Methods/Techniques of Marketing Research

1. Desk Research2. Field Research3. Observation Method4. Experimental Method

Basic Types of Marketing Research

Primary and Secondary Research

This is the most fundamental division of research practices. Primary research refers to original or custom research - gathering information from original sources. It is usually proprietary to a client and not made available to the marketplace.

Secondary research involves the compiling of information from existing or published sources. These sources can be internal or external. Internal would be your customer databases, historical files, etc. External would involve searches for published information. Typical sources include newspapers, trade publications, associations, industry reports, and of course, the Internet.

Primary research is basically divided into these two categories. In essence, qualitative research addresses emotional issues, while quantitative is based more on reason or logic.

 

Quantitative and Qualitative Research

Qualitative research methods strive to understand how people feel or to tap their creative juices. Quantitative techniques are applied to generate meaningful metrics that clearly define the magnitude of a response. For example, qualitative research would uncover how people feel about an issue, whereas quantitative research would measure how strongly they feel about it.

When planning a study or defining its objectives, the consultant must first determine which approach is best suited - qualitative or quantitative. Sometimes only one will suffice, and other times, both are needed. Once determined, the most appropriate methodology needs to be chosen.  

Qualitative Methods Quantitative Methods Focus groups (ideal size 4-6 people) Telephone interviews, Mini groups (fewer people or shorter duration) Self administered mail surveys, One-on-one in-depth personal interviews, Online sources - via email or websites, Paired in-depth interviews, Electronic surveys etc.

(1) Desk Research1) External Sources: Trade journals Directories Subscription Various publications Company report Special libraries Government publications2) Internal sources Periodic statement Past research report Files and documents Company correspondence

(2) Field research (survey method)1. Mail survey2. Telephone survey3. Personal interview Structured interview Unstructured interview Focused group interview Depth interview4. Consumer panel/panel research Purchase panel Audience panel Attitude panel Dealer panel Product testing panel Retail panel

(3) Observation method “accurate watching and noting of

phenomena, as they occur in nature with regards to cause and effect or mutual relation.”

Methods:1. Simple direct2. Structured observation3. Mechanical observation4. Indirect observation5. Unstructured observation6. Manual observation7. Disguise/covert observation

(4) Experimental method “ a process where events occur in a

setting at discretion or option of the researcher and controls are used to identify the response.”

Special form of survey/ method Controlled condition1. Field setting (market place)2. Laboratory setting (theatre test,

dummy magazine)

Marketing Research process

1. Identify research problem2. Conducting preliminary survey3. Determining research objective4. Creating research design5. Determining data needs6. Designing samples7. Designing questionnaire8. Selecting field staff9. Data collection10. Data processing11. Data analysis/ interpretation12. Preparing research report13. Submission of research report

Research Design

“…the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and the control variance…”

Research Approaches

1. Qualitative research using small samples where

the results are not generalized to the population from which samples are draw)

Helpful in…testing response to advertising message and concepts

Analyzing response to products and features

Exploring what issues to be tested during quantitative research

(2) Quantitative:

Research using a large, randomly selected sample where results are generalized to the population

Helpful in… Measuring market size Determining people attitude/ behavior Measuring size of market segments Demand for a new product

Data collection approach

1) Secondary Data : Internal and External data

2) Survey Data: phone interview, mail interview, personal interview, computer or internet interview

3) Experimental data: Laboratory experiments, field experiments, continuous research

Measurement techniques

Questionnaire Attitude scales Observation Depth interview or projective

techniques

Attitude scales Rating scales Composite scales Perceptual maps Conjoint analysis Examples:

1.simple attitude scale 2.catagory scale 3.Likert scale 4. semantic differential scale 5. graphic rating scale 6. monodic raring scale

1. Simple Attitude scale: it is most basic form, attitude scaling requires that an individual agree with a statement or respond to a single question . This type of self rating scale merely classifies respondents into one of two categories: agree or disagree

2 category scales: a category scale is a more sensitive measure than a scale having only two response categories – it provides more information. For example: the options are

….important, more important , most important. 3. likert scale: an extremely popular means for

measuring attitudes. Respondents indicates their own attitudes by checking how strongly they agree or disagree with statement..response alternatives are:….strongly agree, agree, neutral, disagree and strongly disagree.

