Marketing Research

Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Marketing Research shopping experience:

1. Compare - without doubt the biggest advantage that the Marketing Research offers shoppers today is the ability to compare thousands of Marketing Research at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Marketing Research? Wrong! If the Marketing Research is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Marketing Research then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Marketing Research? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Marketing Research and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Marketing Research wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Marketing Research then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Marketing Research site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Marketing Research, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Marketing Research, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

Research is the scholarly or scientific practice of gathering existing or new information in order to enhance one's knowledge of a specific area. Research has many categories, from medicine to literature. Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business (B2B) market research, which was previously known as industrial marketing research. Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another.

Consumer marketing research is a form of applied sociology that concentrates on understanding the behaviours, whims and preferences, of consumers in a market-based economy. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.

In addition to marketing research, other forms of business research include:

Market research is broader in scope and examines all aspects of a business environment. It asks questions about competitions, market structure, government regulations, economic trends, technological advances, and numerous other factors that make up the business environment. (See Environmental scanning.) Sometimes the term refers more particularly to the financial analysis of companies, industries, or List of recognized economic sectorss. In this case, financial analysts usually carry out the research and provide the results to investment advisors and potential investors.

Product research - This looks at what product (business) can be produced with available technology, and what new product innovations near-future technology can develop. (see New Product Development)

Advertising research - is a specialized form of marketing research conducted to improve the efficacy of advertising. copy testing, also known as Copy testing, is a form of customized research that predicts in-market performance of an ad before it airs by analyzing audience levels of Wikt:attention, Wikt:Brand linkage, Wikt:motivation, entertainment, and communication, as well as breaking down the ad’s Wikt:flow of attention and Wikt:flow of emotion. Pre-testing is also used on ads still in rough (ripomatic or animatic) form. (Young, p213)

Types of marketing research Marketing research techniques come in many forms, including:

Ad Tracking – periodic or continuous in-market research to monitor a Wikt:brand performance using measures such as brand awareness, brand preference, and product usage. (Young, 2005)

Advertising Research – used to predict copy testing or Ad Tracking the efficacy of advertisements for any medium, measured by the ad’s ability to get attention, communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service. (Young, 2005)

Brand equity research - how favorably do consumers view the brand?

Brand management - what do consumers feel about the names of the products?

Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the consumer

Concept testing - to test the acceptance of a concept by target consumers

Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle

Buyer decision processes research - to determine what motivates people to buy and what decision-making process they use

Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of Wikt:attention, Wikt:brand linkage, Wikt:motivation, entertainment, and communication, as well as breaking down the ad’s Wikt:flow of attention and Wikt:flow of emotion. (Young, p 213)

Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of the transaction

Demand estimation - to determine the approximate level of demand for the product

Distribution (business) audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong "opinion formers"

Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities.

mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.

Positioning (marketing) research - how does the target market see the brand relative to competitors? - what does the brand stand for?

Price elasticity of demand testing - to determine how sensitive customers are to price changes

Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc.

Market segment - to determine the demographics, psychographic, and behavioural characteristics of potential buyers

Online panel - a group of individual who accepted to respond to marketing research online

Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service

Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market

Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.

All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research.

A company collects primary research by gathering original data. Secondary research is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher.

A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws conclusions: the results of the study can be generalized to the whole population.

Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to management information systems (MIS).

Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing manager.

Marketing research methods Methodologically, marketing research uses the following types of research designs:Marketing Research: An Applied Orientation 2006 (5th Edition) by Naresh Malhotra. ISBN 0132221179This book is a must for marketing researchers.http://www.amazon.com/Marketing-Research-Applied-Orientation-Student/dp/0132221179

Based on questioning:

Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques
Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling (statistics) techniques so as to infer from the sample to the population - involves a large number of respondents - examples include statistical survey and questionnaire construction

Based on observations:

Ethnographic studies -, by nature qualitative, the researcher observes social phenomena in their natural setting - observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces
Experimental techniques -, by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, then manipulates at least one of the variables - examples include purchase laboratories and test markets

Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.

Business to business market research Business to business (B2B) research is inevitably more complicated than consumer research. The researchers need to know what type of multi-faceted approach will answer the objectives, since seldom is it possible to find the answers using just one method. Finding the right respondents is crucial in B2B research since they are often busy, and may not want to participate. Encouraging them to “open up” is yet another skill required of the B2B researcher. Last, but not least, most business research leads to strategic decisions and this means that the business researcher must have expertise in developing strategies that are strongly rooted in the research findings and acceptable to the client.

There are four key factors that make B2B market research special and different to consumer markets:* "Business-to-Business Marketing" By Paul Hague, Nick Hague and Matt Harrison (undated) accessed October 9, 2006

The decision making unit is far more complex in B2B markets than in consumer markets
B2B products and their applications are more complex than consumer products
B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets
Personal relationships are of critical importance in B2B markets.

Most of B2B market research today is done online, using online panels.

Commonly used marketing research terms Market research techniques resemble those used in political polling and social science research. Meta-analysis (also called the Schmidt-Hunter technique) refers to a statistical method of combining data from multiple studies or from several types of studies. Conceptualization means the process of converting vague mental images into definable concepts. Operationalization is the process of converting concepts into specific observable behaviors that a researcher can measure. Precision refers to the exactness of any given measure. Reliability (psychometric) refers to the likelihood that a given operationalized construct will yield the same results if re-measured. Validity (psychometric) refers to the extent to which a measure provides data that captures the meaning of the operationalized construct as defined in the study. It asks, “Are we measuring what we intended to measure?”

Applied research sets out to prove a specific hypothesis of value to the clients paying for the research. For example, a cigarette company might commission research that attempts to show that cigarettes are good for one's health. Many researchers have ethical misgivings about doing applied research.

Sugging (or selling under the guise of market research) forms a sales technique in which sales people pretend to conduct marketing research, but with the real purpose of obtaining buyer motivation and buyer decision-making information to be used in a subsequent sales call.

Frugging comprises the practice of soliciting funds under the pretense of being a research organization.

References

Marder, Eric The Laws of Choice -- Predicting Customer Behavior (The Free Press division of Simon and Schuster, 1997. ISBN 0-684-83545-2
Young, Charles E, The Advertising Handbook, Ideas in Flight, Seattle, WA, April 2005. ISBN 0-9765574-0-1