THIRD LESSON PART 2 TYPES OF RESEARCH

MARKET RESEARCH
Qualitative Research (opinions and thoughts)
-This type focuses on understanding people's opinions
- Market research is the process of gathering,
and feelings. It’s usually done through interviews or
analyzing, and interpreting information about a
focus groups where people talk about what they think
market, including the target audience, competitors,
and why.
and industry trends. Businesses use market research
Here’s a simple example of qualitative research:
to understand customer preferences, identify
A clothing brand wants to know why customers prefer
opportunities, and make informed decisions about
shopping in-store instead of online. To find out, they
their products or services.
organize a focus group where 10 customers are invited
- In other words, it's like asking questions or studying
to talk about their shopping experiences.
data to figure out what customers want and how a
During the discussion, customers share their thoughts,
company can better serve them.
like:
"I like to try clothes on before buying."
Importance of Market Research
"I enjoy the personal help from store staff."
Understand Customers: It helps businesses learn
"I’m not sure about the sizing when shopping online."
what their customers like and want, so they can offer
the right products or services. -The brand uses this feedback to understand
customers' feelings and make improvements to their
Find Opportunities: Market research shows where
online store, such as offering better size guides or
there’s a need for something new, helping companies
virtual try-on options.
stay ahead of their competitors.
-This type of research focuses on people's opinions
Lower Risks: By researching before launching a
and reasons behind their choices, rather than
product, businesses can avoid making costly mistakes.
collecting numbers.
Better Marketing: It gives businesses ideas on how to
advertise and reach customers more effectively.
Quantitative Research (numbers and facts)
Follow Trends: It keeps businesses aware of changes -This type is about numbers and data. Businesses use
in the market, so they can adjust and stay competitive. things like surveys or sales reports to measure how
many people like a product, how often they buy, or
Here’s an example of how market research other facts that can be counted.
can help a business: Here’s an example of quantitative research:
Imagine a company wants to launch a new type of snack A restaurant chain wants to know how satisfied their
in a city. Before they invest in making the product, customers are with their service. They send out a
they conduct market research by: survey to 1,000 customers asking them to rate their
experience on a scale of 1 to 10.
Surveying customers to find out what types of snacks
After collecting the results, the restaurant finds:
people like (salty, sweet, healthy, etc.).
70% of customers rated their experience 8 or higher.
Checking competitors to see what snacks are already
20% gave a score between 5 and 7.
popular and if there’s room for something new.
10% rated their experience below 5.
Testing samples of the snack in small stores to see
-With these numbers, the restaurant can measure
how people react and what price they’re willing to pay.
overall customer satisfaction and identify areas for
improvement, like training staff or speeding up
Based on this research, the company discovers that
service.
most people in the city prefer healthier snacks. So,
-This research is all about collecting data that can be
they decide to make a low-calorie version of their
counted and analyzed in numbers.
product, which will likely sell better than a regular
snack.
This way, the company uses market research to create
a product that fits the customers' preferences and
reduces the risk of launching something people might
not buy.
Here are the common methods of data collection Example:
and analysis, along with examples: Let’s say a coffee shop wants to improve customer
service.
METHODS OF DATA COLLECTION:
They collect data using surveys (asking customers to
Surveys/Questionnaires: A set of questions is given
rate their service), interviews (talking to regular
to people to answer. It can be online, on paper, or over
customers), and by observing (watching how long
the phone.
people wait in line).
Example: A company asks customers to fill out a survey about
their satisfaction with a product, using a scale of 1 to 10.
For analysis, they use descriptive analysis to calculate
the average service rating, and thematic analysis to
Interviews: One-on-one conversations to get detailed
find out that "long wait times" are the biggest issue
information about a person’s thoughts, experiences, or
based on interview responses.
preferences.
Example: A researcher interviews people about their This helps the shop understand both the numbers and
shopping habits to understand why they prefer one brand the reasons behind customer dissatisfaction.
over another.

FOURTH LESSON
Focus Groups: A small group of people is brought
together to discuss a product, service, or topic, giving MARKET SEGMENTATION, TARGETING,
deeper insights into their opinions. AND POSITIONING (STP)
Example: A company gathers 8 customers to discuss a new
product and their feelings about its design and features.

Observation: Watching people in their natural

environment to see how they behave without asking
them directly.
Example: A store observes how customers move around and
which displays attract the most attention.

