Marketing research


Published on

Marketing research methods

Published in: Education, Technology, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Marketing research

  1. 1. Marketing Research Methods<br />
  2. 2. Quantitative Research<br />Statistical basis<br />Gathers statistically valid, numerically measurable data<br />Usually related to the data on the market-size, growth and market shares<br />Sampling plays a key role<br />Data obtained through surveys<br />Conducted with obtaining hard data<br />
  3. 3. Qualitative Research<br />Subjective and personal<br />Concerned with finding out soft information<br />Main purpose is to understand consumer behavior, attitudes and perceptions<br />Obtained by methods designed to get detailed responses e.g. interviews<br />Research topics are usually explored in some depth<br />
  4. 4. The Marketing research process<br />Define the problem<br />Define research objectives<br />Choose data sources<br />Choose research methods<br />Construct sample<br />Set budget and deadlines<br />Undertake research<br />Analysis and evaluation<br />
  5. 5. Methods of collecting data<br />Desk Research- in which secondary data is collected. Secondary data is defined as the reusing the data that already exists.<br />Field Research- collecting original data known as primary data.<br />Data collecting is only one stage in the process.<br />The has to be analyzed and evaluated.<br />Conclusions and recommendations have to be drawn.<br />
  6. 6. Secondary data sources<br />2. External<br />Competitor information<br />Government publications<br />Commercial publications<br />Trade association data<br />Retail audits<br />Directories<br />1. Internal<br />Sales figures<br />Customer reports<br />Trend data<br />Sales report<br />Cost data<br />Company reports<br />MIS report <br />
  7. 7. Field research to collect primary data<br />Experiments<br />Observations<br />Surveys<br />Interviews<br />Focus groups<br />Panels<br />
  8. 8. Field Research Methods<br />Observation watching behavior<br />Surveys panel and interview asking people<br />Experiments under controlled conditions<br />
  9. 9. Experiments<br />A method of obtaining primary research data.<br />The aim is measure and evaluate customers’ reactions to changes in the marketing mix.<br />Can be done under controlled conditions or in the field.<br />Examples: test markets, simulated test market, extended user test, blind test.<br />Pilot trials of new products are a common use of experiments as it provides a chance to test how things work out before a large scale roll-out. It reduces risk and uncertainty. <br />
  10. 10. Observation<br />A data gathering approach in which information is collected without questions being asked.<br />Involves watching people behave, noting and analyzing their reactions.<br />It is useful to find out how people buy products, where they shop, what appears to interest them. <br />Can be carried out under controlled (laboratiry) conditions or in real life situations(on field)<br />Common methods: traffic audits, TV and radio panels and retail audits.<br />
  11. 11. Observation: Strengths<br />What people do rather than say<br />Carried out without customers’ knowledge<br />Does not rely on memory or honesty of respondents<br />Potential for bias is reduced<br />Counters the refusal rate associated with some methods of MR<br />
  12. 12. Observation: Weaknesses<br />Time consuming and costly<br />Does not answer the why question<br />Tells nothing about motivation<br />Easy to misinterpret behavior<br />Only gives partial information<br />
  13. 13. Surveys<br />The key research method to obtain information from large samples<br />Wide range of users: to ascertain facts, belifes, opinions, attitudes<br />Various methods to complete surveys: interviews, telephones, face to face, postal, online<br />
  14. 14. Postal surveys: Strengths<br />Wide coverage<br />Low cost<br />No interviewer bias<br />Respondents convenience<br />Lack of embarrassment<br />Piggybacking<br />Avoids travel costs<br />
  15. 15. Postal surveys: Weaknesses<br />Low response rate<br />Lack of control of respondent<br />Limited scope for open ended questions<br />Limited to short questionnaires<br />Long response time<br />Biased response<br />Misinterpretation of questions<br />
  16. 16. Telephone surveys: Strengths<br />Saves time<br />Higher response rate<br />Greater control over respondent than with postal surveys.<br />Sample less likely to be biased<br />Cost limited to time spent on phone<br />Avoids cost of travel<br />Allows probing<br />
  17. 17. Telephone surveys: Weaknesses<br />Questions may be more limited than with postal surveys<br />Respondent has little time to consider questions<br />Data may not be available easily<br />Intrusion into privacy<br />Can be time consuming<br />
  18. 18. Face to face interviews: Strengths<br />Interviewer can prompt the respondent<br />Can see the respondents reaction<br />Respondent have more time to think<br />Detailed responses<br />Can get opinions<br />Respondents give full attention<br />Flexible<br />Allows probing<br />Trust can be built up to get more reliable data<br />
  19. 19. Face to face interviews: Weaknesses<br />High cost<br />Time consuming<br />Risk of bias<br />Requires interview skills<br />
  20. 20. Comparison of survey methods<br />
  21. 21. Focus groups<br />Used for quantitative data gathering<br />Usually consists of 8-10 respondents and a moderator<br />Moderator introduces the topic and guides the conversation<br />The aim is to seek opinions and find out attitudes<br />Composition of the group should reflect target audience<br />
  22. 22. Focus groups: Strengths<br />Inexpensive<br />Quick<br />Range of attitudes<br />Detailed qualitative information obtained<br />Flow of discussion encourages ideas and participation<br />
  23. 23. Focus groups: Weaknesses<br />Need to build rapport<br />Discussions must stay focused<br />Needs good control by the moderator<br />Some members may be in habited<br />Time consuming<br />Expensive<br />
  24. 24. Panels<br />Continuous rather than ad hoc<br />Useful in assessing shifts of attitude and opinions over time<br />A consumer panel consist of a representative sample of people<br />Panel members are usually induced to be permanently available by means of small payments or free samples <br />
  25. 25. Panels: Strengths<br />A good trend indicator<br />Useful for analyzing changes<br />More probing<br />
  26. 26. Panels: Weaknesses<br />Expensive<br />Bias sample of people<br />Panelists may adopt uncharacteristic behavior during panel sessions<br />Panels have to be replaced periodically<br />When novelty wears off members become less-coperative<br />
  27. 27. Electronic/online surveys: Strengths<br />Cheap compared to other methods<br />No internal boundaries<br />Versatile<br />Quick<br />
  28. 28. Electronic/online surveys: Weaknesses<br />Incomplete directory of names<br />Unrepresentative sample<br />Brevity of e-mail responses can be a problem<br />Respondents select themselves<br />Little control over sample<br />
  29. 29. Marketing Research: Limitations<br />Problem related to survey and sampling methods<br />Sampling errors<br />Non-response errors<br />Data collection errors<br />Analytical and reporting errors<br />Market research information can quickly become dated<br />