environment and market research-pract

7/29/2019 Environment and Market Research-Pract.

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MSK

Environment

&

Market Research


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MSK

Understand the purpose ofMarket

Research

Research methodologies and

techniques

The process of market research

2

The course

objective


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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.


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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


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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


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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

environment and market research-pract

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