mr chapter 3 slides

7/25/2019 Mr Chapter 3 Slides

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Welcome to Powerpoint slides

forChapter 3

Research Methodsand Design:

Additional Inputs

Marketing Research

Tet and Cases

by

Rajendra Nargundkar

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!ources of !econdar" Data

There are two major sources of secondary data

.Internal#$ternal

Internal records in the company comprise information

about the product being researched its history company

background and history market share and competitor

information. These types of information are usuallymaintained by the marketing department sales

department or a corporate cell for marketing intelligence

in the company.!


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"#ternal information sources includesyndicated reports such as retail salesdata or market share data or industry

analyses. $ome of this information maybe a%ailable from public sources such asbusiness newspapers maga&inesindustry associations or trade bodies orthe net.

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( prominent source of data on Indian industryis the )*I" or )entre for *onitoring Indian"conomy which publishes monthly reports on%arious aspects of the Indian economy and

industry. The +indu a prominent dailynewspaper publishes an annual $ur%ey ofIndian Industry which is a low,priced anduseful compilation which deals with industrial

goods infrastructure and core industriesconsumer durables- growth prospects and pastperformance.


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$yndicated research studies such as the NR$ /National

Readership $ur%ey0 or IR$ /Indian Readership $ur%ey0

are rich sources of data a%ailable to any subscriber or

buyer. These studies co%er a large national sample and

measure the readership of newspapers and maga&ines in

great detail. They also co%er demographics and

consumption patterns of household consumer goods.

The (udit ureau of )irculation /()0 is an

autonomous body which certifies the circulation of

newspapers and maga&ines. The Indian Newspapers

$ociety /IN$0 also publishes a handbook e%ery year with

circulation readership and ad%ertisement tariffs for

%arious print media in the country.

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There are se%eral computer,based data

sources which pro%ide on a sale and

subscription basis updated information on

financial and sales data on all publicly listedcompanies. Now some of this data is

a%ailable on the internet particularly industry

analyses.

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Creating a Mechanism for %athering !econdar" Data

The most useful way to gather rele%ant secondary data on

a gi%en industry is to ha%e a cell within the company to

monitor and keep cuttings from business maga&ines such

as (d%ertising and *arketing usiness India usinessToday and usiness 4orld.

This can be supplemented by newspaper reports from The

"conomic Times usiness 5ine or other business dailies.

6%er a period of a few years this method ensures that wecan easily look back and get a perspecti%e on our brands

industry competitors etc.

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This also creates reference material for new

employees or trainees who are hired to do

their internship or summer projects in the

company. It is now possible to keepelectronic clippings from the websites of

many of these newspapers and maga&ines.

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The marketing research agency can also use

this gathered material as background

information and 9uickly launch intodesigning and conducting the primary

research based on what is known.

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Disad&antages of !econdar" Data

+a%ing looked at its ad%antages it is also necessary to keep

in mind some disad%antages of secondary data.

.It may be outdated. 4e may ha%e cuttings which are !

years old about consumer preferences and these may ha%e

changed o%er time.

.It may be done for a different purpose and therefore be

slanted or biased. It is important to note who has collectedthe data and for what purpose before making a judgement

on its usefulness.

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The sample or the methodology may be different

from or unrepresentati%e of the target population

we are studying.


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In spite of some ob%ious limitations many types of

secondary data ser%e the useful purposes of

'etter prepared primar" researchers!er&ing as a cross check for other secondar" data

Pro&oking thinking a(out methodolog" and its

impact on results of research

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=sed judiciously secondary research is anappropriate starting point for any marketing

research project mainly because it is much

less e#pensi%e than primary research.

In the age of the internet it is worthwhile to

at least download and look at what is a%ailable

on the product and industry before %enturingout into the field for doing primary research.

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$plorator" Research

"#ploratory research usually does not directly lead tomarketing decisions being made. )onclusi%e research doeslead to major marketing decisions being taken.

"#ploratory research may be undertaken for knowing alittle more about the problem or the consumer or the way9uestions should be formulated which factors should beincluded in the study or in general to help design a

follow,up >conclusi%e? research study. (s the nameindicates a study which seeks to e#plore any of thesesubjects is called an "#ploratory $tudy.

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(n e#ploratory study may not use as rigorous amethodology as is used in conclusi%e studies and

sample si&es may be smaller.

