Definition of Marketing

Social definition : Marketing is a societal process by which

individuals and groups obtain what they need and want through
creating, offering, and exchanging products and services of
value freely with others

The American Marketing Association offers this managerial

definition:
Marketing (management) is the process of planning and
executing the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges that satisfy
individual and organizational goals
Basics of Marketing
For P’s of Marketing
Marketing

Research
Marketing research

Marketing research is the systematic objective search for and

analysis of information relevant to identification and solution to
any problem in the field of marketing

Marketing research is the function which links the consumer,

customer & public to the marketer trough information –
information used to identify & define marketing opportunities &
problems, generate, refine & evaluate marketing action
monitor marketing performance & improve understanding of
marketing as a process
Market Research in practice

•
Planning of future marketing activities

•
Control of market operations in present

•
Evaluation of marketing results
Information & Decision making

Information is the recorded experience that is useful for decision

making

Characteristics of Information

•
Accurate
•
Current
•
sufficient
•
Available
•
Relevant
Decision Making

Problem

Alternatives

Evaluation of alternative

Selection of alternative
Decision Tree
Sources of market information

•
Internal Reports

•
Marketing Intelligence
Marketing Information System

Marketing Marketing
Information Information
Marketing Information System

Marketing Marketing Marketing

Internal Report
Environment Research Managers
System
System
Target Market
Channels Analysis
Competitors Planning
Public Implementation
Macro Forces Marketing Analytical Control
Intelligence Marketing
system System

Marketing decisions & communications

The Research Process

Problem Formulation

Evaluate Cost / Value

Research Method

Research Design

Sample Design

Data Collection

Data Analysis

Research Report
Problem Definition

Translating the Management Problem in to research Problem

Criteria for good research problem

•
The problem should express the relation between two or more
variables

•
The problem should be stated clearly & unambiguously in
question form

•
The problem statement should be such as to imply possibilities
of empirical testing
Evaluate cost / value

Methods of costing

Experience
•

•
Judgment
•
Existing knowledge
•
Costing Methods
Research Method

•
Experimental Research

•
Non – experimental research
Research Design

•
Research design is the specification of methods and
procedures for acquiring the information needed to structure or
solve the problem
Sample design

•
Sample Vs Census
Sample design

•
Where the sample to be selected from

•
The Process of selection

•
Size of sample
Data collection

•
Communication

•
Observation
Analysis & Interpretation

•
Coding

•
Tabulation

•
Validation

•
Analysis
Analysis & Interpretation

•
Applying findings to the business situation
Research Report

•
Complete

•
Concise
Research Design

•
Research design is the specification of methods and
procedures for acquiring the information needed to structure or
solve the problem
Type of Research

•
Exploratory

•
Descriptive

•
Causal
Exploratory research

•
Main purpose of exploratory research is identification of
problem and more precise formulation of problem
Exploratory research

Characteristics

•
Flexibility

•
Ad hoc versatility
Exploratory research

•
Search for secondary information

•
Interviews with the experts

•
Examination of analogous situation
Descriptive Research

•
Preplanned & Structured design

•
Normally Quantitative in nature
Causal Research

•
Natural Experiment

•
Controlled Experiment
●
Setion II
Sources of information

•
Primary Source

•
Secondary Source
Secondary Sources of Information

Internal
•

External
•

Internal

•National product sales.

•Regional product sales.

•Customer usage rates.

•Customer comments or complaints.

External

•Periodicals.
•Chamber of commerce.

•Government statistics.

•Professional bodies.

•Trade associations.
Limitations of secondary Information

Secondary data can be general and vague and may not really help
•

companies with decision making.

The information and data may not be accurate. The source of the
•

data must always be checked.

The data maybe old and out of date.

•

The sample used to generate the secondary data maybe small.

•

The company publishing the data may not be reputable.

•
Primary Source

•
Observation

•
Interview

• Focus Group Discussions

Focus Groups

Advantages

•Feedback both for & against can be collected simultaneously

•
People tend to share more information & built on each other’s experience
Focus Groups

Disadvantage

The group may have one or some dominant people within it who
•

may actually dissuade some other group member to make a full

contribution.

Difficult for moderator to interrupt once a discussion gets going.

•

Bias from moderator.

•
Personal Interviews

•Advantages

•The ability to let the Interviewee see, feel and/or taste a product.

•
The ability to find the target population. For example, you can find people
who have seen a film much more easily outside a theater in which it is
playing than by calling phone numbers at random.

