Marketing Research & Marketing Research & Information SystemInformation System

Marketing Marketing Research (MR)Research (MR)• DefinitionDefinition• Scope of MRScope of MR• MR ProcessMR Process• Ethical Issues in Ethical Issues in

MRMR

Marketing Marketing Information SystemInformation System

• MKIS & MRMKIS & MR• Basic MKISBasic MKIS• Commercial Commercial

DatabasesDatabases• Database MarketingDatabase Marketing• MIS in Action MIS in Action Marketing Decision Marketing Decision

Support SystemSupport System Additional Reading: Bearden, Chp 3)

Marketing Research (M Marketing Research (M R) R)

Definition & ConceptDefinition & ConceptA By AMA:By AMA:

The Process that links the customer, consumer and theThe Process that links the customer, consumer and the

public through information. This information is used to:public through information. This information is used to: • Identify & define the marketing opportunitiesIdentify & define the marketing opportunities• Generate, refine and evaluate the marketing actionsGenerate, refine and evaluate the marketing actions• monitor the marketing performancemonitor the marketing performance• improve the understanding of marketing as a processimprove the understanding of marketing as a process

B By EvansBy Evans::

The systematic gathering, recording and analysing ofThe systematic gathering, recording and analysing of

information about specific information about specific issues (issues ( related to the related to the marketing ofmarketing of

goods, services, organisations, people, places and ideasgoods, services, organisations, people, places and ideas).).

Marketing Research (MR) Marketing Research (MR) (Cont.....)(Cont.....)

MR TasksMR Tasks• Specifies the information required to address the Specifies the information required to address the

issues;issues;• Designs the methods for collecting information;Designs the methods for collecting information;• Manages and implements the data collection process;Manages and implements the data collection process;• Analyses the results;Analyses the results;• Communicates the findings and implications .Communicates the findings and implications .

From the definition & concepts as wells as the tasks, From the definition & concepts as wells as the tasks, we could say that the emphasise of MR is the we could say that the emphasise of MR is the GENERATION of INFORMATION GENERATION of INFORMATION that assists inthat assists in MANAGERIAL DECISION MAKINGMANAGERIAL DECISION MAKING

MR: The RolesMR: The Roles

Professional Roles Professional Roles • Role of Consultant; Designer; Analyst; Role of Consultant; Designer; Analyst;

Information CommunicationInformation Communication Managerial RolesManagerial Roles

• In Planning - Guidance in DM and to In Planning - Guidance in DM and to allocate the use of resources more allocate the use of resources more effectively;effectively;

• Problem Solving;Problem Solving;• Control.Control.

Managerial Roles of MRManagerial Roles of MR

Planning: Planning: • What Kinds of People buy our What Kinds of People buy our

products, where do they live? products, where do they live? How much do they earn? How How much do they earn? How many of them are there?many of them are there?

• Are the markets for our Are the markets for our products increasing or products increasing or decreasing? Are there decreasing? Are there promising markets that we promising markets that we have not yet reached?have not yet reached?

• Are the channels of Are the channels of distribution for our products distribution for our products changing? Are new types of changing? Are new types of marketing institutions likely to marketing institutions likely to evolve?evolve?

Problem Solving:Problem Solving:• Product - Which of various product Product - Which of various product

designs is likely to be the most designs is likely to be the most successful? What kind of packaging successful? What kind of packaging should we use?should we use?

• Price - What price should we charge Price - What price should we charge for our products? As production costs for our products? As production costs decline, should we lower our prices or decline, should we lower our prices or try to develop higher quality try to develop higher quality products?products?

• Place - Where & By whom, should our Place - Where & By whom, should our product be sold? What kinds of product be sold? What kinds of incentives should we offer the trade incentives should we offer the trade to push our products?to push our products?

• Promotion - How much should we Promotion - How much should we spend on promotion? How should it spend on promotion? How should it be allocated to products and to be allocated to products and to geographic areas? What combination geographic areas? What combination of media should we use?of media should we use?

Managerial Roles of MR Managerial Roles of MR (Cont.....)(Cont.....)

Control:Control:• What is our market share overall? In each What is our market share overall? In each

geographic geographic area? By each customer type? area? By each customer type?

• Are customers satisfied with our products? How Are customers satisfied with our products? How is our record for service? Are there many returns?is our record for service? Are there many returns?

• How does the public perceive our company? How does the public perceive our company? What is our reputation with the trade?What is our reputation with the trade?

