Environment and Market Research-Pract.
-
Upload
nobleconsultants -
Category
Documents
-
view
218 -
download
0
Transcript of Environment and Market Research-Pract.
-
7/29/2019 Environment and Market Research-Pract.
1/16
1
MSK
Environment
&
Market Research
-
7/29/2019 Environment and Market Research-Pract.
2/16
MSK
Understand the purpose ofMarket
Research
Research methodologies and
techniques
The process of market research
2
The course
objective
-
7/29/2019 Environment and Market Research-Pract.
3/16
3
MSK
Phillip Kotler defines market research
as the systematic design of collecting,
analyzing and reporting of data andfindings relevant to a specific marketing
situation facing the organization -
Its simply the means of providing a Marketer with marketand marketing information the bridge between the
Marketer and the business environment consumers,
competition and other stakeholders
Whats Market Research?
http://upload.wikimedia.org/wikipedia/commons/f/f4/CapilanoBridge.jpg -
7/29/2019 Environment and Market Research-Pract.
4/16
4
MSK
Reduce risk/uncertainty in marketing strategy planningknowledge of Market help in making right decision
information about the market needs to guide business decisions, set strategies and monitor the
implementation
The cost of failure for organizations may mean redundancies and financial losses E.g entering a new
market/launching product/advert?
Purpose of Market Research
Knowledge/information ManagementMarketer is surrounded by a lot of information sales team, friends customers etc but is it
trustworthy/accurate?
Market research aids in collecting accurate, objective and relevant information for better decision making
E.g sales team think brand doing well since selling but is it true vis-avis industry performance
Understanding the market environment and changing trendsCompanies exist in a rapidly changing environment.
The change is likely to be either positive or negative and
market research aids the marketer to respond appropriately to the changes - take advantage of positive
changes and shield brands from threatening negative changes e.g
Changing consumer environment needs, aspiration and attitude hence need to continuously produce
products/services to meet needs
Changing business environment trends in industry/performance of competition
Changing technological environment
Changing political and economic environment
-
7/29/2019 Environment and Market Research-Pract.
5/16
5
MSK
Types of Research
Broadly there are two distinct categories of research desk research and primary
research
Desk ResearchInvolves collection/compilation of information from existing sources/secondary information
meaning the information was not compiled for the purposes of current needsIs fast and less expensive
But likely to be obsolete, unreliable and irrelevant to the research problem
Sources of information may include, internet, library, government records, internal reports,
syndicated studies, directories, trade associations and press
Primary ResearchIt involves gathering fresh information from the marketInformation is defined by a specific problem under investigation
Information likely to be accurate and relevant to the objective of study
It is the most widely used type in Market research
-
7/29/2019 Environment and Market Research-Pract.
6/16
6
MSK
There are two main research methodologiesPrimary Market Research
methods
Quantitative research supplies a number to anything that can be measured.
It produces hard data that can be defended or challenged
It is based on a sizeable sample that is statistically drawn.
strength -the results are conclusive and Marketers can therefore use them to make businessdecisions
Limitations - it cannot stand on its own because there is need to first understand the parameters ofmeasurements which are generated through qualitative research. Quantitative research are mainlypreceded by qualitative studies
Because of the large numbers of interviews they tend to be expensive and take longer to complete
Many organizations in Kenya are therefore tempted to use qualitative method which is consideredcheaper
Quantitative
Mainly used when the researchers want to obtain deep understanding of why and how something ishappening
Involves small sample of people
Discussions are long and unstructured and require considerable skill to draw out relevant information
Strength -produce rich /insightful data through probing into peoples subconscious mind on needs,attitude and opinion.
Limitations - the samples are small hence no attempt to measure responses is made so resultsthough quite insightful are not conclusive
Results likely to be subjective- leading questions and subjective interpretation of results
Inability for most qualitative researchers to empathize with consumers
Qualitative
-
7/29/2019 Environment and Market Research-Pract.
7/16
7
MSK
Identify :
Key Issues
Qualitative
Measure :
Research parameters e.g
Performance/Importance
Quantitative
Focus groups - 6-10 respondents
Takes 11/2 2 hrs
In-depth Interviews one to one
For heterogeneous sample/sensitive
Topics/people with time constraints
Consumer emersions spending time
With consumers to observe behaviour
Face-to-face interviews most used in Kenya
Telephone interviews - refusalsE-mails low response rate
Post office low response rate
Panels/diaries Used on retail
Audits and media - BBC
Data Collection methods
-
7/29/2019 Environment and Market Research-Pract.
8/16
8
MSK
Both quantitative and qualitative methods are supplementary
results especially in consumer research are complete when
both methods are used. E.g in a customer satisfaction study,
At the end of a qualitative phase, we obtain :
In depth researcher understanding of the service process
A listing of what customers see as key attributes
A detailed understanding of customer vocabulary
What we do not get and has to be derived from a quantitative
phase is : How well the company and its competitors perform on each
attribute
Which attributes matter to the customers
The relative importance the customers place on each attribute
-
7/29/2019 Environment and Market Research-Pract.
