Download - Lecture 3 Notes - Marketing Research
MMKTGKTG 2100: 2100: pagepage 11Lecturer: Dr Doreen KumLecturer: Dr Doreen Kum
MKTG 2100Principles of Marketing
Lecture 3Information Management & Marketing Research
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The Main Role
The main role of market research
is to provide information
This allows better
decisions to be made
INFOINFO
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The Importance of Information
WhyInformationis Needed
MarketingMarketingEnvironmentEnvironment
StrategicStrategicPlanningPlanning
CustomerCustomer NeedsNeeds
CompetitionCompetition
Helps VALUE
CREATION!
Identify opportunities & problems
Generate & evaluate marketing actions
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Marketing Research’s Central Role
(Malhotra (Malhotra et alet al, 2006, Fig 1.2, p. 9), 2006, Fig 1.2, p. 9)
MR links the consumer, customer & public to the
marketer through
information
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= a marketer’s eyes & ears
Uses of MR New product development Consumer trends Testing of advertising messages Choice of brand names Price setting To forecast sales …
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TEST SCREENINGS: LISTENING TO CONSUMERS TO REDUCE MOVIE
RISKS
Test screenings Tracking studies
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Marketing research questions asked in test screenings of movies, and
how they are used
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The Marketing Information System (MIS) A marketing information system (MIS) consists of
people, equipment, and procedures… …to gather, sort, analyse, evaluate and distribute… …needed, timely and accurate information to marketing
decision makers. MIS distributes information to managers…
in the right form and at the right time to help them make better marketing
decisions Begins and ends with Marketing Managers Is not the same as Marketing Research
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Marketing Marketing ManagersManagers
AnalysisAnalysis
PlanningPlanning
Implemen-Implemen-tationtation
OrganisationOrganisation
ControlControl
AssessingAssessinginformationinformation
needsneeds
DistributingDistributinginformationinformation
InternalInternalreportsreports
MarketingMarketingdecisiondecisionsupportsupportanalysisanalysis
MarketingMarketingintelligenceintelligence
MarketingMarketingresearchresearch
Marketing Marketing EnvironmentEnvironment
TargetTargetmarketsmarkets
MarketingMarketingchannelschannels
CompetitorsCompetitors
PublicsPublics
Macro-Macro-environmentenvironment
forcesforces
Marketing Decisions and CommunicationsMarketing Decisions and Communications
The Marketing Information System
Developing Information
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Marketing Information System
1.Assessing Information Needs2.Developing Information3. Information Analysis4.Distributing Information
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1. Assessing Information Needs
Info needs differ according to current problems
(Kotler (Kotler et alet al, 2006, Fig 4.2, p. 116), 2006, Fig 4.2, p. 116)
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2. Developing Information
Differentiate between the three sources of information1. Internal Records2. Marketing Intelligence3. Marketing Research (see notes on
“The Marketing Research Process”)
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i. Internal Records
Information gathered from sources within the company to evaluated marketing performance and detect marketing problems and opportunities.
Internal records can be obtained more quickly and cheaply than other information but may be incomplete or in the wrong form for making marketing decisions.
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ii. Marketing Intelligence (MI) Everyday information about developments in the
marketing environment that helps managers prepare and adjust marketing plans.
MI is important and can be gathered from many sources including the organisation’s own personnel.
Personnel are often busy and fail to pass on important information unless there is a formal process for doing so.
The organisation needs important intelligence from suppliers, resellers and customers.
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iii. Marketing Research
The function that links the consumer, customer and public to the marketer through information used to: identify and define marketing opportunities
and problems generate, refine and evaluate marketing
actions monitor marketing performance improve understanding of the marketing
process
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3. Information AnalysisExamples of questions : What are the major variables affecting my sales
and how important is each one? What are the best variables for segmenting my
market, and how many segments exist? What are the best predictors of which
consumers are likely to buy my brand vs my competitor’s?
If I raised my price 10% and increasedadvertising expenditures 20%, what would happen to sales?
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4. Distributing information
Information must be distributed to the right managers at the right time
Centralised marketing information systems (MIS) often provide regular performance reports, intelligence updates, and study reports to managers
Developments in technology have caused a revolution in information distribution
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The Marketing Research Process This process includes:
Specifying what information is required
Designing methods for collecting information
Managing & implementing data collection
Analysing the results Communicating findings
& their implications
1. Defining theProblem & Research Objectives
2. Developing theResearch Plan
3. Implementing theResearch Plan
4. Interpreting andReporting the Findings
(Kotler (Kotler et alet al, 2006, Fig 4.3, p. 122), 2006, Fig 4.3, p. 122)
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Stages of the Research Process
Zikmund, W. G. 2000. Exploring Marketing Research 7th edition.
and so on
Development of an Approach to the Problem
Research Design
Sampling
Data Gathering
Data Processingand Analysis
Conclusions and Report
Discovery andDefinition
Problem Discovery
and Definition
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1. Defining the Problem Accurately and adequately defining the
management problem is the single most important task in the MR process
It is the problem confronting management Asks what the decision maker needs to do Also called research purpose or aim
Without this, money & effort will be wasted The challenge: may be difficult
Manager may know there is a problem without knowing or understanding the cause
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Issues in Defining the Problem Identify the real problem Identify what information is needed
E.g., Fab One Shot Don’t confuse the symptoms with problems
Decline in sales? Lead to asking wrong questions
Develop a list of possible problem areas, analyze situation (e.g., talk to informed people, secondary data) and narrow in What else is needed?
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The first step in the marketing research process is the:
A. development of the research planB. survey of stakeholders to determine if
problems existC. decision regarding the research tools and
target groupD. collection of the available sources for
needed information E. definition of the problem and research
objectives
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2. Developing the research plan; the research design Determining specific information needs
– what do we need to know? Breaking the problem down into specific
questions. E.g., How would consumers react to
Oats in microwaveable bowl? What questions do we need to ask to
determine this?
