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The American Marketing Association defines marketing research as: “Marketing research is the function that links the consumer, customer and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.” Marketing research specifies the information required to address the issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. Marketing Research can be classified as: Problem identification research Problem solving research Market research involves systematic planning which is required at all stages. Steps under market research are followed in a chronological order. All data is well maintained & well documented, therefore, results in proper analysis of the situation. It is expected to be from the personal bias of a researcher. The first step in market research is problem definition wherein the data is collected, situation is analyzed & the problem is defined. Next step involves formulation of the objectives for the study, analytical models & research questions. Third step is the research design formulation step wherein the type of research design to be used is decided upon. It can be exploratory, descriptive or conclusive. In the next step data collection is done through interviews, surveys, questionnaires, etc. Then, the analysis of the data is done once it is documented as per the needs. Last step involves the preparation of the report & finally its presentation.
Marketing Research Process
Identify the Problem and State the Marketing Research Objectives The best objectives will lead to precise decision making information for managers. Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision-making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Defining the Problem The Problem Definition Process
company.- Identify the problem or opportunity Find out why the information is being sought Understand the decision-making environment ( the industry. State the research objectives . and target market) - Use the symptoms to help clarify the problem Translate the management problem into a marketing research problem Determine whether the information already exists Determine whether the research problem can really be answered. product.
To determine the demand for: a.Tasks involved Discussio ns with the decision makers Interview Secondar s with the y Data Problem Definition experts Analysis Qualitativ e Research Environmental Context of the problem Research Problems Examples 1. household vacuum cleaners . To determine the percentage of families who got any electronic household instrument in a special offer 2.
Step Two: Creating the Research Design The six W’s of the descriptive research to be adopted are: 1. parking lots. 4. Where. mp3/vcd/dvd player 3.b. . 2. homes. a refrigerator d. etc. Microwave Oven c. Like in case of Sweet Cookies. 5. information is obtained in order to understand the potential market for chocolate – pineapple cookies & the market size. When – It includes the availability of the customers. they are targeting the premium section of the market.It refers to the places where the respondents can be contacted. Like in this case. What – It includes the information that is required from the customers. To determine the choice of cars in middle class families in a small car segment. They need to first understand the need of the customers in those sections who have a requirement of chocolate – pineapple cookies. Why – It takes into account the use of the information take from the respondents. For instance. From example here it can be the consumption of cookies in a week or the flavors liked by majority in a family. shopping malls. etc. A researcher must always keep in mind the time to contact the respondents. 3. Who – They have to keep in mind the type of customers that they are targeting.
surveys. Eg: A respondent is asked about his views about the product & he is telling why does his friends don’t use it. etc. Total error – It is the variation between the true mean value in the population & the obtained mean value obtained in the market research.500 for the original sample. Eg: A researcher is introducing his product to the respondent but he straight away bangs his door on researcher’s face. etc. It is the variation between the true mean value of the population & of the original sample. Step Three: Choosing a Basic Method of Research Survey: an interviewer and questionnaire . 19. Nonresponse error – It arises when some of the respondents don’t respond. personal interviews. 7. b. Such as bias. Response error – Such errors arises when the respondents give inappropriate answers or their answers are either not recorded correctly or are misanalysed. The primary reason for the same can be refusals & not-at-home. For example.random sampling errors. Non – random sampling errors arises out of factors other than sampling. d.6. wrong data analysis. Eg: The average monthly income of the target population is Rs. Random sampling error – It is the misrepresentation of the population. observations. It comprises of both random sampling errors & non.000 but it is comes out to be Rs. it can be telephonic interviews. c. Express each type of error as an equation: a. Way – The ways of obtaining information from the respondents. non response. 22.
