2.2.3 & 2.2.4 Pre-learning (Market Research & Attributes)

​Market Research & Attributes
​U2 AOS 2 Business Management - Term 3 Week 3 Pre-learning x2

By Adele Wyers

We studied this in Unit 1.

It is the process of collecting and analysing information to make decisions about products, branding, and customer needs.

It is also part of a market-oriented approach that promotes success.

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Market Research

Open Ended

List three things that you remember about market research from Unit 1 AOS 1.

• market size
• consumer likes and dislikes
• product positives and negatives
• promotion effectiveness
• packaging effectiveness
• degree of threat from competitors • distribution: how customers want to get the product.

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Questions that market research aims to answer...

Once these questions are answered, businesses can make effective decisions about current or future products, branding and promotional campaigns.

It reduces risks by checking customer preferences and needs.

It also reduces the threat of being outplayed by competitors.

Why these questions?

A systemic procedure is needed for market research to be successful.

The first step is to identify the issue that needs solving or the question that needs answering. This is estbalishing objectives for the research.

Market Research
Process - Step 1

EXPLORATORY - an informal collection of random data.

DESCRIPTIVE - gather info through observation to describe consumer behaviour.

CAUSAL - studies the cause and effect of certain actions (to identify what will effect sales!)

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Market Research
Process - Step 2

Once objectives and research design are set, it is time to determine where the data will come from.

Primary research - new data is collected and analysed.

Secondary research - existing data collected by others is analysed.

Examples on next slide.

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Market Research
Process - Step 3

Especially for primary research, a sample of people from the population are asked to participate.

This could be a random group of people or be carefully selected to represent the customer base.

The survey or focus group needs to be set up to generate data which may be qualitative or quantitative (next slide).

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Market Research
Process - Step 4

Once the forms or surveys are created, the research is conducted.

People are interviewed, focus groups run, surveys are answered, secondary research is compiled.

Once done, all research info and data needs to be analysed and evaluate.

Market Research
Process - Step 5

After evaluating the data, researchers will make 'findings' - answers to the original questions, conclusions about customer needs. Sometimes this includes recommendations on what to do next.

This has to be written into a report that can be presented to owners and managers who make the decisions.

Market Research
Process - Step 6

Reorder

Create the correct order of the market research process.

• Define the problem and establish the objectives

• Determine the research design then identify information types

• Select samples and design collection approaches

• Collect and analyse the data

• Create a report with findings and recommendations

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Categorize

Options (10)

Surveys

Interviews

Direct observations and small group discussion

Experiments

Email blasts

Company records and financial statements

Internet searches

Newspapers and magazines

Government agencies or reports

Private marketing firm reports

Organise the market research options into the correct categories.

Primary Research

Secondary Research

Multiple Choice

Are these definitions correct?

• Yes

• No

Open Ended

This is now the end of 2.2.3 (Chapter 11.3). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far about market research practices.

A market is made up of all the current and potential customers for a business or product.

Businesses need to identify their target market of customers who do or will make purchases.

To do so, market dimensions, segmentation, consumer trends, and consumer behaviour are all considered.

Target Market Attributes

Multiple Choice

Which of the following describes a target market?

• An ideal location in which the business would like to position itself in order to maximise sales

• The level of sales that a business aims for, or targets, in order to break even

• The level of sales that a business aims for, or targets, in order to make a desired level of profit

• A group of customers with similar characteristics who currently purchase the product or may do so in the future

​How big will the target market be?

Mass marketing - the whole market is targeted.

Individual marketing - products and marketing is personalised.

Niche marketing - a smaller subset of the market with specific needs is targeted.

​​Market Dimensions

The middle path between mass and individual marketing is to divide the market into segments.

This helps the business to identify the features of the target customer.

Then marketing resources ($$$) can be directed to where it has the best chance of influencing consumer behaviour and increasing sales.

Market Segmentation

Multiple Choice

Which of the following is NOT an example of a market dimension?

• Democratic

• Geographic

• Psychographic

• Behavioural

Once the market has been segmented, the ideal target market can be identified.

This narrows down the broad generic market into a specific product market for the business and its customers.

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​Target Market

Generic market for cars is anyone who needs to drive.

Product market for cars will take segments into account.

Think about the differences in who will buy a mini kei car, a reliable Toyota, an expensive Mercedes, a ute, or an electric/hybrid car.

​Target Market

​The Four Market Segments

​It is important to identify as many relevant variables as possible.

This will define the exact profile of the target market.

Multiple Choice

Which of the following market segmentations categorises consumers according to age, gender, occupation, education, religion, family size and ethnicity?

• Demographic

• Geographic

• Psychographic

• Behavioural

​It is important for a business to identify how the values or customers change over time and adapt to it.

As consumers care more about the environment, more sustainable product options become available.

Consumer Trends

​Just as important is how customers make purchasing decisions and react to marketing techniques.

Supermarkets put small chocolates near checkouts for impulse buys by hungry customers.

Consumer Behaviour

​Consumer Behaviour

Dropdown

Consumer behaviour is influenced by a variety of factors.
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Select answer

​ factors include values, beliefs, and traditions shared by a group of people.
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Select answer

factors relate to influences from family, friends, and social groups.
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Select answer

factors include a person’s age, lifestyle, occupation, and economic situation.
​​

Select answer

factors involve the way people think and feel, including motivation, perception, and attitude.

Open Ended

This is now the end of 2.2.4 (Chapter 11.4). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far about target research attributes