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Developing the Research Plan First we look at information readily available (secondary
data): Internal sources Government publications Periodicals and books Commercial data
This may be for the purpose of further refinement of the research problem,
Or to access information relevant to the solution to the problem.
If we then require new information, then we collect primary data
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Decide When MR is Warranted
MR may not be needed:
Information already available
Not enough time Resources inadequate Costs outweigh
value
MR may be needed: Results directly affect
your product/service Identifies correct
alternative Gives you competitive
advantage Keeps you abreast of
the market
Research is a cost and a budget is a must Value of MR: does the MR contribute
towards a better decision? Is it really needed?
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Secondary vs Primary Data
For Secondary Data Relevant? Accurate? Current? Impartial?
For Primary Data Research Approach Research Instruments Sampling Plan Contact Methods (garbage in, garbage out)
Primary data consist of information collected for the specific purpose at hand It costs time and money to collect You only do if secondary research has
no answers
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Comparing Primary & Secondary Data
Primary Data Secondary Data
Collection purpose
Collection process
Collection cost
Collection time
For the problem at hand
Very involved
High
Long
For other problems
Rapid and easy
Relatively low
Short(Malhotra (Malhotra et alet al, 2006, Table 5.1, p. , 2006, Table 5.1, p.
138)138)
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A Classification of Marketing Research Designs
ResearchDesigns
Exploratory
Descriptive
Causal
Conclusive
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Three Types of Research Designs Exploratory Research
to understand...develop hypotheses…why? e.g. What is the cause of customer dissatisfaction?
observation, interviews, focus groups Descriptive Research
to measure the state…what is...? e.g. describe market characteristics or functions
surveys, observation Causal Research
to test hypotheses e.g. establishing cause & effect
experiments
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Objective:
Characteristics:
Methods:
Discovery of ideas and insights
Flexible, versatile
Often the front end of total research design
Expert surveysPilot surveysSecondary dataQualitative research
Describe market characteristics or functions
Marked by the prior formulationof specific hypotheses
Preplanned and structured design
Secondary dataSurveysPanelsObservation and other data
Determine cause and effect relationships
Manipulation of one or more independent variables
Control of other mediating variables
Experiments
Exploratory Descriptive Causal
A Comparison of Basic Research Designs
(Malhotra (Malhotra et alet al, 2006, , 2006, Table 4.6, p. 115)Table 4.6, p. 115)
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Data Collection Methods
Observational research Mechanical
People metres Checkout scanners
Single-source data systems
Eye cameras Video
Personal Mystery shoppers
Survey research Structured Unstructured
Indirect approach Direct approach
Question type Closed-ended Open-ended
Experimental research
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Research Instruments
Research Instruments Questionnaire
Closed-end questions Open-end questions
Mechanical devices Galvanometer Tachistoscope Eye cameras
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Mechanical research instruments
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Surv
ey T
ypes
The main ways of administering surveys:(Malhotra (Malhotra et alet al, 2006, Fig 8.2, p. 250), 2006, Fig 8.2, p. 250)
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Advantages & Disadvantages
(Kotler (Kotler et alet al, 2006, Table 4.4, p. 132), 2006, Table 4.4, p. 132)
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Sampling: Definitions
Sample Subset or some part of a larger group of
objects Population
Any complete group that share some common set of characteristics
e.g. restaurants in Singapore, Universities in Australia
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Sampling Techniques Probability Samples
Simple Random Sample Stratified Random Sample Cluster Sample
Non-Probability Samples Convenience Sample Judgment Sample Quota Sample
See Table 4.5 for a summary
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Presenting the Research PlanSummarise the plan in a written proposal:Management problems addressedResearch objectivesInformation to be obtainedSources of secondary dataMethods for collecting primary dataHow the results will help management decision makingResearch costs
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Implementing the Research Plan Putting the plan into action
involves collecting processing & analysing
the information
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Interpreting & Reporting FindingsResults without interpretation are meaningless! Both researchers and managers are responsible for interpretationsInsignificant or unexpected findings are just as important as those supporting expectations
guard against biased interpretations do not reject findings that are not as hoped
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Market Research in Small Businesses (SMEs), & Non-Profit Organisations (NPOs) MR is also for SMEs & NPOs, not just large firms
MR can also be done on a small budget SMEs often use less formal approaches
Managers can conduct informal surveys using small convenience samples
Can obtain good marketing information simply by observing things around them Common technique for SME retailers
Employees a good source of customer info Can also conduct their own simple experiments Small organisations can obtain most of the secondary
data available to large businesses
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Summary1. Marketing research provides information about
consumers, businesses, competitors, changes and trends in the marketplace, and other aspects of the firm’s external environment.
2. A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely and accurate information to marketing decision makers.
3. Steps in MR process are: problem definition, research plan,
implementation, interpretation
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Summary4. Types of research designs may be classified as
exploratory - provides insights into problems. descriptive - describes market characteristics and requires
specification of who, what, when, where, why, and way of the research
causal - determines cause and effect.5. Surveys (structured and unstructured), observations and
experiments are the main data collection techniques used in MR.6. Sampling methods include probability and non-probability
techniques which are directly related to the type of research.7. Key issues in a research plan:
Research objectives, secondary information, primary data collection methods, and costs
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Lecture 3 Objectives1. Explain the concept of the marketing information
system, emphasising: ways of assessing information needs, the sources used for developing information and
ways of distributing information.2. Outline the marketing research process, including
defining the problem and research objectives and developing the research plan.
3. Discuss the key issues of: planning primary data collection, implementing the research plan and interpreting and reporting the findings.