Akhilesh Kumar Dept.
of Applied Sciences - Mathematics Amity School of Engineering & Technology Amity University Haryana
1. 2. 3. 4.
5.
6.
Nature & Scope of Marketing Research Data Collection Methods Data Collection & Force Fields Data Analysis Report Writing Selected Applications of Marketing Research
Module - I
1. 2. 3. 4. 5. 6.
Marketing Research as input in decision making process Marketing Research & Marketing Information System Applications of Marketing Research Planning a Research Project Research Design Market Research on Internet
Marketing Research as input in decision making process
BI is the ability to access data from multiple sources within an organization for the purpose of analysis. It links the disparate operation systems to the end users of the data, thus creating an environment with free flow of information. It offers a reliable barometer of the business performance. The applications of BI tools are immense and can be profitable across different functions of an organization.
Marketing Research as input in decision making process
Business Intelligence
Finance & Accounting Marketing Intelligence Intelligence
Marketing Research Define problem & info. needs
Look for existing data
HR Intelligence
Operations Intelligence
Design study Collect & Analyze data Use & Report data for decision making Back-End Analysis
Marketing Research as input in decision making process
MI focuses on the use of information as a source of strategic advantage. Need to have a thorough knowledge of customers, their attitudes, tastes and preferences. Need to analyze competition for benchmarking and making price, product, market and segment decisions.
Marketing Research as input in decision making process
Marketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information. Function of Marketing Research is to link an organization to its market through information Identify and define marketing opportunity and problems Generate, redefine and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process
Marketing Research as input in decision making process
To reduce marketing risk embedded in the consumer need identification For strategic decision (not usually for routine decisions) to be decided on case-to-case basis.
Understanding of Consumer needs
Chance of developing market-offerings that accurately answer consumer needs
Marketing Research as input in decision making process
Lowers risks such as Customer dissatisfaction, product failure, inventory pile-ups & resultant increase in costs.
In market-decisions involving greater uncertainty. For Example: New product category decision Hence, for acquiring information relating to understanding of customer behavior & the environment.
Marketing Research as input in decision making process
Necessicity of MR
Specifies information required Designs method for collecting information Manages and implements data collection process Interprets results & communicates findings
Marketing Research as input in decision making process
To identify need-gaps or conscious dissatisfactions with existing ways of satisfying needs.
(least complex of situations demanding research, as consumer already aware of shortcomings of current market offerings will be able to compare better product)
To identify opportunities for offering a product-plus in situations when the consumer has latent (or not articulated) dissatisfactions with existing ways of satisfying needs.
(needed not just for protecting or growing incumbent market share, but also particularly useful for late entrants in a growing product category)
To determine consumer acceptance of new-to-world ideas.
(failure rate is phenomenally high for new product)
Marketing Research as input in decision making process
Terminology: Market Research + Managerial Decision Making = Market Planning Process Four Stages of Market Planning Process
Situation analysis
Strategy development
Marketing program development
Implementation
Marketing Research as input in decision making process
Situation Analysis Strategy Development
Understand the environment and the market Identify threats and opportunities Assess the competitive position Define the business scope and served market segments Establish competitive advantages Set performance objectives.
Product and channel decision Communication decisions Pricing Personal selling decisions Performance monitoring Refining strategies and program
Marketing Program Development
Implementation
Marketing Research as input in decision making process
Analysis of
Market environment
Market characteristics
Consumer behavior
Research Approaches
Organize information obtained from prior
studies (secondary)
Focus groups
Marketing Research as input in decision making process
Provides Information to Assist Management With Three Critical Decisions
What business should we be in? How will we compete? What are the objectives for the business?
Marketing Research as input in decision making process
Programs embrace specific tasks Action program usually focuses on a single objective in support of one element of overall business strategy
Marketing Research as input in decision making process
Identification of the Marketing-decision Situation (marketing problem/opportunity)
Determination of the criticality of the decision (Risk involved) Cost-benefit analysis of research decision Planning implementation of the research decision
Making Arrangements for Monitoring & evaluation of the research impact
Marketing Research as input in decision making process
Starts with decision to proceed to a new program or strategy Commitment to objectives, budgets and timetables Specific measurable objectives must be set for all elements of marketing program "Did the elements achieve their objectives?" Should the marketing program be continued, discontinued, revised or expanded?"
