Marketing Research

Spring 2009

Agenda for Session One

Introduction Course outline Groups for Research Project Topics for Research Project Tracking progress of your

Project Lecture Attendance

Text Book

Marketing Research – An Applied Orientation Author

Naresh K. Malhotra Edition

Fourth Publisher

Prentice Hall (Pearson)

About the Research Project

Related to marketing of products or services

Research to be carried out in Karachi only Survey should be field-based Sample size should be greater than 30

having representation of the users of the product or service chosen

Questionnaire forms to be designed in English and Urdu

Chapter 1

Definition of Marketing Research A Classification of Marketing Research Marketing Research Process The Nature of Marketing Research Marketing Research Suppliers and Services Selecting a Research Supplier The Role of Marketing Research in MIS and

DSS Internet and Computer Applications

Definition of Marketing Research The American Marketing Association

redefines marketing research as: “Marketing research is the function that links

the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process”

Definition of Marketing Research In the context of marketing research as

a tool for providing information needed for marketing decisions, marketing research is defined as: “The systematic and objective identification,

collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing”

A Classification of Marketing Research Marketing Research is classified into

problem identification research and problem solving research

Problem identification research is undertaken to help identify the problems that are not necessarily apparent on the surface and yet exist or are likely to arise in future. Research of this type provides information about marketing environment and helps diagnose a problem

Problem Identification Research Market Potential Research

A declining market potential indicates that the firm is likely to have a problem achieving its growth targets

Market Potential Research A problem exists if the market potential is

increasing but the firm is losing its market share

Image Research Market Characteristics Research

Problem Identification Research Sales Analysis Research

Research performed to analyze certain surges or plunges in sales, potential hot or cold locations, etc.

Forecasting Research Research undertaken to make business

forecasts Business Trends Research

Marketing research that identifies trends in business. Example is IBM’s tracking study to capture data on trends in mainframe computing

Problem Solving Research

Segmentation Research Determine basis of segmentation Establish market potential and

responsiveness for various segments Select target markets and create lifestyle

profiles, demography, media, and product image characteristics

Problem Solving Research

Product Research Test concept Optimal product design Package tests Product modification Brand positioning and

repositioning Test marketing Control store tests

Problem Solving Research

Pricing Research Importance of price in brand

selection Pricing policies Product line pricing Price elasticity of demand Response to price changes

Problem Solving Research

Promotional Research Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Claim substantiation Evaluation of advertising

effectiveness

Problem Solving Research

Distribution Research Types of distribution Attitudes of channel members Intensity of wholesale and retail

coverage Channel margins Location of retail and wholesale

outlets

Marketing Research Process

A set of six steps that defines the tasks to be accomplished in conducting a market research study. These include problem definition, development of an approach to the problem, research design formulation, field work, data preparation and data analysis, and report preparation and presentation

Step 1: Problem Definition

In order to define a problem, a researcher should take into account the purpose of the study, the relevant background, the information needed and how it will be used in decision making

Problem definition involves discussion with decision makers, interview with industry experts, analysis of secondary data, and some qualitative research

Step 2: Development of an Approach to the Problem

This step involves formulating an objective or theoretical framework, analytical models, research questions, and hypotheses and identifying the information needed

This process is guided by discussion with industry experts, analysis of secondary data, qualitative research, and pragmatic considerations

Step 3: Research Design Formulation

Following activities are undertaken while formulating a research design: Definition of the information needed Secondary data analysis Qualitative research Methods of collecting quantitative data Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis

Step 4: Fieldwork or Data Collection Data collection involves use of a field force or

staff that operates in the field Field activities include

personal interviewing (in-home, mall intercept, computer-assisted personal interviewing)

From an office by telephone (telephone or computer-assisted telephone interviewing)

Through mail (traditional mail) Electronically (e-mail or internet)

Proper selection, training, supervision and evaluation of the field staff helps minimize the data-collection errors

Step 5: Data Preparation and Analysis

This includes data editing, coding, transcription or keypunching, and verification of data

Step 6: Report Preparation and Presentation The entire project should be documented in a

written report that addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and major findings

The findings should be presented in a comprehensible format so that the management can readily use them in the decision making process. In addition, an oral presentation should be made to the management using tables, figures, and graphs to enhance clarity and impact

The Nature of Marketing Research The emphasis in marketing is on the

identification and satisfaction of customer needs

To achieve this objective, marketing managers need (better) information

The task of marketing research is to assess the information needs and provide management with relevant, accurate, reliable, valid, and current information

