CAPTURING MARKETING INSIGHTS

CONDUCTING MARKETING RESEARCH

Venus Razor
What is Marketing Research?

The marketing research is the systematic

collection, analysis, and interpretation of
data relevant to a specific marketing
situation facing by the company.
 Advantages of Marketing
Research
 It helps businesses strengthen their position.
Use market research to gain a better perspective and understanding of your market or target
audience and ensure that your firm stays ahead of the competition.
 It minimizes any investment risk
Spending what is often only a small proportion of your investment on researching and testing
the market, product, concept or idea makes sound business sense.
 It identifies potential threats and opportunities
 It helps to discover your’s and your competitor’s strengths and weaknesses
 It helps in spotting emerging trends
 It focuses on customer needs and demands
The Marketing Research Process

 Define the problem

 Develop research plan
 Collect information
 Analyze information
 Present findings
 Make decision
Define the Problem
 Step 1: Define the Problem

 The foremost decision that every firm has to

undertake is to find out the problem for which
the research is to be conducted.
Develop the Research Plan
Step 2: Develop the Research Plan

The second stage of marketing research is

where we develop the most efficient plan for
gathering the needed information
 Data sources
 Research approach
 Research instruments
 Sampling plan
 Contact methods
Data sources
 Data Sources
 Primary Data
 Secondary Data
 The researcher can gather secondary data,
primary data, or both. Secondary data are data
that were collected for another purpose and
already exist somewhere.Primary data are
data freshly gathered for a specific purpose or
for a specific research project
Research Approaches

Marketers collect primary data in some of the

ways mentioned below
 Observational
 Focus group
 Survey
 Experimental
 Behavioral Research
Observational Research observe the ongoing behavior
of the study participant. Ethnographic research is a particular
observational research provide deep cultural understanding of
how people live and work.

Focus groups are used in traditional market research to gather

target audience opinions and attitudes about certain products,
services or concepts. A company may use a focus group to gather
customer feedback on a new product or service before they decide
to take the concept into development.

Survey research is a quantitative method for collection of

information from a pool of respondent by asking multiple
survey questions

Experimental Research this is done to find out the cause and effect relationships.
This research is undertaken to study the effects of change
in the customer’s behavior due to the change in the product’s
attributes.
Cont…
Behavioral Research Customers leaves traces of their
purchasing behavior in store scanning data, customer databases,
catalog purchases. Marketers can much by analyzing this data.
Actual purchases reflect consumers’ preferences. Eg Americal
airlines can learn many useful things about its passengers by
analyzing ticket purchase record and online behavior.
Research Instruments
 Questionnaires
 Qualitative Measures
 Technological Devices
 Questionnaires
 A questionnaire consists of a set of questions presented to respondents. Because
of its flexibility, it is by far the most common instrument used to collect primary
data.

 Closed –end questions

 Open-end questions
 Questionnaire Do’s and Don’ts
 Ensure questions are  Avoid negatives
free of bias  Avoid hypothetical
 Make questions simple  Avoid words that could
 Make questions specific be misheard
 Avoid complicated  Allow for “other” in fixed
words response questions
 Avoid ambiguous words
Question Types - Dichotomous

In arranging this trip, did you contact

American Airlines?
 Yes  No
Question Types – Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
 Question Types – Likert Scale
Indicate your level of agreement with the
following statement: Small airlines generally
give better service than large ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
Question Types –
Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
 Question Types –
Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
Question Types – Rating Scale

American Airlines’ food service is _____.

 Excellent
 Very good
 Good
 Fair
 Poor
 Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on
American Airlines if in-flight Internet access
were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
 Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on
American Airlines if in-flight Internet access
were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
Question Types –
Completely Unstructured
What is your opinion of American Airlines?
Question Types –
Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
Question Types –
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.
 Question Types –
Story Completion
“I flew American a few days ago. I noticed
that the exterior and interior of the plane had
very bright colors. This aroused in me the
following thoughts and feelings.” Now
complete the story.
____________________________________
____________________________________
____________________________________
____________________________________
_______________________________
 Qualitative Measures

 Some marketers prefer qualitative methods for

gauging consumer opinion because they feel
consumers’ actions don’t always match their
answer to survey questions.
Qualitative Techniques

Word Associations

Projective Techniques

Brand Personification

Laddering
 Cont…
 Word associations involve asking subjects what words come to
mind when they hear the brand’s name.

 Projective techniques involve giving people an incomplete

stimulus and ask them to complete it, or explain it. In “bubble
exercises” empty bubbles like those in cartoons, appear in
scenes of people buying or using certain products or services,
subjects fill in the bubble.
 Cont..
 Brand Personification Ask if the brand were to come
alive as a person, what would it be like.

 Laddering is a series of increasingly more specific

“why” questions can reveal consumer motivation and
consumers’ deeper goals.
Ask why someone wants to buy a nokia cell phone.
“they look well built”
Why is it important that the phone be well built?
“functional benefit, nokia is reliable”
Why is reliability important?

1-34
Technological Devices
 Galvanometers
 Eye cameras
 Audiometers
 GPS
 Cont…
 Galvanometers can measure the interest or emotions aroused by exposure to a
specific ad or picture.
 Eye cameras study respondents’ eye movements to see where their eyes land
first, how long they linger on a given item, and so on.
 Audiometers attached to television sets in participating homes now record when
the set is on and to which channel it is tuned.
 Global Positioning System (GPS) technology, how many billboards a person may
walk or drive by during a day.
Sampling Plan
 Sampling unit: Who is to be surveyed?
 Sample size: How many people should be
surveyed?
 Sampling procedure: How should the
respondents be chosen?
Contact Methods
 Analyze Information & Make
Decisions
 Run summaries with the tools provided in your
software package (typically Excel, SPSS etc),
build tables and graphs, segment your results
by groups that make sense (i.e. age, gender,
etc.), and look for the major trends in your
data.  Start to formulate the story you will tell.
 Present your findings and make decisions.
The Marketing Research Process

 Define the problem

 Develop research plan
 Collect information
 Analyze information
 Present findings
 Make decision
 What is a
Marketing Decision Support
System (MDSS)?
 A marketing decision support system is a
coordinated collection of data, systems,
tools, and techniques with supporting
hardware and software by which an
organization gathers and interprets relevant
information from business and environment
and turns it into a basis for marketing action.
Barriers Limiting the Use of
Marketing Research
 A narrow conception of the research
 Uneven caliber of researchers
 Poor framing of the problem
 Late and occasionally flawed findings
 Personality and presentational differences

4-45
What is Marketing-Mix Modeling?

Marketing-mix models analyze data from a

variety of sources, such as retailer scanner
data, company shipment data, pricing,
media, and promotion spending data, to
understand more precisely the effects of
specific marketing activities.

4-46