Sessions 1 To 3 - RMD 2019

Research for Marketing Decisions
Marketing Research: An Overview

What is marketing?
 A recap…
 Creating, communicating and delivering value to
customers
 Managing customer relationships
 Individuals exchanging products and services with
others for mutual benefit
 A process of facilitating exchanges
 Marketing involves identifying and meeting human
needs
2 Research for Marketing Decisions (MKT 102) Term 2

Approaches to marketing
 Production Concept
 Low price and availability
 “You can have any color as long as it’s black…”
 Product Concept
 Quality, performance, innovative features
 The “better mousetrap” fallacy

Approaches to marketing
 Selling Concept
 Aggressively sell and promote
 Coca Cola – any drink as potential substitute
 The Marketing Concept
 Meet customer needs
 Shift orientation from product to customer
 Focus on mutual benefit

Marketing: The risk of failure
 High rate of failure of new products
 Low conversion of concepts to products
 Costs to companies, wasted resources
 Need to make sound decisions
 Understanding market and consumer important

The Marketing Concept
 Understand consumer
requirements
 Be sensitive to context
and plan
 Meet requirements in a
way that meets
customer needs

Marketing Concept: Implications
 Understand your consumer!
 Who is s/he?
 What does s/he do?
 How do I reach her?
 Understand her consumption preferences
 Product features
 Price, place etc

Marketing Concept: Intricacies
 Consumer behavior
 Needs, wants and demands?
 Perceptions
 Personality
 Self
 Attitude
 Learning

 Social Processes
 Groups/ Segments
 Role of family and friends – reference groups
 Subcultural influences
 Cultural Influences
 Institutional influences; Normative forces, cultural factors

 Brands and their meanings
 Product and function performed
 Brand imagery
 E.g., Mercedes vs Hummer

So, what is Marketing Research?
 A formal definition by the AMA -
 The function that links the consumer, the customer, and
public to the marketer through INFORMATION

Marketing Research
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
Definition of Marketing Research
Marketing research is the systematic and objective
 identification
 collection
 analysis
 dissemination
 and use of information
For the purpose of improving decision making related

to the
 identification and
 solution of problems and opportunities in marketing

The marketing research process
 Step 1: Problem definition
 What is problem definition?
 Purpose of study
 Background information available
 Information needed for decision
 How information will inform decision-making

 How do you better define the problem?
 Discuss with decision-makers concerned
 Discuss with industry experts
 Analyze secondary data
 Exploratory research
 Precise definition of problem critical to good research!

The Marketing Research Process
 Step 2: Develop an approach to
the problem
 Research questions
 Hypotheses
 Identify information needed
 Discussions with management
and industry experts
 Analysis of secondary data
 Exploratory research
 Pragmatic considerations

 Step 3: Research Design
 Framework or blueprint for the MR project
 Further define information needed
 Secondary data analysis
 Qualitative research if needed
 Methods for collecting quantitative data (survey, observation,
experimentation)

 Research design
 Measurement and scaling procedures
 Questionnaire design
 Sampling process and sample size
 Data analysis plan

 Step 4:Fieldwork or Data Collection
 This is the sweaty part of the whole thing!
 You might have to do it yourself
 If you are lucky…
 Field force or staff
 Operates in field or office

 How data is usually collected…
 Personal interviewing
 In-home
 Mall intercepts
 Electronically
 Email, internet

Step 5 : Data Preparation and Analysis
 Editing, coding, transcription and verification of data
 Questionnaires inspected, edited/corrected
 Number or letter codes assigned to questions
 Data transcribed
 Data analyzed using appropriate procedures to obtain
information on the MR problem and input for decision-
making

Step 6: Report Preparation and
Presentation
 Document the project in a
report
 Address specific research
questions
 Describes the approach, research
design, data collection, data
analysis procedures
 Presents results and major findings

 Report preparation and presentation
 Findings should be presented in easily comprehensible format
for use of management
 Make oral presentation using figures, tables, graphs to enhance
clarity and impact
 Note that the research process steps are interdependent!

