Professional Documents
Culture Documents
Module-1
Introduction
Research is an art of scientific investigation. It is also a systematic design, collection, analysis and the reporting the findings and solutions for the marketing problems of a company . Research is required because of the following reasons;
To identify and find solutions to the problems To help making decisions To find alternate strategies To develop new concepts
What is Research?
Literally, research (re-search) -search again Business research must be objective oriented Research always starts with a question or a problem Research information is neither intuitive nor haphazardly gathered. Its purpose is to find answers to questions through the application of the scientific method It is a systematic and intensive study directed towards a more complete knowledge of the subject studied Detached and impersonal rather than biased It facilitates managerial decision process for all aspects of a business by providing information.
Marketing research is the function which links the customer and public to the marketing through information - used to identify and define marketing opportunities and problems , generate, refine, and evaluate marketing action monitor marketing performance and improve understanding of market as a process. It is a continuous activity carried out by organisations so as not to miss any chance of a gap in a market which they could fill specific activity aimed at providing an answer, or answers to a current problem or opportunity is defined as the systematic and objective process of generating information for aid in making business decisions.
Research that helps to identify problems that are not necessarily apparent and yet exists and likely to arise in the future is called Problem Identification Research. Research undertaken to help solve specific marketing problems is called as Problem Solving Research
Market Potential Research Market Share Research Image/Brand Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research
Segmentation Research
Determine basis for segmentation Establish market potential and responsiveness for various segments Select target markets and creat lifestyle profiles, demography, media, and product image Test concept Optimal product design Package tests Product modification
Product Research
Brand positioning and repositioning Test marketing Importance of price in brand selaction Pricing policies Product line pricing Price elasticity of demand Response to price change Optimal promotional budget and promotional mix Sales promotion relationship Media selection
Pricing Research
Promotional Research
Creative advertising testing Evaluation of advertising effectiveness Type of distribution Attitude of channel members Intensity of wholesale and retail coverage Location of retail and wholesale outlets Channel margins.
Distribution Research
"The secret of success is to know something nobody else knows. " Aristotle Onassis
Time constraint Availability of Resources Nature of information sought Benefits versus cost
Purpose clearly defined Research process detailed Research design thoroughly planned High ethical standards applied Limitations frankly revealed Adequate analysis for decision makers needs Conclusions justified Researchers experience reflected
Objectives of Research
Achieve new insight into the problem Study accurately the characteristics of a particular individual situation or group Diagnose the problem in the area concerned and to find solution to such problem Test a hypothesis of a casual relationship between variable Promotional, profit, corporate image, customer satisfaction, product development etc
Attempts to expand the limits/boundaries of knowledge. Conducted to verify the acceptability of a given theory. Not directly involved in the solution to a pragmatic problem. Basic research findings generally cannot be immediately implemented.
Is executive success correlated with high need for achievement? Are members of highly cohesive work groups more satisfied than members of less cohesive work groups? Do consumers experience cognitive dissonance (e.g., You tell your younger brother to brush after every meal, but you dont) in low-involvement situations?
Applied Research
Conducted when a decision must be made about a specific real-life problem. Research undertaken to answer questions about specific problems or to make decision about a particular course of action or policy.
Should McDonalds add Italian pasta dinners to its menu? Applied research told McDonalds it should not.