Existing Data/Records: Using data that already

exists, like sales reports, online statistics, or previous BASIS FOR SEGMENTATION
research. - refers to the criteria or factors used to divide a
Example: A company analyzes past sales data to see which market into smaller groups of consumers with similar
products sell best during the holiday season. needs or characteristics. These groups are called
market segments, and they allow businesses to target
METHODS OF DATA ANALYSIS: specific groups more effectively.
Here are the common bases for segmentation:
Descriptive Analysis: Summarizing data to understand Demographic Segmentation – Divides the market
what it shows, usually with charts, graphs, or averages. based on variables like age, gender, income, education,
Example: A restaurant calculates the average rating from occupation, etc.
customer satisfaction surveys and presents it in a bar chart.
Example: A company may target young adults or high-income
earners.
Statistical Analysis: Using math to understand
patterns or relationships in the data. Geographic Segmentation – Divides the market
Example: A company uses statistical software to see if
by location, such as region, city, or country.
customers who spend more time on their website are more Example: A business may offer different products in urban
likely to make a purchase. areas compared to rural areas.

Psychographic Segmentation – Divides the

Thematic Analysis (for qualitative data): Identifying
market based on lifestyle, personality, values, and
common themes or patterns in people's words or
interests.
opinions.
Example: A brand targeting health-conscious consumers
Example: After interviewing 20 customers, a brand finds
versus those seeking luxury.
that the most common reason people like their store is
because of "friendly staff." Behavioral Segmentation – Divides the market
based on consumer behavior like buying patterns,
Trend Analysis: Looking at data over time to identify usage, and brand loyalty.
patterns or changes.
Example: Segmenting customers who frequently buy a
Example: A store analyzes monthly sales data for the past 2 product versus those who only buy on special occasions.
years to see if there’s a seasonal pattern in customer
purchases.
 These segmentation bases help businesses Evaluating market segments means figuring out
tailor their products, services, and marketing efforts which customer groups are the best for a business to
to better suit the preferences of different customer focus on. When a company evaluates market segments,
groups. it looks at several factors to decide if a segment is
worth targeting. Here’s how it’s done in simple terms:
How to evaluate the segments
Understand the factors that help evaluate the right Size and Growth – The company checks how big
segment to target. the segment is and whether it’s growing or shrinking.
Example: A segment with many potential customers and
FACTORS THAT MAKE A MARKET ATTRACTIVE increasing demand is more attractive.
When evaluating the target segments,
marketers must compare the market attractiveness Profitability – The business looks at how much
and the company’s capability to meet the needs of that profit it can make from that segment.
market. There are several factors to understand what
Example: A segment may have high costs to serve, making it
makes a market attractive:
less profitable even if it’s big.

Market size – generally larger markets are

Accessibility – The company considers how easy it is
considered more attractive than small ones, since
to reach and serve the segment.
achieving economies of scale is more likely.
Larger markets tend to be also more competitive as Example: A business might find it hard to target rural areas
more suppliers are targeting the same segment due to due to limited delivery options.

its revenue potential.

Compatibility – The segment should fit with the
Market growth – growing markets are considered company’s strengths and brand image.
more attractive than stagnant or declining markets. Example: A luxury brand may not want to target budget-
Here again competition will be fiercer therefore conscious customers.
analysis of growth should always be accompanied with
competitor analysis.
Competitive Position – The company checks how
much competition there is in the segment and whether
Market profitability – this is normally derived by it can offer something better than competitors.
considering the market size and the costs for
Example: A segment with little competition might be more
attracting these segments.
appealing.

Price sensitivity – in markets where price is the By evaluating these factors, businesses can choose the
main driving factor for a purchase, margins of each segments that are most likely to bring success.
sale will be small and volume would need to compensate
for that. Markets will low price sensitivity are
considered more attractive since margins can be
maintained.

Bargaining power of customers – when both

distributors and end customers can exert high
pressure on a supplier, they make a market segment
unattractive as profit margins are reduced.

Bargaining power of suppliers – where supply is

controlled by a few large companies and competition is
limited, suppliers can dictate the prices and reduce
the market attractiveness.

Barriers to entry – high barriers to entry could be

in the form of large capital expenditure to enter a
market, intellectual property patents or high switching
costs for customers.

Barriers to exit – these are the disposal costs of

large manufacturing set ups or the ongoing
commitment to clients to provide or service products.
Both types of barriers make a market segment more
risky to consider.
 POSITIONING STRATEGY: A COMPLETE Long-term success -A strong positioning strategy
GUIDE FOR YOUR MARKET PLAN is not just about short-term gains. It lays the
foundation for long-term success by creating a
A POSITIONING STRATEGY is like a special
customer loyalty base and establishing your brand as a
spotlight that shows how a brand is different from its
leader in its category.
competitors. It’s all about how a brand wants people to
think about it compared to other similar brands.
A well-crafted strategy is a cornerstone of
Understanding positioning strategies can help us
any successful market plan. It sets your brand apart,
connect better with the people we want to reach.
helps you reach the right customers, maintains brand
consistency, and ensures long- term growth and
A positioning strategy is like the way a brand wants to
profitability.
be known and remembered by its customers. It’s about
telling people why a product or company is better or
different from others.

