ppt. of module 12 (i)

8/6/2019 ppt. of Module 12 (i)

1/30

1

MARKETING RESEARCHThe Research Process


2/30

2

Marketing Research: Definition and Purpose

Many definitions ofMarketing Research:

Marketing research is the systematic design, collection, analysis

and reporting of data and findings relevant to a specific marketing

situation facing the company. [Philip Kotler

the systematic gathering, recording and analyzing of all data

about problems relating to the marketing of goods and services.

[The American Marketing Association]

Basic Purpose ofMarketing Research

Marketing research reduces uncertainty or error in decision-making. The information collected by conducting marketing

research is used for problem solving and decision making in

various areas of marketing.


3/30

3

Marketing Research ...

Can help the marketing manager to:

(1) Identify and define marketing problems

and opportunities accurately;

(2) Understand markets and customers and

offer reliable prediction about them;

(3) Develop marketing strategies and actions

to provide a competitive edge; and refine

and evaluate them;

(4) Facilitate efficient expenditure of funds;

(5)Monitor marketing performance; and

(6)Improve the understanding of marketing

as a process.

Is important because of

Rapid changing

marketing

environment; Need for up-to-date

information for

strategically

important areas;

Importance ofresearch as an

integral part of

better operation.


4/30

4

THE MARKETING INFORMATION SYSTEM AND

MARKETING RESEARCH

Marketing research is not the only source of

information that marketing managers need in

making decisions. Information may also be generated by various

components of the Marketing Information System

(MIS) consisting of a series of interactive

components (Figure 1.1).

There are four subsystems of the MIS: internal

reports, marketing intelligence, marketing

research, and marketing decision support.


5/30

5

SOURCESOF I FORMATION

Marketi g

Ma agersMar ti

E ir -

t

I ter al

Re orti g

System

Marketi g

I tellige ce

System

An

Analytical

Marketing

System

Marketing

Researc

System

Marketing ecisions andComm nications

INFORMATION

1. Assessment ofNeeds

2. istri tion

TH MARK TING INFORMATIONSYST M


6/30

6

When Marketing Research may not be necessary

Marketing research is almost always problem-oriented.

Whether to conduct marketing research depends on the

managers experience and wisdom; nature of decision

situation [repetitive or atypical]; degree of uncertainty;

and the value and importance of the research.

Marketing research may not be necessary if:

Information is available/outcomes known.

Insufficient time for marketing research.

Non-availability of resources. Cost Vs Value of the Research.

Outcomes known.


7/30

7

MAIN DIVISIONS OF

MARKETING RESEARCH

1. Market and Sales Research

2. Product Research

3. Price Research

4. Distribution (Place) Research

5. Promotion Research.


8/30

8

Types ofMarketing Research

Basic Research

Preliminary Conclusive Performance

Applied Research

Research Based on

Purpose

Primary Research

Secondary Research

Research Based on

Source of Data

Qualitative Research

Quantitative Research

Research Based on

Data Collection Method

Marketing Research


9/30

9

Types of Research II

Combinations of types such as applied qualitative

research, basic primary research are common

A sample of questions commonly answered by

conducting primary applied research include: WhatWhat price should we charge for our product?

WhatWhat distribution channels should be used?

HowHow well does the product match up with the competitors

product?

HowHow effective is the companys advertising?

HowHow will the consumers receive this new product?

WhatWhat percentage of market penetration does Product X have?

WhatWhat is Product Xs image in the consumers mind?


10/30

10

Qualitative Vs Quantitative Research

Qualitative research involves collecting, analyzing, and

interpreting data by observing what people say or do.

Uses a smaller number of individuals and observes them for

a time span of between 1 and 2 hours. -----soft approach

Quantitative research is the traditional mainstream of

marketing research.

It is also called survey research. Involves the use of

questions and large number of respondents within a brief span

of time, say 15 to 45 minutes.

Its purpose is very specific-- e.g. a nationwide survey on the

Road Pricing System for cars. The hard approach to

marketing research.


11/30

11

TH MARK TING R S ARCH PROCESS

Every research project is differentresearch project is different and unique.

However, research procedures and activities are

common and constitute the marketing research process .

This process: is an well-organized sequence of ten steps involved in the

systematic collection and analysis of marketing data.

provides a description of how a marketing investigation is

designed and implemented, and helps to guide the execution

of a research project.

is interactive, a researcher may not follow the ten steps

exactly in the order presented here.


