AMR NOTES
Importance of Market Research-
• Identify New Customers: Market research helps discover new customer
segments, providing insights into market segmentation and consumer behavior to
assist businesses in expanding their reach.
• Understand Existing Customers: Gaining insights into customer preferences and
needs through surveys and data analysis is essential for retaining and satisfying
current customers, enabling businesses to improve their offerings.
• Set Realistic Targets: By analyzing market trends and competition, market
research allows businesses to establish measurable and achievable goals,
enhancing strategic planning and resource allocation.
• Develop New Strategies: Market research enables businesses to create innovative
strategies, including marketing campaigns and product launches, based on
emerging trends and market data.
• Forecasting: Utilizing forecasting techniques helps businesses anticipate future
market trends, demand, and sales, guiding decisions on production and investment
planning.
• Solve Business Challenges: Conducting market research equips you with
problem-solving skills to address challenges like declining sales or shifting
customer preferences, enabling businesses to devise strategic solutions.
• Investigate Expansion Opportunities: Market research aids in identifying potential
markets and assessing demand in new regions, supporting informed decisions
about expansion or diversification.
• Gain Insights: Analyzing data and studying consumer behavior provides valuable
insights into market dynamics and competitor strategies, helping businesses make
informed decisions and capitalize on opportunities.
Summary
Studying market research equips you with essential skills to aid businesses in
understanding customers, setting realistic goals, and developing effective strategies.
These capabilities are crucial for driving business success in a dynamic marketplace.
Failed Market Research Example: New Coke Launch
In 1985, Coca-Cola decided to reformulate its flagship beverage, introducing "New Coke"
in an attempt to compete with Pepsi. The company conducted extensive taste tests, which
indicated that consumers preferred the taste of the new formula over both the original
Coke and Pepsi.
However, the market research failed to consider the emotional attachment consumers
had to the original Coke. When New Coke was launched, it faced an overwhelmingly
negative reaction from loyal customers who were unhappy with the change. They felt that
Coca-Cola was abandoning its heritage and the unique taste they loved.
As a result, the company quickly reverted to the original formula, rebranding it as "Coca-
Cola Classic." This example illustrates how failing to understand consumer sentiment and
brand loyalty can lead to significant missteps in market research.
Successful Market Research Example: Apple’s iPhone Launch
Before launching the iPhone in 2007, Apple conducted extensive market research to
understand consumer needs and preferences in the mobile phone market. They identified
several key insights:
1. Consumer Desire for a Touch Interface: Apple discovered that consumers were
increasingly interested in a more intuitive touch interface rather than physical
keyboards.
2. Demand for Multifunctionality: Research indicated a growing desire for devices
that combined phone functionality with other features, such as music players and
internet browsing.
3. Frustration with Existing Smartphones: Apple learned that many consumers were
dissatisfied with the complexity and user experience of existing smartphones.
Using these insights, Apple designed the iPhone to feature a sleek touch interface,
multimedia capabilities, and a user-friendly operating system (iOS). The iPhone's launch
was a tremendous success, revolutionizing the smartphone industry and solidifying
Apple's position as a leader in technology.
This example demonstrates how effective market research can lead to a product that
meets consumer needs, resulting in significant market success.
Exploratory Research Design
Purpose:
Exploratory research aims to explore and understand a problem when there isn’t much
existing information. It helps identify new ideas and develop hypotheses for further study.
Methodology:
Common methods include:
4. Qualitative Methods:
o Interviews: Talking to individuals for detailed insights.
o Focus Groups: Group discussions to gather different opinions.
o Observations: Watching behaviors in real-life settings.
5. Quantitative Methods:
o Surveys: Collecting open-ended responses to identify trends.
o Secondary Data Analysis: Examining existing data for new insights.
6. Case Studies: Analyzing specific examples in-depth.
Benefits:
• Flexibility: Researchers can adjust their approach as they discover new
information.
• Insight Generation: Helps develop new ideas and concepts.
• Understanding Context: Provides a deeper understanding of the situation.
