mod 3 - market research & mis revs 29122011

7/31/2019 Mod 3 - Market Research & MIS Revs 29122011

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Market Information System Consists of People, Equipment and procedures to

gather, sort, analyze, evaluate, and distribute needed,timely and accurate information to marketing decision

makers.

MIS begins and ends with Marketing Managers.

1, MIS first interacts with the managers to assess the

information needs.

2, MIS then helps us to develop the needed

information from internal company records, Marketing

intelligence activities and marketing research.


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Market Information System Consists of People, Equipment and procedures to

gather, sort, analyze, evaluate, and distribute needed,timely and accurate information to marketing decision

makers.

MIS begins and ends with Marketing Managers.

1, MIS first interacts with the managers to assess the

information needs.

2, MIS then helps us to develop the needed

information from internal company records, Marketing

intelligence activities and marketing research.


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Market Information System

3, Information Analysis processes theinformation to make it more useful.

4, The MIS Manager finally distributes

information to managers in the right formetteand at the right time to help them make better

marketing decisions.

Need to develop a MIS arises ..


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In order to provide superior value and

satisfaction to customers, you need abundance

of information on consumer needs and wants.

Hence MIS helps to assess this information atall levels.

Companies also need info. On competitors,

resellers, and other actors and forces in the

market place.


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MIS is considered a better marketing tool and

an important strategic asset and subsequently

to make better decisions.

As companies expand their horizons ofoperations from a contained society to a

international macro environment, the

companies requires information on larger and

more distant markets.


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Marketing Intelligence

Is nothing but periodical information on dailybasis about the developments that take place in

a Marketing Environment. Companies require

such information to counter competition and

threats in environment on a Daily Basis. Market Intelligence collects data and

presents them in Bits and Pieces, which a

Marketing Manager do not prefer given the

intensity of competition in both Micro and MacroEnvironment.


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Intelligence Gathering ::

1, Getting Information from People who do

business with Competitors

2, Getting Information from PublishedMaterials and Public Documents

3, Getting information by Observing

Competitors or Analyzing Physical Evidence.


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Market Research

What is Market Research ?


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We define Market Research as the function

that links the marketer to consumers and the

public through information - information used to

identify and define marketing opportunities andproblems ; to generate, refine and evaluate

marketing actions; to monitor marketing

performance, and to improve understanding of

the marketing process.


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Market Research is a set of activities anyindividual or group of individuals perform to

understand the opportunities that may exist for

a firm or else understand the existing and

undefined problems with a firm or in a market.


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The company can conduct the researchactivities inside its own environment and in its

own research department or have them done

outside by its people or outsourced to Research

Firms.

For eg., Customer Satisfaction Survey and

newer avenues for improvements.

OR to answer following questions such as .


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Market Information SystemWhat are the best practices or predictors of

which consumers are likely to buy my brandversus my competitors brand ?

What sort of advertisement expenditure isrequired for promotion, if I increase my basic

price by 10-15%. Data collected from market, either fromcompany Research dept. or by external agencyrequires advanced statistical analysis to learn

more about both the relationships within a setof data and their statistical reliability.


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Most companies on a routine basis havetheir own Market Intelligence system, thanks to

advanced information technology tools and

software and facilities in telecommunication .

Performance is monitored on daily basis and

corrective or remedial actions taken

accordingly.

t


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ar et ng esearc rocess

1, Defining the Problem and ResearchObjectives Most important step as the whole

research activity would be built on this step.

Research Objective is built based on the

problem in place. For eg., A specific branch of BOB wants to

know about the customers feedback on

introducing Flexi Timings in its branch.

(Changing operation timings, or changingweekly holiday for customers convenience).


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Market Information System For eg., BOB would like to understand thecustomers feedback on its new products

Personal banking sector ( Insurance policies

both individual and family policy and pricing vs

benefits)..

In this preliminary step, which is most important

for a research base, the research shouldensure to have support of Marketing Manager

in analyzing the actual problem


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Market Information System Defining the problem is very critical andfundamental to your overall success. Managers

should be able to understand the concept of

MR, so that he would be able to interpret the

results , ensure that they obtain correct info.And interpret for proper decision making and to

future strategy.

2, Developing The Research Plan

Determining specific information needs

a, Research objectives translated into specific

info. Needs.


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Information related to demographic,economic, and lifestyle characteristics of

current users or future prospects or a specific

area.

Consumer usage pattern and theirpreferences in using a product.

Their reaction to your product FAB,

presentation , packaging, convenience in usage

etc.


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B, Gathering Secondary Information ---

Information that already exists and possibly

having been collected for another purpose.

For eg., Sale of a commodity in the last 2

years, customer preference study made earlier

to a relative product in a specific area, etc.,

Can be obtained more quickly than theprimary data.


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Internal Sources ::Available in LibrariesGovernment Publications ::

Periodicals and Books ::

Commercial Data :

International Data:

Secondary Data can also present

problems..