Tasks Involved
Discussion Interviews Secondary Qualitative

with with Data Research
Decision Maker(s) Experts Analysis
Environmental Context of the Problem
Step I: Problem Definition

Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Analytical Specification
Objective/ Research of
Theoretical Model: Verbal, Hypotheses
Questions
Foundations Graphical, Information
Mathematical Needed
Step III: Research Design

Types of MR
 Broadly two types of research
 Qualitative
 In-depth interviews
 Focus groups
 Observation
 Projective techniques

Types of MR
 Qualitative research uses smaller samples (even 5 to 6
considered sufficient)
 Objective not to generalize, but to gain in-depth
understanding
 Data collection requires considerable skill
 Data output
 Text
 Photographs
 Videos
 Artifacts

Types of MR
 Data analyzed through coding and forming categories
 Analysis software
 NVIVO,Atlas Ti
 Manual analysis also common

Qualitative research – an example
 MTR Foods wants to understand how mothers feel about
their ready-to-eat foods
 Understand consumer relationships with ready to eat foods
 Time-saving, convenience, price, guilt?
 Brand imagery associated with MTR
 Conduct DIs among women

Quantitative research
 Uniform administration across respondents
 Large sample sizes
 Aim to generalize
 Generalizable, but less rich data
 Analysis procedures such as cross tabs, hypotheses
testing, factor analysis

Quantitative research
 Data generally collected by field workers, freelancers
 Heavy use of technology
 Analysis software
 SPSS, SAS, Excel, Stata, R

Quantitative research – an example
 Mahindra wants to understand the post-launch
performance of its scooter, the Duro. How will you
conceptualize and carry out this research?

Quantitative research - example
 First understand – what final report does your manager
want?
 Consumer preferences towards 2 wheelers
 Usage habits of 2 wheelers
 Market penetration of 2 wheelers
 Preferences and attitudes with respect to scooters
 Usage habits for scooters
 Market penetration for scooters
 Brand imagery for the Duro
 Duro vis-à-vis the Activa,Access,Wego etc.
 Likes and dislikes about Duro

Quantitative research – an example
 Some preliminary hypotheses:
 Women are more inclined to use scooters than men
 Consumers who value riding experience will prefer
motorcycles
 Duro scores better than other scooters on styling
 Consumers to go to
 Men and women aged 18 to 45
 SEC A/B/C
 Living in metros
 Living in household with at least one 2 wheeler

The Duro example
 Also, go to
 Those aware of Duro, but do not own
 Owners of Duro
 Owners of Duro’s closest competitor (Activa?)
 Sample sizes
 200 each in Chennai and Bangalore, within 200, at least 50
Duro users and 50 Activa users

Quantitative research – another example
 A co-operative bank based in Trichy wants to understand
consumer behavior among rural consumers, and wants
you to conduct a survey for the same. How will you
approach this issue?

Quantitative research - example
 A large car manufacturer wants to improve relationships
and build better dealer networks, and wants you to
collect detailed feedback and information from its dealers
in Karnataka. How will you do this study?

Marketing Research: Costs
 Consumer Interview: Rs. 500-1000
 Depth Interview: Rs. 5000-10000
 Focus Group: Rs. 30-40,000
 RE time cost: Rs. 8-9,000/day.

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

Factors to be Considered in the
Environmental Context of the Problem
PAST INFORMATION AND FORECASTS
RESOURCES AND CONSTRAINTS
OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIRONMENT
ECONOMIC ENVIRONMENT
MARKETING AND TECHNOLOGICAL

SKILLS

Management Decision Problem vs
Management Decision Problem Marketing Research Problem
Should a new product be To determine consumer preferences

introduced? and purchase intentions for the
proposed new product
Should the advertising To determine the effectiveness

campaign be changed? of the current advertising
campaign
Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales
and profits of various levels
of price changes

Definition of the Research Problem
Broad Statement
Specific Components

Development of Research
Questions and Hypotheses
Fig. 2.4
Components of the
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses

Research Questions and Hypotheses
 Research questions (RQs) are refined

statements of the specific components of the
problem.
 A hypothesis (H) is an unproven statement
or proposition about a factor or phenomenon
that is of interest to the researcher. Often, a
hypothesis is a possible answer to the research
question.