• Identifying Gaps: Highlights areas where more research is needed.
• Cost-Effective: Often quicker and cheaper than detailed studies.
• Foundation for Future Research: Lays the groundwork for more structured
research.
In summary, exploratory research is a useful way to gather insights and prepare for future
studies.
Descriptive Research Design
Purpose:
Descriptive research aims to describe characteristics of a population or phenomenon. It
provides a clear picture of what is happening without trying to influence it.
Methodology:
Common methods include:
7. Surveys: Asking people questions to gather data on opinions or behaviors.
8. Observations: Watching and recording behaviors or events in natural settings.
9. Existing Data: Analyzing already collected data (like census data) to draw
conclusions.
Benefits:
• Detailed Information: Offers a comprehensive overview of a topic or population.
• Easy to Understand: Presents data in a straightforward way, making it easy to
analyze.
• Basis for Further Research: Provides a foundation for more in-depth studies or
hypothesis testing.
• No Manipulation Needed: Observes natural behaviors without interference, which
can lead to more accurate results.
In summary, descriptive research is useful for gathering detailed information about a
subject, helping researchers understand what is happening in a specific context.
Causal Research Design
Purpose:
Causal research aims to determine whether one variable (cause) affects another variable
(effect). It helps researchers understand relationships between factors.
Methodology:
Common methods include:
10. Experiments: Conducting controlled tests where one variable is changed
(independent variable) to see its effect on another variable (dependent variable).
11. Quasi-Experiments: Similar to experiments, but without random assignment to
groups, often used in real-world settings.
12. Longitudinal Studies: Observing the same subjects over time to see how changes
affect outcomes.
Benefits:
• Establishes Cause and Effect: Helps clarify whether changes in one factor lead to
changes in another.
• Control Over Variables: Researchers can manipulate variables to isolate effects.
• Informed Decision-Making: Provides insights that can guide decisions in business,
policy, or other areas.
• Predictive Power: Results can help predict outcomes based on changes in
variables.
In summary, causal research is important for understanding how different factors
influence each other, helping to identify relationships and make informed choices.
Research Process in Simple Steps-
13. Identify the Problem: Clearly define the research question or issue you want to
explore.
14. Conduct Background Research: Gather existing information and studies related to
your topic to understand the context.
15. Formulate a Hypothesis: Develop a statement or prediction that you want to test
based on your research question.
16. Choose a Research Design: Decide on the type of research (e.g., exploratory,
descriptive, or causal) and the methods you will use to collect data.
17. Collect Data: Gather information through surveys, interviews, observations,
experiments, or secondary data analysis.
18. Analyze Data: Examine the collected data to identify patterns, relationships, or
trends. Use statistical tools if necessary.
19. Draw Conclusions: Based on the analysis, determine whether your hypothesis is
supported or refuted and what the findings mean.
20. Report Findings: Present your research results in a clear and organized manner,
such as a report or presentation, including recommendations if applicable.
21. Review and Reflect: Evaluate the research process and findings. Consider how the
results can be applied or what further research might be needed.
In summary, the research process involves identifying a problem, gathering and analyzing
data, and drawing conclusions to gain insights.
What is Product Research?
Product research is the process of gathering information about a product to understand its
features, benefits, and market potential. It helps businesses develop, improve, or launch
products effectively.
Technical Aspects of Product Research
22. Functionality: Analyzing how the product works and its performance in real-world
conditions.
23. Design: Assessing the product's design, usability, and user experience to ensure it
meets consumer needs.
24. Quality: Testing the product for durability, safety, and compliance with industry
standards.
25. Materials and Production: Evaluating the materials used and the manufacturing
processes to ensure cost-effectiveness and sustainability.
26. Technology: Understanding any technology involved in the product, including
software, hardware, or features that enhance functionality.
Marketing Aspects of Product Research
27. Market Demand: Identifying potential customers and understanding their needs,
preferences, and buying behaviors.
28. Competitive Analysis: Studying competitors’ products to find strengths,
weaknesses, and market gaps.
