Marketing Research Spring 2009

Agenda for Session One Introduction Course outline Groups for Research Project Topics for Research Project Tracking progress of your Project Lecture Attendance

Text Book Marketing Research – An Applied Orientation  Author Naresh K. Malhotra  Edition Fourth  Publisher Prentice Hall (Pearson)

About the Research Project Related to marketing of products or services Research to be carried out in Karachi only Survey should be field-based Sample size should be greater than 30 having representation of the users of the product or service chosen Questionnaire forms to be designed in English and Urdu

Chapter 1  Definition of Marketing Research  A Classification of Marketing Research  Marketing Research Process  The Nature of Marketing Research  Marketing Research Suppliers and Services  Selecting a Research Supplier  The Role of Marketing Research in MIS and DSS  Internet and Computer Applications

Definition of Marketing Research The American Marketing Association redefines marketing research as:  “Marketing research is the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process”

Definition of Marketing Research In the context of marketing research as a tool for providing information needed for marketing decisions, marketing research is defined as:  “The systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing”

A Classification of Marketing Research Marketing Research is classified into problem identification research and problem solving research Problem identification research is undertaken to help identify the problems that are not necessarily apparent on the surface and yet exist or are likely to arise in future. Research of this type provides information about marketing environment and helps diagnose a problem

Problem Identification Research Market Potential Research  A declining market potential indicates that the firm is likely to have a problem achieving its growth targets Market Potential Research  A problem exists if the market potential is increasing but the firm is losing its market share Image Research Market Characteristics Research

Problem Identification Research Sales Analysis Research  Research performed to analyze certain surges or plunges in sales, potential hot or cold locations, etc. Forecasting Research  Research undertaken to make business forecasts Business Trends Research  Marketing research that identifies trends in business. Example is IBM’s tracking study to capture data on trends in mainframe computing

Problem Solving Research Segmentation Research  Determine basis of segmentation  Establish market potential and responsiveness for various segments  Select target markets and create lifestyle profiles, demography, media, and product image characteristics

Problem Solving Research Product Research  Test concept  Optimal product design  Package tests  Product modification  Brand positioning and repositioning  Test marketing  Control store tests

Problem Solving Research Pricing Research  Importance of price in brand selection  Pricing policies  Product line pricing  Price elasticity of demand  Response to price changes

Problem Solving Research Promotional Research  Optimal promotional budget  Sales promotion relationship  Optimal promotional mix  Copy decisions  Media decisions  Creative advertising testing  Claim substantiation  Evaluation of advertising effectiveness

Problem Solving Research Distribution Research  Types of distribution  Attitudes of channel members  Intensity of wholesale and retail coverage  Channel margins  Location of retail and wholesale outlets

Marketing Research Process A set of six steps that defines the tasks to be accomplished in conducting a market research study. These include problem definition, development of an approach to the problem, research design formulation, field work, data preparation and data analysis, and report preparation and presentation

Step 1: Problem Definition In order to define a problem, a researcher should take into account the purpose of the study, the relevant background, the information needed and how it will be used in decision making Problem definition involves discussion with decision makers, interview with industry experts, analysis of secondary data, and some qualitative research

Step 2: Development of an Approach to the Problem This step involves formulating an objective or theoretical framework, analytical models, research questions, and hypotheses and identifying the information needed This process is guided by discussion with industry experts, analysis of secondary data, qualitative research, and pragmatic considerations

Step 3: Research Design Formulation Following activities are undertaken while formulating a research design:  Definition of the information needed  Secondary data analysis  Qualitative research  Methods of collecting quantitative data  Measurement and scaling procedures  Questionnaire design  Sampling process and sample size  Plan of data analysis

Step 4: Fieldwork or Data Collection Data collection involves use of a field force or staff that operates in the field Field activities include  personal interviewing (in-home, mall intercept, computer-assisted personal interviewing)  From an office by telephone (telephone or computer-assisted telephone interviewing)  Through mail (traditional mail)  Electronically ( or internet) Proper selection, training, supervision and evaluation of the field staff helps minimize the data-collection errors

Step 5: Data Preparation and Analysis This includes data editing, coding, transcription or keypunching, and verification of data

