 1990s sales started
slowing
What was happening in the market?
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Coach Handbags a Case Study
More woman were entering the workforce They needed different types of bags for work
They wanted designer brands, fuelling the massluxury movement
They wanted more colourful and stylish bags
Prada, Gucci, Fendi and Chanel were responding
to these trends selling bags at $1000
Coach was looking downright plain
It was time for an extreme makeover
Where to Start?
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Coach Handbags a Case Study
Coach began with market research Coach made consumer needs the focus of its
overhaul strategy
Eventually they would change the way professionalwoman shop for handbags
WOMAN looked at handbags not as fashionstatements but accessible luxuries
WOMAN wanted to fill usage voids
WOMAN took part in activities that range fromweekends away, to clubbing, to shopping
WOMAN wanted:
Weekend bags
Evening bags
Satchels
Clutches
Totes
Briefcases How to respond?
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Coach Handbags a Case Study
Woman wanted more fashion in their handbags Coach designers used words such as sexy, fun,
sophisticated, playful, grounded, luxurious, andquality driven to describe their customers
They launched the Signature range
They continue to identify more usage voids such as
the wristlet They saw woman were growing more interested in
non-leather bags
Research showed that woman shopped mostly duringthe holiday periods. To fill both voids they launchedHamptons Weekend
They believed woman are mixing formal clothing withcasual clothes
This suggested an opportunity to get woman to useformal accessories in the day, hence the Madison
collection
How to remain relevant?
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EVERYTHING IS GIRLFRIEND TESTED
It updates its collections every month now
It introduces new colors, sizes and fabrics
They price bags lower than luxury brands but high enough to be
special Coach continues to watch their customers closely
Coach continues to look for trends to fill
They spend a whopping $ 3,000,000 p.a on research
They interview 14,000 woman
Coach Handbags a Case Study
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Which Category are You?
BRIDGING THE GAP Meeting Consumer Expectations
To produce customer value and satisfaction you need good information onconsumer wants and needs
Your also need information on competitors, resellers, and other forces in the
marketing environment In todays age the issue is not more information but better information
Many companies sit on rich information but dont manage it well
Companies must design effective market information systems
What is more : information must be turned into intelligence
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Internal Branding is VitalDeveloping Marketing Information
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The Marketing Information System (MIS)
Marketing Managers & Other Information UsersAnalysis Planning Implementation Control
Marketing Environment
Target Markets, Channels, Competitors, Publics, Macro forces
Internal
Database
Info
Analysis
Marketin
g
research
Intelligenc
Internal
Database
Info
Analysis
Marketing
research
Develop Information
MARKETING INFORMATION SYSTEM
Assess Info
Needs DistributeInfo
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Internal Data
Electronic collections of consumerand market information
Various Sources are used in theorganisation:
Financial
Operation
Marketing Customer Service
Sales
Channel partners
Easy to access
Information is normally incomplete formarketing decisions
Maintaining data currency requireseffort
Data management is more difficultthan one thinks
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Some organisation make an art of it
Claim to have the largest customerdatabase in the world
40 million households
Phone, online, POS transactions
@ 7500 outletsSlice data by favourite topping,ordered last, side orders
Track commercials and response
Targets coupons to specificcustomers based on data
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Marketing Intelligence
Systematic collection and analysis ofpublic information about competitors,and market place developments
It is used to improve strategic decisionmaking, track competitors, identifyopportunities and threats
To develop competitive intelligencemany techniques available Interviewing competitor employees /
Job Posting
Benchmarking
Internet digging
Trade show lurking Suppliers, resellers, key customers
Annual reports, brochures, press, etc
Databases (Patent Office, Customs,Trademarks, Specialist)
Trash bin looting
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Market Research
There are always gaps in both internaldata & any market intelligencegathering activities
Companies have specific informationneeds
This means conducting formal studies
to achieve specific informationobjectives
Marketing Research is the systematicdesign, collection, analysis andreporting of data relevant to a specificmarket situation faced by the company
and/or the brand
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Define the problem and objectives
Managers & researchers must workclosely
Managers best understand theinformation needed
Researches best understand how toobtain the information
Market objectives are typically:
Exploratory Research (help betterdefine the problem)
Descriptive Research (to describespecific market characteristics)
Causal Research (to test validity ofhypothesis)
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Develop the Research Plan
Determine the exact information needed (translation) The plan for getting the information should outline:
The problem, objectives
The information to be obtained
How the results will help
Sources of existing information Research approaches
Contact methods
Sampling plans
Instruments researches plan to use
Costs
A research plan is a written proposal
Information could be secondary or primary
Examples of specific information could be:
Demographic, economic, and lifestyle characteristics
Usage patters, buying behaviour
Channel reactions
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Implement Gathering Secondary Information
Researchers typically begin here Internal database is the starting point
This is followed by external data sources
Industry associations
Government agencies
Online databases Business publications
News mediums
Previous research
This typically costs less primary data collection
Need to determine how relevant, accurate, current, and impartial isthe info.
