Shared by: Mahmoud91
MARKETING RESEARCH By Sridevi Chaudhuri MARKETING RESEARCH Systematic design , collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. MARKETING RESEARCH • Managers need information in order to introduce products and services that create value in the mind of the customer. • The perception value of the customer this year can be different and next year can be different. • Such attributes cannot be deduced from common knowledge. • Data must be collected and analyzed. MARKET RESEARCH VS MARKETING ENVIORNMENT • Market Research is about determining the characteristics of a market, for example its size, requirements. • Marketing Research is broader and is about researching the whole of a company’s marketing activities, for example monitoring the effectiveness of its advertising, intermediaries etc. MARKETING RESEARCH • Marketing research is needed before a product is introduced to the market, and on regular basis through its life. CHALLENGES OF MARKETING RESEARCH • The challenges in every research project are to correctly define the issue to be studied, gather the appropriate data, and transform the raw data into useful information. • To provide the facts and direction that managers need to make their more important marketing decisions. USES OF MARKETING RESEARCH • • • • • • • • • • Market and market segments Marketing mix Competition Expectations and satisfaction Customer Survey Key client studies Similar industry studies Research into intermediaries Employee research Environment Scanning WHAT IS MARKETING RESEARCH? • Marketing research consists of all activities that enable an organization to obtain the information it needs to make decisions about its environment, marketing mix, and present or potential customers. • Marketing research is the development , interpretation, and communication of decision –oriented information to be used in all phases of the marketing process. WHAT IS MARKETING RESEARCH? The definition has two important implications: • Research plays a role in all three phases of the management process in marketing : planning, implementation and evaluation. • It recognizes the researcher’s responsibility to develop information, which includes defining problems ,gathering and analyzing data , intrepretating results, and presenting the information in such a way that it is useful to managers. MARKETING RESEARCH FIRMS • Syndicated – service research firms Developed without a particular client in mind, sold to anyone interested. Firms gather consumer and trade information which they sell for a fee. e.g National Council for Applied Economic Research (NCAER) ACNeilson-ORG-MARG IMRB International MARKETING RESEARCH FIRMS • Custom marketing research firms Design and carry out research studies for various clients based on specific briefs. • Speciality line marketing research firms Firms provide specialized research services such as developing a research brief; collecting field data ; and preparing data analysis and reports for other firms. SCOPE OF MARKETING RESEARCH ACTIVITIES • Syndicated services They are developed without a particular client in mind, but are sold to anyone interested. • Marketing information system An internally coordinated activity that provides continuous scheduled, or ondemand standardized reports. SCOPE OF MARKETING RESEARCH ACTIVITIES • Decision support system It is also internal ,but it is interactive. It permits a decision maker to interact directly with data through a personal computer to answer specific questions. • Marketing research project Conducted by a company’s own staff or by an independent research firm to answer a specific question. VALUE OF INFORMATION In general , the value of information is determined by: • The ability and willingness to act on the information. • The accuracy of the information. • The level of indecisiveness that would exist without the information. • The amount of variation in the possible results. • The level of risk aversion. • The reaction of competitors to any decision improved by the information. • The cost of the information in terms of time and money. DATABASES, DATA WAREHOUSES, AND DATA MINING • DATABASE The assembled data pertinent to a particular topic – for example customers , market segments, competitors or industry trends. • DATA WAREHOUSE Enormous collection of data , from a variety of internal and external sources, complied by a firm for its own use or for use by its clients. DATABASES, DATA WAREHOUSES, AND DATA MINING • Data Mining These techniques have the capability to identify patterns and meaningful relationships in masses of data that would be overlooked or unrecognizable to researchers. MARKETING RESEARCH PROCESS STEP 1 : INITIAL CONTACT • There is a realisation that a marketing problem requires information to help find its solution. • The marketing department may contact the internal marketing research staff or an outside agency. STEP 2 : DEFINE THE PROBLEM AND THE RESEARCH OBJECTIVES • Problems should not be defined either too broadly or too narrowly leads to excessive wastage of resources. • What is to be researched ? ( the content , the scope) • Why is it to be researched ? (the decision are to be made) • The problem may be to attract new customers to a product • Research objectives would be to identify customers who can use the product and to identify the features of the product that appeals to them most. STEP 3 : RESEARCH PROPSAL Defines what marketing research agency • promises to do for its client and • how much it will cost. STEP 4 : DEVELOP THE RESEARCH PLAN Requires to develop the most efficient plan for gathering the needed information. DATA SOURCES Researcher can gather secondary data, primary data, or both. SECONDARY DATA : Data that were collected for another purpose and already exist somewhere. PRIMARY DATA : Data freshly gathered for a specific purpose or for a specific research project. DATA SOURCES Researchers usually start their investigation by examining secondary data to see whether the problem can be partly or wholly solved by the secondary data. Whether the needed the data do not exist or are dated, inaccurate, incomplete or unreliable the researcher will have to collect primary data. RESEARCH APPROACHES 1. EXPLORATORY RESEARCH Allows the researcher to understand the people who are to be interviewed in the main data collection stage and the market that is being researched. 