12/30

12

Ten Steps in the Marketing Research Process

1. Define the Problem

2. Establish Research Objective

3. Determine Research Design

4. Identify Information Needs and Sources

5. Determine Methods of Data Collection

6. Design Instrument for Data Collection

7. Determine Sample Plan and Sample Size

8. Collect Data

9. Analyze Data

10. Prepare and Present Final Report


13/30

13

Step 1: Define the research problem I

The very first, and the most important step in research:

A problem well-defined is half solved

Nature of the problem determines the type of study to conduct.

Symptoms, for example, declining sales, profit, market share,

or customer loyalty are not problems.

A research problem must be accurately and precisely defined,

otherwise the task of designing a good research difficult.

Marketing problems may be difficulty-related or

opportunity-related. For both, the prerequisite ofdefining the problem is to identify and diagnose it. Conduct situation analysis. It provides the basic motivation and momentum for

further research.


14/30

14

Step 1: Define the research problem II

Get the right answer to the question:

What exactly does the firm want (or need) to know?

The basic question to address is:

How to know that there is a problem?

Problems may become apparent from:

deviation from the business plan, company records and

reports, customer complaints and grievances,

conversations with company employees, and observation

of inappropriate behavior or conditions in the firm; the success of the firms competitors, and published

materials reporting issues such as, changes in market or

environmental trends, new government regulations,

anticipated changes in the economy, etc.)


15/30

15

Step 1: Define the research problem III

Once the symptoms of a problem are detected..

Conduct some initial fact finding to determine the nature of

the true problem.

Talk to others about the problem and conducting a

preliminary literature search on the topic.

In the initial stage, a problem may be recognized in a very

broad and general form only. This may restrict the

research program from being comprehensively designed.

Both the researcher and the marketing manager (or the

research client ) need to work together to formulate theproblem into a precise and definite statement.

This fact-finding exercise helps the researcher to refine

his educated guess to a more accurate problem

statement.


16/30

16

Step 2: Establish Research Objectives

If you do not know what you are looking for, you wont find it

Research objectives are related to and determined by the

problem definition. In establishing research objectives, the

researcher must answer the following questions:i) What specific information should the project provide?

ii) If more than one type of information will be developed from

the study, which is the most important? and finally,

iii) What are the priorities? When specifying research objectives, development of hypotheses,

might be very helpful.

When achieved, objectives provide the necessary information to

solve the problem.


17/30

17

Step 3: Research Design

3. Research Design step involves the development of a

research plan for carrying out the study.

There are a number of alternative research designs. The

choice will largely depend on the research purpose.

EXPLORATORY

Focus Group;

Observation;

Others.

QUALITATIVE RESEARCH

DESCRIPTIVE

Survey research

CAUSAL

Laboratory Experi ent

Fiel Experi ent

QUANTITATIVE RESEARCH

MARKETING RESEARCH


18/30

18

Step 4: Specify the information required.

Step 5: Design the method of collecting the needed information.

4. After defining the

problem the

researcher must

determine what kind

of information will

best meet the research

objectives.

Secondaryinformation

Primary

information

5. Marketing research

information may be

collected in many ways:

via mail, telephone, fax,Internet, or personal

interview.

using consumer

panels, consisting of

individuals who haveagreed to provide

purchasing and media

viewing behavior.


19/30

19

Step 6: Design the questionnaire.

A primary responsibilities of a marketing researcher is to

design the data collection instrument or questionnaire in

a manner so that it is easily understood by therespondent and administered to them.


20/30

20

Step 7: Decide on the sampling design.

Step 8: Manage and implement the data collection.

The researcher must determine the criteria that would

enable a respondent to take part in a study.

The sampling design must result in the proper sample of

respondents being selected. Different sampling designs are

available to researchers.

The researcher must properly manage and oversee the

data collection process.

If interview method is used, the researcher must traininterviewers and develop procedures for controlling the quality of

the interviewing.

[This is not necessary if survey methodology is used, where the

research instruments are completed by the respondents. ]


21/30

21

Step 9:Analyze and interpret the results.

Step 10: Communicate the findings and implications.

The raw research data needs to be edited, tabulated

and analyzed to find the results and to interpret them.

the method used may be manual or computer based.

The analysis plan follows from the research objective of the

study.

Association and relationships of variables are identified and

discussed in the light of the specific marketing problem.

The researcher has to submit a written report and oftenmake an oral presentation to management or the client.

In conducting all the marketing research activities; the marketing

researchers must adhere to ethical standards.