It remains a good starting point as it often helps define objectivesclearer
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Implement Gathering Primary Information
In most cases companies must collect primary data
This info must be relevant, unbiased, accurate and current
Several research approaches exist
Research
Approaches
Contact
Methods
Sampling Plan Instruments
Observation Mail Unit Questionnaire
Surveys Telephone Size Mechanical
Experiments Personal Procedure
Online
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Observation
Observing people, actions and situations Good for exploratory research
Location for a retail store, might include competitions locales, trafficdistributions, neighbourhood demographic
Observation labs are commonly used where applicable (e.g. Huggieswipes)
Observations have limitations
Difficult to observe feelings, attitudes, and motives
Difficult to observe long term behaviours
Should be used with other research methods
Ethnographic research involves embedding researches trained observers
(Marriot)
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Surveys
Most widely used method Method best used to acquire descriptive information (peoples knowledge,
attitudes, preferences, buying behaviour)
Flexible can be used to obtain different information in varying situations
Problems include:
Participant is unable to answer Participant is unwilling top answer
Participant is worried about appearances
Participant might resent intrusion
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Experiments
Method best used to acquire causal information Select groups
Apply different treatments
Control unrelated factors
Check differences in group responses
Use Experiment to try and explain cause & effect
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Contact Methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity that
can be collected
Good Fair Excellent Good
Control ofinterviews
effects
Excellent Fair Poor Fair
Control of
sample
Fair Excellent Good Excellent
Speed of
collection
Poor Excellent Good Excellent
Response rate Fair Good Good Good
Cost Good Fair Poor Excellent
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Sampling Plan
Sample Segment of the population selected for market researchpurposes to represent the whole
Who to be surveyed (sampling unit) ?
I.e what information is needed and who is likely to have it
How many people should be surveyed (sample size)
Larger the more accurate; but cost more and reliability difficult toensure
How should be people be chosen (sampling procedure)
Simple random every member has equal chance of selection
Stratified random population divided into groups before randomsampling
Convenience selecting the easiests member to obtain theinformation from
Judgement Judgement is used by researcher to select the sample
Quota Find and interview a prescribed number of people in severalcategories
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Research Instruments
Choice between questionnaires and mechanical instruments Questionnaires
Closed end questions include all the possible answers, and subjectsmake choices between them
Open end questions allow respondents to answer in their own words
Take care in wording (simple, direct, unbiased) Order questions to create interest first. Ask the more difficult
questions later.
Mechanical instruments
People meters on televisions sets
Checkout scanners
Cameras to monitor eye movements
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Research Instruments
Choice between questionnaires and mechanical instruments Questionnaires
Closed end questions include all the possible answers, and subjectsmake choices between them
Open end questions allow respondents to answer in their own words
Take care in wording (simple, direct, unbiased)
Order questions to create interest first. Ask the more difficultquestions later.
Mechanical instruments
People meters on televisions sets
Checkout scanners
Cameras to monitor eye movements
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Implementing the research
Putting the research plan into action Collection
Expensive and most subject to error
Researches must ensure correct implementation of the plan
Guard and correct problems with respondents
Processing Isolating important findings
Check data accuracy and completeness
Analysing
Tabulate results and compute statistical measures
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Interpret and report the findings
Drawn conclusions and report them to management Dont overwhelm managers report the important facts that are useful for
taking decisions
Interpretation is combined work between researcher and managers
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Thank you