MARKETING RESEARCH

Smita Sharma

Marketing Research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

The Benefits of Marketing ResearchHelps firms stay in touch with customers changing attitudes and purchase patternsAids in the development of marketing mixes that match the needs of customers Assists in better understanding of market opportunitiesDetermine the feasibility of a particular marketing strategyImproves marketers ability to make decisions

P & Gs large market research function is called Consumer & Market Knowledge (CMK).

Syndicated Service Research FirmsNational Council for Applied Economic Research (NCAER)NeilsonORG MARGIMRB InternationalMART (Rural Research in India)

The Five Steps of the Marketing Research Process

Management Decision Problem Vs. Marketing Research ProblemManagement Decision ProblemMarketing Research ProblemShould a new product beTo determine consumer preferencesintroduced?and purchase intentions for theproposed new product.Should the advertising To determine the effectivenesscampaign be changed?of the current advertisingcampaign.Should the price of the To determine the price elasticitybrand be increased?of demand and the impact on salesand profits of various levels of price changes.

Designing the Research Project

Research DesignAn overall plan for obtaining the information needed to address a research problem or issueHypothesisAn informed guess or assumption about a certain problem or set of circumstancesAccepted or rejected hypotheses act as conclusion for the research effort

Types of Research

Exploratory ResearchResearch conducted to gather more information about a problem or to make a tentative hypothesis more specificDescriptive ResearchResearch conducted to clarify the characteristics of certain phenomena to solve a particular problemCausal ResearchResearch in which it is assumed that a particular variable X influences a variable Y

Basic Research Objectives and Research Design

Research Reliability and Validity

ReliabilityA condition existing when a research technique produces almost identical results in repeated trialsValidityA condition existing when a research method measures what it is supposed to measure

Collecting Data

Types of DataPrimary data: data observed and recorded or collected directly from respondentsSecondary data: data complied both inside and outside the organization for some purpose other than the current investigation

Secondary Data

Secondary Data (contd)

Methods of Collecting Primary DataSamplingPopulation: all the elements, units, or individuals of interest to researchers for specific studySample: a limited number of units chosen to represent the characteristics of a total populationTypes of SamplingProbability: Every element in the target population or universe [sampling frame] has equal probability of being chosen in the sample for the survey being conducted.

Non probability: Every element in the universe [sampling frame] does not have equal probability of being chosen in the sample.

Probability samplingAppropriate for homogeneous populationSimple random samplingRequires the use of a random number table.Systematic samplingRequires the sample frame only

Appropriate for heterogeneous population

Stratified sampling Cluster samplingFour types of probability sampling

Non-probability samplesConvenience samplingDrawn at the convenience of the researcher. Common in exploratory research. Does not lead to any conclusion.Judgmental samplingSampling based on some judgment, gut-feelings or experience of the researcher. Common in commercial marketing research projects. If inference drawing is not necessary, these samples are quite useful. Quota samplingAn extension of judgmental sampling. It is something like a two-stage judgmental sampling. Quite difficult to draw.Snowball samplingUsed in studies involving respondents who are rare to find. To start with, the researcher compiles a short list of sample units from various sources. Each of these respondents are contacted to provide names of other probable respondents.

Survey Methods

Mail SurveyTelephone SurveyOnline SurveyPersonal Interview SurveyIn-home (door-to-door) interviewFocus-group interviewTelephone depth interviewShopping mall intercept interviews

Questionnaire ConstructionOpen-Ended QuestionWhat is your general opinion about coffee shops?____________________________________________________________________________________________________Dichotomous QuestionHave you ever purchased a coffee product?Yes _____ No _____Multiple-Choice QuestionWhat income group are you in (per month)?Rs.10,000-Rs.20,000 _____Rs.21,000-Rs.40,000_____Rs.41,000-Rs.60,000_____Rs.61,000- Rs.80,000_____

Observation Methods for Data Collection

Direct contact with subject is avoided to reduce possible awareness of observation process.Physical conditions, subject actions, and demographics are noted.Observations may be combined with same subject interviews.Data gathered may be influenced by observer bias.

ExperimentationExperimentA research method that attempts to maintain (control) certain variables while measuring the effects of experimental (uncontrolled) variablesIndependent variable: acts on the dependent variableDependent variable: is affected by variations in the independent variable

Interpreting Research FindingsStatistical InterpretationAnalysis of survey data to determine what is typical or what deviates from the average that indicates:How widely the responses varyHow the responses are distributedWhich hypotheses are supportedWhich hypotheses are rejected

Reporting Research FindingsTake an objective look at survey findingsReport deficiencies and reasons for deficienciesPrepare a formal, written documentSummary and recommendationsShort, clear, and simply expressed for executivesTechnical reportContains more detailed information about research methods and procedures and important data gathered

Using Technology to Improve Marketing Information Gathering and AnalysisMarketing Information SystemsA framework for the management and structuring of information gathered regularly from sources inside and outside an organization

DatabasesDatabasesA collection of information arranged for easy access and retrievalSingle-Source DataInformation provided by a single marketing research firm

Marketing Decision Support SystemsCustomized computer software that aids marketing managers in decision makingCapability to create market models based on changes in marketing variables Artificial Intelligence (AI) assists in customer support