Understand how marketing research can contribute to a firms competitive advantage.

Understand that market research includes consumer research, competitor research, and channel research and explain how consumer research uses the basic marketing research process and various methods to study consumers and their choices. Understand that an important part of market research is to study the history of competition as well as examine current and potential competitors. Understand how to research and analyze trading systems and distribution channels.

Research, as a general concept, is the process of gathering information to learn about something that is not fully known. For marketers, research is not only used for the purpose of learning, it is also a critical component for making good decisions. Good research may suggest multiple options for introducing new products or entering new markets. In most cases marketing decisions prove less risky when the marketer can select from more than one option.

What would happen if Barry raised its prices? Would Isotoner grab another 20% of the slipper market? How might market research provide some guidance?

Definition of Marketing research The process of: defining a marketing problem and opportunity, systematically collecting and analyzing information, recommending actions to improve an organizations marketing activities.

Market research can range from executive visits to a customers manufacturing facility through to the rather complex and very rare market testing undertaken by Barry, above. A market usually contains four types of players: Consumers; Competitors; Distribution channel members; Regulators: those that monitor the marketplace.

Market research and marketing research are often confused. 'Market' research is simply research into a specific market. It is a very narrow concept. 'Marketing' research is much broader. It not only includes 'market' research, but also areas such as research into new products, or modes of distribution such as via the Internet.

Fisher-Prices toy testing shows how to define the problem and its two key elements: setting the research objectives and identifying marketing actions suggested by the research. This is how FisherPrice designers developed the Chatter Telephone. A. Set the Research Objectives Objectives are specific measurable goals the decision maker seeks to achieve in solving a problem. Typical marketing objectives: increasing revenues and profits discovering what consumers are aware of and want finding out why a product isnt selling well.

Example: Fisher Price, the toy manufacturer, has a special play laboratory and a waiting list of several years for children to participate in their new product testing, which is observed through one-way mirrors.

Other toy manufacturers spend a lot of time visiting day-care facilities and watching how children play with toys. Company specialists are great sources of ideas for product improvement.

Japanese firms, such as Panasonic or Sony have used handson consumer research that focuses on the way current customers use specific products and brands. Hands-on consumer research is conducted by direct observation by managers of the way current customers use specific products and brands. The opposite is arms-length research, which is undertaken by external suppliers. Example: A Japanese kitchen appliance manufacturer

Motivational research is a research method directed at discovering the conscious or subconscious reasons that motivate a persons behavior. Example: A research done in the 1950s concluded that baking cake was a surrogate for having a baby.

C. Define Measures of Success: Criteria or standards used in evaluating proposed solutions to the problem. Will different research outcomes lead to different marketing decisions.? If all the research outcomes lead to the same action, the research is useless and a waste of resources.

It is crucial for business-to-business marketing because a few key customers often account for 80% o a firms business. DuPonts customer oriented culture goes beyond having its cross-functional teams visit its customers; its Adopt a Customer program encourages manufacturing process workers to visit a customer once a month and represent the customers needs on the factory floor.

Example: A team of Marriott executives spent 6 months on the road, staying in economy hotels and learning about competitors strengths and weaknesses. The result was the immediate launch of the Fairfield Inn chain that quickly achieved an occupancy rate 10% higher than the industry average.

1. Sampling Probability sampling

Precise rules to select the sample Each element of the population has a specific known chance of being selected. Arbitrary judgments to select the sample Chance of selecting a particular element may be unknown or 0. It may be chosen when research time and budgets are limited.

Nonprobability sampling

2. Statistical inference
Drawing conclusions about a population (the universe of all people, stores, or salespeople about which generalizations will be made) From a sample (some elements of the universe) taken from that population. The sample should be representative of the population

Otherwise, bias can be introduced, resulting in bad marketing decisions.

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Internal Secondary Data

financial statements sales reports research reports customer demographics Product purchase files.

2. External Secondary Data

U.S. Census Bureau reports, trade association reports, studies by market research firms that are offered for sale, business periodicals containing market studies. These data are available online via the Internet; they can be located using a search engine. New marketing data services offer single-source data-information provided by a single firm on household demographics and lifestyle, product purchases, TV viewing behavior, and responses to coupons and free-sample promotions.

The principal advantage of single-source data is the ability of one service to collect, analyze, interrelate, and present all this information.

Facts and figures that are newly collected for the project. Two ways to collect new or primary data observing people and asking them questions.