FASHION MARKETING RESEARCH

WHAT IS MARKETING RESEARCH?

It is the systematic design, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Marketing research covers investigation into all aspects of the marketing of goods and services, such as product research and development, pricing research, advertising research, distribution research, and all the aspects of market analysis covered by market research. Market research, as distinct from marketing research, refers to a specific market, investigating aspects such as market size, market trends, competitor analysis, and so on.

Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-tobusiness (B2B) market research, which was previously known as industrial marketing research. Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another. Consumer market research is a form of applied sociology that concentrates on understanding the behaviours, whims and preferences, of consumers in a market-based economy, and aims to understand the effects and comparative success of marketing campaigns.

PURPOSE OF MARKETING RESEARCH

Today, businesses face great risks, and competition is aggressive. In such a scenario, in order to maximize opportunities, the successful business person must make the right decisions at the right time. Such decisions are problematic. An understanding of the market and the needs and wants of present and future consumers is rarely based on intuition alone. Sound market information provides the basis for marketing decisions. Properly designed marketing research will provide all the information required.

THE SCOPE OF MARKETING RESEARCH

There is no area of marketing activity to which the techniques of marketing research cannot be applied. Marketing research can provide information on, and for: 1) The size and structure of a specific market 2) Current trends 3) Consumer preferences 4) Competitors activities 5) Advertising effectiveness 6) Distribution methods 7) Pricing research

8) Development of new products 9) Development of new advertising and promotion strategies 10) Monitor performance following implementation of the above strategies The technique used in the collection of marketing information depends largely on the nature of the research problem, and therefore varies from street interviews to sophisticated techniques.

The role of marketing research in managerial decision making is explained further using the framework of the DECIDE model: D' - Define the marketing problem E' - Enumerate the controllable and uncontrollable decision factors C' - Collect relevant information I' - Identify the best alternative D' - Develop and implement a marketing plan E' - Evaluate the decision and the decision process

TYPES OF RESEARCH

There are broadly two types of research: 1) Qualitative Research It uses techniques such as group discussions, individual depth interviews, projectile interviews and observation. The information attempts to find out the how and why of a situation rather than how many. Analysis can be difficult owing to the depth and complexity of the data collected, so it should be carried out by trained researchers.

This research is invaluable for basic exploratory studies, new product development, and creative development studies. 2) Quantitative Research: It provides information to which numbers can be applied. It is the best known face of marketing research, and most people recognize its survey method.

AN OVERVIEW OF THE MARKETING RESEARCH PROCESS

The stages in the research process are: 1) Define the research problem and set the research objectives 2) Design the research. This includes: a. Data sources b. Select the sampling method c. Select the data collection method d. Design the data collection form (questionnaire)

3) Test the research design (pilot) 4) Collect the data 5) Analyze the data and interpret the results 6) Present the findings PROBLEM DEFINITION AND SETTING RESEARCH OBJECTIVES Defining the research problem is the most critical step in the research process. Unless the problem is accurately defined, the information collected will be of little or no use. What is the problem? What do we want to find out to try to solve the problem? The preliminary planning has implications for the design of the research, and the quality of the information collected.

MARKET RESEARCH CHARACTERISTICS

Marketing research is SYSTEMATIC. Thus systematic planning is required at all the stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses. Marketing research is OBJECTIVE It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially. While research is always influenced by the researcher's research philosophy, it should be free from the personal or political biases of the researcher or the management.

Marketing research involves the IDENTIFICATION, COLLECTION, ANALYSIS, and DISSEMINATION of INFORMATION. Each phase of this process is important. We identify or define the marketing research problem or opportunity and then determine what information is needed to investigate it., and inferences are drawn. Finally, the findings, implications and recommendations are provided in a format that allows the information to be used for management decision making and to be acted upon directly. It should be emphasized that marketing research is conducted to assist management in decision making and is not: a means or an end in itself.

OTHER FORMS OF BUSINESS RESEARCH

Product research - This looks at what products can be produced with available technology, and what new product innovations near-future technology can develop. Advertising research - is a specialized form of marketing research conducted to improve the efficacy of advertising. Copy testing, also known as "pre-testing," is a form of customized research that predicts in-market performance of an ad before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ads flow of attention and flow of emotion. Pre-testing is also used on ads still in rough form.

MARKET RESEARCH SERVICES

Standardized services are research studies conducted for different client firms but in a standard way. For example, procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established. Customized services offer a wide variety of marketing research services customized to suit a client's specific needs. Each marketing research project is treated uniquely.

Limited-service suppliers specialize in one or a few phases of the marketing research project. Services offered by such suppliers are classified as field services, coding and data entry, data analysis, analytical services, and branded products. Field services collect data through mail, personal, or telephone interviewing, and firms that specialize in interviewing are called field service organizations. These organizations may range from small proprietary organizations which operate locally to large multinational organizations

Coding and data entry services include editing completed questionnaires, developing a coding scheme, and transcribing the data on to diskettes or magnetic tapes for input into the computer. Analytical services include designing and pretesting questionnaires, determining the best means of collecting data, designing sampling plans, and other aspects of the research design. Some complex marketing research projects require knowledge of sophisticated procedures, including specialized experimental designs, and analytical techniques.