Characteristics Research process is flexible & unstructured. Research design is formal & structured. Conclusive Research Design To test specific hypothesis & examine relationships Information needed is clearly defined. Conclusive Basis of difference Objective Findings used as inputs in decision making Differences between qualitative research & quantitative research techniques Qualitative Basis Of differences Objective Research To gain a qualitative understanding of the underlying research & motivation Quantitative Research To quantify the data & generalize the results from the sample to the population of interest . Sample is large & representative. Findings Tentative Generally followed by Outcome further exploratory or conclusive research. Sample is small & non representative.Observation: to monitor respondents’ actions without direct interaction Experiments: to measure causality Differentiate between exploratory & conclusive research: Exploratory Research design To provide insights & understanding Information needed is defined only loosely.
fax) and postal research Step Four: Selection of the Sampling Procedure • Probability & nonprobability sampling .Sample Small number of non representative cases Unstructured Large number of representative cases Data Collection Structured Data analysis Non statistical Statistical Outcome Develop an initial understanding Recommend a final course of action Qualitative Techniques Focus group discussion In-depth interviews Observation Ethnography Quantitative Techniques Face to face Telephone interviewing Self administered questionnaire (online.
Training 3. Selection 4. Control Three virtues of good questionnaire Being clear and unambiguous Simple and comfortable to respond to Relevant to the respondent Sources of Data . Field Work 5.• Quota sampling Main Points to consider. Recruitment 2. Accuracy of the findings from the total sample Sub-group analysis Coverage of the universe Prior knowledge Resource Step Five: Collection of the Data • Marketing research field service Starting procedure 1.
It is expensive. There are many ways to conduct primary research. Secondary research. It is ideal for collecting data from a geographically dispersed sample. and terminologies that build upon the points above.Primary and Secondary There are two main sources of data . Primary marketing research is collected for the first time. Interviews 2. It is original and collected to solve the problem in hand. also known as desk research. faceto-face. or to solve a specific problem. Omnibus Studies . The interviews tend to be very structured and tend to lack 6. It is original and collected for a specific purpose. or over the Internet. Primary research is conducted from scratch. Telephone Interview. and time consuming.primary and secondary. Marketing research is a huge topic area and has many processes. already exists since it has been collected for other purposes.Marketing Research. procedures. Telephone ownership is very common in developed countries. This is the technique most associated with marketing research. Mystery shopping 3. Focus groups 4. We have given a general introduction to marketing research. Interviews can be telephone. We consider some of them: 1. Primary . Projective techniques 5. Product tests Interviews. Diaries 7. but is more focused than secondary research.
' and depend upon more open forms of questioning. Data is collected on a survey. Advantages of telephone interviews • • • • Can be geographically spread Can be set up and conducted relatively cheaply Random samples can be selected Cheaper than face-to-face interviews Disadvantages of telephone interviews • • • • Respondents can simply hang up Interviews tend to be a lot shorter Visual aids cannot be used Researchers cannot behavior or body language Face-to-face Interviews. Advantages of face-to-face interviews • • • • They allow more 'depth' Physical prompts such as products and pictures can be used Body language can emphasize responses Respondents can be 'observed' at the same time Disadvantages of face-to-face interviews • Interviews can be expensive . Face-to face interviews are conducted between a market researcher and a respondent. Data is easily compared. Other face-to-face interviews are more 'in depth. Telephone interviews are cheaper to conduct than face-to-face interviews (on a per person basis). Some surveys are very rigid or 'structured' and use closed questions. The research will probe and develop points of interest.depth.
Visitors to sites can be asked to complete electronic questionnaires. the mail survey is the most appropriate way to gather primary data. Other important data is collected when visitors sign up for membership. Some respondents will give biased responses when face-to-face with a researcher.• • It can take a long period of time to arrange and conduct. The Internet The Internet can be used in a number of ways to collect primary data. However. Mail surveys are less . or free membership. However responses will increase if an incentive is offered such as a free newsletter. Needs knowledge of software to set up questionnaires and methods of processing data May deter visitors from your website. not potential customers. a second mailing to prompt or remind respondents tends to improve response rates. and a predesigned questionnaire is mailed to a sample of respondents. Advantages of the Internet • • • • Relatively inexpensive Uses graphics and visual aids Random samples can be selected Visitors tend to be loyal to particular sites and are willing to give up time to complete the forms Disadvantages of the Internet • • • Only surveys current. or purchased. Mail Survey In many countries. Lists are collated. Mail surveys do not tend to generate more than a 5-10% response rate.