•Longer interviews are sometimes tolerated. Particularly with in-home

interviews that have been arranged in advance. People may be willing to
talk longer face-to-face than to someone on the phone.
Personal Interviews

Disadvantages

Personal interviews usually cost more per interview than other methods.
•

This is particularly true of in-home interviews, where travel time is a major

factor.

Each mall has its own characteristics. It draws its clientèle from a specific
•

geographic area surrounding it, and its shop profile also influences the
type of client. These characteristics may differ from the target population
and create a non-representative sample
Telephone Surveys

Advantages

People can usually be contacted faster over the telephone than with other
•

methods.

You can dial random telephone numbers when you do not have the actual
•

telephone numbers of potential respondents.

Skilled interviewers can often elicit longer or more complete answers than
•

people will give on their own to mail, email surveys (though some people
will give longer answers to Web page surveys).  Interviewers can also ask
for clarification of unclear responses.
Telephone Surveys

Advantages

People can usually be contacted faster over the telephone than with other
•

methods.

You can dial random telephone numbers when you do not have the actual
•

telephone numbers of potential respondents.

Skilled interviewers can often elicit longer or more complete answers than
•

people will give on their own to mail, email surveys (though some people
will give longer answers to Web page surveys).  Interviewers can also ask
for clarification of unclear responses.
Telephone Surveys

Disadvantages

•
Many telemarketers have given legitimate research a bad name by
claiming to be doing research when they start a sales call. Consequently,
many people are reluctant to answer phone interviews and use their
answering machines to screen calls.

•The growing number of working women often means that no one is home
during the day. This limits calling time to a "window" of about 6-9 p.m.
(when you can be sure to interrupt dinner or a favorite TV program).

•
You cannot show or sample products by phone.
Mail Surveys
Advantages

•Mail surveys are among the least expensive.

•This is the only kind of survey you can do if you have the names and
addresses of the target population, but not their telephone numbers.

•The questionnaire can include pictures - something that is not possible

over the phone.

•Mail surveys allow the respondent to answer at their leisure, rather than
at the often inconvenient moment they are contacted for a phone or
personal interview. For this reason, they are not considered as intrusive as
other kinds of interviews.
Mail Surveys
Disadvantages

• Mail surveys take longer than other kinds. You will need to wait several
weeks after mailing out questionnaires before you can be sure that you
have gotten most of the responses.

•In populations of lower educational and literacy levels, response rates to

mail surveys are often too small to be useful. This, in effect, eliminates
many immigrant populations that form substantial markets in many areas.
Even in well-educated populations, response rates vary from as low as 3%
up to 90%. As a rule of thumb, the best response levels are achieved from
highly-educated people and people with a particular interest in the subject
(which, depending on your target population, could lead to a biased
sample).
Mail Surveys

Ways to Improve response

• Follow up

• Incentive
Computer Direct Interviews

Advantages

The virtual elimination of data entry and editing costs

•

You will get more accurate answers to sensitive questions as compared to

•

personal interview

•
The elimination of interviewer bias. Different interviewers can ask
questions in different ways, leading to different results. The computer asks
the questions the same way every time.

Ensuring skip patterns are accurately followed.

•

•Response rates are usually higher. Computer-aided interviewing is still

novel enough that some people will answer a computer interview when
they would not have completed another kind of interview.
Computer Direct Interviews

Disadvantages

The Interviewees must have access to a computer or one must be

•

provided for them

•
As with mail surveys, computer direct interviews may have serious
response rate problems in populations of lower educational and literacy
levels. This method may grow in importance as computer use increases
Email Surveys

Advantages

Speed.  An email questionnaire can gather several thousand responses

•

within a day or two.

There is practically no cost involved once the set up has been completed.
•

You can attach pictures and sound files.

•

•The novelty element of an email survey often stimulates higher response

levels than ordinary “snail” mail surveys.
Email Surveys

Disadvantages

•You must possess (or purchase) a list of email addresses.

•Some people will respond several times or pass questionnaires along to

friends to answer. Many programs have no check to eliminate people
responding multiple times to bias the results.

Many people dislike unsolicited email even more than unsolicited regular
•

mail.

You cannot use email surveys to generalize findings to the whole

•

populations.

Email surveys cannot automatically skip questions or randomize question

•

or answer choice order or use other automatic techniques that can

enhance surveys the way Web page surveys can.
Internet/Intranet (Web Page) Surveys

Advantages

Web page surveys are extremely fast.  A questionnaire posted on a

•

popular Web site can gather several thousand responses within a few
hours. 

