MARKETING RESEARCH METHODS

Managing Marketing information/Marketing Research - 4

Types of Research
• Quantitative research • Qualitative research

Managing Marketing information/Marketing Research - 4

Quantitative research
• Statistical basis • Gathers statistically valid, numerically measurable data • Usually related to data on the market-size, growth and market shares • Sampling plays a key role • Data obtained through surveys

Managing Marketing information/Marketing Research - 4

Qualitative Research
• Subjective and personal • Concerned with finding out soft information • Main purpose is to understand consumer behavior, attitudes and perceptions • Obtained by methods designed to get detailed responses e.g. interviews

Managing Marketing information/Marketing Research - 4

Marketing Research Process
• • • • • • • • Define the problem Define the research objectives Choose data sources Choose research methods Construct sample Set budget and deadlines Undertake research Analysis and evaluation

Managing Marketing information/Marketing Research - 4

Methods of collecting data
• Desk research – in which secondary data is collected. Secondary data is defined as the reusing of data that already exists • Field research – collecting original data i.e. Primary data • Data collection is only one stage in the process • Data has to be analyzed & evaluated • Conclusions & recommendations have to be drawn

Managing Marketing information/Marketing Research - 4

Secondary data sources
• Internal Sales figures Customer reports Trend data Sales reports Cost data Company reports MIS data • External Competitor information Government publications Commercial publications Trade association data Retail audits Directories

Managing Marketing information/Marketing Research - 4

Field research to collect primary data
• • • • • • Experiments Observations Surveys Interviews Focus groups Panels

Managing Marketing information/Marketing Research - 4

Experiments
• Method of obtaining primary research data • Aim is to measure & evaluate customer reactions to the changes in marketing mix • Can be done in the field or under controlled conditions • Examples: test markets, simulated test markets, blind test • Pilot trials of new products are a common use of experiments – it provides a chances to see how things work out before a large scale roll out.

Managing Marketing information/Marketing Research - 4

Observation
• Information collected without asking questions • Involves watching people, noting & analyzing their reactions • It is useful to find out how people buy products, Where they shop? What appeals them? • Can be carried out under controlled (laboratory) as well as uncontrolled conditions (field) • Examples: Traffic audits, Radio & TV panels, Retail store audits

Managing Marketing information/Marketing Research - 4

Observation
• STRENGTHS - What people do rather than say? - Carried out without informing the customer - Doesn’t rely on the memory or honesty of the respondents - Potential bias is reduced - Counters the refusal rate associated with most methods of MR • WEAKNESSES - Time consuming and costly - Doesn’t reasonify - Chances of misinterpretation of behavior - Only gives partial information

Managing Marketing information/Marketing Research - 4

Surveys
• Key research method for large samples • Wide range of uses: to ascertain facts, beliefs, opinions, attitudes • Examples: Interviews (one-one, over telephone, online), by postal mail, email etc.

Managing Marketing information/Marketing Research - 4

Postal Surveys
• STRENGTHS Wide coverage Low cost No interviewer bias Respondent’s convenience - Lack of embarrassment - Avoids traveling costs • WEAKNESSES - Low response rate - Lack of control of respondent - Limited scope for open ended questions - Limited to short questionnaires - Long response time - Biased response

Managing Marketing information/Marketing Research - 4

Telephone Surveys
• STRENGTHS • Saves time Higher response rate Greater control over respondents than with postal surveys - Sample less likely to be biased - Cost limited to time spent on phone - Saves cost of traveling - Allows probing WEAKNESSES Questions maybe more limited than with postal surveys Data may not be available Respondent has little time to consider questions Intrusion into privacy Can be time consuming

Managing Marketing information/Marketing Research - 4

Comparison of survey methods
Method Response rate High Low Moderate Moderate Cost Time Nonresponse bias Low High Moderate High

Face-face Postal Phone Electronic

High Low Moderate Low

Slow Slow Fast Fast

Managing Marketing information/Marketing Research - 4

One-one interviews
• STRENGTHS - Interviewer can prompt the respondent - Can see respondents reaction - Respondents have more time to think - Detailed responses - Can get opinions - Respondents get full attention - Flexible - Allows probing

• • • • •

WEAKNESSES High cost Time consuming Risk of bias Requires interviewing skills

Managing Marketing information/Marketing Research - 4

Focus groups
• Used for qualitative information gathering • Usually consists of 8-10 respondents & a moderator • Moderator introduces topics & guides conversation • The aim is to seek opinions and find out attitudes • Composition of the group should reflect target audience

Managing Marketing information/Marketing Research - 4

Focus groups
• STRENGTHS Quick Range of attitudes Detailed qualitative information obtained - Flow of discussion encourages ideas & participation
• WEAKNESSES - Need to build rapport - Discussions must stay focused - Needs good control by the moderator - Some members may be inhibited - Expensive

Managing Marketing information/Marketing Research - 4

Panels
• Continuous rather than ad hoc • Useful in assessing shifts of attitude and opinion over time • A consumer panel consists of a representative sample of people • Panel members are usually induced to be permanently available by means of small payments or free samples

Managing Marketing information/Marketing Research - 4

Panels
• STRENGTHS - A good trend indicator - Useful for analyzing changes - More probing • WEAKNESSES Expensive Biased sample of people Panels have to replaced periodically - When novelty wears off members become less cooperative

Managing Marketing information/Marketing Research - 4

Electronic online surveys
• STRENGTHS - Economical - Devoid of boundary limitations - Versatile and quick • WEAKNESSES - Incomplete directory of names - Unrepresentative sample - Brevity of email responses can be a problem - Little control over sample

Managing Marketing information/Marketing Research - 4

Limitations of marketing research
• • • • • • Problems relating to surey and sampling Sampling errors Non – response errors Data collection errors Analytical and reporting errors Marketing research information can quickly become dated

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