retailing. Groups tend to be made up from 10 to 18 participants. opinion. . Focus Groups. cafes and restaurants. and many other customer focused organizations. especially call centers. They collect data on customer service and the customer experience. Focus groups are made up from a number of selected respondents based together in the same room.popular with the advent of technologies such as the Internet and telephones. Mystery Shopping Companies will set up mystery shopping campaigns on an organizations behalf. Discussion. Often used in banking. and the research will probe into specific areas that are of interest to the company commissioning the research. Complex to organize Can be very expensive in comparison to other methods Projective techniques. and beliefs are encouraged. mystery shoppers will enter. The are rare. posing as real customers. Findings are reported back to the commissioning organization. There are many issues surrounding the ethics of such an approach to research. Advantages of focus groups • • • • Commissioning marketers often observe the group from behind a one-way screen Visual aids and tangible products can be circulated and opinions taken All participants and the research interact Areas of specific interest can be covered in greater depth Disadvantages of focus groups • • • Highly experienced researchers are needed. travel. Highly experienced researchers work with the focus group to gather in depth qualitative feedback.
depends on very quick (subconscious) responses to words Psychodrama . and commit less time and effort than conducting your own research. The research is far cheaper. .Imagine that you are a product and describe what it is like to be operated.Projective techniques are borrowed from the field of psychology. Products are displayed in a mall of shopping center. Product tests are often completed as part of the 'test' marketing process. Product tests. by collecting a series of diaries with a number of entries. They are asked to complete a diary that lists and records their purchasing behavior of a period of time (weeks. They will generate highly subjective qualitative data. or used. how the packing is read. how much time the consumer spends with the product. the researcher has a reasonable picture of purchasing behavior. Potential customers are asked to visit the store and their purchase behavior is observed. warn. months. The organization will be one of many that simply want to a straightforward answer to a simple question. It demands a substantial commitment on the part of the respondent. or years). Diaries are used by a number of specially recruited consumers. Observers will contemplate how the product is handled. Diaries.look for images in a series of inkblots Cartoons . and so on. An omnibus survey could include questions from companies in sectors as diverse as heath care and tobacco. However. Omnibus Studies.complete the 'bubbles' on a cartoon series Sentence or story completion Word association . There are many examples of such approaches including: Inkblot tests . An omnibus study is where an organization purchases a single or a few questions on a 'hybrid' interview (either face-to-face or by telephone).
and can be conducted quite quickly . Secondary . Marketing research is a huge topic area and has many processes.However. There are a number of such sources available to the marketer. Secondary marketing research. Marketing research is a huge topic area and has many processes. and the following list is by no means conclusive: • • • • • • • • • • • • • Trade associations National and local press Industry magazines National/international governments Websites Informal contacts Trade directories Published company accounts Business libraries Professional institutes and organisations Omnibus surveys Previously gathered marketing research Census data Public records We have given a general introduction to marketing research. already exist in one form or another.We have given a general introduction to marketing research. It is relatively cheap. financial data gather on Australian pensions will be different to data on Italian pensions). or desk research. and difficult to use to make comparisons (e. procedures.Marketing Research. it tends to have been collected for reasons other than for the problem or objective at hand.g. procedures. Step Six: Preparation and Tabulation of Data Data . and terminologies that build upon the points above. and terminologies that build upon the points above. So it may be untargeted.
Classification or Categorization of Data 2. The form will be depend on the processing machine 2. Input Processing Output Three Basic Steps In Data Processing. The process may be automated and run on a computer. 3. and usually combined with the other information. Coding of Raw Data 3.is defined as any collections of facts Data Processing involves the conversion or reduction of information that one collects into a form that permits statistical tabulation. 1. to produce data in a more useful form. summarising. analyse or otherwise convert data into usable information. sorting. It involves recording. disseminating and storing data. Data Processing Cycle 1. Input – the initial data are prepared in some convenient form for processing. analysing. ease of storage and access for future use any process that uses a computer program to enter data and summarise. Output – the result of the preceding processing steps are collected. Tabulation of Data Categorization of Data Categorization The partitioning or grouping of information according to certain principles or rules which tell how to assign the subjects under study to groups and subgroups The Five Rules in Categorization . calculating. Processing – the input data are changed.