4. Semantic Differential Scale: A series of seven point bipolar rating scale. Bipolar adjectives like ‘good’ and ‘bad’ anchor both ends of the scale. A weight is assigned to each position on the rating scale. Traditionally scores are 7,6,5,4,3,2,1 or +3, +2,+1, 0 -1, -2, -3.

5. Graphic rating scale: stresses on pictorial visual communication e.g. the use of smilies to suggest ‘very good’, ‘poor’, ‘very poor’.

6. Monadic Rating Scale: it asks about a single concept. E.g. “ Now that you have your car for 1 year, please tell us how satisfied you are with its engine power and pickup?”

7. A Comparative rating Scale: it asks respondents to rate a concept by comparing it with a benchmark.. E.g. ‘please tell us how the amount of authority in your new job u r getting with the amount of authority that would be ideal for this kind of a job.”

Types of research designs 1) Exploratory R.D.: to explore and evaluate

new concepts and ideas 2) Descriptive R.D. : to answer the questions

like what, why, when, where, how… (i) Cross sectional R.D.- single point of time.

E.g. field study or survey (ii) Longitudinal R.D. – Panel method. E.g. TRP,

series of interviews 3)Casual R.D. – depicts cause/effect of

variables. E.g price v/s. mkt. demand

Report writing Title Acknowledgement Introduction Statement of purpose Research purpose Statement of hypothesis Assumptions Research design and process Source of data Sampling Datacollection Analysis Findings conclusion

Sampling process 1) Determining sampling population 2) Determining sampling frame 3) Determine sample unit 4) determine sampling method

A) Probability sampling- simple random sampling stratified random sampling cluster sampling systematic random sampling area sampling

B) Non probability sampling- convenience sampling judgmental sampling quota sampling Data collection sampling snow ball sampling

•Data Collection Approach orResearch Technique

Research Approaches 1) Qualitative: research used in small

samples where the results are not generalized to the population from which samples are drawn.

Helpful in Testing response to advt. messages and

concepts Analyzing response to products and

features

2) Qualitative research: research using a large randomly selected samples where results are generalized to the population.

Helpful in Measuring market size Determining people’ attitude or behavior Measuring size of market segment

Product research

Philip Kotler; “ A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations or ideas.”

Characteristics of product research It is divided in two parts: technical aspects

of products and marketing aspects of product.

Necessary at production planning stage. Necessary for introduction of new product Modification in existing product Introduction of new product by competitor Pressure from environmental changes.

Areas covered under product research

Product modification Product innovation Current product research Pricing research Branding research packaging research Product life cycle research

Methods of conducting product research

1. staggered comparison test 2. paired comparison test 3. Non directive method

Packaging Research Deals with the needs and expectations of

consumers about the package ( size, shape, color, durability, material used)

Used for making package secured, attractive and agreeable to consumers.

Methods of packaging research: Package screen Package check Package test Custom/adhoc packaging Shelf impact Simulated display

1) Package Screen Screening of 10 to 20 alternative

package designs which are objectively analyzed and one is selected

Can be an internet based system 2) Package Check:

Based on diagnostic feedback Internet based system Respondent see just one package

design and answer series of questions

3) package Test: (finished or near finished designs) A comprehensive internet based

system Qualified respondents are only

selected to evaluate.4)custom/adhoc packaging:

Depth interviews are typically involved Package shown at a different time

intervals Each level package recognition and

communication examined

5) Shelf impact:To evaluate shelf impact when the

product is displayedTest package is rotated within the

display6) Simulated display (final test)

It should stimulate the trial of the product

Product is assembled with all competitive brands on display

Brand decision is done by the ‘shopping’

Importance of Packaging Research

Used for the safety of the product Convenience of the consumer Sales promotion Safety to quality Attraction to consumers To make the product agreeable to

consumers To introduce new and superior

packaging in the market time to time

Branding Research

Brand: “a name, term , symbol or design or a combination of them which is intended to identify the goods or services and to differentiate them from competitors.”

