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The document outlines the types of market research information available, including customer needs, product use patterns, media preferences, pricing, market size estimates, and employee compensation data. It emphasizes the importance of understanding distinguishing factors in customer ratings and cautions that market estimates are rough projections. Additionally, it highlights the role of employee compensation in attracting productive workers within the industry.

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Akash Patel
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2 views

Help File

The document outlines the types of market research information available, including customer needs, product use patterns, media preferences, pricing, market size estimates, and employee compensation data. It emphasizes the importance of understanding distinguishing factors in customer ratings and cautions that market estimates are rough projections. Additionally, it highlights the role of employee compensation in attracting productive workers within the industry.

Uploaded by

Akash Patel
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Help File

C. Market Research
Types of Information Available
There are several types of initial market information that the outside market research firm has collected for you. The
major categories are customer needs and wants, use patterns, media preferences, price willing to pay, market size,
and industry employees compensation.

The market data will be reported for the market as a whole. Data for individual cities will not be provided. Only
market size estimates are available for each city. Each type of information is discussed in detail below.

The first part of the market survey seeks to determine what benefits are sought by each major market segment.
Potential customers are asked to review a list of benefits and rate their relative importance on a scale from 1 to 100.
These values are then standardized with a mean of 100.

Values between 100 and 110 are well within the norm for the population. They represent minimum performance
requirements for a segment, but do not indicate anything unique about the segment.

It is not until the rating score exceeds the norm that the benefit becomes an important factor in distinguishing
between segments. You will want to be especially sensitive to the high scores because your firm must provide that
benefit in order to appeal to the segment.

The second part of the survey will provide you with a profile of the product use of each segment. The profile includes
information on the different categories of customers, and their specific uses or applications for the product. The
information is scaled in the same fashion as the benefit list, where the mean is equal to 100. Look for distinguishing
factors that are well in excess of 100.

The third type of information to be obtained is the media preferences of the decision makers. (Please note the
decision-maker is responsible for the decision to purchase the product, but may not be the user of the product.) The
responses are standardized with a mean of 100. Again, look for distinguishing factors that are well in excess of 100.

The fourth type of information you will receive is data on the price the customer would consider paying for the ideal
brand.

The fifth piece of information that will be provided to you is an estimate of total market potential for the next twelve
months. This number is computed for you by multiplying:

the percent of customers who intend to buy


(x) the number of potential customers in each segment
(x) the number of units that a customer is likely to buy in the next 12 months

Please be cautious in using this market information. At best, these estimates are very rough projections. Buying
intentions are notorious for being wrong about actual purchases. The actual purchase rate will ultimately depend
upon how well the product is designed, priced, and distributed, as well as the condition of the economy and how well
you and your competition serve the market.

The final piece of information you will receive is data on employee compensation. To help you make your first
compensation decisions, the Human Resource Department will provide you with the results of a survey showing the
typical salary, health benefits, vacation, and pension contribution for your industry. Your human resource department
will monitor the compensation packages and productivity levels of all of the firms in your industry. Each quarter, you
will learn the salary and benefits offered to employees by each competitor. Industry experts predict that the firms
that offer the best compensation package will tend to have the most productive workers.

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