29. Pricing: Determining the right price point based on production costs, competitor
pricing, and customer willingness to pay.
30. Promotion Strategies: Developing effective marketing strategies to communicate
the product's benefits and reach the target audience.
31. Distribution Channels: Identifying the best ways to deliver the product to
customers, whether through retail stores, online platforms, or direct sales.
In summary, product research focuses on understanding both the technical aspects (how
the product works and is made) and marketing aspects (who will buy it and how to sell it) to
ensure a product's success in the market.
How to Make Product Testing More Effective
32. Systems Approach: Look at the whole product ecosystem, including its parts and
how they interact. This ensures testing covers functionality, performance, and
usability in real-life situations.
33. Normative Data: Use industry benchmarks to compare the product’s performance
against established standards. This helps identify strengths and areas for
improvement.
34. Same Research Company: Consistently using the same research company helps
build understanding of the product and improves communication and coordination
throughout the testing process.
35. Real Environment Testing: Test the product in conditions that mimic real-life use.
Simulating factors like temperature and user behavior helps uncover potential
issues.
36. Relevant Universe: Ensure test participants reflect the target market. Testing with a
diverse group matching the intended audience provides valuable insights.
37. Critical Variables: Focus on key factors that significantly affect performance or
user experience. Prioritize testing these to understand their impact better.
38. Conservative Actions: Be cautious when interpreting results. Recognize risks or
limitations to ensure necessary changes are made before the product is launched.
By adopting these strategies, companies can improve product testing, leading to better
products that meet user needs and reduce risks.
Methods of Product Research
39. Monadic Testing: In this method, participants evaluate only one product at a time
without comparing it to others. This approach gathers focused feedback on specific
features like usability, functionality, or satisfaction.
40. Sequential Monadic Design: Participants assess multiple products one by one,
giving feedback on each independently. This allows for direct comparisons and
helps identify preferences and differences among products.
Methods of Product Research
41. Paired-Comparison Design: In this method, participants are shown two products
side by side and asked to choose their preferred option. It effectively compares the
products based on specific features or overall preference.
42. Protomonadic Design: This variation of monadic testing involves presenting
participants with a prototype or early version of a product. It’s used in the early
development stages to gather feedback, identify potential issues, and refine
features before full production.
New Product Development Process
43. Idea Generation: Brainstorm new ideas for products. This can come from
customers, employees, or market research.
44. Idea Screening: Evaluate the ideas to determine which ones are viable and worth
pursuing. Discard those that don't fit the goals.
45. Concept Development: Turn the selected ideas into detailed product concepts.
Describe what the product will be, how it works, and its benefits.
46. Market Research: Gather feedback on the product concepts from potential
customers. Understand their needs and preferences to refine the ideas.
47. Business Analysis: Assess the market potential, costs, and profitability of the
product. Determine if it’s financially viable.
48. Product Development: Create a prototype or sample of the product. This is a
working model that can be tested and refined.
49. Testing: Test the prototype with users to gather feedback on its functionality and
appeal. Make necessary improvements based on this feedback.
50. Market Launch: Introduce the final product to the market with a marketing plan.
Promote it to attract customers and generate sales.
51. Post-Launch Review: After the launch, evaluate the product's performance and
customer feedback. Make adjustments as needed for future improvements.
In summary, the new product development process involves generating ideas, refining
concepts, testing prototypes, and launching the product to the market.
Brand Research
Definition: Brand research involves studying how a brand is perceived in the market. It
focuses on understanding the brand's identity, strengths, weaknesses, and the
preferences of its target audience.
Purpose:
• Assess brand awareness and recognition.
• Understand customer perceptions and attitudes.
• Evaluate brand positioning compared to competitors.
• Identify opportunities for brand improvement or expansion.
Methods:
• Surveys and Questionnaires: Collect feedback from customers about their
perceptions and experiences with the brand.
• Focus Groups: Engage small groups of people to discuss their views on the brand
and its offerings.
• Social Media Analysis: Monitor conversations and sentiments about the brand on
social media platforms.
