Marketing research
Research covers the search for and retrieval of information for a specific
purpose. Research has many categories, from medical research to literary
research. Businesses engage primarily in four types of research:
* Marketing research - Marketing research (also called "consumer
research") comprises a form of applied sociological study which
concentrates on understanding the behaviours, whims and preferences,
mainly current and future, of consumers in a market-based economy.
* Market research - Market research has a broad scope and includes all
aspects of the business environment. It asks questions about
competitors, 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 sectors. 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 products can be produced with
available technology, and what new product innovations near-future
technology can develop. (see New Product Development)
* Advertising research - This attempts to assess the likely impact of an
advertising campaign in advance, and also measure the success of a
recent campaign.
Types of marketing research
Marketing research techniques come in many forms, including:
* test marketing - a small-scale product launch used to determine the
likely acceptance of the product when it is introduced into a wider
market
* concept testing - to determine if consumers consider a concept useful
* mystery shopping - An employee of the company conducting the research
contacts a salesperson and indicates they are shopping for the product
they sell. They then record the entire experience. This method is often
used for quality control or for researching competitors products.
* store audits - to determine whether retail stores provide adequate
service
* demand estimation - to determine the approximate level of demand for
the product
* sales forecasting - to determine the expected level of sales given the
level of demand
* customer satisfaction studies - exit interviews or surveys that
determine a customer's level of satisfaction with the quality of the
transaction
* distribution channel audits - to assess distributorsÕ and retailersÕ
attitudes toward a product, brand, or company
* price elasticity testing - to determine how sensitive customers are to
price changes
* segmentation research - to determine the demographic, psychographic,
and behavioural characteristics of potential buyers
* consumer decision process research - to determine what motivates people
to buy and what decision-making process they use
* positioning research - how does the target market see the brand
relative to competitors? - what does the brand stand for?
* brand name testing - what do consumers feel about the names of the
products?
* brand equity research - how favourably do consumers view the brand?
All of these forms of marketing research can be classified as either
problem-identification research or as problem-solving research.
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.
Both exploratory and conclusive research exemplify primary research. A
company collects primary research for its own purposes. This contrasts with
secondary research: research 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.
Types of marketing research methods
Methodologically, marketing research uses four types of research designs,
namely:
* 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, depth interviews, and projective
techniques
* Quantitative marketing research - generally used to draw conclusions -
tests a specific hypothesis - uses random sampling techniques so as to
infer from the sample to the population - involves a large number of
resondents - examples include surveys and questionnaires
* Observational techniques - 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 - 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.
Some commonly used marketing research terms
Many of these 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 behaviours
that a researcher can measure. Precision refers to the exactness of any
given measure. Reliability refers to the likelihood that a given
operationalized construct will yield the same results if re-measured.
Validity 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, ÒAre we measuring what we intended to measure?Ó
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 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.
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