Understanding Consumers and Markets through Research x461.1

1. Understanding Consumers and Markets through Researchx461.1 Matt Disston 714-356-6538 mattd@dmgnet.com

2. Grading Rubric • Midterm exam 20% • Final exam 20% • Attendance/Participation 10% • Proposal 50% ______ 100%

3. Proposal Summary Background Objectives Research Approach or Scope of Work Time, cost and critical path chart (cpm) Technical Appendix Secondary data Focus Group Script Questionnaire for the survey

4. ProposalSummary • Summarize the purpose of the proposal • Answer why this research will achieve the objectives • Target audience for the Summary is the Vice President of Marketing • Provide total cost estimate and time require to complete • Write this section last

5. ProposalBackground • Describe the market situation • What is the product? • Why is this product/service perceived as being a good idea by management? • Who are the customers? • Who is the competition? • Are there any special characteristics of this product or market? • SWOT

6. ProposalObjectives • What are the management objectives? • How will the research tasks generate useful information? • What are the most important “researchable questions” the research will answer once it is complete?

7. ProposalResearch Approach/Scope of work • This is a detailed, step by step list of tasks that describe the work to be completed • Specify the product of each task – For example: • Task 1. Meet with the client – At the outset of the research we will meet with the client to clarify the research to be completed. The product of this task will be a scoping memo which specifies any requests for information and specifies any decision points for the client throughout the research effort. • The Research Approach will have 5 or 6 tasks: • Task 1. Meet with the client • Task 2. Secondary research • Task 3. Focus Group • Task 4. Intercept Survey • Task 5. Analysis

8. ProposalTime, Cost and CPM • Construct a budget based on the hours you expect to spend on each task • Establish a billing rate for each employee position • Provide an estimate of the number of hours, by employee for each task • Each task should have a subtotal of the total budget • CPM chart should illustrate when each will be undertaken and in what order

9. Critical Path Method -- CPM

10. ProposalTechnical Appendix • Examples of the secondary research you found on your topic • Focus group script – Introduction, definitions, 30 – 40 questions grouped by topic • Questionnaire – description of methodology 20 – 30 questions

11. Marketing ResearchDefinition • Market research is the formalized process of obtaining information to be used in marketing decisions. • Product: Information! • not decisions, • not a marketing plan, • not a SWOT, • not a new business

12. Market ResearchVocabulary • 4Ps • Product • Price • Placement • Promotion • Market share • Market segment • Measures of central tendency • Mean • Median • Mode • Economics • Per capita • Rank order • Primary data • Secondary data • Experimental data • Segmentation • Targeting • Positioning • Marketing “pain”

13. Market ResearchThe Environment

14. Market ResearchProcess -- MIS Research Schematic: Marketing Environment Internal Information Marketing Research Department External Information Organized Information Guidance Decisions Recurrent MIS Marketing Manager Monitoring Requested Requests and Refinement

15. Decision Support System • Provides necessary information at the time a decision is made • Incorporates business judgment in the form of business/computer models • Provides output to the decision maker based on their input and the input of others in the company • Example: Salesman’s Ipad at the point of sale

16. Case 1 • What do you need to start a business? • Money? • A plan? • A product? • Marketing research? • You need A Customer! • No • No • No • No (Nice try!)

17. Case 1 I am a potential research client. I have developed a new design for a sport boat. It is called a Carabelli 30. I am manufacturing these boats in Brazil. I would like to expand my market. Carabelli 30 Should I export them to the United States? What research (information) do you recommend I have to make this decision? How do you propose to find it?

18. Case 1 • Start with secondary information. • Sources: • Internal (4P’s) • What are the specifications of the product? • Price • Cost • Features • How is it manufactured? • What are the strategic relationships to make the product? • Where is it sold? • How is it currently promoted? • What are the objectives of the management team?

19. Case 1 • External • What are the characteristics of the customers who bought the product? • How do they use it? • How much did they pay? • What is the “value” they see? • Is there market segmentation? • What companies are the competitors? • Price, placement, promotion • What suppliers are required to build it and what are their requirements? • Are there governmental/export issues?

20. General Research Process • Establish the objective with the client – select the marketing opportunity/problem -- What is the customer’s “marketing pain”? • Express the objective(s) in terms of “researchable questions” • Agree on the measurements to use and the information needed to answer the “researchable questions” – what is the research design • Determine how to collect the information -- Data collection methodology • Design the data collection forms – questionnaire, competitor product specification sheets • Determine the sampling method/collect data • Analyze the data • Write the report

21. 3 Conceptions of Marketing • The production concept: consumers will buy goods that are widely available and inexpensive; focus is on improving efficiency in production & distribution • The selling concept: consumers will not buy enough of your product if you leave them alone; focus on advertising & contact with potential customers • The marketing concept: consumers will buy your products if you identify their needs & satisfy those needs better than competitors. Source: Kotler, Philip, John Bowen, and James C. Makens. Marketing for Hospitality and Tourism

22. Three Types of Data

23. Market Research Analysis Nominal Ordinal

24. Market Research Analysis Interval

25. Market Research Analysis Ratio