Just like when you meet new people, you want them to
remember something unique about you. Companies want
their customers to remember something special about
their products or services.

3 KEYS OF STRATEGIC POSITIONING

To do this, companies think about what makes them
special, who their products are for, and why people These three keys of strategic positioning – Channel,
should choose them over other options. Then, they Customer, and Competition – are essential for
create a plan to talk about these things in a way that businesses looking to carve out a successful place in
makes customers like and trust them. the market:

CHANNEL Your chosen channel is the way you

This helps the company stand out in a crowded
communicate and interact with your customers.
marketplace and attract the right customers who will
Whether it’s through social media, advertising, email
love what it offers. So, a positioning strategy is like a
campaigns, or other means, your channel plays a critical
brand’s way of introducing itself and making a good
role in how your brand is perceived. Selecting the right
impression on customers.
channel for your target audience ensures that your
message reaches the right people at the right time.
IMPORTANCE OF POSITIONING STRATEGY
FOR YOUR MARKET PLAN CUSTOMER Understanding your target market and
its specific needs is fundamental to developing a
A positioning strategy is crucial for your market plan successful positioning strategy. When you know your
because it helps your brand stand out and make a customers well, you can tailor your products, services,
lasting impression on customers. Here’s why it’s so and marketing efforts to meet their expectations.
important: This customer-centric approach leads to increased
satisfaction and loyalty.
Differentiation -In a competitive market,
customers have many choices. A well-defined COMPETITION To effectively position your
positioning strategy sets your brand apart from others brand, you must assess how it compares to your
by highlighting its unique qualities and benefits. This competitors in the market. Creating a positioning map
differentiation helps customers understand why they helps you understand where your business stands in
should choose your product or service over others, the minds of customers relative to other players. This
increasing your chances of success. insight guides your overall business strategy and helps
you identify opportunities to stand out from the
Targeted marketing -Knowing your position in the competition.
market allows you to tailor your marketing efforts to
a specific audience. This precision saves time and
resources and ensures that your message resonates
with the right people, leading to higher conversion
rates.

Brand consistency -A clear positioning strategy

guides your branding efforts, ensuring that all
marketing materials, from advertisements to social
media posts, convey a consistent and compelling
message. Consistency builds trust with customers and
reinforces your brand’s identity.
 TYPES OF POSITIONING STRATEGY Quality positioning strategy
Businesses can employ several types of positioning Quality positioning centers on highlighting
strategies to establish a unique identity and capture your product or service’s superior quality, reliability,
the attention of their customers. Here are some and performance. It aims to position your brand as a
common types: leader when it comes to quality within your industry.
This strategy is often used in industries where quality
Market positioning strategy is a critical factor, such as luxury cars, high-end
Effective market positioning strategy defines electronics, or gourmet food products.
how your brand is perceived within a specific market
or industry. It involves tailoring your products, Competition positioning strategy
services, and marketing efforts to cater to the needs, Competition positioning means showing why
preferences, and behaviors of a particular segment of your brand is better than others. You talk about what
the market. makes your brand special compared to your
This strategy helps your brand establish a competition. To do this, you need to know what your
unique identity within that market, allowing you to competitors are good at and where they’re not so good.
differentiate yourself from competitors. For example,
if you’re in the smartphone industry, you might position Then, you focus on the things your brand does
your brand as catering specifically to tech-savvy better and use that to show why customers should
professionals who prioritize security and productivity. choose you. It’s like saying, “We’re the best because
we do this really well, and they don’t.” This strategy
needs you to really understand what your competitors
Product positioning strategy
are good and not so good at and then use that to make
Product positioning focuses on highlighting the
your brand look like the better choice.
distinct features, benefits, and value that your
product offers in comparison to others in the market.
It’s about creating a clear and compelling image of your PRODUCT LIFE CYCLE
product in the minds of consumers.
This positioning strategy answers questions
like, “Why should customers choose our product over
similar options?” For instance, if you’re marketing a
sports car, your product positioning might emphasize
speed, performance, and cutting-edge technology.

