Market Research: Understanding Customers

• Market research is an organized effort to gather information about target markets and customers.
• It's an important component of business strategy and a major factor in maintaining competitiveness.

How Businesses Use Market Research

• To determine the feasibility of a new business
• Market research should indicate a demand for the product or service
• To test the interest in new products or services to respond to customer needs
• To find and develop new markets or expand existing ones
• To monitor industry and economic trends and develop strategies to adapt the business to the changing environment
• To determine optimal product placement – when, where, and how a product or service will be distributed
• To improve aspects of businesses, such as customer service
• To monitor the competition by checking competitors ads, websites, and social media campaigns
• To develop competitive strategies such as setting competitive pricing for products or services
• To determine how products/services and customer service compare to the competition
• To develop optimal strategies for promotion like how to get the message out to the target market via branding or traditional advertising and/or social media

The Market Research Process

• Data Collection

• Data Processing

• Data Analysis

• Information Evaluation

• Client Presentation

• Market research is a process of gathering, analyzing, and interpreting raw data about target markets, products or services, competitors, and past, present, and potential consumers to derive usable business information.

Questions Answered Through Market Research

• Who are my target audience?
• What do they need?
• What are their wants?
• Which geographies have sales potential?
• What can be the distribution channel?
• Why will they need/want my product and services?
• Who will be our competitors?
• How's the market environment?
• What can I do to make my product and service more attractive?
• What are government rules and regulations in my target market?
• What is the best entry strategy for my target market?

Cases Where Market Research Can Be Used

• One case is when a foreign manufacturer wants to know if there is a market in India for electronic products which operate on alternative energy systems
• A research solution would be to conduct an opportunity assessment study to find out if there is a market in India for targeted products i.e. products which operate on alternative energy systems
• Another is when someone has a product that is superior to others currently available, and would research if consumers also think so
• A research solution is to conduct a product testing study to find out how the targeted product fares in the market against its competitors

Research Approaches

• Observational Research
• Experimental Research
• Survey Research

Contact Methods

• Mail Questionnaire
• Telephone Interviewing
• Personal Interview
• Online Interview

Research Instruments

• Questionnaires

• Mechanical Devices

• Market Information is information systems used in gathering, analyzing, and disseminating information about prices and other information relevant to farmers, animal rearers, traders, processors and others involved in handling agricultural products.

• A Marketing Information System (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

Sources of Marketing Information

• Internal Data
• Guest History Information
• Company Records
• Guest Information Trends
• Point-of-Sale (POS) Information
• Guest Comment Cards
• Mystery Shoppers
• Listening to and Speaking with Guests
• Automated Systems

Marketing Intelligence Includes

• Everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans and short-run tactics
• Internal sources, such as; company's executives, front-desk staff, and service staff
• External Sources, such as: suppliers, conventions, and travel agencies
• Sources of competitive competition such as competitors' annual reports or trade magazines

Example 1

• Mrs. Field's cookies provide their managers with sales forecasts with updates each hour
• When sales are falling behind, the computer suggests sampling the mall to increase the sales

Example 2

• Kentucky Fried Chicken (KFC) develops a new sandwich
• The Company will hold all the information about the product
• Only a few corporate managers know of the project
• The Supplier had to sign a secrecy agreement

How to Get the Information for a Marketing Strategy

• By utilizing a good MIS system
• By hearing from the supplier commenting about KFC
• By hearing of an executive stating how KFC would strengthen its lunch business
• By using legal action