BPH 314 Lecture 6.ppt marketing research

Edu

1. 1-1
MARKETING
RESEARCH
Marketing Research BPH314Marketing Research BPH314

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Market Research vs Marketing Research
Market Research Researching the immediate
competitive environment of the marketplace,
including customers, competitors, suppliers,
distributors and retailers
Marketing Research Includes all the above plus:
 - companies and their strategies
for products and markets
 - the wider environment within
which the firm operates (e.g. political,
social, etc)

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QUOTE
“It is a capital mistake to
theorise before one has
data”
Sir Arthur Conan Doyle

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Marketing Research Defined
The systematic and objective process of
generating information for aid in making
marketing decisions
The systematic design, collection, analysis and
reporting of data and findings relevant to a
specific marketing situation facing the
organisation

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ROLE OF MARKEING RESEACH
Marketing Research:
Identifies and defines marketing
opportunities.
Generates, refines, and evaluates
marketing actions.
Monitors marketing performance.
Improves understanding of
marketing as a process.

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Marketing Research Role Continued
Specifies the information required to address
these issues .
Designs the methods for collecting information.
Manages and implements the data collection
process.
Analyzes the results.
Communicates the findings and implications.

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Marketing Research Helps in;
1.Planning
2.Problem Solving
Produce
Price
Place
Promotion
3.Control

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Using Marketing Research
We can use Marketing Research
to:
Identify & Evaluate Opportunities
Analyze Market Segments
Select Target Markets
Plan & Implement Marketing Mixes
Analyze Marketing Performance
Performance Monitoring Research

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Identifying and Evaluating
Opportunities
Examples
Mattel Toys investigates desires for
play experiences
Home cooking is on the decline.
Purchase of precooked home
replacement meals is on the rise.
Number of investors trading stock on
the Internet is growing.

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Analyze Market Segments and
Select Target Markets
Examples
Investigating buyers’ demographic characteristics
MTV, monitoring demographic trends, learns the Hispanic
audience is growing rapidly (Increase in people from
different countries)
Sears learns women, age 25-54 with average household
income of $38,000, are core customers. Targets this
market with "The Good Life at a Great Price.

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Plan and Implement
a Marketing Mix
Price: Safeway does a competitive pricing
analysis
Distribution: Caterpillar Tractor Co. investigates
dealer service program.
Product: Oreo conducts taste test, Oreo cookie
vs. Chips Ahoy
Promotion: How many consumers recall the
“Life Tastes Good. Coca Cola!” slogan?

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Analyze Marketing Performance
This year’s market share
is compared to last
year’s.
Did brand image
change after new
advertising?

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Performance-monitoring Research
Research that regularly provides
feedback for evaluation and
control
Indicates things are or are not
going as planned
Research may be required to
explain why something “went
wrong”

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Determining When to Conduct
Marketing Research
Time constraints
Availability of data
Benefits versus costs

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The Marketing Research Process

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Problem Definition
Problem Definition:
The first step in any marketing research project
and is critical to its success.
All parties involved must:
Focus on the real research problem, not the
symptoms.
Anticipate how the information will be used.
Avoid prescribing a specific study until the
problem is fully understood and defined.

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Research Designs
Exploratory Research:
Typically carried out to satisfy the researcher’s desire for better
understanding, or to develop preliminary background and
suggest issues for a more detailed follow-up study.
Descriptive Research:
Normally directed by one or more formal research questions or
hypotheses.
Cross-sectional study
Longitudinal research
Casual Research:
Experiments in which researchers manipulate independent
variables and then observe or measure the dependent
variable or variables of interest.

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•Secondary Data: information that has been collected for
some purpose other than the research at hand
•Primary Data: information that has been gathered
specifically for the research objectives at hand
•Secondary Data: accessing data through sources such as
the Internet and library
•Primary Data: collecting data from participants through
methods such as telephone, mail, online, and face-to-face
(quantitative), and observation studies and focus groups
(qualitative)

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Data Types
Primary Data Secondary Date
SURVEYS INTERNAL DATA
- Mail - Company records
- Telephone - Data from MDSS
INTERVIEWS EXTERNAL DATA
- Mall intercepts Proprietary
- Personal interviews- Custom Research
-
Syndicated services
FOCUS GROUPS Nonproprietary
- Personal - Published reports
- Mechanical - Census data
- Periodicals

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Data Collection Methods
Focus groups
Telephone surveys
Mail surveys
Personal interviews
Mall intercepts
Internet surveys
Projective techniques
and observations

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Data Collection Instruments
The collection of marketing
research information involves
construction of a data collection
instrument called survey or
questionnaire.