Marketing Research as input in decision making process
Objectives of the Decision Type and Nature of Information Sought Timing Schedules Availability of Resources (Monetary & HR) Experienced & Knowledgeable Analysts
Marketing Research as input in decision making process
Project Feasibility Studies
Branding & Positioning
Diversification
Market Development
Measurement & Forecast of Market Trends
Customer Satisfaction Surveys
Marketing Research as input in decision making process
A continuing and interacting structure of people, equipment and procedures designed to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information to marketing decision making MIS Uses 4 Types of Information
Recurring market and accounting data from market analysis
and accounting activities
Intelligence relevant to future strategy of business Marketing research studies not of a recurring nature Analytical statistical tools & model bank
Marketing Research & Marketing Information System
Marketing Managers (Analysis, Planning, Implementation & Control)
Marketing Information System
Market Information System
Internal Report System
Marketing Decisions and Communications
Marketing Research System
Marketing Environment (Target markets, Marketing Channels, Competitors, Public & Macro-environment Forces)
Marketing Research & Marketing Information System
Marketing Information
Marketing Intelligent System
Analytical Marketing System
Marketing Information
Internal Report System
Maintained by Business firm itself. Provides data on: Sales, Costs, Inventories, Cash Flows and Accounts receivable & payable.
Market Intelligent System
Provides day-to-day information of external marketing environment. In fact, marketing managers themselves generate this by reading newspapers & business magazines.
Market Research System
The study of subject is all about.
Analytical Marketing System
Consists of two tools: Statistical bank (advanced tools) & Model bank (Models which help marketing managers in having better understanding of problems)
Marketing Research & Marketing Information System
Major Areas which need Market Research Sales Analysis Sales Methods and Policies Product Management Advertising Research Corporate Research Syndicated Research
Applications Of Market Research
1. Sales Analysis
Measurement of market potential/demand projection Determination of Market Characteristics Market Share Estimation Studies of Business Trends
Applications Of Market Research
2. Sales Methods and Policies
To evaluate the effectiveness of present distribution system Establishing or revising sales territories Establishment of sales quotas, design of territory boundary, compensation to sales force, physical distribution and distribution cost analysis To assess the effectiveness of different promotional activities such as premiums, deals, coupons, sample distribution
Applications Of Market Research
3. Product Management
Examines market feedback about competitive product offerings To form market segments through choice of alternative bases To assess consumer feedback to new products and their likely potential To diagnose how consumers perceive various brands of a product(brand positioning) Simulated Test marketing (STM)
Applications Of Market Research
4. Advertising Research
Media research: Evaluate the relative effectiveness of different media in specific product fields, and in context of achieving specific tasks such as creating brand awareness or a particular product benefit. Advertisement effectiveness studies: Advertising agencies regularly make use of marketing research studies to assess and monitor effectiveness of different advertising campaigns.
Applications Of Market Research
5. Corporate Research
For assessment of knowledge about company activities, association of company with sponsored activities and company perceptions on specific dimensions to monitor any change in image over time among different public groups.
Applications Of Market Research
6. Syndicated Research
Several research agencies collect and tabulate marketing information on a continuing basis. Reports are sent periodically (Weekly, monthly or quarterly) to clients who are paid subscribers. ORG Retail Audit: Helpful for analysing movement of consumer goods through retail outlets. MARL - prescription Audit: incidence of disease and use of branded drugs. TRPs & National Readership Surveys (NRS): For TV and NewspaperMagazine effectiveness form advertisement point of view. Thompson Indices: Assesses market potential of a city with population one lakh and above. IMRB Quality of Life Survey: Ahmedabad is is the best of India's megacities, edging out Pune, Mumbai and Delhi in a very close contest P:SNAP Study: of Nation's Attitudes and Psychographics.
Applications Of Market Research
1. 2.
Problem Identification Problem Formulation
Planning a Research Project
Three categories of symptomatic situations are studied to identify the research problem. Overt Difficulties: These which are quite apparent & which manifest themselves. (Example: Firm has a declining sales for some time.) Latent Difficulties: Those not so apparent but if not checked, would soon become evident. (Example: Declining sales may, in due course, demoralize the sales staff.) Un-noticed Opportunities: Indicate the potential for growth in a certain area of marketing. Those opportunities which are not clearly seen & some effort is required to explore them.
Important: For research to be effective & useful, a meaningful
dialogue between the researcher & the manager must take place so that the conflicting view-points are reconciled.
Planning a Research Project
First researcher needs to identify 2 or more problems or opportunities (after exploration).
Then one of those should be selected on the basis of :
priorities & their importance to his organization
with constraints of finance & time available.
Planning a Research Project
Meaning: A clear statement or definition of the problem which specifies
Sample & Sampling units Time & Space boundaries Product features & consumer preferences
Specific Environmental conditions
(Aspects to be Identified: Who, When, Where & What)
Planning a Research Project
1.
