MARKETING RESEARCH

By K. Sashi Rao Training and Management Consultant

Marketing Research Course Objectives 
   

To place marketing research in the context of marketing To help establish and understand customer needs, preferences and their product-markets productTo learn the fundamentals of the marketing research process and its methodologies for data collection, analysis and interpretation To determine marketing research findings and draw meaningful conclusions To help interpret these findings and conclusions to aid managerial decision-making decision-

Course Outline   

    

Informational Perspective and Role of MR in Managerial DecisionDecision-making(2 hrs) Research Process and Research Design & Research Data(2) Questionnaires Design and Administration(2) Sampling Methods and Sample Design(2) Specific Marketing Research Techniques- I/II/III(6) TechniquesMeasurement Techniques in Marketing Research(2) Research in Marketing Mix(2) Research Findings and MR Reports Presentation(2)

Informational Perspective and Role of MR in Managerial DecisionDecision-making .

promotion. goods and services  . pricing. To achieve these objectives. a thorough understanding of customers and markets is necessary Marketing Research is the systematic gathering. issues. and distribution of ideas. problems and challenges relating to the marketing of ideas. goods and services to create exchanges that satisfies individual and organizational objectives.Marketing & Marketing Research  Marketing is the process of planning and executing the conception. recording and analyzing the data about customers and markets.

Marketing and Markets  Marketing It can be seen as being a set of dynamic processes all to help in the sale of ideas.they represent the customers/consumers universe which marketing aims to reach. goods and services  Markets . satisfy and service .

Market Research and Marketing Research  Market Research: Obtaining useful information about individual product.This goes beyond market research research: as it extends the scope and enquiry into the various elements and facets of marketing as an organizational activity  .markets and their customers and / or productconsumers Marketing research: .

markets and competitors Systematically collect information using a wide range of sources and techniques Analyze the collected information using appropriate tools and techniques Determine research findings and draw meaningful conclusions Communicate and disseminate the derived findings and conclusions along with recommendations to be suitable and relevant to make any needed marketing decision     .What is Marketing Research ? It involves the following basic features and aimed to :  Provide information to aid marketing decision making. This information will generally be extremely focused and concentrated on customers.

What is not Marketing Research?  Marketing Research is not marketing and to be seen as only its sub set Marketing Research does not directly contribute to product sales or revenues Marketing Research is not the solution to all or inherent marketing problems Marketing Research is just one part of a firm s market intelligence system    .

Key Characteristics of Marketing Research  Purposive ness as it is meant to obtain relevant information to aid specific decision making   Planning the research is also reflective of its focused approach Systematic conduct of research which means it is orderly. fair and accurate as far as possible  Objectivity is achieved thro impartiality and without bias or prejudice in analysis and interpretation .

Need for Marketing Information(1) This stems from the adoption of the marketing conceptconceptwhere the whole of the organization should be driven by a goal of serving and satisfying the customers in a manner which enables the organizations financial and strategic objectives to be achieved.  .

owners may personally know (a) the customers buying habits and attitudes (b) the competitors activities and (c) changes in local market As organizations become larger and customers are far too many and widespread. services and offerings are to be provided to customers In very small organizations / or neighborhood shops. information is critical if the correct products. such personal knowledge and / or experience is not enough   .Need for Marketing Information (2)  Whatever be the type of organization.

like demographics.their numbers.in terms of economic and industry environmentvariables in a macro and micro form. local cultures and habits. profiles.Need for Marketing Information(3)  For any large organization. buying habits and preferences and motivations  CompetitorsCompetitors. country specific factors et al . it becomes necessary to obtain market intelligence in a systematic and complete manner on its  CustomersCustomers.to compare their capacity and performances in competing markets  Marketing environment.

present and future Opportunities Threats Problems . analysis interpretation Past.Role of Marketing Research Public Customer Consumer Marketing research Assessing market action Information Communication of findings Create marketing actions Improve market action Monitoring market performance Collection.

the way in which somebody thinks or behaves or acts   AnthropologyAnthropology. demand creation and forecasting  StatisticsStatistics. the collection. societies and cultures EconomicsEconomics.the study of human behavior.the science of numbers and events.The study of the production.Disciplines Marketing Research Draws Upon  PsychologyPsychology.the study of human origins. collation and analysis of information in numbers  ManagementManagement. the seeking of good value for money/ resources used.the managing and controlling money/ other resources for a purpose . consumption. the scientific study of the human mind. protection and transfer of wealth.