Its concerned with giving a name/symbol to a product for the purpose of marketing

Brand Strategy Choices

Line extension Brand extension Multiple Brands New Brands Brand image Research

Brand Image Research Contents of advertising Media used Personalities used Symbols Sponsoring of events Price Product Packaging Distribution company

Brand Equity Research

Brand loyalty Brand name awareness Perceived quality of brand Brand association Other proprietary brand assets

Advantages of branding research

Easy identifiction Advertising Build corporate image Market segmentation To know consumer preference

Pricing Research

It relates to the price and price fixation which is one important ‘P’ of the marketing mix

It is optimum Price-Product-Features configuration with context of market positioning

Concentrates on consumers’ sensitivity to pricing

Types of Branding Research

1. Brand character research2. Brand logo research3. Brand name research4. Brand association test5. Brand loyalty research

Approaches to Pricing Research Gabor – Granger

Technique: Named after the

economist who invented it

Consumers are given price and asked if they buy on that price

The price is changed and they are asked again whether they buy or not

Conjoint Analysis

it pinpoints price as an important attribute

Computed as the difference between the most preferred v/s the least preferred level of pricing

Slogan Testing A catchy sentence or phrase which is

easy to remember Used to create an impact of

repetition Gives identity to company or product Mainly used method is Triple

Association Test.e.g. the respondent is asked about USP of the advt.

“which shampoo says ‘Dho Dala…’ Which car says,’Let’s go…’

Copy Research

A methodology for measuring copy effectiveness

Can be done as pre test or a post test

Major parameters are1. Concept testing2. Name testing3. Slogan testing

Concept testing (concept evaluation, positioning, pre/post testing)

One of the most important features of creative strategy

Widely used methods are qualitative interviews, free association test, various statement comparison test etc.

Types of possible concept tests:1. Card concept test2. Poster test3. Layout test

Focus groups, depth interviews and projective techniques are commonly used qualitative techniques.

Focus group A moderator leads a group through

an open, in-depth discussion rather than simply asking questions to solicit participant response.

The group of 8 or 14 participants is stimulated by comments from other group members in developing new product ideas to fulfil a market need.

Copy Testing Methods and Measures An integral part of creative

development process It follows one or more advt.

objectives Usually conducted:1. After strategic positioning2. After qualitative research3. After current campaign no longer

builds awareness/image

Different Copy Testing Methods

1. Free Association Test2. Statement Comparison Test3. Absolute Comparison Test4. Direct Questionnaire 5. Direct Mail test6. Focus Group7. Motivation Research

1. Free Association Test

Used to pick up secondary association to test key word or name

Initial reactions are pragmatic but gradually show emotional ideas. E.g. Nirma started with soft drink similar to the popular brand RASNA, but could not succeed because of Nirma’s name association with detergent

2. Statement Comparison Test3. Absolute Comparison Test

Used to test various concepts on small group

Doesn’t follow any standard process Personal interviews, group interviews

and focus groups are equally used Sample size typically ranges from 50

to 200 In absolute comparison each concept

is tested against absolute standards

4. Direct Questionnaire Very important measure of any copy

research Either the whole advt or different

elements are tested by asking direct questions to the group of consumer jury

Alternative advt may also be tested Sometimes a series of questionnaire is

also used

5. Direct Mail Test

Two or more advt are mailed to different potential customers

Sample orders are booked on these basis

Prospects of mailing are randomly selected

Can be conducted in more than rounds

6. Focus Group

Definition: “ limited to those situations where the assembled group is small enough to permit genuine discussion amongst all members.”

Very specific questions are asked Used to stimulate new ideas It should represent different user

group with varied interest

Pre- Testing Methods Pre testing of finished ads is very

popular in advt research At this stage, a finished ad or

commercial is used and as it has not been presented to the market, changes can still be made

Methods of pre testing

1.Print advt.1. Direct questioning2. Focus group3. Portfolio test4. Paired comparison

test5. Order-of-merit test6. Mock magazine

test7. Direct mail test

2.T.V. and Radio advt.

1. Central location test

2. Clutter test3. Trailer test4. Live telecast test5. Sales experiment

3 Physiological Testing

1. Pupil metric test2. Eye movement camera3. Galvanic skin response4. Voice pitch analysis5. Brain pattern analysis6. Hemisphere Lateralization

Challenges of Pre Testing (Halo Effect)

‘Halo Effect’ is a person’s perception of another which is influence by their appearance

E.g. a person is assumed to be smart when he/she uses spectacles or good looking school children are considered to be well behaved

In marketing , a halo effect is one where the perceived positive features of a particular item extend to a broader brand. E.g. how the iPod has positive effects on perceptions of Apple Computer’s other products