Marketing Management –II (MK102)

Session 2
Previous Class
 Marketing Management - II Course

 What is Marketing Research

 Why and when Marketing Research is conducted

 How marketing research is conducted

Marketing Research Process

Sessions 1-2

Session 2-6

Session 7-10

Source: Malhotra and Dash (6e)

Marketing Research Process

Source: Malhotra and Dash (6e)

How to define the problem and develop an approach to it?

Symptoms  Causes

Management Marketing
research problem Research Problem
 Action oriented  Information
oriented
SHODH – Market Research for
Economy Housing (A)

https://www.youtube.com/wa
tch?v=Lf79GltCSdY
 OBL’s management decision problem, marketing
research problem and information needs?
Management Decision
Problem/Questions
1. Should OBL enter the economy
housing segment?
2. Which locations within
Bengaluru should be chosen
for economy housing project?
3. Which segment(s) should be
targeted for economy housing
project?
4. What product, pricing and
promotion strategy should be
followed?
Marketing Research Problem/Questions
Broad Statement:
To estimate the demand for economy housing
apartments in selected micro-markets in Bangalore
and determine characteristics & preferences of the
target segment.
Specific Components
1. To identify localities in Bangalore that are
attractive for economy housing projects?
2. To determine how can house buyers in
Bangalore be segmented and the relative size of
each segment?
3. To determine segment that would be interested
in economy housing priced below INR 25 lakhs,
and the size of that segment
4. To assess the demographic, geographic, and
psychographic characteristics of the target
segment
5. To determine potential consumers’ expectation
from an economy house, features they value,
and tradeoffs they would be willing to make.
Marketing Research Objectives
1. Estimate demand for economy housing in
selected micro-markets in Bangalore
2. Identify various consumer segments in
the housing market in Bangalore and
estimate the size of each segment
3. Identify the segments that would be
interested in buying economy housing
units and estimate the potential of
these segments
4. Profile segments in terms of geographic,
demographic, and psychographic
characteristics
5. Develop product concepts for
alternative economy housing designs in
terms of criteria that are meaningful to
consumers and practical from an
implementation perspective
6. Find the most preferred concepts in
terms of features and price points.
Are the research design proposed by Shodh
appropriate for this type of project?
Business Research Problem/Questions Research Design:
Broad Statement: o Do they provide information necessary for decision making?
To estimate the demand for economy housing apartments in o Lack of information: exploratory research followed by conclusive
selected micro-markets in Bangalore and determine research
characteristics & preferences of the target segment.

Specific Components
Explorative Conclusive
1. To identify localities in Bangalore that are attractive for
economy housing projects? Methods:
Methods:
o Secondary data (qualitative
2. To determine how can house buyers in Bangalore be o Survey
analysis)
segmented and the relative size of each segment? (Profiling/Listing
o Interviews with Industry experts sample & Main
3. To determine segment that would be interested in and knowledgeable individuals Questionnaire)
economy housing priced below INR 25 lakhs, and the
size of that segment o FGDs o Conjoint analysis

4. To assess the demographic, geographic, and

psychographic characteristics of the target segment Value: Value:
5. To determine potential consumers’ expectation from an • Preliminary insights that can be • Provide information to
economy house, features they value, and tradeoffs they used as an input for descriptive assist demand
would be willing to make. research (e.g., locations for estimation, pricing and
economy housing, preferences product strategies
of target consumers, etc.)
What is the utility of secondary data and
interviews with experts in this project?
o Identify locations for economy housing projects
Secondary Data Sources
include newspaper reports, data
from CREDAI, reports from o Understand criteria that consumers use to
consultants, public statements of judge housing locations & apartment projects
competing firms housing
o Basis for segmenting housing buyers &
Experts in housing sector identifying target segment
include consultants who
specialize in real estate sector,
o Preliminary insights into demand, and
housing finance Institutions;
characteristics & preferences of economy
architects, engineering
housing buyers in selected micro markets
contractors, etc.
What is the utility of FGD in this study?