Categories are set up according to the research problem 2. . Categories are exhaustive 4. Categories are mutually exclusive and independent 3. 5. Data Tabulation Data Matrix The final output of processed quantities information Dummy Tables These tables have all the features of real tables except for the absence of statistical figures.1. Easy category is derived from one classification principle. Coding Of Raw Data Raw data are usually transformed to codes which could e either alphabetical or numerical. Any categorization scheme must be on one level of discourse.
Each questionnaire or observation form is inspected. each RCH variable is analyzed in isolation. coding. and verification of data. corrected. Questionnaire registration and editing Listing of open-ended responses and classification Coding and code transfer Data entry and entry verification/cleaning Development of analysis plan Program development as per the analysis plan Program running and report generation Step Eight: Preparing and Writing the Report • Using the internet to disseminate reports . Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample. or. multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. transcription. gives meaning to the data that have been collected. Number or letter codes are assigned to represent each response to each question in the questionnaire. or disks or input directly into the computer. On the other hand. guided by the plan of data analysis. Verification ensures that the data from the original questionnaires have been accurately transcribed. and. or edited.Step Seven: Analyzing the Data To interpret and draw conclusions Data Preparation and Analysis Data preparation includes the editing. while data analysis. if necessary. The data from the questionnaires are transcribed or keypunched on to magnetic tape. if there are several measurements of each element.
the research design. an oral presentation should be made to management using tables. figures. where it is relatively easy to identify and approach the experts. interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature. Customer-orientation 9. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. Maintenance of high quality-control standards 8. Keeps the client informed Good Research Management Motivates Decision-Makers To Use Research Information . and graphs to enhance clarity and impact. In addition. Honesty 3. Delivery of project specifications 6.• Judging the quality of a report Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified. Provision of high-quality output 7. This method is also helpful in situations where little information is available from other sources. Punctuality 4. and data analysis procedures adopted. Expectations of Decision Makers From Marketing Researchers 1. data collection. For these reasons. Maintenance of client confidentiality 2. Flexibility 5. describes the approach. as in the case of radically new products. and presents the results and the major findings.
The determinants of whether a manager used research data: (1) conformity to prior expectations (2) clarity of presentation (3) research quality (4) political acceptability Case Study PHILIPS GoGear (Audio/Video Player & Audio Recorder) .
Features include: • • • • Intuitive user interface Double action search key Fast data transfer Support wide range of music formats Introduction • • MP3 players are considered to be a style statement Major players – Philips – Apple – LG – Sony – Transcend .
• Apple –Market leader Market Research Research Design • Decision Maker’s problem To increase the sales of PHILIPS GoGear Components of MR problem • • • • • • • Identifying the target segment Identifying the pricing pattern Positioning of the product The features the people look for The major competitors Factors affecting buying decision Most effective medium of communication MP3 players Exploratory Research Questionnaires Expert Interviews Focus groups Internet and Technology magazines Major findings The target segment – Students and working professionals Preference is given to branded MP3 players .
Sony.30 Data analysis-Findings Target segment –students and young working professionals Major competitors are Apple. and Samsung Primary use.statement of style Low awareness of Philips GoGear Lack after sales service Descriptive Research Pre-test and questionnaire design Personal methods Online surveys Findings • • Willingness of respondents depend on various factors Place and time influences the attitude of respondents Sample size of respondents.197 Sample size of dealer interview.- Importance of additional features Usage of music phones Owning MP3 players.Listening to music but respondents prefer add-on features .
- -Mainly used while travelling or leisure time -MP3 players – not considered cool and trendy -Sound quality and battery life.most important features Recommendations Setting up kiosks in shopping malls Setting up stalls and canopies in trade fares Pamphlets and catalogues with purchase of other products of Philips Distributing hand bills with news papers and magazines Sponsoring youth events More emphasize on after sales service Providing display shelves in electronic mega stores Working out an incentive plan for the dealer Preferably changing the name ‘GoGear’ My Learnings… Better insight to MR process Importance of a holistic perspective Importance of observational and exploratory research Magic of numbers Launch pad towards a marketing career .
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