There is practically no cost involved once the set up has been completed. 
•

Large samples do not cost more than smaller ones

•You can show pictures.  Some Web survey software can also show video
and play sound.

•
Web page questionnaires can use complex question skipping logic,
randomizations and other features not possible with paper questionnaires

A significant number of people will give more honest answers to questions

•

about sensitive topics

Internet/Intranet (Web Page) Surveys

Disadvantages

•Current use of the Internet is far from universal. Internet surveys do not
reflect the population as a whole.

•
People can easily quit in the middle of a questionnaire. They are not as
likely to complete a long questionnaire on the Web as they would be if
talking with a good interviewer.

•If your survey pops up on a web page, you often have no control over who
replies - anyone from any place cruising that web page may answer.

•Depending on your software, there is often no control over people

responding multiple times to bias the results.
Summary

Email and Web page surveys are the fastest methods, followed by
Speed  
telephone interviewing. Mail surveys are the slowest.

Personal interviews are the most expensive followed by telephone and

Cost then mail. Email and Web page surveys are the least expensive for large
samples.

Internet Web page and Email surveys offer significant advantages, but you may
Usage not be able to generalize their results to the population as a whole.

Literacy
Illiterate and less-educated people rarely respond to mail surveys.
Levels

Sensitive People are more likely to answer sensitive questions when interviewed
Questions directly by a computer in one form or another.

A need to get reactions to video, music, or a picture limits your options. 

Video, You can play a video on a Web page, in a computer-direct interview, or in
Sound, person.  You can play music when using these methods or over a
Graphics telephone.  You can show pictures in those first methods and in a mail
survey.
Questionnaire Design

●
Target the vocabulary and grammar to the population be surveyed
●
For studies within a specific organization, use the jargon used in that

organization.
●
Be careful to avoid language that is familiar to you, but might not be to

your respondents. Avoid unnecessary abbreviations.

Questionnaire Design

●
Avoid ambiguity, confusion, and vagueness
●
Make sure it is absolutely clear what you are asking and how you

want it answered. For example, if you just ask "What is your

income?" The respondent doesn't know whether you mean weekly or

monthly or annual, pretax or aftertax, household or individual, this

year or last year, from salary only or including dividends, interest,

etc.
●
Avoid indefinite words or response categories. For example, "Do you

jog regularly?" What does "regularly" mean?

Questionnaire Design

●
Avoid emotional language, prestige bias and leading questions

●
Watch for prestige markers that cue the respondent to give the "right"

answer. For example, the question "Most doctors say that cigarette smoke

causes lung disease for those near a smoker. Do you agree", tends to

provoke "yes" answers because people trust doctors.

Questionnaire Design

●
Avoid double-barrelled questions

●
Make each question about one and only one topic. For example, don't

ask "Does your company have pension and health insurance

benefits?" because if their company has only one of those benefits, it

is unclear whether the respondent will say "yes" or "no".

Questionnaire Design

●
Avoid asking questions beyond a respondent's capabilities

●
People have cognitive limitations, especially when it comes to

memory of past events.

●
It is pointless to ask people about things that are not natural ways for

them to think. For example, don't bother asking "How many gallons

of gasoline did you buy for your car last year?".

Questionnaire Design

●
Avoid false premises

●
Asking "What is the most important thing we should do stop the

economy from deteriorating any further?" assumes that the economy

is deteriorating, which the respondent may not agree with. This puts

the respondent in a tough spot. It would be better to rephrase as

"What is the most important thing a government can do to

strengthen its economy".

Questionnaire Design

●
Avoid asking about future intentions (if you can)

●
Hypothetical questions like "If a new grocery store were to open

down the street, would you shop there?" are notoriously unrelated to

actual future behavior.

Questionnaire Design

●
Avoid negatives and especially double negatives

●
Double negatives like "It is not a good idea to not turn in homework

on time" yield very unreliable data because people are unsure about

whether to put a "yes" or "no" even if it is clear in their minds

whether turning homework in on time is a good idea.

Questionnaire Design

Question Placement
●
It's a good idea to put difficult, embarassing or threatening questions

towards the end of the interview when the interviewee has gotten

more comfortable. This has two benefits. First, it makes them more

likely to answer, and, second, if they get mad and leave, at least

you've gotten most of your questions asked!

●
Put related questions together to avoid giving the impression of lack

of meticulousness
●
Watch out for questions that influence the answers to other

questions.
Questionnaire Design

Filtering "Don't Know"

●
There are three ways of dealing with "don't know".

●
Standard format. No "don't know" option is presented to the

respondent, but is recorded if the respondent volunteers it.

