Marketing Research Workshop 1 Complexities of Marketing Research

Marketing Research Workshop 1

Complexities of Marketing Research

Determining Your Industry Step 1: Core Utility Step 2: How do people solve this problem currently? Step 3: What products or companies provide these solutions, and what industries do they belong to?

SWOT Analysis Strengths - Our love for dogs shows no bounds - Our soap smells like heaven Opportunities - Dogs eat cats for breakfast - Dogs as part of the family trends Weaknesses - Little to no experience in general hygiene - Run a Chocolate business in the same space Threats - Cats are taking over the world - Boston is cold 80% of the time - 0 dogs are outside

Target Market Segmentation: Dividing an entire market up into different customer segments.

Ruff Day Salon Target Customer Jane ● Early 30’s, Boston native ● Nurse at Beth Israel ● Newly married ● Dog is part of the family

Competitive Analysis 1. Identify main competitors a. Be as broad as possible i. Ex) Coffee. Bar competitors aren’t just coffee shops b. Industry point of view c. Market point of view 2. Competitor Assessment 3. Analyze Point of Differentiation/True Value of Product

Determining Annual Revenue & Growth of Segment Total Market Potential: Potential sales value of particular product or service within a specific target segment over a specified period of time Calculation: (# of sale opportunities) * (average selling price) Huge Assumption: Company will be able to win 100% of these opportunities Example: 100, 000 dogs in Boston * $100 average cost of grooming = $10 MM business!

Estimating Market Size Free Government Market Data: http: //www. census. gov/data-tools. html Statista Linked. In API Facebook/Google Planners

The Ruff Day Salon is a luxury dog-grooming salon located on Newbury Street. It is renowned for its phenomenal customer service and natural product line. Your dog has a ruff life, treat him right!

Questions?

Additional Slides

Estimating Industry Growth Potential Data Resources: ● Google Scholar ● Pew Research Center ● Google Trends ● Paid options as well for specific industry related statistics

Ecosystem Analysis Determine your distribution channel

Asking the right questions Step 1: specify what information will be sought ● What data do you need Step 2: Determine method of administration ● Personal or telephone interview, mail or online survey ● Communication or observation ● The degree of structure and disguise influence this decision, as does the specific research situation Step 3: Determine content of individual questions ● What you ask ● Where you look ● How you ask ● Filter question: determines if respondent is likely to possess the knowledge I want Step 4: Determine form of response to each question ● Response order bias ● Split-ballot technique: change phrasing for half of the questionnaires

Step 5: Determine wording of each question ● Use simple words ● Avoid ambiguous words ● Avoid leading questions ● Avoid unstated alternatives ● Avoid assumed consequences ● Avoid generalizations and estimations ● Avoid double - barreled questions (use and) Step 6: Determine question sequence ● Simple and interesting questions ● Use the funnel approach

Assessing User Needs: ● Multiple concept screens and sorts ● Multiple focus groups to test product and package designs ● Brand name and positioning tests ● BASES Tests: on features, price, volumetric predictions against competitors in category and for classic grocery shoppers.

Value of Marketing Research Allows for: ● Complete understanding of new/existing customers ● Ability to develop new marketing strategies ● Opportunities to mitigate risk ● Tracking of sales & monitoring of potential problems

Potential Research Options: Secondary Data Primary Methods ● Depth Interviews ● Focus Groups ● Surveys ● Experiments ● Observation (particularly Ethnography) ● Motivational Research ● Panels (including online) ● Conjoint Studies

Value Proposition What is the company selling? What is the benefit of using it? Who is the target customer for this product or service? What makes the offering different from competitors?

Key Things to Consider ● Nature of the product - what is it used for, desired image, customization opportunities ● Market itself - how spread out is the distribution network, international opportunities, what is the competition doing

Key Things to Consider ● Business itself - what are the marketing objectives (profit or revenue maximization), how much control does the company want over distribution ● Legal Issues - are there sales limitations, what will be the risks if intermediary makes illegal sale ○ ex) sells tobacco product to someone under the age of 21 in Boston