The Role of Marketing Research Customer Groups

Consumers Employers Shareholders Suppliers

Marketing Managers

Market Segmentation Target Market Selection Marketing Programs Performance and Control

Assessing Information

Needs

ProvidingInformation

MarketingDecisionMaking

MARKETING RESEARCH

Uncontrollable EnvironmentalFactors

Economy Technology Competition Laws & Regulations Social and Cultural

Factors Political Factors

Controllable MarketingVariables

Product Pricing Promotion Distribution

Marketing Research Suppliers & Services Broadly , research suppliers can be

classified as internal or external Internal supplier is a marketing research

department within the firm The marketing research department’s

place in the organizational structure may vary considerably

Internal suppliers often rely on external suppliers to perform specific marketing research tasks

Marketing Research Suppliers & Services External suppliers are outside firms hired to

supply marketing research data External suppliers can further be classified as

full-service or limited-service suppliers Full-service suppliers offer the entire range

of marketing research services, from problem definition to report preparation and presentation

The services from these suppliers can further be broken down into syndicated services, standardized services, customized services, and Internet Services

Marketing Research Suppliers & Services Syndicated services collect information of

known commercial value and provide to multiple clients on a subscription basis. Surveys, diary panels, scanners, and audits are main means by which these data are collected

For example Digital TV Log (DTL) by Media Bank (www.mediabank.com) , a company of Media Innovations (Pvt.) Limited, a TV transmission reporting tool with complete video content support

Marketing Research Suppliers & Services Standardized services are research studies

conducted for different client firms but in a standard way

For example procedures for measuring advertising effectiveness have been standardized so the results can be compared across studies and evaluative norms can be established

Some examples of standardized services include Spot Transmission Report (STR), Program Clutter Report (PCR) and Share of Voice Estimate (SOVE) by Media Bank

Marketing Research Suppliers & Services Customized services offer a wide variety of

marketing research services customized to suit a client’s specific needs. Gallup Pakistan, Oasis International, AC Nielson Pakistan, Aftab Associates are major providers of customized marketing research in Pakistan

Internet services are offered by several marketing research firms including some who have specialized in conducting marketing research on Internet

Marketing Research Suppliers & Services Limited-service suppliers specialize

in one or a few phases of the marketing research project

Services offered by such suppliers are classified as field services, coding and data entry, analytical services, data analysis and branded products

Locally Existing Marketing Research Firms

Ac Nielsen Pakistan (Pvt.) Ltd.Aftab Associates (Pvt.) Ltd.Arqam Research & Marketing Services (Field Work)Bukhari Survey ConsultantsCoopers & Lybrand ConsultingCorporate Management ConsultantsDomestic Research BureauGallup PakistanInnovative Marketing ManagementIRIS CommunicationsLogica Marketing ResearchMAB / ParadigmsMacro Management Systems

Locally Existing Marketing Research Firms

Market & Consumer Guide (Field Work)Market & Consumer Pulse Pvt. Ltd.Market Research LinkMarketing & Advertising Research Services (MARS)

Marketing Research LinkMarketing Research of PakistanMedia BankOasis InternationalOpinion Research Group (Field Work)PMRB Promotions (Field Work)R-Track

Locally Existing Marketing Research Firms

SB&B Market ResearchSmar International (Pvt.) Ltd.Star Group (Field Work)Startex (Marketing Services)The Research Forum

Information source: brandsynario.com

Selecting a Research Supplier If sufficient expertise are not available

in-house, one should look out for external suppliers

The suppliers must be able to meet the current marketing research project requirements

Doe not always go for the lowest bid. Competitive bids should be obtained and compared on the basis of quality and as well as price

The Role of Marketing Research in MIS and DSS The information obtained through

invoices, marketing intelligence and marketing research becomes an integral part of the firms marketing Information System (MIS)

The MIS is developed according to the decision maker’s responsibilities, style and information needs

The MIS is mostly in the form a structured reports or queries

The Role of Marketing Research in MIS and DSS To overcome the limitations of MIS,

Decision Support Systems (DSS) re used Users are allowed to directly interact with

the databases and analysis models DSS are integrated systems including

hardware, communications network, database, model base, software base, and the DSS user (decision maker) that collect and interpret information for decision making

MIS versus DSS Structured Problems Use of Reports Rigid Structures Information

Displaying Restricted

Can Improve Decision Making by Clarifying Raw Data

Unstructured Problems

Use of Models User-Friendly

Interaction Adaptability

Can Improve Decision Making by Using “What If” Analysis