Marketing Research: The Marketing Research: The ScopeScope Industry & Market Characteristics & and Industry & Market Characteristics & and

Trends Trends - Customer satisfaction studies, advance technology & - Customer satisfaction studies, advance technology & single source data collection are among the growing trends.;single source data collection are among the growing trends.;

Market-Share Analysis;Market-Share Analysis; Demand Analysis;Demand Analysis; Concept Development and Testing;Concept Development and Testing; Product Satisfaction;Product Satisfaction; Advertising Effectiveness;Advertising Effectiveness; Competitive-Pricing Analysis.Competitive-Pricing Analysis.

MR: ProcessMR: Process

Issues & Problems Definition

Research Design

Implementation

Data Analysis

& Interpretation

Data Collection

Developments of Data

Collection Forms

Issues & Problems Issues & Problems DefinitionDefinition Problems of businessProblems of business

• Research problems need to be understand clearly Research problems need to be understand clearly by both, the managerial people as well as the by both, the managerial people as well as the researcherresearcher

• Differences between the way things should be and Differences between the way things should be and the way things arethe way things are

• Focusing the real problems not the symptoms, by Focusing the real problems not the symptoms, by anticipating how the information will be used.anticipating how the information will be used.

• A good problems definition directs the research A good problems definition directs the research process toward collecting and analysing appropriate process toward collecting and analysing appropriate information for the purpose of decision making.information for the purpose of decision making.

Issues & Problems Issues & Problems Definition (Cont.....)Definition (Cont.....)

Vague Research Vague Research Topic Topic (exploratory)(exploratory)• Why are sales Why are sales

decliningdeclining• Is advertising Is advertising

effective?effective?• Will a reduction Will a reduction

in price increase in price increase sales volume?sales volume?

Precise Research Precise Research Topic (Conclusive)Topic (Conclusive)• Why is turnover of Why is turnover of

sales personnel so sales personnel so high?high?

• Do adults recall an Do adults recall an advertisement the advertisement the day after it appears?day after it appears?

• Will a 10 % price Will a 10 % price reduction have a reduction have a significant impact on significant impact on sales?sales? If uncertain, then use

exploratory!!!!

Research DesignResearch Design

The strategies and plan of actions for The strategies and plan of actions for addressing the research problems and addressing the research problems and the data collection and data analysis the data collection and data analysis processprocess

Problem definition normally suggests the Problem definition normally suggests the approaches for determining the research approaches for determining the research design to use.design to use.

Research generally has three purposes:Research generally has three purposes:• Exploratory, Descriptive and causal. Exploratory, Descriptive and causal.

Research Design Research Design (cont.....)(cont.....)

Exploratory DesignsExploratory Designs• For betterFor better understanding, to understanding, to

develop preliminary develop preliminary background and suggest background and suggest issues for a more detailed issues for a more detailed follow-up studies follow-up studies

• Literature Reviews, Case Literature Reviews, Case Analysis, Interviews with Analysis, Interviews with knowledgeable persons, in-knowledgeable persons, in-depth interview, focus depth interview, focus groups.groups.

• E.g: Evaluation of new-E.g: Evaluation of new-product concepts, product concepts, environmental trend environmental trend analysis, identification of analysis, identification of product attribute importanceproduct attribute importance

Descriptive DesignsDescriptive Designs• A formal research questions or A formal research questions or

hypothesishypothesis• Cross-sectional surveys, panel Cross-sectional surveys, panel

studies, product movement studies, product movement surveys, store audits, surveys, store audits, telephone, mail, personal telephone, mail, personal interviews.interviews.

• E.g. Market potential, image E.g. Market potential, image studies, competitive studies, competitive positioning analysis, market positioning analysis, market characteristic examinationscharacteristic examinations

Research Design (cont...)Research Design (cont...)

Causal DesignCausal Design• To identify the cause & effect To identify the cause & effect

relationshipsrelationships• Experimental designs (lab & Field Studies)Experimental designs (lab & Field Studies)• Market testsMarket tests• E.g. Evaluation of alternative marketing E.g. Evaluation of alternative marketing

mix combination, (varying price levels, mix combination, (varying price levels, changing promotional appeals, changing promotional appeals, reallocations of saleforce efforts).reallocations of saleforce efforts).