22/30

22

Marketing Problems Versus Research Problems

Not all marketing problems are researchable. To clearly

define a researchable problem,

the researcher must define the scope of the problem during the

initial investigation, and try to determine probable cause-and-

effect relationships between the variables by answering the

following questions:

What is (are) the symptom(s) that indicate(s) that there is

(are) a problem (s)?

What is (are) the likely cause(s) of the problem?

What information will be needed to find a solution to the

problem?

What possible course(s) of action may be taken if information

is available?


23/30

23

Phrasing a Researchable Problem I

A marketing problem that can be researched, must be

translated or written into a form that includes:

A relationship between two (or among several) variables.

Each variable is operationally defined, A population for the research is implied or identified.

Consider the observation, We need to find why our stores image

seem to be have gone down?

This problem is not researchable because it does not clarify

(I) the relationships that are described;

(ii) how the conclusion seems to be have gone down? is reached, and

(iii) gone down compared to what?


24/30

24

Phrasing a Researchable Problem II

This research problem suffers because the terms are

not specifically defined. When image is referred to, what does it mean? The

number of customer that frequent the store? The numberof complaints lodged by customers? The stores marketshare? Or what?

Similarly, what does gone down actually mean? Is it

referring to reduction in the number of people frequentingthe store? Or what?

Finally, what population is being implied? Does it refer toall sales to all customers or particular types of customers?


25/30

25

Operational Definitions of a Variable

It is a definition that is determined by the operations

needed to measure the variable in question.

A term may not have only one, universal meaning.

In the statement, I want to buy a car, the variable

car is not operationally defined.

A car may mean, among others, a sedan, a sports car, a

pick-up or a mini van; it may also refer to an American, or

a Japanese built car.H

ence just saying car could bemisleading.

One must be specific as to what it exactly means.

Operational definitions reduce ambiguity.


26/30

26

Variables and Constructs

A variablevariable is a factor that:

(i) causes some other factor(s) to vary, and

(ii) may assume different numerical values.

PricePrice is a variable since it can cause sales levels to vary and

may assume different numerical values.

A ConstructA Construct is a variables with special interpretation. Constructs

are concepts that are deliberately invented or adopted for a special

scientific purpose.

In statistical analysis, a variable is generally identified by a symbol,

such as X or Y. If a researcher is using SPSS, or other computerpackages, he or she may use the name of the variable itself or its

abbreviated form e.g., age marstat (for marital status), occupn

(for occupation), etc.


27/30

27

Classification ofVariables

1.Categorical or Classificatory Variables:

have a limited number of values, e.g., gender (male or Female) ,

marital status (married, single, widowed/ widower) etc.

2.Continuous variables:

have an infinite number of values, e.g., temperature, sales in $ ornumber, profit in $.

3. Dependent Variables:

Variables expected to be predicted or explained.

4. Independent Variables:

Variables that are expected to influence, predict or explain another.For example, in the following relationship:

Income (I) = F (Age, Level of education),

Income is a dependent variable; Age and Level of education are

independent variables. An independent variable is something that the

researcher can control.


28/30

28

Constructs Widely Used by

Marketing Researchers Marketing Constructs Operational definitions

Attitudes towards brands Number of people with positive, negative or neutral feeling

Brand Awareness Percent of respondents that have heard of the brand

Brand familiarity Consumers that have tried or seen the brand

Brand loyalty How many times the respondent bought (used) the productComprehension of

product benefits Respondents opinion as to what the product does to them

Demographics Respondents age, sex, marital status etc.

Past purchase or use Percent of respondents that bought(used) the product/service

Psychographics How consumers think and behave

Purchase intention Number (%) of respondents planning to buy a product

Reach The number (%) of households exposed to an advertisement

schedule during a given period of time.

Satisfaction How the respondents evaluate the performance of the

product or the service


29/30

29

RESEARCH PROPOSAL I

A research proposal

a plan showing step by step description of how a proposed

research project will be undertaken.

reflects the researchers understanding of the problem and ability to

conduct the research.

If the research is to be conducted through a research

agency, the research proposal acts as an important

selection criterion. Upon its acceptance, the research proposal becomes the basis for

the contract or agreement between the research agency and the

client, and serves as a record of what was agreed on.


30/30

30

RESEARCH PROPOSAL II

There is no fixed or standard format for a research

proposal as it is dependent on the nature of the specific

research project. However, most research proposals

contain the following items. 1. Introduction

2. Statement of the Marketing Problem

3. Specification of the Research Objectives

4. Details of the Proposed Research Plan

5. Time schedule

7. Research team

ppt. of module 12 (i)

Documents