Trade Organizations Marketing research in retail Data, information, knowledge https://john.do/wp-content/uploads/2014/06/data-information-knowledge-gapingvoid.jpg Can we make decision based on these customer data? Age 2017 2018 2019 18-29 15% 10% 6% 30-39 18% 13% 13% 40-49 26% 22% 15% 50-59 18% 24% 21% 60-69 15% 18% 25% 70+ 8% 13% 20% Propojením informací vznikají znalosti. Informace je základní stavební kámen komunikace Data and information differences •Data is the most basic form of knowledge, e.g. the brand of butter sold to a particular customer in a certain town. This statistic is of little worth in itself but may become meaningful when combined with other data. •Information is a combination of data that provide decision-relevant knowledge, e.g. the brand preferences of customers in a certain age category in a particular geographic region. Goals of marketing research •Understand the market •Present •Future •Identify threats and opportunities •Formulate marketing actions and assess its effectiveness Marketing research process •PREPARATION PHASE •Problem definition •Situation analysis •Research project planing •Pre-research •REALISATION PHASE •Data collection •Data processing •Analysis and interpretation •Visualisation and presentation Problem definition •Most important part of the research project •Well defined problem is half-solved •There are no bad answers in marketing research, only bad questions Case study 1: Retailer introducing new store brand •Retailer asked marketing research company to do taste research on their new product. •There were three new flavours of their soft drink: mango, banana and pineapple. •Research company offered sample of all three flavours to 350 people and 43% chose banana flavour. •Company introduced new flavour and failed miserably. •What are the possible causes of this unsuccessful product launch? Marketing research: In-house or agency? Výsledek obrázku pro ipsos png SouvisejÃcà obrázek Výsledek obrázku pro millward brown logo png Výsledek obrázku pro stem mark png Výsledek obrázku pro scac png Výsledek obrázku pro kantar png Související obrázek Výsledek obrázku pro kantar png BRIEF RESEARCH PLAN Business problem Know-how ORDER RESEARCH REPORT $$$ $$$ $$$ Knowledge Výsledek obrázku pro gif money Výsledek obrázku pro tesco png What is brief? •Well defined assignment for agency is fundamental! •Good breif consist of: •Well defined request for the agency. •Clearly stated goals •Reasoning why do we need to carry research project •Defined context of a problem •Defined target group and methodology requirements •Clearly defined outcome with acceptation criteria •Timeframe, budget and team allocation Výsledek obrázku pro brief Research question •Research question is a clear statement of the problem formulated in sentence ending with question mark. •Clear expression of what will be studied (Kolb, 2008) •It influence whole research process: •What literature we have to study in advance? •How we design research scope? •What access to the date do we need to negotiate? •What type of research design will be chosen? •What data will be needed? •Sample selection process. •Nature of a final report. Research question examples •What? •What make our clients leave for our competition? •When? •When do our clients visit our store for the first rebuy? •Where? •Where exactly Instagram influencers buy fashion products? Research question examples •Who? •Who spreads negative brand sentiment online? •How? •How product rebranding influenced attitudes of general public? •Why? •Why do companies outsource marketing research? Research types •Quantitative •Based on numbers •Measurement and counting •Large sample size •Qualitative •Based on text, sound, video and pictures •Interpretation •Small sample sizes Exploratory Explanatory Descriptive Problems with causality •For example, a correlation has been found between having breast implants and suicide (Koot, Peeters, Granath, Grobbee, & Nyren, 2003). •However, it is unlikely that having breast implants causes you to commit suicide – presumably, there is an external factor (or factors) that causes both; for example, low self-esteem might lead you to have breast implants and also attempt suicide. Research types •Primary data •Do not exist at the beginning of the research project •Data collected throughout the project •Secondary data •Data already existing •Reports, statistical data, business data, reused data, analytical data. https://1.bp.blogspot.com/_FvLBt6aXHco/SDCxz-Qkk_I/AAAAAAAAABk/f-qleuJPFHo/s1600/primary_secondary_ data.gif Sample and sample size •Sample is a part of population which, when collected properly, can produce results which are generalizable. •Greater the sample size more reliable the results are. •Reality = Parametr + Error Population Parametr Data Statistics People Sample Ideal sample size Favourite colour example •In a class, teacher ask students what is their favourite colour. •The realtime results goes like this: Respondent Answer Results PINK in % Results GREEN in % Change 1 Pink 100 0 No data 2 Green 50 50 50% 3 Green 33,5 66,5 16,5% 4 Pink 50 50 16,5% 5 Green 40 60 10% 6 Green 33,5 66,5 6,5% 7 Green 28 72 5,5% 8 Pink 37 63 9% 9 Pink 44 56 7% 10 Pink 50 50 6% Margin of error •It is statistic expressing the amount of random sampling error in a survey's results. •The larger the margin of error, the less confidence one should have that the reported research results are close to the "true" figures; that is, the figures for the whole population. Výsledek obrázku pro sample size graph Sample size in qualitative studies •The data collection takes place as long as there is no condition in which further examination of the selected sample does not bring new substantial information. •Theoretical saturation •The goal of qualitative research is not generalization, so it is not the aim of the results to relate to the whole population but to reveal the connections and causes of a certain behavior of customers. Výsledek obrázku pro eating gif Primary data collection methods •Survey •Interview •Questionnaire •Observation •Experiment Data collection techniques - qualitative •Deep interviews •Focus group discussions •Expert consultations •Observation Data collection techniques - quantitative •Face to face interviews •Telephone interviews •Postal survey •Electronic survey •Observation •Experiment Data collection techniques - specifics for retail Výsledek obrázku pro data z účtenek Data collection techniques - specifics for retail Související obrázek Data collection techniques - specifics for retail Výsledek obrázku pro retail card heatmap Data collection techniques - specifics for retail Výsledek obrázku pro retail shelf heatmap Case study 2: Pepsi challenge •Famous Pepsi challenge research showed some disturbing results. Despite the leading position of Coca cola, during the blind taste tests people prefered Pepsi. •Based on few sips of Coke and Pepsi, consumers immediately chose Pepsi for its sweater taste. Coca cola reacted quickly with brand new product: New Coke. •However, market shares dropped down immediately and the new taste was not accepted by the customers as managers predicted. •What are the possible causes of this unsuccessful product launch? Validity •Valid questions are those that give us answers exactly what we ask - what is the main goal of research. Reliability •It expresses the degree of sustainability of research tools. •To what extent the question remains reliable and still valid in further iterations - for example, in other time, social and cultural conditions. Experiential excercise assignment •The students in each class will be organized into teams. Each team of students will visit a chosen retail shop in Karviná (Tesco, Lidl, Kaufland, Hruška, Billa) and observe the retail mix adopted by the store (i.e. merchandise, location, customer service, store design, pricing and promotion). The team should further examine the competitive advantages compared to other stores that sell similar merchandise. You may purchase some products by yourself and analyze the purchase experiences to assist your evaluation of the retail mix. •Each team will present the findings in the class (about 20 minutes for each team) and make recommendations on how the chosen retailer might improve the retail mix in order to achieve growth in sales or profit. Experiential excercise assignment •Merchandise – width and depth of the product portfolio in categories: shampoo, milk, toothbrush. •Location – strengths and weaknesses •Customer service level •Store design type •Sales promotion – what products, where and how. •Competitive advantages compared to other stores that sell similar merchandise. Thank you