Marketing Research

Overview Introduction to marketing research Research design Data collection Data analysis Reporting results

Redefining Marketing Research The American Marketing Association (AMA) redefined Marketing Research as: The function which links the consumer, the customer, and public to the marketer through INFORMATION

Nature of marketing research (MR) Systematic and objective process of planning, gathering, analysing and reporting data Used to solve specific problem or opportunity

Redefining Marketing Research Used to identify and define market opportunities and problems Information Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

Definition of Marketing Research Marketing research is the systematic and objective identification collection analysis dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.

Market Research Specifies the information necessary to address these issues Manages and implements the data collection process Analyzes the results Communicates the findings and their implications

Classification of Marketing Research Problem Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

A Classification of Marketing Research Fig 1.1 Marketing Research Problem Identification Research Problem Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Promotion Research Distribution Research

Problem Solving Research Table 1.1 Determine the basis of segmentation Establish market potential and responsiveness for various segments Select target markets Create lifestyle profiles: demography, media, and product image characteristics SEGMENTATION RESEARCH Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning Test marketing Control score tests PRODUCT RESEARCH

Problem Solving Research PROMOTIONAL RESEARCH Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness Claim substantiation 0.00% APR Table 1.1 cont. PRICING RESEARCH Pricing policies Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes $ALE

Problem Solving Research Table 1.1 cont. DISTRIBUTION RESEARCH Determine… Types of distribution Attitudes of channel members Intensity of wholesale & resale coverage Channel margins Location of retail and wholesale outlets

Marketing Research Process Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation

The Role of Marketing Research Fig 1.2 Customer Groups Employees Shareholders Suppliers Consumers Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors Controllable Marketing Product Pricing Promotion Distribution Variables Marketing Research Marketing Decision Making Providing Information Assessing Needs Marketing Managers Market Segmentation Performance & Control Target Market Selection Marketing Programs

Characteristics of MR Quantitative vs. qualitative Applied vs. basic research Can be inaccurate Time and budget constrains Remember the benefits of marketing research – Page 8

Role of MR in decision making Provides info Functional roles Descriptive Diagnostic Predictive Factors influencing MR Time Data availability Nature of decision Cost-benefit Lack of resources

IMPORTANCE OF MARKETING RESEARCH IN DECISION MAKING Necessary to keep existing customers Provides insight to an ever changing market

ETHICAL CONSIDERATIONS Participants should be comfortable Participants should not be deceived Participants should be willing and informed Data should be held in confidence

SECONDARY RESEARCH Advantages and disadvantages Internal data sources External data sources The Internet

SURVEY RESEARCH Errors Types of surveys Personal Telephone Mail Door-to-door Executive Mall intercepts Telephone Mail Internet Self-administered interviews

OBSERVATION Advantages and disadvantages Methods Human vs. machine Natural vs. contrived Disguised vs. undisguised Structured vs. unstructured Direct vs. indirect

EXPERIMENTS Laboratory vs. field Internal vs. external validity Test marketing

MEASUREMENT CONCEPTS Levels of measurement of scales Open-ended response format Fixed –alternative response Comparative scales Non-comparative scales

QUESTIONNAIRE DESIGN Considerations Reliability issues Info requirements Question content Question structure Question wording Question sequence Layout Reliability issues

SAMPLING Define population Determine sample frame Select sampling technique Probability Non-probability Determine sample size Execute sampling process

FIELDWORK Selecting fieldworkers Training fieldworkers Supervising fieldworkers Validating fieldworkers Evaluating fieldworkers

DATA PREPARATION Validation Editing Coding Data entry Data cleaning

DATA ANALYSIS Tabulation Graphic Descriptive statistics

HYPOTHESIS TESTING Formulate null hypothesis Choose appropriate statistical test Decide on desired significance level Calculate value of test statistic Compare observed value of test statistic with critical value and arrive at conclusion

RESEARCH REPORT Title page Letter of transmittal Table of contents Executive summary Introduction Methodology Findings Conclusions and recommendations