4 mktg research
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mktg researchTRANSCRIPT
CONCEPTS IN MARKETING
Marketing Research
Consumers are full of surprises and finding them out can be awfully tough. If Coca Cola can make a large
marketing research mistake, any company can.
The case of New Coke
SEARCH FOR INFORMATION
In order to produce superior value and satisfaction for customers, companies need information at almost every turn. Companies need information on competitors, resellers
and other forces in the market place.
SEARCH FOR INFORMATION
Factors which have had a catalytic effect on the involved parties in the exchange process, necessitating the search for information:
• Acceleration in the globalization of goods & services• Rapid rate of technological innovation• Fragmentation of markets• A population of consumers—better educated, more
discriminating purchase habits, higher expectations• Increasing speed with which information is being
transmitted & goods delivered
The Consumer Information Model
Consumer
Demographics
Purchasingbehavior
MediaPreferences
WantsLifestyleNeeds
RespondsTo surveys
AnswersThe Census
WatchesReads & Listens
SpendsMoney
THE MARKETING TASK
In today’s complex and rapidly changing environment, marketing managers need more and better information to
make effective and timely decisions.
TASK: Identify the information needs and design information systems to meet those needs
MARKETING INFORMATION SYSTEMS
People, equipment and procedures to
- gather,
- sort,
- analyze,
- evaluate and
- distribute
needed, timely and accurate information to marketing decision makers
The Marketing Information System
Marketing ManagersAnalysis Planning Implementation Organization Control
Marketing Information System
AssessingInformation Needs
Distributing Information
Developing needed information
Internal InformationDatabases Analysis
Marketing Marketing Intelligence Research
Marketing Environment
Target Marketing Competitors Publics Macro EnvironMarkets Channels -ment forces
Demographics
Years
Age group2001 2006 2011 2016
0 – 14 366(35.6) 262(32.5) 355(29.7) 343(27.1)
15 – 59 598(58.2) 673(60.4) 747(62.5) 811(64)
60+ 65(6.3) 78(7) 94(7.9) 113(8.9)
Age distribution & projection of Indian population, in millions.
Statistical outline of India, 2003-04, Jan 2004, Tata Services Ltd.
Characteristics of population
• Size
• Distribution…age, sex, rural-urban
• Growth…absolute, sectors
• Profile & character…nuclear family, working women, youth, literacy, BPL
EDUCATION LEVEL
OCCUPATION
Illiterate School upto 4 yrs/lit but no formal education
Schooling
5-9 yrs
SSC/HSC Some college
but not graduate
Graduate/
post graduate, general
Graduate/ postgraduate
professional
Unskilled worker E2 E2 E1 D D D D
Skilled worker E2 E1 D C C B2 B2
Petty trader E2 D D C C B2 B2
Shop owner D D C B2 B1 A2 A2
Businessman/industrialist with nos. of employees….none
D C B2 B1 A2 A2 A1
Businessman/industrialist with nos. of employees….1-9
C B2 B2 B1 A2 A1 A1
Businessman/industrialist with nos. of employees….10+
B1 B1 A2 A2 A1 A1 A1
Self employed professional D D D B2 B1 A2 A1
Clerical/salesman D D D C B2 B1 B1
Supervisory level D D C C B2 B1 A2
Officer/Executive….. junior C C C B2 B1 A2 A2
Officer/Executive….. senior B1 B1 B1 B1 A2 A1 A1
Socio-Economic classificationBased on education & occupation of the chief wage earner
3 STEP PROCESS
• Assessing Information Needs– Balance between what a manager would like, against what he really
needs and what is feasible– Co must decide whether benefits of additional information is worth the
cost…information’s worth comes from it’s use.• Developing Information
Sources of information are - Internal data…Information through functional departments & sales staff- Marketing Intelligence…Informal collection of information through Staff, Suppliers, Trade shows, Recruitment Ads. Govt Dept.- Marketing Research…Systematic design,collection, analysis & reporting
of data relevant to a specific marketing situation• Distributing Information
– Information gathered through MI & MR must be distributed to the right manager at the right time.
Marketing Research & Marketing Planning
• MR seeks information….re customer needs, product preferences and marketing environment
• MR determines fit…between company resources and customer needs
• MR assists in developing…the marketing mix to meet customer needs
• MR assess the level of satisfaction, post implementation
The Marketing Research Process
Define the Problem &Researchobjectives
Develop the Research planFor collectinginformation
Implement the Research plan-Collecting & Analyzing data
Interpreting& reportingThe findings
MR Process: Defining the Problem & Research Objectives
• Problem definition should neither be too narrow nor too broad… e.g when Coke introduced the New Coke in 1985, their research focused only on “taste” and not on the emotional attachment with the brand.
• The research objective should accordingly be drawn by the marketing manager along with the Research manager, in terms what they wish to achieve through the research.– E.g: to determine customer satisfaction with a brand of new
frost free refrigerators launched by our company.
Developing the Research Methodology
• Outline sources of data– Secondary data
• Internal• External
– Primary Research• Research Approach
– Observation– Descriptive– Exploratory– Focus group
• Research Instruments– Questionnaire– Mechanical instruments
• Sampling Plan– Sampling unit– Sample size– Sampling procedure
• Contact methods– Personal– Mail– Telephone– Online
Research Instrument
• Questionnaire Method– Closed ended questionnaires…answers are specific to the
questions asked & can cover a large spectrum of views/responses….facilitates easy interpretation & tabulation for statistical analysis & comparisons.