6ne of the reasons for conducting an e#ploratorystudy is that we do not know enough to e%en

formulate a >conclusi%e? study. ut if a study isdesignated as e#ploratory and treated as such itmust be followed up by another one before anymajor conclusions or inferences can be drawn.

There is no separate methodology for doinge#ploratory studies. The same process andmethodologies that are a%ailable for regular

research are also used in e#ploratory studies. 12


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Conclusi&e Research

)onclusi%e research as the name indicates seeks to

draw conclusions about effects of marketing or

consumer %ariables on other %ariables like sales or

consumer preferences. This is usually done through a

proper research methodology rigorously designed

sampling plans and field work and appropriateanalytical techni9ues.

)onclusi%e research may follow e#ploratory research in

cases where the area of in%estigation is new. If the fieldof in%estigation is not new it may be a routine acti%ity

repeated e%ery year or half,year or 9uarter as per the

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)onclusi%e research is more likely to use

statistical tests ad%anced analytical techni9ues

and larger sample si&es compared with

e#ploratory studies.

)onclusi%e research is also more likely to use

9uantitati%e rather than 9ualitati%e techni9ues.

This does not mean that 9uantitati%e techni9ues

are necessarily better but it is a fact they are

more easily understood by the sponsors of mostmarketing research.

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Ma)or *ualitati&e Research Techni+ues

In addition to the well,known 9uantitati%e

techni9ues such as the sur%ey many 9ualitati%e

techni9ues are used for %arious purposes by

marketing researchers. 4e will look at three ofthem in some detail. These are

.Depth Inter&iew

#,ocus %roup#Pro)ecti&e Techni+ues

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Depth Inter&iew

This is an unstructured and longish inter%iew on the gi%en

subject. *ost 9uestions are open,ended and ask foropinions anecdotes feelings about products occasions ofuse and so on. The discussion is rich in personal detailwhich is indi%idualistic.

)ompared to a regular structured inter%iew a depthinter%iew has only minimal instructions for the inter%iewerand the respondent is free to respond in any way he likes

not constrained to a set of multiple responses orpredetermined categories. ut it could also be moredifficult for the same reason for both the inter%iewer andthe inter%iewee.

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The e#pectation of the respondent from a

regular sur%ey is easy to answer non,intrusi%e9uestions which do not probe too far. It isdifferent with depth inter%iews. "%ery selectedrespondent may not feel comfortable being

open with a stranger inter%iewing him and thismay hinder the process. The inter%iewer alsomust ha%e the re9uired training to make afocussed but unstructured con%ersation o%er a

period as long as an hour or more.

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(n e#ample of a depth inter%iew would be to tryand probe the feelings of a car owner about hiscar what it means to him how he feels when he

is dri%ing it who generally he takes out with himor who else he allows to dri%e it how hepercei%es other people who dri%e the same brandand other brands or models why he would orwould not consider other brands etc.

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To define it a depth inter%iew could be called a

process of probing for the feelings associations

reasons for beha%iour of a consumer of a productcategory or brand through a mostly unstructured

inter%iew consisting of a lot of open,ended

9uestions by a trained inter%iewer.

5ike many 9ualitati%e techni9ues a depth inter%iew

tends to be subjecti%e rather than objecti%e and

therefore difficult to interpret. ut it is capable of

re%ealing much more about the underlying thought

processes and feelings of a consumer about the

product or ser%ice being researched compared with

traditional structured inter%iews. !!


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,ocus %roup

This is essentially a group discussion on a gi%en subjectconducted by a trained moderator. The purpose of this is tocreate a less than formal situation where people cane#change %iews bringing out their opinions attitudesfeelings about the gi%en subject.

To bring out a fruitful discussion the subject has to becarefully thought out and moderated if it %eers away fromthe gi%en subject. The participants ha%e to be called to the%enue and a system of %ideo or audio recording should beused to record the discussion for later analysis. Themoderator and the >analyser? of a focus group can bedifferent persons.

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The sample is selected as usual from a targetpopulation which is specified by the needs ofthe study. =sually a group consists of about 3,1; persons. The length of the discussion can

be about an hour to an hour and a half or untilthe group has nothing left to add.