Term Project
 Groups
 Project can deal with
 Micro
 New Product potential
 Brand Performance
 Advertising evaluation
 Macro MR
 Shopping habits
 Effectiveness of a Public Campaign

Project Proposal
 Background
 Objectives
 Methodology
 Broad design
 Respondents

Introduction, contd.
Methodological Differences
 Qualitative
 Naturalistic inquiry
 Focus Groups
 In-depth interviews
 Observation
 Textual Analysis
 Quantitative
 Surveys
 Experiments
 Enumeration

Qualitative Research Defined
 Research having to do with qualities--basic texture,
nature, characteristics and attributes that make
something what it is.
 The meanings, concepts, definitions, characteristics,
metaphors, symbols and descriptions of things
 Not merely exploratory!

Qualitative Research
 “Qualitative research methods are frequently deemed
inferior and only suitable for exploratory purposes. This
view is largely based on ignorance and misperception.”
 Biemans 2003
 A picture paints a thousand numbers!

Positioning Qualitative MR
 What is happening?
 The event
 How it is happening?
 The Process
 Why it is happening?
 Reasons
 E.g., observation of an employee-customer interaction at
an airport check-in counter

When Qualitative Research can be used
 Gaining In-depth Understanding
 Seeing things from consumer’s perspective
 Being open to multiple possibilities
 Exploring context, conditions and change

When Qualitative Research can be used
 Not much a priori knowledge on issue at hand
 Need for broad open-ended questions
 Need for flexibility
 Understanding nuances of consumer behavior

Benefits of qualitative research
 Interact directly with consumer
 Information not filtered through the agency or researcher
 Direct client involvement
 Easy to organize
 Fast turnaround

Uses of Qualitative Methods
 Cultural assessments
 Learn about unfamiliar market segments
 Target different segments
 E.g. how do women use SUVs?
 Are SUVs put to uses other than those intended by the marketer?
 Idea generation
 Generate new ideas for products
 E.g., an improved mosquito repellant

 Branding studies
 Understanding brand image
 Reviving dated brand images

 Positioning studies
 How to communicate effectively
 Changes in positioning
 E.g., how should the Renault Kwid be positioned?
 Cheaper car?
 Second car?
 For youngsters?

 Advertising
 Develop concepts
 Refine concepts
 Test copy
 Improve and evaluate copy
 Usability testing
 How consumers interact with products
 E.g., consumer comfort with high-tech products
 Do consumers need so many features?

 Naming and packaging evaluation
 Evaluate product names
 Study packaging attributes – form, shape, texture, color etc.
 E.g., what name should be given to a bike tyre?
 New product development
 Expose consumers to new ideas
 Rich details obtained on consumer preferences
 E.g., introducing a flavored vodka

Designing Quantitative Studies
 Quantitative studies follow a sequential design:
 Problem Identification
 Contextual/ Theoretical Understanding
 Hypotheses
 Methodology
 Data Collection
 Analysis
Research for Marketing Decisions (MKT 102) Term 2

Designing Qualitative Studies
 However, qualitative design is emergent
 No sharply defined a priori hypotheses
 Data and understanding inform further inquiry
 Iterative back and forth process between data and
theory/context
 Findings get crystallized only at the end

 Sampling
 Theoretical sampling
 Based on emergent understanding
 Can be based on availability
 Information-rich cases preferred
 Outliers not thrown out
 Variation in data accounted for
 Snowball sampling

 Flexible variables
 No a priori specification of numbers
 Data collected till saturation
 Emic redundancy
 Data repeats itself
 No further new insights emerge

Data Collection Methods
 Depth interviews
 One to one interaction
 Rich data
 Probing possible
 Time-consuming
 Focus Groups
 Can observe group dynamics
 Quick turnaround
 Prone to becoming skewed
 Complete honesty not possible

Data Collection Methods
 Observation
 Naturalistic
 Potential to provide deeper understanding
 Logistical difficulties
 Projective Techniques
 Skilled researchers required
 Non-response problems
 Textual analysis
 Cost-effective
 Lack of primary data

Case: Designing a Study
 A large chain of restaurants is keen on opening an outlet
in the IIMT Campus. It would like to understand student
food habits and perceptions about the chain. How would
you like to approach this study?

