Introduction to Marketing Research Afjal Hossain, Assistant Professor

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.

The Dept. Store Project The following information was solicited: 1. Familiarity with the ten department stores. 2. Frequency with which household members shopped at each of the ten stores. 3. Relative importance attached to each of the eight factors of the choice criteria. 4. Evaluation of the ten stores on each of the eight factors of the choice criteria. 5. Preference ratings for each store. 6. Rankings of the ten stores (from most preferred to least preferred). 7. Degree of agreement with 21 lifestyle statements. 8. Standard demographic characteristics (age, education, etc.) 9. Name, address, and telephone number.

What is the purpose of Marketing Research? To link the consumer to the marketer by providing information that can be used in making marketing decisions

Purpose of Marketing Research How marketing research can help Gain a more detailed understanding of consumer needs Reduce risk of product / business failure Help anticipate / forecast future market trends Businesses need accurate & up-to-date information because the business world is always changing around them Changes in technology Changes in customer tastes Changes in competitor products Changes in economic conditions

Uses of Marketing Research About the market Market potential for new products | Forecasting future demand | Competitor behaviour and performance | Market shares About products Likely customer response to new products | Comparison of existing products in the market (features, costs etc) | Forecasting new uses for existing products | New product development About promotion Effectiveness of advertising | Effectiveness of direct marketing and/or the sales force | Competitor promotional strategies About distribution Use and effectiveness of each distribution channel | Opportunities to sell direct | Cost of transport & warehousing products About pricing What happens to demand following changes in price | Analysis of impact of changes in price on costs and profits | Customer perceptions of pricing

Redefining Marketing Research The function which links the consumer, the customer, and public to the marketer through INFORMATION Afjal Hossain, Assistant Professor

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

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 Table 1.1 cont. 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 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

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

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

Marketing Research Process Problem Definition Important to understand and define the problem Research plan should aim to be cost-effective How to collect information Choose between primary and secondary sources Use appropriate research tools and methods Research needs to be published Development of an approach Research Design Formulation Field work/ Data Collection Data Preparation & Analysis Report Preparation & Presentation

Marketing Research Process (Continue----) Step 01: Problem Definition Here at first, The purpose of the study & the relevant background information is determined Then how it will be used in decision making also focused

Marketing Research Process (Continue-) Step 02: Development of an approach to the problem Here formulating- an objective or theoretical framework analytical models research questions hypotheses and identifying the information needed are described.

Marketing Research Process (Continue----) Step 03: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. In details the procedures necessary for- obtaining the required information and its purpose is to design a study that will test the hypotheses of interest determine possible answers to the research questions and provide the information needed for decision making.

Marketing Research Process (Continue-) A systematic procedure for research design involves: Definition of the information needed Secondary data analysis Qualitative research Methods of collecting quantitative data Measurement & Scaling procedures Questionnaire design Sampling process & Sample size Plan of data analysis

Marketing Research Process (Continue-) Step 04: Fieldwork or Data Collection Data collection involves a field force or staff that operates either in- The field by personal interviewing An office by telephone Through mail Or electrically.

Marketing Research Process (Continue--) Step 05: Data Preparation and Analysis Data preparation includes editing, coding, transcription & verification of data. Step 06: Report Preparation & Presentation Major findings and results are presented here. The findings may be presented in a comprehensible format so that management can readily use them in the decision making process. In addition, an oral presentation can be made to management using tables, figures and graphs to enhance clarity.