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Marketing Research Design


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Covers the basics of marketing reseearach

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Marketing Research Design

  1. 1. Marketing Research Design<br />Overview<br />
  2. 2. Learning Objectives<br /><ul><li>To understand what research design is and why it is significant.
  3. 3. To learn how exploratory research helps the researcher gain a feel for the problem.
  4. 4. To know the fundamental questions addressed by descriptive research and different types of descriptive research.
  5. 5. To explain what is meant by casual research and to describe four types of experimental research designs.
  6. 6. To know the different types of test marketing and how to select test market cities. </li></li></ul><li>Research Design<br /><ul><li>Marketing research methods vary from focus groups to stimulated test markets to large, nationally representative sample surveys.
  7. 7. Research design is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analysing data.
  8. 8. Each research problem is unique. However,
  9. 9. There are similarities among research problems to allow us to use the best plan to solve the problem.
  10. 10. There are basic research designs that can be successfully matched to a given research problem. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Research designs are classified into three categories: exploratory, descriptive, and causal. refer: Table 1.0
  11. 11. Choice depends largely on objectives of the research.
  12. 12. Research does not necessarily follow the order of exploratory, descriptive and casual designs.
  13. 13. Caution about thinking about research in a step-by-step process. </li></li></ul><li>Three Types of Research Design<br />Research Objective Appropriate design<br />To gain background information, to define terms, EXPLORATORY<br />To clarify problems and hypotheses, to establish<br />Research priorities.<br />To describe and measure marketing phenomena at DESCRIPTIVE<br />A point in time.<br />To determine causality, to make “if-then” statements CAUSAL<br />Table 1.0<br />
  14. 14. Three Types of Research Design<br /><ul><li>Exploratory Research: is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem.
  15. 15. Exploratory research is systematic and flexible and allows the researcher to investigate whatever sources he or she desires.
  16. 16. Such research may consist of going to the library and reading published secondary data; of asking questions, salespersons acquaintances for their opinions about a company, its products and services, and prices; or of simply observing everyday company practices. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Exploratory Research is used in a number of situations:</li></ul>1. Gain background information- When very little is known about the problem or when the problem has not been clearly formulated.<br /><ul><li>Firms having an MIS in which a review of internal information tracked over time can provide useful insights into the background of the company, brand, sales territories etc.</li></li></ul><li>Three Types of Research Design<br /><ul><li>Exploratory Research is used in a number of situations:</li></ul>2. Define Terms – Exploratory research helps to define terms and concepts.<br /><ul><li>What is 3M’s image? The researcher learns that “image” is composed of several components – innovative products, friendly sales/customer service, good corporate citizen and so on. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Exploratory Research is used in a number of situations:</li></ul>3. Clarify Problems and Hypotheses – Exploratory research allows the researcher to define the problem more precisely and to generate a hypotheses for the upcoming study.<br /><ul><li>i.e.: banks have three types of customers: retail customers, commercial customers and other banks for which services are performed for fees. Define which group bank image should be measured. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Exploratory Research is used in a number of situations:</li></ul>4. Establish Research Priorities – Exploratory research can be used to prioritise research topics in order of importance, especially when it is faced with conducting several research studies.<br /><ul><li>i.e.: customer complaint letters may indicate the product or service that needs attention.
  17. 17. i.e.: Office furniture store owner decided to conduct research on the feasibility of carrying overhead projectors after interviewing his sales people revealed that customers were requesting overhead projectors.</li></li></ul><li>Three Types of Research Design<br /><ul><li>Methods of Conducting Exploratory Research:</li></ul>1. Secondary Data Analysis – refers to the process of searching for and interpreting existing information relevant to the research problem.<br /><ul><li>Sources of secondary data includes: information found in books, journals, magazines, special reports, bulletins, newsletters, and so on.
  18. 18. An analysis of secondary data is often the “core” of exploratory research. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Methods of Conducting Exploratory Research:</li></ul>2. Experience Surveys – refer to gathering information from those thought to be knowledgeable on the issues relevant to the research problem.<br />3. Case Analysis – we refer to a review of available information about a former situation(s) that has some similarities to the present research problem.<br />4. Focus Groups – bringing small groups of people together and guided by a moderator through an unstructured, spontaneous discussion for the purpose of gaining information relevant to a research problem.<br />