Brand positioning strategy

Brand positioning goes beyond individual
products or services; it’s about shaping the overall
perception and reputation of your brand in the minds
of consumers. It encompasses the emotional Product Life Cycle is the stages of growth and
connection and values associated with your brand. decline a product experiences between being
Effective brand positioning creates a unique introduced to consumers and being discontinued.
and memorable identity that fosters customer loyalty
and trust. For instance, a brand like Apple is positioned The product life cycle refers to the stages a
as innovative, user-friendly, and design-focused, product goes through from when it's first introduced
creating a strong emotional bond with its customers. to the market until it's eventually phased out. There
are four main stages in the product cycle:
Price positioning strategy
Correct Pricing strategy is about how your Introduction This is when the product is launched.
product’s price is positioned relative to its quality and Sales are usually low, and the company spends a lot on
the perceived value it provides. It involves deciding marketing to make people aware of it.
where your product stands on the price spectrum Example: A new smartphone is released, and ads are
within your market. everywhere to introduce it to customers.

You can position your product as a premium

option with a higher price point, emphasizing quality Growth The product starts gaining popularity, and
and exclusivity. Alternatively, you can position it as a sales increase rapidly. Competitors may also enter the
budget-friendly choice, highlighting affordability and market at this stage.
value for money. Example: The smartphone becomes popular, and more people
start buying it. Other companies might release similar
phones.
Maturity Sales level off as the product reaches its Some methods you can use are:
peak popularity. Competition is strong, and companies - Conducting market and product analysis
may offer discounts or new features to keep - Working with product marketing and sales to check
customers interested. if your product's value is being positioned correctly
Example: The smartphone is widely used, and companies - Collecting customer feedback with user interviews,
might launch updated models or lower prices to maintain focus groups, UX surveys, and product analytics
sales.
- Running user tests to see how people are using your
product and identify gaps and room for improvement
Decline The product’s sales start to fall as newer,
better products come out or customer interest - Ultimately, the goal of the idea generation stage is
decreases. Eventually, the product may be to come up with as many ideas as possible while
discontinued. focusing on delivering value to your customers.

Example: The smartphone becomes outdated as new

technology emerges, and fewer people buy it. 2. Idea screening
This second step of new product development
Understanding the product life cycle helps revolves around screening all your generated ideas and
businesses make decisions about marketing, pricing, picking only the ones with the highest chance of
and product development. success. Deciding which ideas to pursue and discard
depends on many factors, including the expected
The new product development process: benefits to your consumers, product improvements
Idea Generation -> Idea Screening -> Concept most needed, technical feasibility, or marketing
development and testing -> Marketing strategy and potential.
business analysis -> Product development -> Test
marketing -> Product launch The idea screening stage is best carried out within the
company. Experts from different teams can help you
When it comes to new product development, each check aspects such as the technical requirements,
journey to a finished product is different. Although resources needed, and marketability of your idea.
the product development process can vary from
company to company, it's possible to break it down into 3. Concept development and testing
seven main stages. Let's have a look at them one by All ideas passing the screening stage are
one. developed into concepts. A product concept is a
detailed description or blueprint of your idea. It
1. Idea generation should indicate the target market for your product,
Idea generation involves brainstorming for the features and benefits of your solution that may
new product ideas or ways to improve an existing appeal to your customers, and the proposed price for
product. During product discovery, companies examine the product. A concept should also contain the
market trends, conduct product research, and dig estimated cost of designing, developing, and launching
deep into users' wants and needs to identify a problem the product.
and propose innovative solutions.
Developing alternative product concepts will help you
A SWOT Analysis is a framework for evaluating your determine how attractive each concept is to
product’s strengths, weaknesses, opportunities, and customers and select the one with the highest value.
threats. It can be a very effective way to identify the
problematic areas of your product and understand Once you’ve developed your concepts, test each of
where the greatest opportunities lie. them with a select group of consumers. Concept
testing is a great way to validate product ideas with
There are two primary sources of product users before investing time and resources into building
development ideation. Internal ideas come from them.
different areas within the company—such as
Marketing, Customer Support, the Sales team, or the Concepts are also often used for market validation.
Engineering department. External ideas come from Before committing to developing a new product, share
outside sources, such as studying your competitors your concept with your prospective buyers to collect
and, most importantly, feedback from your target insights and gauge how viable the product idea would
audience. be in the target market.
4. Marketing strategy and business analysis While the product launch focuses on the initial
Now that you’ve selected the concept, it’s time introduction of the product to the market,
to put together an initial marketing strategy to commercialization includes the entire timeline from
introduce the product to the market and analyze the product development to market saturation.
value of your solution from a business perspective.
To better understand how to prepare a go-to-market
strategy, there are some essential elements to
The marketing strategy serves to guide the
consider:
positioning, pricing, and promotion of your new
product. Once the marketing strategy is planned, Customers: Understand who will be making the final
product management can evaluate the business purchasing decisions and why they will be purchasing
attractiveness of the product idea. your product. Create user personas and identify their
roles, objectives, and pain points.
The business analysis comprises a review of the
sales forecasts, expected costs, and profit Value proposition: Identify what makes you
projections. If they satisfy the company’s objectives, different from the competition and why people should
the product can move to the product development choose to buy your product
stage.
Messaging: Determine how you will communicate
5. Product development your product’s value to potential customers
The product development stage consists of
developing the product concept into a finished, Channels: Pick the right marketing channels to
marketable product. Your product development promote your products, such as email marketing, social
process and the stages you’ll go through will depend on media, SEO, and more.
your company’s preference for development, whether
You will need to constantly track and measure the
it’s agile product development, waterfall, or another
success of your product launch and make adjustments
viable alternative.
if it doesn't achieve the desired goals.