Needed info. May not exist. Does it fit the requirements of the project

study or suitability for acquisition.


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Is it accurate, reliable and up to date to makeit worthy of analysis and study.

Is it done impartially.

Secondary data provide a good gathering ofinfo. As a start up of the whole process. But

Primary Data is very essential to substantiate

your preliminary collection of info. And study.


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Market Information System Planning Primary Data Collection ::

Research Approaches ..

Observational Research - Gathering of

primary data by observing relevant people,

actions, and situations.

For eg., A bank evaluates possible new branch

locations by checking traffic patterns,

neighborhood conditions, and the locations ofcompeting branches.


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Market Information System Single source data systems from market

research firms. Need to evaluate the firms

standing and also details of the findings . Cross

check at random to confirm findings, as some

firms cook up stories on their findings and giveit for monetary gain.

Survey Research is the approach best suited

to gather descriptive information. More specific

about peoples beliefs and attitudes, theirpreferences and buying behavior and pattern.


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While survey Research has its ownadvantages on data gathering methodology, it

sometimes fails due to customers perception

on intruding privacy and also wasting or

disturbing them in their priority timings.


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Marketing Research methodsSurvey Research Method Useful to obtain

info. On awareness, attitudes, and buying

behavior of customers.

In Survey method, there are 4 different

possibilities of data collection ::a, Structured and Direct Interview, b,

Unstructured and Direct Interview,

c, Structured and indirect form of interview

d, Unstructured and Indirect form of interview..


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Marketing Research methodsa, Structured and Direct interview Is a formal

questionnaire and interview is done as per thestructured questions only. Advantage is evenunskilled researchers can be used in thismethod. Cost can be reduced, but there may be

difficulties in getting unbiased and completeanswers to questions regarding personal andmotivational factors.


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Marketing Research methods

b, Unstructured Direct Interview Also called asdepth interview, can be used for exploratory

research. Depth Interviews are usually used to get

minute or intricate details from the respondent on

an issue. Generally it is conducted in informal orcasual manner.

Cost per interviewer is higher as more duration

per interviewer (30-60 minutes) is utilized.


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Delphi Technique -- Useful method to obtaininformation from a group of experts from withinor outside the company. The panel membersare usually experts drawn either from inside or

outside and is asked to respond seperately tothe same problem for eg., forecasting thedemand trend for the next 3 years etc.,


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Marketing Research methodsIndirect and unstructured Interviews For eg.,

Focus Group interview. In this method, a groupof 6 to 10 persons are invited to discuss a

problem. A skilled moderator is used to co-

ordinate, facilitate and discuss the subject to get

maximum informations and views on the subjectfrom different interviewee, who are versatile on

the subject.

Focus group interview is used to

a, Obtain preliminary information (exploratory)

before undertaking a large-scale market survey.


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Experimental Research :: The gathering of

primary data based on testing the sample using

some standard method and finding their

response pattern


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For eg., Introduction of new scheme forcorporate savings account. Eg., For salary

account, withdrawals any no. of times in a

month from any ATM does not invite service

charges. Experimental Research tries to explain the

Cause and Effect Relationship.

eg., Hindustan Lever has observed the rising

trend of changing lifestyles in developing

countries and has focused more on personal

care products like Ponds cream.


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Market Information SystemContact Methods - Information can be collected

by Mail, Telephone, or Personal Interview.

Strengths & Weakness of 3 contact methods ::Mail Telephone Personal

Flexibility Poor Good Excellent

Qty of data Good Fair Excellent

Control of Interviewer

effects

Excellent Fair Poor

Speed of Data Collection Poor Excellent Good

Response Rate Poor Good Good

Cost Good Fair Poor

M k ti R h P


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Marketing Research Process

Telephone Interviewing ::

Quick Interviewing, Response is high,

Cost per respondent is higher than mail

questionnaires.

Interviewer bias, their perceptions onmethodology of interviewing varies,

interviewers can even possibly cheat by

entering answers without asking questions.



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Personal Interviewing ::Individual Interviewing...

Group Interviewing consist of interviewing

six to ten people to gather for a few hours with

a trained moderator to talk bout a product,service, or an organization.

The moderator focuses the group with his

skills and pre-determined objective hence thename as focus-group interviewing.


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Identify the problem

opportunities and

define Research

Objectives

Develop the

Research

Design or Plan

Collect The Data

(For Information)

Process &

Analyze the

gathered Data

Present the

Research Findings

Step 1 Step 2

Step 3 Step 4

Step 5

Decision areas in research design


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Decision areas in research design

.S No Decision Areas Particulars

1 Information Type Prepare a list of information required fromResearch Objectives

2 Sources of Data Primary, Secondary, Commercial, or

Combination

3 Research Methods Observational, Exploratory, Descriptive (or

survey), Experimental

4 Sampling Plan Sampling unit, sampling size, sampling

procedure

5 Methods of Contacts Mail, Telephone or Personal Interview

6 Data Collection

Methods (i.e.