●
Quasi filter. A "don't know" option is included among the possible

responses.

●
Full filter. First the respondent is asked if they have an opinion. Then,

if yes, they ask the question.

Scaling Techniques

●
Variability methods

●
Quantitative Judgment methods
Scaling Techniques

●
Variability methods : It is assumed that the basic data is only ordinal
scaled

●
Paired Comparison

●
Rankings

●
Rating
Paired Comparison

Brand 1

1 2 3 4
1 1 0 1
Brand 2 2 1 0
3 1
4
Ranking Method

RANK
Attrib 1 2

Attrib 2 4

Attrib 3 10

Attrib 4 6

Attrib 5 5

Attrib 6 1

Attrib 7 9

Attrib 8 3

Attrib 9 7

Attrib 10 8
Rating

Rating
Attrib 1 7

Attrib 2 6

Attrib 3 8

Attrib 4 6

Attrib 5 5

Attrib 6 9

Attrib 7 7

Attrib 8 8

Attrib 9 4

Attrib 10 6
Quantitative Judgment Methods

●
Direct Judgment Method

●
Fractionation

●
Constant Sum
Direct Judgment Method

●
Unlimited Response Category

1 2 3 4 5 6 7
●
Limited Response Category
Like very Much Don't Like at all
Fractionation

Brand A 1

Brand B 0.7

Brand C 0.8

Brand D 0.45

Brand E 0.65
Constant Sum

Brand A 20

Brand B 40

Brand C 10

Brand D 15

Brand E 15

Total 100
Sampling

●
Sampling Vs Census
Sampling

●
Population

●
Sampling Frame
Sampling

●
Probabilistic

●
Non Probabilistic
Non Probabilistic Sampling

●
Quota Sampling

●
Judgmental or Purposive Sampling

●
Convenience Sampling

●
Snow ball Sampling
Probabilistic Sampling

●
Simple Random Sampling

●
Systematic Sampling

●
Stratified Sampling

●
Multistage Sampling
●
Section III
The Analysis Process

●
Establishment of categories

●
Validation

●
Coding

Tabulation
●

●
Statistical Analysis
Establishment of categories

•
Similarity of responses within categories

•
Differences of responses between categories

• Mutually Exclusive categories

•
Exhaustive categories
Validation

• Legibility of entries

•
Completeness of entries

• Consistency of entries

•
Accuracy of entries
Coding

•
Pre-Coding : For structured questionnaire

• Post coding : For semi / unstructured questionnaire

Tabulation

•
Simple tabulation

• Cross tabulation
Statistical Analysis

•
Univariate Analysis

• Multi variate Analysis

Uni-Variate Analysis

•
Measurement of Central Tendency

• Measurement of Dispersion
Measurement of central Tendency

• Mean

•
Mode

•
Median
Mean

•
Mean is the simple average of all values
Mode

•
Most frequent value in a data distribution

Bimodal:
Unimodal: Mode
Mode--almost the mode
Median

•
It the value that exactly divides an ordered frequency distribution
into equal halves

•
Mathematically it is N/2th Value of the ordered frequency distribution
Measurement of Dispersion

•
Range

•
Variance

• Standard Deviation
Range

• Difference between Max & Min values

Variance

•
VARIANCE is simply the mean of these squared and summed

deviations (i.e., the average of the squared deviations)

Standard deviation

•
Square root of variance
Dispersion and the Normal Distribution

•
Unimodal -- the distribution had only a single value that occurred

most frequently

•
Symmetrical -- the left side of the distribution of values mirrored the

right side

•
Bell-shaped -- the frequencies of cases declined toward the extreme

values in the right and left tails, so that the distribution had the

appearance of a "bell
Special properties of the normal distribution

• Embraces 68.26% of the cases within 1 s.d. around the mean.

• Embraces 95.46% of the cases within 2 s.d. around the mean.

•
Embraces 99.74% of the cases within 3 s.d. around the mean
Bivariate Analysis

Cross Tabulation & Percentages

•

Correlation
•

Regression
•
Correlation

Correlation is a measure of the relation between two or more variables

•
Correlation

Correlation coefficient is calculated as :

Correlation Example

XY
12
25
36

Correlation coefficient ranges between -1 to 1

Regression

Regression Equation

Standard Error
Regression Example

x y

10 -40 1600 30 -20 400 800

20 -30 900 40 -10 100 300

50 0 0 50 0 0 0

70 20 400 60 10 100 200

100 50 2500 70 20 400 1000

250 0 5400 250 0 1000 2300

Regression Example