Market Research: Data and Expansion

• Market Research is the process of collecting and analyzing competitive and consumer information to develop marketing strategies or solve problems, such as business expansion.
• Market research should be based on hard data, which is information supported by facts, rather than intuitive decisions based on feelings or prior knowledge.

Yogurt Example

• A frozen yogurt business began in Toronto 30 years ago, and when planning international expansion, teams of 8 members were sent to research local cultures and tastes.
• It was discovered that the people of Thailand favor lichee and mango flavors
• The business offers probiotic, non-fat, sugar-free, vegan, and non-dairy yogurt options.
• This business has become a global franchise with over 1,400 locations across 47 countries.

Types of Data

• Primary research involves collecting and analyzing original data, which can be more expensive.
• Secondary data involves the collection and analysis of existing data from sources like books, magazines, websites, and databases, which is less costly.

Test Marketing

• Test marketing utilizes specific locations to assess the success of a new product or service.
• These test markets are chosen to represent an entire population.
• An example includes McDonald's testing the McPizza in Kingston before a nationwide launch.

Records

• Sales records indicate item popularity, seasonal variations, stock turnover, and help predict future sales.
• Inventory records show the speed at which items are being sold.
• Promotional records evaluate the success of ads, coupons, product sampling, and other promotional activities.
• Customer databases contain personal data and purchasing records for each customer.
• Data mining is used to identify patterns between consumer behavior and purchasing habits.

Surveys

• Involve asking carefully planned questions to individuals to gather data.
• Closed-ended questions offer a limited number of choices, are quick to answer, and easily measured (e.g., yes/no, agree/disagree, ratings, multiple choice).
• Open-ended questions allow respondents to develop their own answers, are more time-consuming, qualitatively measure opinions, and are more difficult to measure numerically.
• Data should be collected randomly to avoid bias and ensure proper representation of the target audience.

Observation

• Involves collecting information by watching consumers interact with a product/service without direct interaction.
• Observation is less biased but can be more expensive.
• An example includes observing children playing with new toys at Fisher-Price through a two-way mirror.

Focus Groups

• Bring together a small group of people to discuss a product/service.
• Combines observation and interviewing techniques.
• Participants are selected to represent a target market.
• A moderator facilitates the discussion.
• Participants are observed with cameras and a two-way mirror.

Product Development

• Before developing a new product, it's important to determine if it can be produced and sold.
• Production and marketing teams must collaborate to consider product features, cost, and legality.

Feasibility Study

• A study is done to determine if a business opportunity is possible, practical, and sellable.

Invention vs Innovation

• Inventions are new devices, methods, or processes developed from studies and experimentation.
• Innovation improves an existing product, which helps commercialize and make inventions successful through marketing.

Competitive Research

• It's important to research the competition's marketing strategies.
• Competitive market analysis compares all products in a market to identify opportunities and threats using tools like product mapping.
• Competitive intelligence hires researchers to gather information on competitors using secondary sources.
• Pricing research determines the optimal price for a product that maximizes profit.
• Conjoint analysis determines which product features are most important to consumers.

Product Utility

• Form refers to the relationship between a product's function and appearance, including materials, scent, flavor, color, design, and packaging.
• Information utility provides instructions, directions, or user manuals to help consumers understand how to use a product.
• Place utility adds value by making a product accessible and available, such as through online stores or strategically located coffee shops.
• Time utility involves business operations that cater to customer's needs at any time, such as 24/7 availability or seasonal promotions.
• Possession utility makes products easy to purchase through various payment methods, delivery options, and financing.

Cost-Benefit Analysis

• Compares the estimated costs to the marketer with the estimated benefits to the consumer.
• Marketers must quantify cost-benefits to determine profitability.
• Profit is revenue less costs

Positioning

• Positioning refers to how the target market perceives a product or brand.
• It involves attempting to achieve top-of-mind awareness among consumers.
• Benefit positioning focuses on highlighting all the features of a product.
• Target positioning involves focusing marketing efforts on a specific consumer segment.
• Price positioning can be either expensive to associate with luxury or affordable to highlight value.
• Distribution positioning relates to how the product is sold and delivered.
• Service positioning associates a brand with excellent customer service, which must be maintained.

Rules of Positioning

• Position premise: Do not be afraid to alienate customers. Appeal to a specific demographic.
• Long term positioning: Select a position that can be maintained. Do not change your position constantly, as it will hurt brand equity.
• Relevance: Product position must be relevant to the consumer.
• Clarity: Make your position clear and understandable. Keep it on top of consumer's minds.
• Distinctiveness: Have a unique position, otherwise you will be stuck competing with advertisements and prices as opposed to loyalty.

Branding Strategies

• Support/Adapt: Involves creating a brand image and reputation, which may change for cultural, political, or economic reasons.
• Brand Extension: Leverages an established brand name and consumer base to expand by including it on new products.
• Licensing: Allows another company to use the brand, name, logo, and product for a fee.
• Co-branding: Combines two or more companies or products for mutual benefit.
• Acquisition: Buying a successful company or brand to expand the business and compete effectively.

Packaging

• Consolidation: Keeps the product together.
• Protection: Protects from breakage, spoilage, and tampering.
• Information: Provides details like the manufacturer's information, product weight, ingredients, and instructions in multiple languages.
• Brand Identification: Has visually appealing elements of the brand.
• Promotion: Uses reusable, collectible, or limited-edition packaging.