9/16
9
DefiningResearchproblem
Developing
Research design
Gathering
information
MSK
Analyzing
Data
Presenting
findings
Decision
making
The market research process. What's the Marketers responsibility in the process?
6 main steps
-
7/29/2019 Environment and Market Research-Pract.
10/16
10
MSK
The problem and objectives of the study should be explicit and clear
not too broad or narrow to allow for clear actionable feedback.
Its the responsibility of the Marketerto go through a problem, define
it, assess and decide what must be acquired to meet the needs of the
organization. If the Marketer is not quite clear s/he may invite the
expertise of a marketing researcher or research consultant. The Marketer then outlines the problem and objectives in a brief
format. The brief should clearly describe problem, objectives, target
market, envisaged timelines and action standards that research is
envisaged to meet There is usually fear across Marketers that if
they give a lot of information to researchers it might bias results- with
experienced researchers this does not happen.
The researchers on the other hand should ensure they have a clear
picture of what the marketer needs to know and if need be ask for a
verbal briefing
Problem identification and briefing stage
-
7/29/2019 Environment and Market Research-Pract.
11/16
11
MSK
This involves formulating a research devise also known as a proposalthat will indicate how the researcher proposes to gather all the
information needed.
Its usually the responsibility of the Researcher to come up with a
comprehensive research plan that describes
i) The research problem and objectives as an introduction to the
understanding of the issues at hand
ii) Research approaches to be employed
iii) Data collection method and research instruments,
iv) Sample definition, size, procedure and scope of the study
v) Research timelines and
Vi) The project investment/costs required
The Marketers responsibility is to ensure that the researcher
understands the problem and have formulated a design that will meet
all the research objectives before s/he commissions the research. It
helps to seek proposal from different firms and award project on
merit- price consideration has caused some Marketer to repeatprojects
Develop research design/plan
-
7/29/2019 Environment and Market Research-Pract.
12/16
12
MSK
This stage involves the actual collection of information from thecustomers.
Its the most expensive part of research and especially for quantitative
studies and most prone to errors. Errors may arise in the
identification of the right customers. Interviewers may contact the wrong
respondents either due to lack of proper understanding of the target group
or by just being dishonest.
Some interviewers are also likely to rephrase the questions hence
collecting totally different information than was initially intended.
Proper training and practice through dummy and pilot interviews is
needed to ensure interviewers are clear on method of recruiting and
interviewing.
Some research agencies have a quality control team independent of
the field department
Some Marketers create time and insist on attending the field work to
assess the situation
Data Collection/Fieldwork
-
7/29/2019 Environment and Market Research-Pract.
13/16
13
MSK
Quality control measures at both supervision and independent
control team levels
Accompaniment 10-15% by supervisors/Quality control team to
ensure that the interviewers recruit right respondents and quality
of interviewing is at acceptable levels
Back checking 10-15% through telephone or actual visit -
Ensure interview actually took place and right questions asked
Questionnaire checks 100% - supervisors should go through all
the questionnaires to ensure all questions asked and routing of
questionnaire right
For qualitative projects the moderators screens the respondents toensure they are the right target screening may be by
demographics- age, gender, socio-economic orientation,
psychographics beliefs, perceptions, attitudes and lifestyles and
/or by brand/product usage
Data Collection/Fieldwork Cont.
-
7/29/2019 Environment and Market Research-Pract.
14/16
14
MSK
This is the process of extracting findings from the collected data to
come up with percentage tabulations on each question or information
in case of qualitative project. And whilst Quantitative method mainly
uses statistical techniques and soft ware like SPSS, qualitative data is
analyzed through content analysis.
Quantitative data analysis process Coding, data capture/entry, datacleaning and processing
Qualitative process transcribing tapes, creating information grinds,
analysis and interpretation
Its important that the Marketer and the Researcher agree before hand
on the deliverables needed. The Researcher should share the
findings with the Marketer before the presentation to ensure that all iswell to avoid conflicts and disagreements during the presentation
Data Analysis and interpretation
-
7/29/2019 Environment and Market Research-Pract.
15/16
15
MSK
The reporting of findings may be in form of a presentation or through
a workshop where there is more time for interactive discussions
The Marketer will decide who to attend the presentation mainly all key
stakeholders e.g for a brand performance study, the Marketing & Brand
Manager should attend whilst the sales and distribution teams will need to
attend a presentation on retail audit
The findings should clearly and simply answer all the research
objectives
Reject or accept any hypothesis and
Provide recommendations that will describe the way forward.
If the findings are not satisfactory extra analysis should be requesteduntil the Marketer is satisfied
Presentation of findings/reporting
-
7/29/2019 Environment and Market Research-Pract.
16/16
16
MSK
This is the responsibility of the Marketer and her or
his relevant teams. S/he may weigh the information
and depending on the marketing strategy decide
whether or not to use the research findings andrecommendation
Most research consultants however will be available
and willing to assist wherever their expertise isrelevantwithout extra cost to the Marketer
Decision Making/Strategic Planning