1.1)SECONDARY RESERACH Data that were collected for another purpose and already exist somewhere. RESEARCH APPROACHES 1.2)QUALITATIVE RESEARCH a) FOCUS GROUPS Involves structured and unstructured discussions between a trained moderator, and a group of consumers. A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product , service, organization or other marketing entity. RESEARCH APPROACHES b) DEPTH INTERVIEWS Involve interviewing consumers individually for one or two hours about a topic. c) CONSULTATION WITH EXPERTS Involves interviewing who may not form part of the target market but can provide important market related information and insights. RESEARCH APPROACHES d) OBSERVATION • Useful when the product field is unfamiliar. • Studies are usually conducted in retail stores to track consumer behaviour. • Various data such as the amount of time spent by the customer, number of choices considered, amount purchased, shopping influences, amount spent, reason for selection or rejection. RESEARCH APPROACHES 2. DESCRIPTIVE RESEARCH Describes something, may be for instance meant to describe customer’s beliefs, attitudes , recall of advertisements and knowledge about its content. RESEARCH APPROACHES 3. EXPERIMENTAL RESEARCH • The purpose to capture cause and effect relationships by eliminating competing explanations of the observed findings. • Random sampling may be used. e.g To test whether differences in sales are caused by money off or are simple random variations STEP 5 : THE MAIN DATA COLLECTION STAGE After deciding on the research approach and instruments the marketing researcher must design a sampling plan. This calls for three decisions: Sampling unit : Who and how many people are to be surveyed? Sample size : Arriving at a number of respondents to be surveyed. Sampling selection : How should be respondents be chosen? STEP 5 : THE MAIN DATA COLLECTION STAGE Sampling selection The sample can be collected through either by using probability or by using nonprobability methods. a) Probability Method : Every sampling unit has an equal chance of being selected. STEP 5 : THE MAIN DATA COLLECTION STAGE Three Probability sampling methods: a.1) Simple random sampling : Each sample frame is given a number and numbers are drawn at random until the sample is complete. Everyone has equal chance of getting selected. a.2) Stratified random sampling: Population is broken down into groups, such as those on the basis of age, gender or income, and the random sample is drawn for each group. Each group gets representation in the sample. STEP 5 : THE MAIN DATA COLLECTION STAGE a.3)Cluster sampling : The population is divided into mutually exclusive groups, such as residential blocks , and the researcher randomly selects residential blocks to be interviewed. STEP 5 : THE MAIN DATA COLLECTION STAGE b) Non – probability sampling methods b.1) Convenience sample : The researcher selects the most easily available sampling units or respondents from the population and interviews them. b.2) Judgement sample : The researcher uses judgement to select population members from whom appropriate information can be obtained. STEP 5 : THE MAIN DATA COLLECTION STAGE b.3) Quota sampling : The sampling units are selected by non-random methods such as by convenience or judgement, while in latter , they are selected on a random basis. STEP 6:SURVEY METHODS Involves selecting how to interview the respondents who have been selected. a) Face to Face interviews • Response rates are higher as the personal element in face to face interview makes refusal to respond less likely. • Such interviews can be self – administered • The most versatile method. • The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. SURVEY METHODS b) TELEPHONE INTERVIEW • Have response rates • Cost amount c) MAIL SURVEYS • Least expensive • Can cover a widely dispersed population. STEP 7 : COLLECT THE INFORMATION Questionnaire Design • Ordering of topics : Start with easy questions • Type of questions: Close ended specify the rage of answers that will be recorded Open ended questions allow respondents to answer questions in their own words. STEP 7 : COLLECT THE INFORMATION • Take care in wording of questions • Layout : The questionnaire should not appear cluttered. • Scaling : Attitudes and beliefs can be measured by means of scales for instance, a scale ranging from “ strongly agree” to “ strongly disagree”. STEP 7 : COLLECT THE INFORMATION • • • • a) b) c) d) Stage of data collection Most expensive Error prone Incase of surveys four problems arise ; Some respondents may not be at home Other respondents will refuse to cooperate. Others will give biased or dishonest answers. Getting the right respondents is critical. STEP 8 : PILOT STAGE Once the preliminary questionnaire has been designed it should be tested with a representative subsample to test for faults. STEP 9 : ANALYZE THE INFORMATION • Step to extract findings from the collected data. • Apply statistical techniques and decision models in the hope of discovering additional findings. STEP 10 : REPORT WRITING Researcher present the findings that are relevant to the major marketing decisions facing management. Key elements in a research project are: • Title page, containing the topic of the research study. • List of contents , containing a detailed list of the report along with page numbers. List of tables , and list of figures in the report. STEP 10 : REPORT WRITING • Preface, containing outline of agreed brief, statement of objectives , Scope and Methods of Research • Executive summary , containing a summary of conclusions and recommendations preferably listed point wise. • Research methods , which explains the methodology used for the purpose of the present research. • Research findings, which should detail the results of the study according to the objective with the study was initiated. STEP 10 : REPORT WRITING • Conclusions of the study, along with suitable recommendations. • Appendices , including reports, articles, tables and figures . STEP 11 : MAKE THE DECISION • Research findings only provide additional information and insights to the managers. • Managers decide to use it, discard it or carry out more research. OVERCOMING BARRIERS TO THE USE OF MARKETING RESERACH • A narrow conception of research (Managers see it as a fact finding operation). • Unable caliber of researchers (less competent marketing researchers are hired as some view marketing research as clerical activity). OVERCOMING BARRIERS TO THE USE OF MARKETING RESERACH • Poor framing of the problem (marketing research problem not clearly defined). • Late and occasionally erroneous findings (sometimes managers require the results in 24 hours whereas after research taking out the result is a time consuming thing). OVERCOMING BARRIERS TO THE USE OF MARKETING RESERACH • Personality and presentational differences: (differences between the managers and marketing researchers often get in the way of productive relationships).