– Open ended questionnaires…allows a respondent to answer in his/her own words….used to elicit feelings/opinions towards a question…used more in exploratory research
• Mechanical Instruments– Peoples Meters…used for continuous monitoring e.g TV
viewer ship habits
Types of QuestionsA. Closed – End
Name Description Example
Dichotomous
A question with two possible answers
In arranging this trip, did you personally phone the travel agent?
Yes No
Multiple choice
A question with three or more answers
With whom are you traveling on this flight?
No one Children only
Spouse Bus. Associates/friends/relatives
Spouse and children An organized tour group
Likert scaleA statement with which the respondent shows the amount of agreement / disagreement
Small airlines generally give better service than large ones
Strongly disagree
DisagreeNeither agree nor disagree
AgreeStrongly
agree
1 2 3 4 5
Semantic differential
A scale connecting two bipolar words. The respondent selects the point that represents his or her opinion
Indian Airlines
Large ----------------------------------- Small
Experienced ----------------------------------- Inexperienced
Modern ----------------------------------- Old-fashioned
Types of Questions
A. Closed – End (contd…)
Name Description Example
Importance scale
A scale that rates the importance of some attribute.
Airline food service to me is
Extremely important
Very important
Somewhat important
Not very important
Not at all important
1 2 3 4 5
Rating scaleA scale that rates some attribute from “poor” to “excellent.”
Jet’s food service is
Excellent Very Good Good Fair Poor
1 2 3 4 5
Intention-to-buy scale
A scale that describes the respondent’s intention to buy
If in-flight merchandise were available on a flight, I would
Definitely buy
Probably buy
Not sureProbably not buy
Definitely not buy
1 2 3 4 5
Types of QuestionsB. Open – End Questions
Name Description Example
Completely unstructured
A question that respondents can answer in an almost unlimited number of ways
What is your opinion of Jet Airways?
Word association
Words are presented, one at a time, and respondents mention the first word that comes to mind
What is the first word that comes to your mind when you hear the following?
Airline ----------------------------------------------------
Jet ----------------------------------------------------
Travel ----------------------------------------------------
Sentence completion
An incomplete sentence is presented and respondents complete the sentence
When I choose an airline, the most important consideration in my decision is _____________________________________
Story completion
An incomplete story is presented, and respondents are asked to complete it.
“I flew Jet a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings …” Now complete the story.
Picture
A picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty balloon.
A blurb
Thematic Apperception Test (TAT)
A picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture
Designing a questionnaire
Some parameters to be kept in mind• Is the question necessary ( is the information required)• Will the respondent understand the question (is the wording
simple & clear)• Will the question elicit the required response(will the data be
factual)• Does the respondent have the necessary knowledge about the
subject to be able to respond (right segment)• Is the respondent willing & able to answer the question• Questions must be pre-tested, before implementation(on a sub
sample of the intended sample)• Questions should flow in a sequence ( to get respondent
involved; ask personal questions at the end)
Sampling Plan
Sample--- a segment of the population, selected for marketing research to represent the population as a whole
• Sampling Unit– Who is to be surveyed/target population– Determined by what kind of information is needed & who is likely to
have it
• Sample size– How many people should be surveyed– More heterogeneous the population, larger the sample size– Determined by cost & time relevance
• Sampling procedure– How should the respondents be chosen– Probability or non-probability sample
Data Collection
• The most critical aspect of MR—expensive and prone to errors• Data may be collected internally or by out sourcing to
specialized MR firms• Out sourcing is faster, more professional• Requires very close supervision to ensure smooth flow & error
free collection• Typical problems faced in data collection
– Respondent is not available(revisit/replace)
– Respondent refuses to respond or does not answer correctly/honestly
– Interviewer is biased/dishonest
Analyzing the information
• Put the data in order– Both secondary & primary data must be evaluated for accuracy and
completeness.
– Codify data based on the analytical tools to be used
– Tabulate data for analysis
• Analyze the data– Use of basic averages, measures of central tendency(mean,
median,mode), standard deviation
– Statistical methods & techniques
– Computer based models—SPSS
• Interpret the findings– Relate the findings to the objectives of research
– Not be an overload of figures & data but bring out implications
Potential sources of error
• Problem formulation---management identifies the wrong problem or defines it poorly
• Determining info needs & data sources---failure to identify the specific info needed or the source of obtaining the same
• Research design & questionnaire---ambiguous questions or poor experimental design resulting in invalid responses
• Sample design & size---selection of biased sample due to faulty design or inadequate representation
• Data collection---poor selection of respondents, interviewer bias, incomplete responses
• Tabulation & analysis---errors in tabulating raw data and use of relevant tools to interpret data
Caution in using MR
• MR is only a tool to be used for effective decision making• MR is not a guarantee to success—reduces the odds of making
an error; can improve chances of success• MR is not a Crystal Ball• The process of conducting MR is critical to the quality of
response• Should not be used to merely justify decisions• Is not the cure for all marketing problems• Statistical results can be deceptive---should be seen in the
context of the problem
10 most common uses for MR
• Determining market characteristics• Measurement of market potential• Market share analysis• Sales analysis…product, territory• Business trends• Short range forecasts• Competitive studies• Pricing studies• Testing new or existing products• Advertising…concept, content