Class 1 Notes

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Market Research - Intro

What is Research ?

Pose a question ;

Get Data;

Arrive at a answer / Solution

What is Marketing research?

Pose questions regarding 4Ps / 7Cs and arrive at answer / conclusions

Definition of Market Research :

AMA: Link consumer, Customer, Public to marketer through information

What is difference between Customer and Consumer?

ESOMAR : is the systematic gathering and interpretation of information about individuals and organisations. It uses the statistical and analytical methods and techniques of the applied social, behavioural and data sciences to generate insights and support decision-making by providers of goods and services, governments, non-profit organisations and the general public.

Professor Quote : If you torture the data long enough, it will confess to anything How does market research help the Manager?

Segment the market

Identify the target market

Develop marketing programs

What is the process of Market Research?

1) Problem Definition

2) Development of Approach

3) Research Design Formulation

4) Data Collection and Capture

5) Data Preparation/ Analysis

6) Report preparation / Follow-up

What is the classification of Market research?

Problem identification research

Problem solving research

-Segmentation

-Product

-Promotion

-Distribution

(Psychographic + Demographic)

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Market research industry:

$35 to $39 Billion Industry (Worldwide) ;

Nielsen is the market leader

In India, it is only $400 million industry;

this is because, market research is valued when the competition is pretty high. In India, competition was pretty low until 1991-92. Also, India has a lot of variations in demography; sample sizes are pretty low ;

multiple surveys become necessary

Market research spending is directly proportional to the distance between customer and marketing;

Caterpillar => 20 customers - low market research spend

Consumer non-durables => 1 million customer => high market research spend

Example of simplified market research:

Goal => Pose Question => Get Data => Arrive @ answer / solution ;

Goal : I would like to have the coffee hot

Pose a question : How hot is my coffee?

Get Data : Touch/ Sip /Measure

Arrive @ answer/solution : Hot enough/ need heating

1.Goal : How to identify multiple coffees in a stack?

2. Pose a question : how to find which coffee is the hottest?

3. Get Data : Sample / Measure / Observe how it was stacked/ Ask the waiter

4. Arrive @ answer/solution : Hot enough/ need heating

Marketing Research:

Goal : We must have strong brand

Pose a question : What do consumers think of our brand?

Get data : Survey / Observe

Arrive @ Answer/Solution

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Problem definition phase:

Discussion with decision maker (I want to increase the Sales!)

Expert interviews

Secondary research

Qualitative study

Need the environmental context of the problem:

Ex., Hot Coffee ( we need to ask , how is the environment - A/C or Room temperatiure ; what is the cup ? : Styrofoam/Porecelain/Stainless steel

Problem definition cannot be broad; needs to be specific;

OBJECTIVE <=> THEORETICAL FOUNDATION

ANALYTICAL MODELS INFORMATION NEEDED

RESEARCH QUESTIONS<=>HYPOTHESIS