Focus Group Discussion

What are Focus Groups?
 Guided or unguided discussions
 Addressing a particular topic of relevance to group or
researcher
 Relatively homogeneous group of 6 to 9 participants
 E.g., BFD case
 Moderator - guides discussion using direct, projective and
enabling techniques
 Allows for debate, discussion of ideas

FGD - Advantages
 Interact directly with consumer
 Information not filtered through the agency or researcher
 Direct client involvement
 Easy to organize
 Fast turnaround

Focus Groups - Advantages
 Maybe less expensive
 Can create conversations on specific topics
 E.g., discussion on drug abuse in BFD
 Can be undertaken under time constraints
 E.g., focus groups among visitors to an auto expo
 Can be conducted among transient populations
 Tourists, those availing a temporary discount scheme

Focus Groups - Dynamics
 Focus groups work best if homogeneity is maintained
 Age
 Gender
 Income/SEC

Focus groups - dynamics
 Properly administered, focus groups are dynamic
 Group members react to comments by other members
 Discussions stimulated by comments
 “Synergistic group effect” – the sum greater than parts
 Interaction facilitates brainstorming
 Generation of a large number of ideas and solutions
 E.g. the large number of conclusions drawn from BFD

 Attitude polarization
 Presence of others can increase self-awareness
 Arguments can lead to attitudes hardening
 Exchange of information can lead to attitude polarization
 Compliance
 Responding as per the questioner’s wishes
 Attempting to please others in the group

 Groupthink
 Highly cohesive groups would try and maintain consensus on
key issues
 E.g., the Bay of Pigs invasion, Pearl Harbor

Facilitating Group Dynamics
 Clearly defined objective
 Standalone FGD, used as part of larger project?
 Does the researcher have a clear understanding of questions
to be asked?
 Nature of the group
 Group characteristics, is it homogeneous or heterogeneous? Is
it appropriate for the questions?

 Environment and rapport
 Assure confidentiality
 Make participants feel comfortable
 Moderator
 Aware, flexible
 Well-organized and prepared
 Directs but doesn’t offer ideas
 90% participants and 10% moderator

 Research assistance
 Have someone taking notes or observing group dynamics
 Videotape the discussion

Communication Levels
THE MANIFEST LEVEL
(What is being said – the conventional, face value meaning)
I don’t pay attention to advertising about drugs. It’s just a bunch of adults telling you
what to do. I don’t have to listen to that.
THE INTENTIONAL LEVEL

(Reading in between lines, synch between body language and what is being said;
real feelings and emotions)
I do listen to advertising about drugs, but it’s cool to pretend not to…
THE SUB-CONSCIOUS LEVEL

(Insights differentiating between good and bad groups/ interpretation; may
emerge later, in response to something else’ cues)
Need for separate identity? Rebelling? Peer pressure to conform?

The Moderator
 Understands and controls 3 basic components of a group
Structure : - Duration of GD
- No. of respondents
- Adherence to eligibility criteria
- Venue ambience
- Equipment used
Content : - Subject matter

- Techniques to be used
Process : - Understanding and appreciating the

sequence of stages a group passes
through

The Moderator
 Critical qualities of a good moderator
 Well-prepared on the topic of discussion
 Allows diverse opinions, yet doesn’t allow discussion to digress
too much
 Remains observant throughout
 Can handle group dynamics and power struggles well
 Comfortable with uncertainty
 Can think quickly and creatively
 Makes participants feel comfortable and valued