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Types of Survey Research Questions
Scaled
Likert agree-disagree
Semantic differential
(Good, Fair, Bad)
Multichotomous (multiple choice)
Categorical
Open-ended

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Five Errors in Question Design
1.Double-barreled
wording (double sides)
2.Loaded wording
(attempts to influence
an audience by using
appeal to emotion )
3.Ambiguous wording
4.Inappropriate
vocabulary
5.Missing alternatives

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Sample Design

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Sampling
Probability Sampling
Simple random sampling
Stratified sampling
Cluster sampling
Nonprobability Sampling
Purposive Sampling

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Accidental, Haphazard
Purposive Sampling
Convenience Sampling
Quota Sampling
Expert Sampling

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Sampling
•Sample plan: refers to the process used to select
units from the population to be included in the
sample
Sample size: refers to determining how many
elements (units) of the population should be
included in the sample
Response Rate
A recent study by the Council for Marketing and
Opinion Research (CMOR) estimated that 45
percent of consumers refused to participate in a
survey in 2001.

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•Sound data collection is very important because,
regardless of the data analysis methods used, data
analysis cannot “fix” bad data.
No sampling errors may occur during data collection.
These are related to poor design and/or execution of the
data gathering.
•Sampling errors may occur based purely on chanceData
analysis:
•Data Analysis
•involves entering data into computer files, inspecting
data for errors (data cleaning), running tabulations
(frequencies), and conducting various statistical tests

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•Findings are presented, often by
research objective, in a clear and
concise way.
•The need for a good report cannot
be overstated. It is the report,
and/or its presentation, that
properly communicates the results
to the client.

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Fieldwork
Fieldwork is the process of:
Contacting respondents
Conducting interviews
Completing surveys

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Analysis and Interpretation
Techniques for analyzing
marketing research data:
Straightforward frequency
distributions
Means
Percentages
Complex multivariate statistical
tests

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Changing Technology
Positive Factors:
The availability of computer-assisted telephone (CAT)
interviewing has enhanced sampling, data entry, and
data processing.
Videoconferencing enables clients to monitor focus
groups and provide the opportunity to involve more
participants in observation.
Videoconferencing result in savings because clients do not
have to travel to locations to view focus group sessions.
E-mail offers the potential for increasing survey efficiency.

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Changing Technology
Negative Factors:
Answering machines and voice-mail responses inhibit both
consumer and business-to-business telephone research.
Call waiting hampers the conduct of telephone surveys.

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International Considerations
1.Selecting a domestic research
company to do international
research.
2.Rigidly standardizing methods
across countries.
3.Interviewing in English around
the world.
4.Implementing inappropriate
sampling techniques.

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International Considerations
5. Failing to communicate
effectively with local research
companies.
6. Lack of consideration given to
language.
7. Misinterpreting data across
countries.
8. Failing to understand preferences of
foreign researchers regarding the
effective conduct of qualitative
research.

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Ethical Issues in Marketing Research
Excessive interviewing
Lack of consideration
Abuse of respondents
Delivering sales pitches
under the guise of
marketing research

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Ethical Issues in Marketing Research
Incomplete reporting
of results
Misleading reporting
of results
Nonobjective research
Use of data and the
confidentiality of information
collected

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Database Marketing
Database Marketing:
The collection and use of
individual customer-specific
information to make
marketing more efficient.
Database refers to
customer/prospect
information stored in a
computer with software to
process the information.

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Database Marketing
Customer Relationship Management (CRM):
Relationship management from a transaction
orientation has been one of the significant
developments in the practice of marketing.
One important aspect of data-based marketing
is the ability to evaluate Return on Investments of
marketing expenditures.

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Why Conduct Market Research in New
Product Development?-
The product must appeal to the customer
(however widely defined)
- Timely market research can help you mould
the product to the consumer’s need/wants
- Market research tend to point out successes
and failures before products are launched “for
real”
- As a result, it can save you money and time