• Competitor Analysis: Compare the brand's performance and positioning against
its competitors.
Character and Logo Research
Definition: Character and logo research focuses on evaluating the visual elements
associated with a brand, including its logo, mascots, and other graphical representations.
Purpose:
• Ensure the logo and character align with the brand's identity and values.
• Understand how well the logo is recognized and remembered by the audience.
• Assess the emotional response elicited by the logo and characters.
Methods:
• Visual Surveys: Show various logos or brand characters to consumers and gather
their impressions and associations.
• A/B Testing: Present different logo designs to see which one resonates better with
the target audience.
• Brand Guidelines Review: Analyze existing brand guidelines to ensure consistency
in logo usage and character representation.
• Competitor Logo Analysis: Compare the brand’s logo with competitors to identify
uniqueness and effectiveness.
In summary, brand research focuses on understanding customer perceptions and market
position, while character and logo research evaluates the effectiveness of visual branding
elements. Both are essential for building a strong and recognizable brand identity.
Name Research
Definition: Name research involves studying the effectiveness and impact of a brand
name. It assesses how well the name resonates with the target audience and aligns with
the brand’s identity and goals.
Purpose:
• Evaluate the memorability and uniqueness of the brand name.
• Understand the associations and meanings people attach to the name.
• Ensure the name fits well within the brand’s market and positioning.
• Check for any potential negative connotations or cultural sensitivities.
Methods:
• Surveys: Gather feedback from potential customers on their perceptions of the
name, including ease of pronunciation and recall.
• Focus Groups: Conduct discussions with groups of people to explore their
thoughts and feelings about the name.
• Competitor Name Analysis: Compare the brand name to competitors’ names to
identify strengths and weaknesses.
• Cultural and Linguistic Checks: Assess the name for meanings in different
languages or cultures to avoid any unintended negative associations.
In summary, name research is crucial for determining how well a brand name connects
with its audience, its memorability, and its suitability in the market. Together with brand
and logo research, it helps create a cohesive and effective brand identity.
Gabor-Granger Pricing Research
Definition: Gabor-Granger pricing research is a market research method used to
determine the optimal price for a product by assessing consumer demand and willingness
to pay. Named after economists Gabor and Granger, this technique helps businesses
understand how different pricing strategies may affect sales.
Purpose:
• Identify the price point at which demand for a product is maximized.
• Understand how consumers perceive the value of a product in relation to its price.
• Evaluate price elasticity, or how sensitive consumers are to price changes.
Methodology:
52. Survey Design: Create a survey that presents respondents with a product and a
series of price options. This can include:
o A specific price point.
o Follow-up questions about their likelihood of purchasing the product at that
price.
53. Willingness to Pay: Ask respondents to indicate how much they would be willing to
pay for the product. This helps gauge the perceived value.
54. Price Variation: Present different price levels (e.g., low, medium, and high) to
assess how changes in price affect consumer interest and purchasing intent.
55. Data Analysis: Analyze the collected data to determine the optimal price point
where consumer demand is highest. This often involves creating demand curves
based on the responses.
Benefits:
• Informed Pricing Strategy: Provides businesses with a clear understanding of how
price changes could impact sales.
• Market Insight: Offers insights into consumer perceptions and price sensitivity,
helping to align pricing with market expectations.
• Competitive Advantage: Helps in setting a competitive price that maximizes
revenue while meeting consumer needs.
In summary, Gabor-Granger pricing research is a valuable tool for businesses to determine
optimal pricing strategies based on consumer willingness to pay, enhancing their market
positioning and profitability.
Conjoint Analysis
Definition: Conjoint analysis is a research method used to understand how customers
value different features of a product, including its price. It helps businesses determine
what combination of attributes (like price, size, color, etc.) is most appealing to
consumers.
Purpose:
• To find out which features customers prefer and how much they are willing to pay
for them.
• To understand trade-offs customers are willing to make when choosing a product.
Methodology:
56. Feature Selection: Identify the key features of the product you want to study (e.g.,
price, color, size, brand).