Focus Groups - Stages
 Forming
 Initial anxiety of participants
 Awkwardness, chit-chat, testing behaviors
 Make participants feel safe, encourage interaction
 Storming
 Demand for share of voice, rebelling, opting out, challenging
others
 Challenge moderator, other participants, emphasizing
individuality, emergence of dominant and passive members
 Signal all opinions equally valued, prevent skewing

 Norming
 Sense of cohesion, support, norms emerge, group takes off
 People take turns and speak, positive energy
 Enforce norms, deal with rule breaking, make plans and set
agendas
 Performing
 Individuals subservient to group, become task-oriented
 Sense of concentration and flow, group works without being
asked
 Introduce difficult issues, stimulus material, projective
techniques

 Mourning
 Completion of task and disbanding the group, need for closure
 If task is incomplete, people may not want to leave
 Signal that end is coming, summarize achievements, thank
participants

What is a Good Group?
 Vital, vigorous
 Focused yet free flowing
 Members display support and co-operation
 Does not depend on the “magic” of the moderator

What is a Bad Group?
 Moderator gets into leadership hassles with the group
 Moderator allows DG to become the hero of the hour
 Characterized by defensiveness, tension and unspoken hostility

Commonly Experienced Problems
PROBLEM MEANS OF COPING
Leadership-rivalry-participants Politely remind group of the purpose and task

taking the group off the topic
Leadership – rivalry – constant Ask other respondents about their view on this
disagreeing
Leadership – domination Withdrawal of eye contact

Turn away completely
Verbally indicate that you would also like to hear the
group’s views
Fight-aggression between  Ask the group as a whole to resolve it – ask for

respondents their views
 Indicate that the group can live with differences as
well as agreements

Commonly Experienced Problems
PROBLEM MEANS OF COPING
Flight – withdrawal Nurture, take interest – offer a compliment, use

supportive body language
Spurious conformity Introduce another view – point (“We were talking to

another group…”)
Freezing – group going dead  Energize – introduce laughter or other stimulus

material
 Acknowledge silence, ask group about it
Sub-group formation, alliances Ask group whether they would like “leader” to take over
Idle chatting  If only as a means of relaxing, allow it for a while

 Be straight forward and remind about task
Masking, posturing, lying Gently point out contradictions

Focus Groups: A Sampling Strategy
 A well-known pharmaceutical company wants to market a
blood sugar level monitoring device to diabetes sufferers, and
wants to understand the opinions of diabetes patients. The
research agency decides to conduct focus groups to collect
information.

Focus Groups: A Sampling Strategy
Males Females
Younger Older Patients Younger Older Patients
patients (Over 45) patients (Over 45)
(Under 45) (Under 45)
Serious
diabetes
condition
Moderate
diabetes
condition

Conflict Groups
• This focus group format pits people with opposite views against
one another as they argue or discuss the merits of the alternatives
Loyalists Loyalists
Of Brand Of Brand
A B
GROUP DIVIDE
Behavioral
- Users / Non-users
Psychographics - Loyalist /
Demographics
- Conservative / broad minded experimentalist
- Age
- Marketing dept. /
- Sex - Traditionalist / modernist
Sales dept.
Conflict Groups
Clearly highlights
- Differences
- Arguments / Counter arguments
- Strength of motivators / barriers
On the spot relevant solutions to

apprehensions / mind blocks provided
by respondents themselves

Case: Focus Groups
 A large FMCG company wants to launch a new brand of
floor cleaner in India. The company wants to do focus
groups to fine-tune its branding and positioning. Can you
think of the target audience, and issues to be addressed
by the group?

Sessions 1 To 3 - RMD 2019

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Research for Marketing Decisions

Marketing Research: An Overview

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For the purpose of improving decision making related

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Discussion Interviews Secondary Qualitative

Environmental Context of the Problem

Step I: Problem Definition

Marketing Research Problem

Step II: Approach to the Problem

Step III: Research Design

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PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

MARKETING AND TECHNOLOGICAL

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Should a new product be To determine consumer preferences

Should the advertising To determine the effectiveness

Should the price of the To determine the price elasticity

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Marketing Research Problem

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 Research questions (RQs) are refined

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