Research

instruments)

Questionnaire, Mechanical Devices..


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S No ResearchMethods Brief Description

1 Observational People and their behavior are observed and the info.

is recorded, without asking questions.

2 Exploratory When the problem is not clearly defined or little info. Isavailable about the problem, exploratory research

methods such as focus-groups and depth-interviews

are used to gain insight into the problem

3 Survey Descriptive study or survey method is used byinterviewing or asking questions to people who are

believed to possess the desired info. Its measures the

depth of peoples K , A and Buying Behavior.


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S No. Research Methods Brief Description

4. Experimental The purpose of experimental research is

to measure Cause and Effect relationship(causal relationship) by setting up a

controlled situation.


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Sampling plan A Sample is a part of population (or universe)

which is selected to obtain the necessaryinformation.

Based on the nature of product selected for studythe sample will focus on the concerned industry asuniverse.

Sampling plan consists of 3 decisions

i, Sampling Unit :: The Researcher shoulddetermine the population for study. For eg., if it astudy on customer preferences in corporate

banking, the sample would comprise from thecorporate customers and institutions.


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Sampling plan ii, Sampling Size :: The Researcher now

decides as to how many firms from where thesample should be drawn. Hence the size of thesample is based on Researchers study todetermine the same

iii, Sampling procedure / sampling scheme ::The decision on how to study the samplerespondents.

Characteristics of a good sample should be a,

a truly representative sample ; b, it should resultin a small sampling error ; c, it should considerthe cost and time available


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Sampling plan for research and iv, it should enable results of

the sample study to be applicable for thepopulation with a reasonable level of

confidence.

Sampling schemes are classified into

1.Probability or Random sampling It is

based on concept of random selection, i.e. each

sample has a equal chance of being included in

the sample. Its a superior design, as it canmeasure the errors statistically.


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Sampling plan

Its disadvantage is the cost and time .

2. Non Probability sampling :: It is non-

random sampling, and hence the sampling error

cannot be estimated and research findingscannot be generalised. There is a possibility of

personal biases of the researcher while

selecting the sample. The advantage is less

cost and time involved.


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Sampling plan

Sampling Schemes and Sampling Techniques underProbability and Non-probability ..

Sno

Scheme SamplingTechnique

Brief Description.

1 Probability or

Random

Sampling

Simple

Random

Sampling

All members or objects of sample have

equal chance of selection.

Stratified

Randomsampling

Population is segmented into several

homogeneous groups (or stratas) andthen a sample is selected from each

group in random

Cluster

(area)

sampling

Large population is divided into small

clusters (groups or geographic

areas).The randomly slection of a sample

from this group is filtered to arrive

selected few for study.


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Sampling plan Sno

Scheme SamplingTechnique

Brief Description.

1 Probability orRandom

Sampling

Systematicsampling

First, study object is selected randomlyand then remaining units are selected at

a fixed interval, which is calculated by

formula Population + sample size.

2 Non-

ProbabilitySampling

Convenience

Sampling

Sample is selected based on

convenience of location or co-operationof study objects

Judgement

Sampling

based on past studies (or experience),

the researcher uses judgement in

selecting a sample.

QuotaSampling

Based on prior knowledge of population,the researcher first defines categories or

groups, and then interviews a fixed no.

(or quota) of people in each category,

based on convenience or judgement.


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Sampling plan

Presenting the Research Findings /

Report ::

The final stage of MR study is report

preparation, including communication of

the research findings.Needs to be in written format, generally

the researcher is asked to present the

findings to a select group of executives.


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Sampling plan

Presenting the Research Findings / Report ::

While making written or oral presentations, theresearcher should keep the following points in

mind

a, The researcher should collect theinformation about the profile (or background) of

the executives. It is generally advised to present

the findings in a simple format and avoid using

Jargons.

Sampling plan


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Sampling plan

b, The major research findings should

be relevant to the MR objectives.

c, The Researcher should logically

justify the methods adopted and used in

the whole process. This will help the

reader to verify the authenticity of the

report

d, The researcher must not try to satisfy

the personal likes or dislikes of theexecutives in the user company.

Sampling plan


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Sampling plan

e, The research report should have

clarity of thought and expression for eg., i.

Title page, ii.Table of Contents, iii.

Executive Summary, iv. Introduction (or

Research Brief), v. Problem formulationand Research Objectives. vi. Research

Methodology vii. Results or findings of

the research viii. Conclusion andRecommendation ix. Appendix and x.

Bibliography.


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Marketing Research system ::

Secondary

Data Sources

Marketing

Intelligence

System

MR Studies

Internal

Information

system

Decision

support

system

Mktg Strategy

Development

Market

Respons

e