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4 mktg research

  1. 1. CONCEPTS IN MARKETING Marketing Research
  2. 2. Consumers are full of surprises and finding them out can be awfully tough. If Coca Cola can make a large marketing research mistake, any company can. The case of New Coke
  3. 3. SEARCH FOR INFORMATION In order to produce superior value and satisfaction for customers, companies need information at almost every turn. Companies need information on competitors, resellers and other forces in the market place.
  4. 4. SEARCH FOR INFORMATION Factors which have had a catalytic effect on the involved parties in the exchange process, necessitating the search for information: • Acceleration in the globalization of goods & services • Rapid rate of technological innovation • Fragmentation of markets • A population of consumers—better educated, more discriminating purchase habits, higher expectations • Increasing speed with which information is being transmitted & goods delivered
  5. 5. The Consumer Information Model Consumer Demographics Purchasing behavior Media Preferences Wants Lifestyle Needs Responds To surveys Answers The Census Watches Reads & Listens Spends Money
  6. 6. THE MARKETING TASK In today’s complex and rapidly changing environment, marketing managers need more and better information to make effective and timely decisions. TASK: Identify the information needs and design information systems to meet those needs
  7. 7. MARKETING INFORMATION SYSTEMS People, equipment and procedures to - gather, - sort, - analyze, - evaluate and - distribute needed, timely and accurate information to marketing decision makers
  8. 8. The Marketing Information System Marketing Managers Analysis Planning Implementation Organization Control Marketing Information System Assessing Information Needs Distributing Information Developing needed information Internal Information Databases Analysis Marketing Marketing Intelligence Research Marketing Environment Target Marketing Competitors Publics Macro Environ Markets Channels -ment forces
  9. 9. Demographics Years Age group 2001 2006 2011 2016 0 – 14 366(35.6) 262(32.5) 355(29.7) 343(27.1) 15 – 59 598(58.2) 673(60.4) 747(62.5) 811(64) 60+ 65(6.3) 78(7) 94(7.9) 113(8.9) Age distribution & projection of Indian population, in millions. Statistical outline of India, 2003-04, Jan 2004, Tata Services Ltd.
  10. 10. Characteristics of population • Size • Distribution…age, sex, rural-urban • Growth…absolute, sectors • Profile & character…nuclear family, working women, youth, literacy, BPL
  11. 11. EDUCATION LEVEL OCCUPATION Illiterate School upto 4 yrs/lit but no formal education Schooling 5-9 yrs SSC/HSC Some college but not graduate Graduate/ post graduate, general Graduate/ postgradua te profession al Unskilled worker E2 E2 E1 D D D D Skilled worker E2 E1 D C C B2 B2 Petty trader E2 D D C C B2 B2 Shop owner D D C B2 B1 A2 A2 Businessman/industrialist with nos. of employees….none D C B2 B1 A2 A2 A1 Businessman/industrialist with nos. of employees….1-9 C B2 B2 B1 A2 A1 A1 Businessman/industrialist with nos. of employees….10+ B1 B1 A2 A2 A1 A1 A1 Self employed professional D D D B2 B1 A2 A1 Clerical/salesman D D D C B2 B1 B1 Supervisory level D D C C B2 B1 A2 Officer/Executive….. junior C C C B2 B1 A2 A2 Officer/Executive….. senior B1 B1 B1 B1 A2 A1 A1 Socio-Economic classification Based on education & occupation of the chief wage earner
  12. 12. 3 STEP PROCESS • Assessing Information Needs – Balance between what a manager would like, against what he really needs and what is feasible – Co must decide whether benefits of additional information is worth the cost…information’s worth comes from it’s use. • Developing Information Sources of information are - Internal data…Information through functional departments & sales staff - Marketing Intelligence…Informal collection of information through Staff, Suppliers, Trade shows, Recruitment Ads. Govt Dept. - Marketing Research…Systematic design,collection, analysis & reporting of data relevant to a specific marketing situation • Distributing Information – Information gathered through MI & MR must be distributed to the right manager at the right time.
  13. 13. Marketing Research & Marketing Planning • MR seeks information….re customer needs, product preferences and marketing environment • MR determines fit…between company resources and customer needs • MR assists in developing…the marketing mix to meet customer needs • MR assess the level of satisfaction, post implementation
  14. 14. The Marketing Research Process Define the Problem & Research objectives Develop the Research plan For collecting information Implement the Research plan- Collecting & Analyzing data Interpreting & reporting The findings
  15. 15. MR Process: Defining the Problem & Research Objectives • Problem definition should neither be too narrow nor too broad… e.g when Coke introduced the New Coke in 1985, their research focused only on “taste” and not on the emotional attachment with the brand. • The research objective should accordingly be drawn by the marketing manager along with the Research manager, in terms what they wish to achieve through the research. – E.g: to determine customer satisfaction with a brand of new frost free refrigerators launched by our company.