57. Survey Design: Create a survey that presents respondents with different
combinations of these features. For example, one option might be a blue, small-
sized product at a certain price, while another might be a red, large-sized product at
a different price.
58. Data Collection: Ask respondents to rate or rank these combinations based on
their preferences.
59. Analysis: Analyze the responses to see which features are most important to
consumers and how they affect their purchasing decisions, especially regarding
price.
Benefits:
• Customer Insights: Provides deep insights into what customers value most in a
product.
• Informed Product Development: Helps businesses design products that meet
customer needs and preferences.
• Optimal Pricing: Aids in setting prices based on customer willingness to pay for
different features.
In summary, conjoint analysis is a useful tool for businesses to understand customer
preferences and determine the best product features and pricing to maximize sales.
Packaging Research
Definition: Packaging research involves studying how packaging design, materials, and
functionality affect consumer behavior and product perception. It aims to optimize
packaging to enhance brand appeal, protect products, and meet customer needs.
Needs for Packaging Research
60. Brand Identity: Packaging helps establish a brand's identity and communicates its
values. Research ensures the design aligns with the brand image.
61. Consumer Appeal: Attractive packaging can attract customers and influence their
purchasing decisions. Research identifies what elements appeal most to the target
audience.
62. Functionality: Packaging must protect the product and be easy to use. Research
helps determine the best materials and designs for functionality.
63. Sustainability: With growing consumer interest in eco-friendly products, research
can identify sustainable packaging options that meet environmental concerns.
64. Regulatory Compliance: Packaging must meet legal requirements (e.g., labeling,
safety). Research ensures compliance with relevant regulations.
Methods of Packaging Research
65. Surveys and Questionnaires: Collect consumer feedback on packaging designs,
features, and preferences through structured questions.
66. Focus Groups: Conduct discussions with small groups of consumers to gain
insights into their perceptions of different packaging designs and features.
67. A/B Testing: Present different packaging options to consumers to see which design
or feature performs better in terms of sales or preference.
68. Eye-Tracking Studies: Use technology to monitor where consumers look on
packaging. This helps identify the most eye-catching elements and areas that
attract attention.
69. Shelf Simulation: Create a mock store environment to test how packaging stands
out among competitors on shelves, assessing visibility and appeal.
70. Product Testing: Assess the performance of packaging in protecting the product
during shipping and handling, as well as ease of opening for consumers.
In summary, packaging research is crucial for understanding how packaging impacts
consumer behavior and satisfaction. Various methods help gather insights that inform
effective packaging design, functionality, and sustainability.
Copy Testing
Definition: Copy testing is a research method used to evaluate the effectiveness of
advertising copy or marketing messages before they are launched. It helps businesses
understand how well their messages resonate with the target audience and whether they
will achieve the desired response.
Purpose of Copy Testing
• Measure Effectiveness: Determine if the ad communicates the intended message
clearly and persuasively.
• Identify Improvements: Find areas for improvement in the copy to enhance its
impact.
• Predict Performance: Estimate how well the ad will perform in the market based
on consumer reactions.
Designs and Methods of Copy Testing
71. Pre-Testing:
o Concept Testing: Present ideas or concepts to consumers to gauge their
initial reactions before creating the final ad.
o Storyboards: Show a visual representation of the ad to get feedback on the
storyline, visuals, and message.
72. Surveys and Questionnaires:
o Ask consumers specific questions about their thoughts and feelings
regarding the ad. This can include clarity, appeal, and likelihood of action
(like purchasing).
73. Focus Groups:
o Conduct group discussions with potential customers to get in-depth
feedback on the ad. This allows for open conversations about what works
and what doesn’t.
74. A/B Testing:
o Present two versions of the ad to different groups of consumers and
compare their responses. This helps identify which version is more effective.
75. Online Testing:
o Use digital platforms to show ads to a wider audience and collect data on
their reactions. This can include click-through rates or engagement metrics.
76. Field Testing:
o Launch the ad in a small market or specific demographic to see how it
performs before a wider release. This provides real-world feedback.