Step 6: Report Preparation and Presentation The entire project should be documented in a written report that addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and major findings The findings should be presented in a comprehensible format so that the management can readily use them in the decision making process. In addition, an oral presentation should be made to the management using tables, figures, and graphs to enhance clarity and impact

The Nature of Marketing Research The emphasis in marketing is on the identification and satisfaction of customer needs To achieve this objective, marketing managers need (better) information The task of marketing research is to assess the information needs and provide management with relevant, accurate, reliable, valid, and current information

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

Marketing Research Suppliers & Services Broadly, research suppliers can be classified as internal or external Internal supplier is a marketing research department within the firm The marketing research department’s place in the organizational structure may vary considerably Internal suppliers often rely on external suppliers to perform specific marketing research tasks

Marketing Research Suppliers & Services External suppliers are outside firms hired to supply marketing research data External suppliers can further be classified as full- service or limited-service suppliers Full-service suppliers offer the entire range of marketing research services, from problem definition to report preparation and presentation The services from these suppliers can further be broken down into syndicated services, standardized services, customized services, and Internet Services

Marketing Research Suppliers & Services Syndicated services collect information of known commercial value and provide to multiple clients on a subscription basis. Surveys, diary panels, scanners, and audits are main means by which these data are collected For example Digital TV Log (DTL) by Media Bank ( a company of Media Innovations (Pvt.) Limited, a TV transmission reporting tool with complete video content support

Marketing Research Suppliers & Services Standardized services are research studies conducted for different client firms but in a standard way For example procedures for measuring advertising effectiveness have been standardized so the results can be compared across studies and evaluative norms can be established Some examples of standardized services include Spot Transmission Report (STR), Program Clutter Report (PCR) and Share of Voice Estimate (SOVE) by Media Bank

Marketing Research Suppliers & Services Customized services offer a wide variety of marketing research services customized to suit a client’s specific needs. Gallup Pakistan, Oasis International, AC Nielson Pakistan, Aftab Associates are major providers of customized marketing research in Pakistan Internet services are offered by several marketing research firms including some who have specialized in conducting marketing research on Internet

Marketing Research Suppliers & Services Limited-service suppliers specialize in one or a few phases of the marketing research project Services offered by such suppliers are classified as field services, coding and data entry, analytical services, data analysis and branded products

Locally Existing Marketing Research Firms Ac Nielsen Pakistan (Pvt.) Ltd. Aftab Associates (Pvt.) Ltd. Arqam Research & Marketing Services (Field Work) Bukhari Survey Consultants Coopers & Lybrand Consulting Corporate Management Consultants Domestic Research Bureau Gallup Pakistan Innovative Marketing Management IRIS Communications Logica Marketing Research MAB / Paradigms Macro Management Systems

Locally Existing Marketing Research Firms Market & Consumer Guide (Field Work) Market & Consumer Pulse Pvt. Ltd. Market Research Link Marketing & Advertising Research Services (MARS) Marketing Research Link Marketing Research of Pakistan Media Bank Oasis International Opinion Research Group (Field Work) PMRB Promotions (Field Work) R-Track

Locally Existing Marketing Research Firms SB&B Market Research Smar International (Pvt.) Ltd. Star Group (Field Work) Startex (Marketing Services) The Research Forum Information source: brandsynario.com

Selecting a Research Supplier If sufficient expertise are not available in-house, one should look out for external suppliers The suppliers must be able to meet the current marketing research project requirements Doe not always go for the lowest bid. Competitive bids should be obtained and compared on the basis of quality and as well as price

The Role of Marketing Research in MIS and DSS The information obtained through invoices, marketing intelligence and marketing research becomes an integral part of the firms marketing Information System (MIS) The MIS is developed according to the decision maker’s responsibilities, style and information needs The MIS is mostly in the form a structured reports or queries

The Role of Marketing Research in MIS and DSS To overcome the limitations of MIS, Decision Support Systems (DSS) re used Users are allowed to directly interact with the databases and analysis models DSS are integrated systems including hardware, communications network, database, model base, software base, and the DSS user (decision maker) that collect and interpret information for decision making

MIS versus DSS Structured Problems Use of Reports Rigid Structures Information Displaying Restricted Can Improve Decision Making by Clarifying Raw Data Unstructured Problems Use of Models User-Friendly Interaction Adaptability Can Improve Decision Making by Using “What If” Analysis