Oral Quiz
1. A researcher investigates whether different in a mangers brain (e.g. right versus left hemisphere) are active during different kinds of managerial decision-making. Ans. Basic research 2. A researcher investigates consumers attitudes toward a prototype of an innovative type of product, a homeCleaning kit for use on clothes that require dry cleaning. Ans. Applied research 3. A researcher investigates 5 personality traits to see if they can explain the purchasing behavior of automobile buyers. Ans. Basic research 4. A new technology that nullifies the need to refrigerate fish has been invented. Heat processing and the useof flexible pouches for storage helps retain the freshness of fish and frozen food for three years. A researcher investigates how this new technology will impact the market for fish in India. Ans. Applied research
5. A researcher working for a candy company has children evaluate concepts and prototypes for new candies.The researchers ask children to taste the products and rate them. Sometimes, the candy company developsunique items that taste good and researchers ask children to come up with a concept or a name the product. Ans. Applied research 6. A researcher working investigates whether introducing a subbrand at new-car dealerships, identified byan AutoNation USA logo below the dealership name, is an effective basic strategy that can be applied to allits dealerships. Ans. Applied research
Scientific Method
The scientific method refers to techniques and procedures that help the researcher to know and understand business phenomena. It is a systematic step by step procedure following the logical processes of reasoning
Marketing researcher can not be objective in his investigation as he wants to support & justify certain issue. Scientists can measure minutest changes in his lab. .where as MR cannot do this.(consumes , preferences ,questionnaires) Scientific method is a continuous process leading to accumulation of knowledge, so it is Difficult to make accurate predictions & MR is not a continuous process.
Four Stages of Decision-making Process Associated with the Development and Implementation of a Strategy Identifying problems and opportunities Diagnosis and assessment Selecting and implementing a course of action Evaluating the course of action
Evaluation Research
Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.
Research that regularly provides feedback for evaluation and control of business activity Indicates things are or are not going as planned Research may be required to explain why something went wrong.
Availability of Data
Yes
Yes
Does the value of the research information exceed the cost of conducting research?
Yes
No
No
No
No
Potential Value of a Business Research Effort Should Exceed Its Estimated Costs
General Business Conditions and Corporate Research Financial and Accounting Research Management and Organizational Behavior Research Sales and Marketing Research Information Systems Research Corporate Responsibility Research
Cross-functional Teams
Today everyone in a progressive organization
from accountants to engineers engages in a unified effort to consider all issues related to the development, production, or marketing of new products.
Cross-functional teams are composed of individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.
Global Research
General information about country economic conditions and political climate Cultural and consumer factors Market and competitive conditions demand estimation
The goal is to ensure that no one is harmed or suffers adverse consequences from research activities
Begin data collection by explaining to the participant the benefits expected from the research Explain to the participants that their rights and well-being will be adequately protected, and say how this will be done Be certain that interviewers obtain the informed consent of the participant
Deception
The participant is told only part of the truth or when the truth is fully compromised To prevent biasing the participants before the survey or experiment To protect the confidentiality of a third party
Sometimes researchers will be asked by sponsors to participate in unethical behavior. To avoid coercion by sponsor the researcher should: Educate sponsor to the purpose of research Explain researchers role Explain how distortion of the truth leads to future problems If necessary, terminate relationship with sponsor
Ethics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others The goal is to ensure that no one is harmed or suffers adverse consequences from research activities
Client - Sponsor
Decision Makers Sponsoring Clients Management Teams
Researcher
Researchers Research Organizations
Respondents
Subjects Objects of Investigation
The purpose of research is research Objectivity Misrepresenting research Protect the right to confidentiality of both subjects and clients Dissemination of faulty conclusions Advocacy research
Begin data collection by explaining to the respondent the benefits expected from the research Explain to the respondents that their rights and well-being will be adequately protected, and say how this will be done Be certain that interviewers obtain the informed consent of the respondent
Ethics between buyer and seller An open relationship with research suppliers An open relationship with interested parties Privacy Commitment to research Pseudo-pilot studies
Dominos Pizza tried to enter the Japanese market even though Japanese consumers tend not to eat lot of tomato-based foods, many have allergies to dairy products, and complex navigation is required to deliver pizza through the streets of Tokyo. Domino should have conducted marketing research before entering Japan But better late than never as the company, upon entering the market, conducted some research nd listened to their customers In reaction to the new consumer information, Dominos introduced SUSHI PIZZA TOPPINGS and created a street address data base for delivery scooters
More than 60% prefer a single deck, 250 passenger airplane to a double deck 550 passenger airplane for nonstop flights. 7 out of 10 travelers prefer a nonstop trip on a single deck Travelers in all classes of service believe 250 passenger airplane will provide better experience with check-in, boarding, baggage claim, and customs and immegration than 550 seat airplane.