This techni9ue is used fre9uently to check outopinions about new concepts before a productis launched and in general as an e#ploratoryresearch tool. It is sometimes also used for

conclusi%e research or in combination with asur%ey as a cross,check for the importantfindings from the sur%ey.

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Pro)ecti&e Techni+ues

There are many different techni9ues which can be

called >projecti%e?.

6ne popular method is to show a respondent apicture and ask him to describe the persons or

objects in the picture. ( particular product or brand

can be shown being used or displayed and the

respondent can be asked to guess the type of

consumer who would use the product shown.

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This is essentially a techni9ue which seeks to getindirectly at the underlying moti%ations

attitudes or emotions of the respondent which

he would not re%eal under direct 9uestioning.

This method of 9uestioning o%ercomes some

common inhibitions of respondents such as the

wish to gi%e socially desirable responses or

gi%ing answers >acceptable? to the inter%iewer.

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Word Associations

(nother %ariation of projecti%e techni9ues is to ask

respondents to associate brands with one word , a

person a celebrity or an animal which they

associate with the brand. Interpretation of such

association is best left to a psychologist or a

researcher with a psychoanalytical background and

e#perience.

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!entence Completion

(nother type of projecti%e techni9ue is to gi%e

an incomplete sentence to the respondent and

askihim to complete it. @eople

who use rand coffee tend to be AAA.?

This method is similar to word associations

and may result in surprising or une#pected

associations. It is e9ually difficult to interpret

and needs a trained hand to do it.

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Indirect methods such as projecti%e

techni9ues ha%e pro%ed themsel%es

useful in many classic research

situations where direct methods pro%ed

unsatisfactory.

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-alidit" of Research

5et us assume that we changed the price of a Bbrand of

pen and its sales were affected in the following week.

)an we conclude that the price change was responsible

for the change in its salesC

4e cannot be really sure unless we know what else

remained the same and what else changed during the

period.

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(n e#periment could be designed to draw a

D%alidD conclusion that price was a major causeof change in sales. Ealidity of a result refers to

it generalisability and its robustness.

Is the result of an e#periment occurring merelyby chance or is it due to the inter%ention of

some %ariables we ha%e no data on or is it a

%alid relationship between the %ariables under

studyC

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To obtain a reasonably %alid result a

researcher must be aware of all likely %ariables

/assume these are a b and c0 affecting the

%ariables being studied /let us assume these are@rice and $ales0 be able to control or keep

constant a b and c and %ary the independent

%ariable /price0 to find its impact on the

dependent /sales0.

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$periments

"#periments can be conducted with %arying designs

and %arying amounts of controls or rigour. 5aboratory

e#periments typically ha%e the best controls and field

e#periments ha%e the least.

$imulations done on a computer can control any

%ariable which may not be possible when we deal

with human beings in a contri%ed setting in an

e#periment designed to measure the effect of pricepackaging and promotion on sales.

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+uman or psychological factors such as the

effect of brand name ambience of the

simulated store etc. may affect humanrespondents participating in an e#periment.

Test Marketing is the name used for a

class of controlled e#periments in marketingresearch. Its objecti%e is to predict sales

/either absolute in terms of units or relati%e

in terms of market share0 based on changes

in marketing %ariables such as pricedistribution promotion ad%ertising etc.

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Disad&antages of Test Marketing

(lthough a good method for testing the product in alimited geographical area /one city or one region0

before going for a national launch test marketing can

ha%e a few problems.


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(nother disad%antage that when you are testmarketing your competitors become aware ofyour product design and may counter yourefforts by introducing a similar product before

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There ha%e also been allegations of an outrightsabotage of test markets by competitors.


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!TM

$ome of these disad%antages along with long lead

times ha%e encouraged marketers to use $imulated Test

*arketing /$T*0.

In a simulated test market for


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Non,purchasers of the sponsorGs brand

are gi%en free samples. (fter a use

period the users are inter%iewed to

gauge reactions and repeat purchase

intention.

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( computer model is then used to predict real

world market share and penetration based onsimulated data on many market and product

%ariables. ( few years ago *ahindra and

*ahindra the multi,utility %ehicle manufacturer

did a $imulated Test *arketing e#ercise for theirnew brand called (R*(H(.

"#perimental designs are discussed in greater

detail with numerical e#amples in the chapter

titled (N6E( in @art ! of the book.

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