Data analysis services are offered by firms, also known as tab houses that specialize in computer analysis of quantitative data such as those obtained in large surveys. With the proliferation of software, many firms now have the capability to analyze their own data, but, data analysis firms are still in demand.

Branded marketing research products and services are specialized data collection and analysis procedures developed to address specific types of marketing research problems. These procedures are patented, given brand names, and marketed like any other branded product.

BUSINESS TO BUSINESS MARKET RESEARCH

Business to business (B2B) research is inevitably more complicated than consumer research. The researchers need to know what type of multifaceted approach will answer the objectives, since seldom is it possible to find the answers using just one method. Finding the right respondents is crucial in B2B research since they are often busy, and may not want to participate. Encouraging them to open up is yet another skill required of the B2B researcher. Most business research leads to strategic decisions and this means that the business researcher must have expertise in developing strategies that are strongly rooted in the research findings and acceptable to the client.

There are four key factors that make B2B market research special and different to consumer markets: The decision making unit is far more complex in B2B markets than in consumer markets B2B products and their applications are more complex than consumer products B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets Personal relationships are of critical importance in B2B markets.

RESEARCH DESIGN

There are three types of research design: 1) Exploratory Research This is most useful in the early stages of research, especially if the researcher is not familiar with the subject area. Wide range of sources have to be looked for. Aim is to uncover any variables and investigation of environment.

Descriptive Research Description of the variables uncovered by the exploratory stage. This could be used to investigate the market share of a companys products or the demographic characteristics of the target market (age, gender, income, etc.). Data is usually obtained from second hand sources or from surveys.

Causal Research it is used to determine the relationship between variables, e.g. the relationship between advertising and repeat purchases.

DATA SOURCES

Primary Sources These consists of information collected specifically for the current research project. The collection of more up to date information than is available from secondary sources. Sources of information may include consumers, designers, buyers, manufacturers, retailers and so on, depending upon the research problem.

Secondary Sources These provide with a starting point for data collection. The research problem may be solved wholly or in part by using secondary data. This reduces the cost as secondary data are cheaper, and their sources usually more accessible than is true of primary data. Keeping the objectives of the research in mind will help to ensure that time is spent efficiently as a lot of data is available for the same.

SECONDARY DATA SOURCES

1) Internal Sources Information generated within a company e.g. from accounts departments, sales figures, customer care, company reports, etc. 2) External Sources Information generated outside the company. a) Government statistics Census data, family expenditure surveys, trade and manufacturing trends. b) Trade information Trade press such as industry magazines, trade surveys, competitors reports. c) Financial institutions Many major banks publish reports on regional and national industries. d) Commercial research Many market research companies undertake continuous research.

Primary Sources

PRACTICAL SAMPLING METHODS Sampling involves selecting a smaller number of people from the larger survey populations, whose characteristics and behavior are relevant to the larger group. Deciding the sample size: - cost, time staff availability, level of accuracy required, data collection method, and location of the population. Sample size must be large enough to provide accurate results, without being so large to increase cost.

Choice of Sampling Method

Two main methods: 1. Probability Methods they are the best type of method. Sample frame is used e.g. telephone directory, etc. 3 types of probability methods: A. Simple random method using the lottery method.

B. systematic random sampling division of population by sample size n= 3000/ 50 = 60. If the sample size is 50, and the population size is 3000. If the random number picked is 35 as first item, then every 60th number would be selected till the sample size reaches 50.

C. Stratified random sampling is used when different groups in population have different characteristics. Then the population is divided into similar groups and the sample no. is either equal or unequal as per requirement.

2. Non probability methods do not require sampling frame and judgment element is required. A. convenience sampling items that are close and readily available. B. judgment sampling representative of the survey population. C. quota sampling population id divided into strata and elements are chosen.

Primary Data Collection Methods

1. Observation occasions where one has to just observe rather than interview or else. 2. Focus Groups is a form of qualitative research (group discussion). 3. Experimentation difference is responses is observed. 4. Surveys the results of the surveys are extrapolated to the population as a whole.

Data Collection Methods

1. Personal Interview 2. Telephone Interview Mail (postal) questionnaire Questionnaires - Preliminary Decisions - Question Content - Question Wording

4. Response Format - Dichotomous two possible responses yes/no. - Multiple Choices Several probable answers are presented. - Open end questions- freedom of choice in the response given.

5. Question sequence organize the questions. 6. Questionnaire layout clarity is the aim. 7. Pre testing (pilot) and revision tested on the respondents.

Role of marketing research in new product development: - creation of a customer profile - preparing a profile of competitors - preparation of market strategy report - the merchandise plan

Forecasting Fashion - analyze the past and present consumer - primary data collection techniques - secondary research data sources - Focus groups of experts - Soft wares to help in forecasting - Style testing - Test marketing new styles, colors or silhouettes.

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