  16. 16. Developing the Research Methodology • Outline sources of data – Secondary data • Internal • External – Primary Research • Research Approach – Observation – Descriptive – Exploratory – Focus group • Research Instruments – Questionnaire – Mechanical instruments • Sampling Plan – Sampling unit – Sample size – Sampling procedure • Contact methods – Personal – Mail – Telephone – Online
  17. 17. Research Instrument • Questionnaire Method – Closed ended questionnaires…answers are specific to the questions asked & can cover a large spectrum of views/responses….facilitates easy interpretation & tabulation for statistical analysis & comparisons. – Open ended questionnaires…allows a respondent to answer in his/her own words….used to elicit feelings/opinions towards a question…used more in exploratory research • Mechanical Instruments – Peoples Meters…used for continuous monitoring e.g TV viewer ship habits
  18. 18. Types of Questions A. Closed – End Name Description Example Dichotomou s A question with two possible answers In arranging this trip, did you personally phone the travel agent? Yes No Multiple choice A question with three or more answers With whom are you traveling on this flight? No one Children only Spouse Bus. Associates/friends/relatives Spouse and children An organized tour group Likert scale A statement with which the respondent shows the amount of agreement / disagreement Small airlines generally give better service than large ones Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree 1 2 3 4 5 Semantic differential A scale connecting two bipolar words. The respondent selects the point that represents his or her opinion Indian Airlines Large ----------------------------------- Small Experienced ----------------------------------- Inexperienced Modern ----------------------------------- Old-fashioned
  19. 19. Types of Questions A. Closed – End (contd…) Name Description Example Importance scale A scale that rates the importance of some attribute. Airline food service to me is Extremely important Very important Somewhat important Not very important Not at all important 1 2 3 4 5 Rating scale A scale that rates some attribute from “poor” to “excellent.” Jet’s food service is Excellent Very Good Good Fair Poor 1 2 3 4 5 Intention-to- buy scale A scale that describes the respondent’s intention to buy If in-flight merchandise were available on a flight, I would Definitely buy Probably buy Not sure Probably not buy Definitely not buy 1 2 3 4 5
  20. 20. Types of Questions B. Open – End Questions Name Description Example Completely unstructured A question that respondents can answer in an almost unlimited number of ways What is your opinion of Jet Airways? Word association Words are presented, one at a time, and respondents mention the first word that comes to mind What is the first word that comes to your mind when you hear the following? Airline ---------------------------------------------------- Jet ---------------------------------------------------- Travel ---------------------------------------------------- Sentence completion An incomplete sentence is presented and respondents complete the sentence When I choose an airline, the most important consideration in my decision is _____________________________________ Story completion An incomplete story is presented, and respondents are asked to complete it. “I flew Jet a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings …” Now complete the story. Picture A picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty balloon. A blurb Thematic Apperception A picture is presented and respondents are asked to make up a story about what they think is
  21. 21. Designing a questionnaire Some parameters to be kept in mind • Is the question necessary ( is the information required) • Will the respondent understand the question (is the wording simple & clear) • Will the question elicit the required response(will the data be factual) • Does the respondent have the necessary knowledge about the subject to be able to respond (right segment) • Is the respondent willing & able to answer the question • Questions must be pre-tested, before implementation(on a sub sample of the intended sample) • Questions should flow in a sequence ( to get respondent involved; ask personal questions at the end)
  22. 22. Sampling Plan Sample--- a segment of the population, selected for marketing research to represent the population as a whole • Sampling Unit – Who is to be surveyed/target population – Determined by what kind of information is needed & who is likely to have it • Sample size – How many people should be surveyed – More heterogeneous the population, larger the sample size – Determined by cost & time relevance • Sampling procedure – How should the respondents be chosen – Probability or non-probability sample
  23. 23. Data Collection • The most critical aspect of MR—expensive and prone to errors • Data may be collected internally or by out sourcing to specialized MR firms • Out sourcing is faster, more professional • Requires very close supervision to ensure smooth flow & error free collection • Typical problems faced in data collection – Respondent is not available(revisit/replace) – Respondent refuses to respond or does not answer correctly/honestly – Interviewer is biased/dishonest
  24. 24. Analyzing the information • Put the data in order – Both secondary & primary data must be evaluated for accuracy and completeness. – Codify data based on the analytical tools to be used – Tabulate data for analysis • Analyze the data – Use of basic averages, measures of central tendency(mean, median,mode), standard deviation – Statistical methods & techniques – Computer based models—SPSS • Interpret the findings – Relate the findings to the objectives of research – Not be an overload of figures & data but bring out implications
  25. 25. Potential sources of error • Problem formulation---management identifies the wrong problem or defines it poorly • Determining info needs & data sources---failure to identify the specific info needed or the source of obtaining the same • Research design & questionnaire---ambiguous questions or poor experimental design resulting in invalid responses • Sample design & size---selection of biased sample due to faulty design or inadequate representation • Data collection---poor selection of respondents, interviewer bias, incomplete responses • Tabulation & analysis---errors in tabulating raw data and use of relevant tools to interpret data
  26. 26. Caution in using MR • MR is only a tool to be used for effective decision making • MR is not a guarantee to success—reduces the odds of making an error; can improve chances of success • MR is not a Crystal Ball • The process of conducting MR is critical to the quality of response • Should not be used to merely justify decisions • Is not the cure for all marketing problems • Statistical results can be deceptive---should be seen in the context of the problem
  27. 27. 10 most common uses for MR • Determining market characteristics • Measurement of market potential • Market share analysis • Sales analysis…product, territory • Business trends • Short range forecasts • Competitive studies • Pricing studies • Testing new or existing products • Advertising…concept, content