Benefits of Copy Testing
• Improved Messaging: Helps refine messages to better connect with the audience.
• Reduced Risk: Identifies potential issues before launching the ad, minimizing the
chances of failure.
• Data-Driven Decisions: Provides insights based on consumer feedback, leading to
more informed marketing strategies.
In summary, copy testing is a crucial step in the advertising process that helps businesses
evaluate and improve their marketing messages through various methods, ensuring they
resonate with the target audience.
Radio Commercial Pretesting
Definition: Radio commercial pretesting is checking a radio ad before it airs to see how
well it works. The goal is to find out if the ad clearly delivers its message and connects with
the listeners.
Purpose of Radio Commercial Pretesting
• Message Clarity: Make sure the message is easy to understand.
• Emotional Impact: See if the ad makes listeners feel something.
• Recall and Recognition: Check if listeners remember the ad and the brand after
hearing it.
• Target Audience Fit: Ensure the ad appeals to the right audience.
Methods of Radio Commercial Pretesting
77. Focus Groups: Gather small groups of target listeners to discuss their thoughts and
feelings about the ad.
78. Surveys: Send out questions to listeners about what they thought of the ad and if
they would take action, like visiting a website.
79. Listening Panels: Have a group of listeners review several radio ads, including the
one being tested, and share their feedback.
80. A/B Testing: Show two versions of the ad to different groups and compare their
reactions to see which one is better.
81. Recall Tests: After listening to the ad, ask participants questions to find out how
much they remember about it.
82. Market Simulations: Create a fake market where listeners hear the ad alongside
other ads to see how it performs.
Benefits of Radio Commercial Pretesting
• Improved Effectiveness: Makes the ad better by using audience feedback.
• Risk Reduction: Spots problems before the ad airs, reducing the chance of failure.
• Data-Driven Decisions: Provides helpful information to guide the final ad.
In summary, radio commercial pretesting is a way to check and improve radio ads before
they go on air. By using different methods to get listener feedback, businesses can create
ads that are more effective and appealing.
Challenges to Pre-testing:
83. Limited Audience Feedback: Sometimes, the sample group used for testing may
not represent the entire target audience. This can lead to misleading results.
84. Subjectivity: People's opinions on ads can be very personal. What one person likes,
another may not, making it hard to get clear answers.
85. Time Constraints: Pre-testing can take time to conduct and analyze, which might
delay the launch of the ad.
86. Cost: Conducting thorough pre-testing can be expensive, especially if it involves
focus groups or extensive surveys.
87. Over-Reliance on Feedback: Relying too much on audience opinions can lead to
compromising creative ideas that might actually resonate better once aired.
88. Changing Preferences: Audience tastes can change quickly, so feedback received
during pre-testing might become outdated by the time the ad is aired.
89. Technical Limitations: Not all feedback methods provide detailed insights into why
an ad works or doesn’t, making it difficult to make effective changes.
In summary, while pre-testing is helpful for improving ads, it also faces challenges like
getting the right feedback, costs, time, and changing preferences that can affect the
results.
Recall Test
Definition: A recall test measures how well an advertisement stays in the minds of viewers
or readers.
Purpose:
• To evaluate how much people remember about an ad after seeing it.
Types of Recall Tests:
90. Aided Recall: Participants receive prompts to help them remember the ad. For
example, they might see the magazine cover and then be shown ads to identify
brands and details.
o Results:
▪ Noted: They remember seeing the ad.
▪ Seen-Associated: They recall the ad and have partially read it.
▪ Read-Most: They have read at least half of the ad content.
91. Unaided Recall: Participants try to remember the ad without any hints. This shows
a deeper level of memory.
o Example Questions:
▪ "Do you remember any ads from yesterday?"
▪ "Can you name any brand ads you saw recently?"
▪ "Can you describe the concept of a recent ad?"
▪ "Do you think this ad for 'XYZ Brand' would convince people to buy the
product?"
In summary, recall tests assess how memorable ads are, using two main methods: aided
and unaided recall. Aided recall provides hints, while unaided recall tests memory without
help.
