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Importance of Marketing Research in Increasing Sales and Profits

Marketing research helps businesses increase sales and profits by answering questions about product production, pricing, target market, and promotion. It also provides market intelligence and helps solve marketing problems and gauge the potential of new ideas.

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Importance of Marketing Research in Increasing Sales and Profits

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  1. May 9th, 2015 Market Research • Describe the purpose of marketing research

  2. Why Is Marketing Research Important? The information obtained from research helps businesses increase sales and profits. Research answers questions about: What products to produce At what price to sell them Who will buy the products How the products will be promoted Research also helps solve marketing problems and gauge the potential of new ideas.

  3. market intelligence Information about the size and location of a market, the competition, and the segmentation within the market for a particular product or service. Market Intelligence Market intelligenceis concerned with: The size and location of a market The competition The segmentation within the market for a particular product or service Market intelligence helps define potential target markets for a particular product or service and how to reach potential customers. Marketing Essentials Chapter 28, Section 28.2

  4. Types, Trends, and Limitations of Marketing Research Types of Marketing Research • The type of marketing research businesses conduct depends on the problem that they are trying to solve. Some of the most significant areas of research are: • attitude research • market research • media research • product research

  5. Types, Trends, and Limitations of Marketing Research Attitude Research • Attitude research, also known as opinion research, is research designed to obtain information on how people feel about certain products, ideas, or companies. • Example:The Gallup Organization conducts opinion research polls on politics, elections, business and the economy, social issues, and public policy.

  6. Types, Trends, and Limitations of Marketing Research Market Research Market research involves the systematic gathering, recording, analyzing, and presentation of information related to marketing goods and services. It uses market analysis—the study of particular consumer and industrial markets—to obtain data about the size, location, and make-up of the market for a product. Slide 1 of 2

  7. SECTION 28.2 Types, Trends, and Limitations of Marketing Research Market Research • Sales forecasting is an effort to estimate the future sales of a product. • Economic forecasting is an attempt to predict future economic conditions. Most businesses rely on government data to predict economic conditions and to adjust their business activities depending on the economic outlook. Slide 2 of 2

  8. Types, Trends, and Limitations of Marketing Research Media Research • Media research focuses on issues of media selection and frequency. It measures the effectiveness of the advertising message and media placement. Media research is done on: • print media • broadcast media • online media

  9. Types, Trends, and Limitations of Marketing Research Researching Print Advertisements • The effectiveness of a printed advertising message can be tested on its recall, communication, and persuasive abilities. Several different techniques are used, including: • reader surveys • consumer panels

  10. Types, Trends, and Limitations of Marketing Research TV Ratings Advertisers who prepare television advertisements are interested in TV ratings. What information can TV ratings provide for a television advertiser?

  11. Types, Trends, and Limitations of Marketing Research Researching Online Advertising • As online advertising increases in popularity, researchers have developed marketing research techniques for online copy testing. Techniques include: • using a mock environment similar to traditional copy testing • live testing in an interactive environment • tracking ad recall and copy effectiveness • evaluating Web site elements that attract users

  12. Types, Trends, and Limitations of Marketing Research Product Research Product research centers on evaluating product design, package design, product usage, and consumer acceptance of new and existing products.

  13. product research The evaluation of product design, package design, product usage, and consumer acceptance of new and existing products. Product Research Product researchcenters on evaluating: Product design Package design Product usage Consumer acceptance of new and existing products Product research is also conducted to collect information about competitive products. Concept testing, product positioning, and pricing studies are frequently done with focus groups to get initial consumer reactions to a product or service idea.

  14. Types, Trends, and Limitations of Marketing Research New Product Acceptance • Product tests are a way of measuring new product acceptance. Techniques include: • having consumers try a product and give their opinions • providing samples • test marketingby placing a new product in a selected geographic area • having a product rating board

  15. Types, Trends, and Limitations of Marketing Research Existing Product Research • Satisfaction questionnaires and interviews gather information about existing products and services. • Industrial satisfaction surveys focus upon products and services utilized by business and manufacturing firms. • Customer satisfaction surveys provide data for businesses regarding retail customer attitudes toward existing products and services.

  16. Types, Trends, and Limitations of Marketing Research Trends in Marketing Research • The nature and scope of marketing research are rapidly changing to keep pace with a changing marketplace. In the face of global competition, research that measures product quality and consumer satisfaction is the fastest growing form of marketing research.

  17. Types, Trends, and Limitations of Marketing Research Limitations of Marketing Research • Marketing research information is used to help businesses make sound business decisions, however it is limited by the following factors: • the company's budget • time • quickly changing customer preferences

  18. ASSESSMENT Reviewing Key Terms and Concepts • 1. What are the four major areas of marketing research? • 2. What is the difference between sales and economic forecasting? • 3. What is test marketing? • 4. List at least four trends facing marketing researchers today. • 5. What are two limitations of marketing research?

  19. ASSESSMENT Thinking Critically • Should every type of business engage in marketing research? Why or why not?

  20. Graphic Organizer Types of Marketing Research Types of Marketing Research Product Research Attitude Research Media Research Market Research NewProductAcceptance ExistingProductResearch Researching PrintAdvertisements Researching Broadcast Media Researching OnlineAdvertising Sales Forecasting Economic Forecasting

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