consumer preferences.that which is intended to solve a Researchparticular problem or guide a specific decision-examples decisionlike market segmentation studies. National Readership Survey  Applied Research.that which is intended to expand the Researchbody of knowledge in the field or to provide knowledge for use by others examples like Census Survey Data. distribution channels Most marketing research falls into the Applied Research category  .Types of Marketing Research(1) Basic Research. National Sample Survey Data.

often necessary to help define a problem Researchor concept itself and/or initial conjectures or hypotheses are formedformed-examples are product/idea concept testing surveys or pilot surveys Conclusive Research.example of measuring customer wellsatisfaction level both before and after specific marketing interventions or awareness results pre.and post.where these conjectures or hypotheses Researchare tested by firm evidence to help support or reject themthemexamples are most applied research and could involve secondary and primary data Performance Research.Types of Marketing Research(2)    Preliminary Research.ad campaigns prepost- .this is used to measure the Researcheffectiveness of marketing strategies and moves by assessing their benefits and outcomes linked to the incurred costs and investments as well.

Types of Marketing Research(3) Marketing Environment Research  Customer Market Research  Advertising and Promotional Research  Product Research and Testing  Sales Research and Analysis  Distribution Research Will discuss these in detail in separate session  .

definitely called for in large widespread oneResearchonetime projects. or given to an outside research agency or use some combination of both options. and where specialized tools/techniques are needed .Who does Marketing Research?      This may be done by a firm s own market research staff alone. a combination of internal and external research methods may be called for Hence.examples of productsinvolvedspecialized industrial products or technologically new product concepts. yet depending on them alone can prevent new and useful insights. Each has their merits and demerits Internal Research. sensible outsourcing and/or buying of external marketing research becomes an important part of a firm s marketing responsibility . they bring in more objectivity as not responsible for results.depends substantially on the nature and Researchcomplexity of the products-markets involved. drawback could be to establish the strong link between marketing research findings and ultimate marketing decisions Since marketing research involves many and varied marketing and strategic issues. and could lack in objectivity External Research.

Steps In Marketing Research Project Step 1 Determine or define the marketing problem or opportunity that is faced Step 2. Specify what information is needed Gather and process the information Step 5 Step 3 Identify The sources of the information Analyze and interpret the meaning Step 6 Step 4 Decide on the Techniques for acquiring the information Present the findings to the decision makers Step 7 .

marketing decisions based on data against waveinitial personal knowledge. E-Bay or Dell Computers E- .moving from data based decisions to waveinformation based decisions bringing in a managerial perspective and with actionable insights Third wave. hunches and guesses Second wave.COM.Evolving Role of MR in Marketing     First wave.from information-based to system based waveinformationdecisiondecision-making involving marketing analysis. IT and marketing planning process Fourth wave.emergence of e-commerce and web-based waveewebsystems with large databases to move from mass marketing to mass customization methods as used by Amazon.

customers and consumers PEOPLE are users or clients of marketing research studies PEOPLE are the doers who perform or carry out marketing research .Marketing Research (MR) involves People     A major element of MR is all about PEOPLE PEOPLE are buyers.

industry environment data and trends  Position information arriving at market shares analysis.economic. market opinions and survey methods In all these types of information. productproduct-market positioning vis-à-vis competition vis Decision information from various data analysis using mathematical methods  Forecast information based on statistical trends analysis. judgmental forecasting. there is always a trade-off between tradethe value of information and the cost and time spent in putting together such information  .Nature of Marketing Information(1) Internal information -sales and cost data analysis  External information .

who and when questions Comparative role answers how questions used for performance measurement Diagnostic role answers why" questions and provides explanations Predictive role answers what if type of questions to help determine future trends     .Nature of Marketing Information(2) Descriptive role answers what . where .

where and when are customers are buying? Who are our existing and potential customers? What knowledge do customers have of a brand or range of products? What attitudes do customers have towards specific brands or products What advertising and marketing communications have customers seen or been exposed to ? What should be the best way to reach customers? What after-sales service facilities are to be provided? after- .Descriptive nature of marketing information        What.

Comparative nature of marketing information      How do you decide on selecting a good product? How do different market segments view the same product? How does our product compare with the competitors? How did this service performance differ from previous experiences? How does this political party s manifesto compare with others? .

Diagnostic nature of marketing information      Why do you chose this brand? Why do customers buy this product over alternatives? Why do customers believe this advertisement ? Why do you shop at this supermarket? Why should sellers offer these features? .