Sampling Units: Individuals or objects whose characteristics to
be measured. (Universe of sampling units must be well defined) 2. Time & Space Boundaries: Comparison & Decision must be done by keeping in mind the measurements & details for comparable time & space boundaries. 3. Characteristics of Interest: This identifies the focus of the problem. (Examples: Style & Color preference buying behavior, personality traits, etc.) 4. Environmental Conditions: This indicates the uniqueness or generality of the problem. Specification of this may indicate possibilities or directions of change in environment.
Planning a Research Project
A hypothesis is a proposition which the researcher wants to verify. Objective of research is to select, among many possible hypotheses & to test them empirically with the help of statistical tools in order to ascertain whether they are true or false.
Although in some studies researcher is interested in knowing only factual information by exploration.
Planning a Research Project
Definition: Research Design is a comprehensive master plan of research study to be undertaken, giving general statement of methods to be used.
An effective research design should furnish at least following details:
A statement of objectives of study or the research output. A statement of data inputs required on the basis of which the research problem is to be solved. 3. The method of analysis which shall be used to treat & analyze the data inputs.
1. 2.
Research Design
Types of Research Designs (broad classification)
Exploratory Design Descriptive Design Causal Design Experimental Design
Research Design
Focuses on:
Discovery of new ideas and Possible insights that may help in identifying areas of further rigorous study.
Therefore, this gives useful direction for further research.
Approach:
Flexible Judgemental Intuitive Inference drawing
Research Design
Example:
In a business where sales have been declining for the past few months, the management may conduct a quick study to find out possible reasons of this.
Possible factors (after exploration):
Deterioration in the quality of product increased competition inadequate or ineffective advertising lack of efficient & trained salesmen use of wrong channels of distribution
Exploratory study is majorly based on the readily available secondary data and if some primary data is collected then approach is Judgemental & intuitive Inference drawing.
Research Design
Method includes:
Survey of existing literature 2. Survey of experienced individuals 3. Analysis of selected case situations
1.
(2 is primary data collection methods though not wellstructured)
Research Design
Useful for:
Providing information to enable a more precise problem definition. 2. Establishing research priorities. 3. Identifying the problem situation and familiarising with the problem. 4. Collecting information about
1.
possible problems in carrying out research, using specific data collection tools and specific techniques of analysis (data analysis).
Research Design
Undertaken in Circumstances: When researcher is interested in
1.
Knowing the characteristics of certain groups:
Age Gender Educational level Occupation Income
Knowing proportion of people in a population who have behaved in a particular manner 3. Determining the relationship between two or more variables
2.
Research Design
Approach:
Inflexible Needs sufficient thought to frame research questions types of data to be collected procedure to be used for this purpose.
Research Design
Broad Categories:
Cross-sectional (more frequently used) Longitudinal
Research Design
Cross-Sectional Studies:
Concerned with characteristics of a sample of elements from a given population.
May deal with: households, dealers, retail stores or other entities
Types:
Field-Studies (behavior & preferences of people) Surveys (has wide scope, is economical & detailed information can be obtained from a sample of a large population )
Research Design
Cross-Sectional Studies:
Examples:
An instant food manufacturing company has provided display racks for its retailers so that its product can be prominently displayed. Before embarking upon a second round of distribution of these racks, it wants to find out how many retailers are actually using the racks and the type of retail establishments that are using them. An electronics goods company which provides high quality after sales service to its customers and wants to evaluate the customer response to it.
Research Design
Longitudinal Studies(Panel Research Design):
Based on panel data and panel methods.
Panel: A sample of respondents who are interviewed &
re-interviewed from time to time. (concerned with repeated measurements of generally same variable)
Advantages:
Enables detailed analysis One can determine the characteristics of individuals who have changed brands and those who have not Help in identifying segments for focus of promotional efforts. Research Design
Study of cause & effect relationship. Example: The sales manager of a company manufacturing
table fans carried out a training programme for its salesmen operating in a state. Three months after training programme, it was observed that there was an increase in sales in that state by 40%. The sales manager claimed that the training programme was effective & therefore, the salesmen of other states should also undergo this training. Question: Sales manager is inferring that Sales Training as Causal Variable Sales Increase as Effect Variable
Is it true? Possible Answer: One can not say with certainty this is the cause. There could have been other factors responsible for sales increase.
Research Design
In this case it is very essential that sales manager should know those conditions under which proper causal statement can be made.
1. 2. 3.
Strong evidence of a strong association between an action (causal variable) and outcome (effect variable). Action (causal variable) must precede outcome (effect variable) Strong evidence of no other possible factors (causal variables) which could have resulted in the observed outcome (effect variable)
Research Design