To generate Moderator’s Guide

 Uncover usage & attitude related information
Examples
– questions for main
questionnaire  What parts of apartment do you use regularly?
 How important is location of apartment in terms of
proximity to workplace and/or schools, hospitals, etc.?
– product concepts
for survey and
 Insight into consumer preferences for products & prices.
conjoint analysis
Examples
 Can you please make a list of all features that you would
like to have in your apartment?
 What would be max & min prices you would consider
paying for an apartment?
What is the utility of FGD in this study?
Product Concept for survey to Product Concepts with varying levels of attributes
estimate the demand for Conjoint Analysis

An affordable home in a nice

neighborhood
Apartment #1 Apartment #2 Apartment #1
An apartment house that is within your Apartment 700 800 900
budget, well-connected to the city, and Size
set within a safe, clean, and green
neighborhood. With assured water and No. of Living Room Living Room Living Room
power supply, this apartment complex rooms + + +
features an ambient neighborhood with Kitchen 1 bedroom 2 bedrooms
+ +
gardens, play areas, club house,
Kitchen Kitchen
parking lots, and a convenient shopping
centre. Price ₹12-15 lakhs ₹16-18 lakhs ₹19-21 lakhs
What is the utility of survey research in this
project?
1. Listing/Profiling o Estimate demand: Determine % of people
sample survey interested in buying economy housing in
catchment areas

o Profile intending buyers on basis of

geographic, demographic &
psychographic characteristics

2. Main o To understand the preferences of

Consumer prospective buyers for apartment
survey features, amenities, etc.
What is the utility of survey research in this
project?
1. Listing/Profiling sample survey
Survey will be floated to sample drawn from catchment areas.
o Estimate demand: Determine % of After asking basic information (income, SEC, etc.), participants
people interested in buying economy can be shown product concept and asked to indicate
o Intention to purchase such an apartment; apartment in
housing in catchment areas Bannerghatta; near place of work/current residence
o Budget for apartment purchase
o Purpose of purchase - self-occupation or renting
o Profile intending buyers on basis of
geographic, demographic &
psychographic characteristics
Location Total Target No. of Demand
Population segment households (concept
(Census population (size = 5.44) acceptance
Data) (60%) rate = 15%)
2. Main Consumer survey
Catchment 14,17,564 8,50538 1,56, 349 23,452
o To understand the preferences of areas (total)
prospective buyers for apartment
features, amenities, etc.
What is the utility of survey research in this
project?
1. Listing/Profiling sample survey
o Estimate demand: Determine % of
people interested in buying economy
housing in catchment areas
For profiling, following information can be obtained:
o Profile intending buyers on basis of o Family size, family life cycle stage
geographic, demographic & o Monthly expenditure on rent, transport; Mode of commuting to work
psychographic characteristics and distance commuted; Durables owned
o Opinions on psychographic statements

2. Main Consumer survey

o To understand the preferences of
prospective buyers for apartment
features, amenities, etc.
What is the utility of survey research in this
project?
1. Listing/Profiling sample survey
o Estimate demand: Determine % of
people interested in buying economy
housing in catchment areas

o Profile intending buyers on basis of

geographic, demographic &
psychographic characteristics

2. Main Consumer survey

A sample of intended buyers can be drawn from pool of intended
o To understand the preferences of buyers identified in the listing/profiling sample survey
intended buyers for apartment
features, amenities, etc.
On what basis can SHODH make
recommendations on product design?
Conjoint analysis can o Sample can be drawn from pool of intended buyers
be used to design identified in listing/profiling sample survey
product

o Drawn sample can then be shown product concepts &

asked to rate each concept

o Ratings can then be fed into conjoint analysis program to

determine utilities for each level of each attribute and
attribute importance

o Utility values can be then used to construct product bundles

that will have higher acceptance
B&M Retail Study
Innovative forms of promotional strategies to over
come the side-effects of price-discounts

GIFT MENU

Objective: To push gifts over discounts

 Problem Definition

Management Marketing Research

Decision Problem Problem
How should we Broad Statement:
design free-gift
menu offers to To determine consumers’
make them look response to different
more attractive to designs of free-gift menu.
consumers? Specific Components
Marketing Research
1. To determine Hypothesis
Questions
consumers’ response to
gift menu with varying 1. How perceived
sizes attractiveness of free- 1. Free-gift attractiveness
gift menu varies with follows an inverted U
2. To determine the increasing menu- shape as the menu-size
consumers’ response to sizes? increases.
menu containing similar
vs. different gift items
Next Class
Case on “Fruitzone India Limited (A)_Designing the Research
Questions”