This stage usually involves creating the prototype and

BRANDING AND PACKAGING play key roles in
testing it with users to see how they interact with it
how a product is perceived by consumers. They are
and collect feedback. Prototype testing allows product
essential in creating a memorable identity for a
teams to validate design decisions and uncover any
product and helping it stand out in the marketplace.
flaws or usability issues before handing the designs to
the development team.
BRANDING: refers to the process of creating a
unique identity for a product, service, or company. It
6. Test marketing
includes the name, logo, slogan, and overall design that
Test marketing involves releasing the finished
define the product and create a specific image in the
product to a sample market to evaluate its
minds of consumers.
performance under the predetermined marketing
strategy. Branding is important because it:
There are two testing methods you can employ: Creates Recognition – A strong brand helps
consumers easily identify a product. Think of major
Alpha testing is software testing used to identify
brands like Nike or Apple. Their logos and names are
bugs before releasing the product to the public.
instantly recognizable.
Beta testing is an opportunity for actual users to
use the product and give their feedback about it Builds Trust – Consistent branding can make
customers feel more confident in the quality and
The goal of the test marketing stage is to
reliability of a product. A well-established brand is
validate the entire concept behind the new product
often seen as trustworthy.
and get ready to launch the product.

Differentiates from Competitors – Branding

7. Product launch
helps a product stand out from similar products in the
At this point, you’re ready to introduce your
market. For example, Coca-Cola and Pepsi both sell
new product to the market. Ensure your Product,
cola, but their branding makes them feel like
Marketing, Sales, and Customer Support teams are in
completely different products.
place to guarantee a successful launch and monitor its
performance.
Emotional Connection – Good branding often
Remember, product launch is a critical part of the appeals to emotions. It creates a feeling or identity
broader commercialization stage. that customers want to associate with. For example,
luxury brands often convey exclusivity and status.
Loyalty – Strong branding can lead to customer
loyalty, as people often stick with brands they trust
and like.

PACKAGING: Packaging is the physical container or

wrapping that a product comes in. Beyond just holding
the product,
Packaging has several important roles:
Protection – Packaging protects the product during
shipping, handling, and storage. It keeps the product
safe from damage, contamination, or tampering.

Attractiveness – The look of the packaging is

crucial in attracting customers. Eye-catching designs,
colors, and shapes can make a product stand out on the
shelf. Attractive packaging can also entice customers
to pick up the product and explore it further.

Communication – Packaging provides important

information about the product, such as its features,
ingredients, or usage instructions. It often includes
branding elements like logos, slogans, and brand colors
to reinforce the brand identity.

Convenience – Packaging can make the product

easier to use, store, or transport. For example,
resealable bags or easy-to-open containers improve
the user experience.

Sustainability – Increasingly, customers are looking

for eco-friendly packaging. Packaging that is
recyclable, reusable, or biodegradable can enhance a
brand’s reputation and appeal to environmentally
conscious consumers.

How Branding and Packaging Work Together:

Consistency – Packaging often reflects the
branding, using the same colors, fonts, and design style
to ensure consistency across all products. This makes
it easier for consumers to identify the brand quickly.

Reinforcing Brand Identity – The packaging

reinforces the brand’s image and message. For
example, a high-end perfume might come in elegant,
minimalistic packaging to convey luxury, while a fun and
energetic brand might use bright, bold packaging.

First Impressions – Both branding and packaging

are crucial in creating the first impression. The way a
product is packaged can influence a consumer’s
perception of its quality, and the branding helps to
build recognition and trust.

Branding builds the identity and emotional

connection of a product, while packaging serves as
the physical representation that attracts, informs,
and protects the product. Both are essential in shaping
customer perceptions and driving purchasing decisions.