  19. 19. Three Types of Research Design<br /><ul><li> Methods of Conducting Exploratory Research:</li></ul>5. Projective Techniques – we refer to the process of searching for and interpreting existing information relevant to the research problem.<br /><ul><li>Sources of secondary data includes: information found in books, journals, magazines, special reports, bulletins, newsletters, and so on.
  20. 20. An analysis of secondary data is often the “core” of exploratory research. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Descriptive Research: which provides answers to questions such as who, what, where, where and how, as they are related to the research problem.
  21. 21. Who- may be defined as a firms (competitors) customers.
  22. 22. What- defined as brands, brands, sizes that are being purchased.
  23. 23. Where- places where customers are purchasing products.
  24. 24. Why- we can not conclusively answer the question of why using descriptive research.Need to use causal research designs.</li></li></ul><li>Three Types of Research Design<br /><ul><li>Classification of Descriptive Research Studies:</li></ul>1. Cross-sectional studies- are very prevalent in market research, outnumbering longitudinal studies and casual studies. <br /><ul><li>Because cross-sectional studies are one time measurements.
  25. 25. Often described as “snapshots” of the population.
  26. 26. i.e. used to describe the readership of a magazine in terms of demographics. </li></li></ul><li>Three Types of Research Design<br /><ul><li>Classification of Descriptive Research Studies:</li></ul>2. Longitudinal studies- repeatedly measure the same population over a period of time.<br /><ul><li>Often described as “movies” of the population.
  27. 27. To be successful researchers must have access to the same members of the sample, called a panel
  28. 28. Refer NFO(National Family Opinion)</li></li></ul><li>Three Types of Research Design<br /><ul><li>Classification of Descriptive Research Studies:</li></ul>3. Causality- may be thought of as understanding a phenomenon in terms of conditional statements of the form “If x, then y.” These “if-then” statements become our way of manipulating variables of interest.<br /><ul><li>If I spend more on advertising will sales increase.
  29. 29. Casual is difficult in terms of if-then in understanding business problems.</li></li></ul><li>Experiments<br /><ul><li>An Experiment – is defined as manipulating an independent variable to see how it affects a dependent variable, while also controlling the effects of additional extraneous variables
  30. 30. Types of experiments:
  31. 31. Laboratory experiments – are desirable when the intent of the experiment is to achieve high levels of internal validity.
  32. 32. Field experiments – those in which independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting. </li></li></ul><li>Test Marketing<br /><ul><li>Test Marketing – is the phase commonly used to indicate an experiment, study, or test that is conducted in a field setting.
  33. 33. Companies may use one or several test market cities, which are geographical areas selected in which to conduct the test.
  34. 34. There are two broad classes of uses of test markets:
  35. 35. To test the sales potential for a new product or service
  36. 36. To test variations in the marketing mix for a product or service. </li></li></ul><li>Test Marketing<br />Types of Test Markets:<br />Standard test market is one in which a firm tests the product and/or marketing mix variables through the company’s normal distribution channels.<br />Controlled test markets are conducted by outside research firms who guarantee distribution of the product through pre specified types and numbers of distributors.<br />Electronic test markets in which a panel of consumers have agreed to carry an id card that they present when buying goods and services. <br />Simulated test markets (STMs) are those in which a limited amount of data on consumer response to a new model are fed into a model containing certain assumptions regarding planned marketing programs, which generates likely sales volumes.<br />
  37. 37. Test Marketing<br />Consumer versus Industrial Test Markets:<br /><ul><li>With industrial test markets, prototype products are tested, revised, and retested under actual conditions.
  38. 38. i.e. 3M are experimenting with this concept</li></li></ul><li>Test Marketing<br />“Lead Country” Test Markets:<br /><ul><li>Is test marketing conducted in specific foreign countries that seem to be good predictors for an entire continent.
  39. 39. i.e. Colgate Palmolive use lead country test marketing when it launched its Palmolive Optims shampoo and conditioner. </li></li></ul><li>Test Marketing<br />Pros and Cons of Test Marketing:<br /><ul><li>Test markets are considered by some to be the “ultimate” way to test a new product.
  40. 40. Test markets are costly and subject to competitive sabotage.
  41. 41. Predicting changing consumer behavior is difficult.</li></li></ul><li>Summary<br /><ul><li>Research design refers to a set of advance decisions made to develop the master plan to be used in the conduct of the market research.
  42. 42. If very little is known about the project exploratory research is appropriate.
  43. 43. Descriptive research measures market phenomena and answers questions such as who,what,where,when and how.
  44. 44. It can be cross sectional or longitudinal
  45. 45. If we know quite a bit about our research we can use causal relationships.</li></li></ul><li>Summary<br /><ul><li>Laboratory experiments are used for achieving internal validity while field experiments suited for achieving external validity.
  46. 46. Test marketing is a form of experimentation and take various forms(standard, controlled, electronic, simulated, consumer, industrial and lead country. </li></li></ul><li>You are welcome to contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice<br /><br />!/b2bwhiteboard<br />