Predictive nature of marketing information      What would happen if competitors reduced their prices? What would happen if this new product is launched? What would happen if this regulation is passed? What would happen if this political party came to power? What could happen if government eliminate taxes? .

did incurred research cost and time give required positive benefits as research value and utility linked to MR budgets .always prior to taking key decisions with validity over future time Resources availability.Factors influencing MR decisions       RelevanceRelevance.benefitCost.being available and means time and availabilitymoney Research output.to support future strategic and tactical decisions.did research done achieve its objectives to seek outputanswers as research findings/conclusions with consequent marketing outcomes/results Cost. not just confirming previous wisdom Nature of information sought.is it already available from other soughtmarketing intelligence TimingTiming.benefit.

MR and Marketing Intelligence      MR part of Marketing Intelligence System Marketing decisions need to take into account both external/market considerations and internal/organizational considerations Marketing decision-makers and/or Marketing Services decisionusually responsible for all Marketing Intelligence. human thought and managerial judgment essential that data and information are transformed into actionable knowledge to make business and marketing decisions .who Intelligenceinitiate focused MR IT based and Web-based intelligence will now play Webbigger role in Marketing Intelligence Systems Yet.

and secondary (desk) and primary (survey) data . quantitative and qualitative inputs. reliable and meaningful data Setting up and maintaining a tailor-made marketing tailorinformation system (MIS) is vital for a firm s success Such a MIS has to be based on internal and external data. developed and integrated into managerial thinking Good sound decisions are backed by authentic.Information for Decision-making Decision     As already realized. information is essential to aid decisiondecision-making Using information is a management discipline that needs to be learnt.

both the MIS types are getting blurred MR still plays a role where dynamic information about markets and customers cannot always be found out from mere sales/business analysis .Information Systems and MR(1)     Use of information systems( whether computer based or not) are revolutionizing the way corporate decisions are being made MIS* -marketing information system is a subset of management information system In increasingly computer and web-based webenvironments.

equipment and procedures designed to gather.Information Systems and MR(2) An information system is a continuing and interacting structure of people. This requires data bases to organize and store the information and a decision support system to retrieve data. transform it into usable information and disseminate it to users. . and distribute pertinent. the information system is concerned with managing the data flow from different primary and secondary sources to managers who will use it. While MR is concerned with the actual content of the information and how generated. and accurate information to decision makers. timely. analyze. sort.

trends et al ( c) non-recurring nonone time MR studies Information systems serves to emphasize that MR should not exist in isolation as a one time effort but be a part of a systematic and continuous effort to improve the decision-making process decisionAny so-called Marketing Decision Support System (MDSS) is meant soto combine marketing data from diverse sources into a single database that line managers can enter interactively to quickly identify problems and obtain standard . as well as answers to analytical questions   .Information Systems and MR(3)  Databases could be of (a) recurring day-day type like sales data (b) dayperiodic market/business information. periodic reports.

moving from data based decisions to waveinformation based decisions bringing in a managerial perspective and with actionable insights Third wave. IT and marketing planning process Fourth wave.emergence of e-commerce and web-based waveewebsystems with large databases to move from mass marketing to mass customization methods as used by Amazon.marketing decisions based on data against waveinitial personal knowledge. hunches and guesses Second wave.Evolving Role of MR in Marketing     First wave. E-Bay or Dell Computers E- .COM.from information-based to system based waveinformationdecisiondecision-making involving marketing analysis.

Marketing Research in Perspective  Marketing research is dependent on the willing cooperation of both the consumer public and organizations to provide information of value to marketing decision makers. decisionManagers still need to use judgment and when assessing information. With growth in information sources as result of computerization and the internet. managers need more guidance and help in selecting appropriate information sources and their use     . it simply enables better informed decision-making. Direct marketing activity should not imply to the customer that it is some form of marketing research Use of questionnaires as part of the a data building exercise for direct marketing purposes cannot be described as marketing research and should not be combined Marketing research information does not in itself make decisions.

Does MR always guarantee success?        Frankly. NO ! It all depends on the manner and rigor in the way done ! Its effectiveness depends on: High quality and standard of research work Research findings and conclusions providing actionable marketing information Clarity of report writing and presentation Willingness and organizational challenge to the status quo Where research helps to not only confirm organizational understanding but reveal new insights as well Gaining political acceptability within the firm/client organization to finally make research-based decisions research- .

the challenge is to find that which is meaningful. it is more to do with ensuring that the information is relevant. decisions would be based on hunches.Is MR still required and helpful?     Overwhelmingly. the answer is YES ! Without MR. has a sound basis and provides the wherewithal to make more informed and better decisions . guesses and poor judgments The main task is not so much the finding of information. and of a scale and format that is manageable With the information explosion.