Data CollectionData Collection

Primary Data Vs Secondary DataPrimary Data Vs Secondary Data• PD: Collected for specific purposesPD: Collected for specific purposes• SD: Already collected for some other purposesSD: Already collected for some other purposes

Data Collection methodsData Collection methods• Primary DataPrimary Data

– Survey (Mail, Telephone)Survey (Mail, Telephone)– Interviews (Mall Intercepts, Personal InterviewsInterviews (Mall Intercepts, Personal Interviews– Focus GroupFocus Group– Observation (personal & mechanical)Observation (personal & mechanical)

• Secondary Data Secondary Data Internal Data (company Records, MDSS Data)Internal Data (company Records, MDSS Data)– External Data (External Data (ProprietaryProprietary -Custom research, syndicated services) -Custom research, syndicated services)

((non-proprietary -non-proprietary - Published report, census data, periodicals) Published report, census data, periodicals)

Data Collection (Cont....)Data Collection (Cont....)

Data Collection InstrumentsData Collection Instruments• Survey or QuestionnaireSurvey or Questionnaire• Pre-test or Pilot test (on representative sample), Pre-test or Pilot test (on representative sample),

revise accordingly.revise accordingly.• Unambiguous, concise, unbiased questionsUnambiguous, concise, unbiased questions• Structured & Unstructured, semi-structuredStructured & Unstructured, semi-structured

• Questions:Questions: – Scale (likert agree - disagree, semantic differential e.g. Scale (likert agree - disagree, semantic differential e.g.

important - unimportant)important - unimportant)– Multichotomous (multiple choice)Multichotomous (multiple choice)– CategoricalCategorical– Open-endedOpen-ended

Developments of Data Developments of Data Collection FormsCollection Forms

Sampling: Decisions & Data collection IssuesSampling: Decisions & Data collection Issues

Basic Research Questions

Probability Versus

Non-probability sampling

Sample Size

Specification of

Sampling Frame

Data Collection: Sampling, Follow-up

& Verification

Time, Cost &

Precision Constraints

Developments of Data Developments of Data Collection Forms (cont.)Collection Forms (cont.)

Sampling: Requires analysis of selected people or Sampling: Requires analysis of selected people or objects in the designated population, rather than all of objects in the designated population, rather than all of them.them.

• Approaches:Approaches: – Probability (random, stratified, clustering)Probability (random, stratified, clustering)– Non-Probability. (non-probability for limited cost & Non-Probability. (non-probability for limited cost &

time)- Based on judgement & convenience. time)- Based on judgement & convenience.

• Sizes: large more accurate but costly, based on Sizes: large more accurate but costly, based on judgement: large enough to give the user judgement: large enough to give the user confidence in the resultsconfidence in the results..

• Frame: The outline of working description of the Frame: The outline of working description of the population used in sample selection.population used in sample selection.

Developments of Data Developments of Data Collection Forms (cont.)Collection Forms (cont.)

Field WorkField Work• The process of contacting The process of contacting

respondents, conducting interviews respondents, conducting interviews and completing surveys. and completing surveys.

Data Analysis & Data Analysis & InterpretationInterpretation

Techniques: Varies & determined at the design stage.Techniques: Varies & determined at the design stage.• Appropriate to the data collection method. Focus on the Appropriate to the data collection method. Focus on the

original problems and objectives of the research.original problems and objectives of the research.• Complex - multivariate statistical tests; Complex - multivariate statistical tests; • Straight forward frequency distributions, means and Straight forward frequency distributions, means and

percentages.percentages. Statistical differences typically look at group differences or Statistical differences typically look at group differences or

strength of association between marketing variables (e.g. strength of association between marketing variables (e.g. ads. & sales, prices & sales).ads. & sales, prices & sales). • Most frequently used : Most frequently used :

– Mean differences ( t-tests, analysis of variance)Mean differences ( t-tests, analysis of variance)– Correlation tests (Chi-Square cross classification tests, Correlation tests (Chi-Square cross classification tests,

Pearson correlation, regressions)Pearson correlation, regressions)

Evaluating the Research Evaluating the Research Design Design

Provide enough and accurate information?Provide enough and accurate information? How well the problems were addressed?How well the problems were addressed? Information justify the research cost?Information justify the research cost? Validity & generalisability of the result?Validity & generalisability of the result? Ethically sounds?Ethically sounds?

• Incomplete reporting of results, misleading reporting and Incomplete reporting of results, misleading reporting and nonobjective researchnonobjective research

• Subsequent use of data, confidentiality of informationSubsequent use of data, confidentiality of information• Consistent with relationship perspective (not for other parties).Consistent with relationship perspective (not for other parties).

Covering all the research aspects?Covering all the research aspects?

ImplementationImplementation

Researcher communicate and present the Researcher communicate and present the research findings for the decision making,research findings for the decision making, • Planning, control and problem solvingPlanning, control and problem solving

The findings / information should be presented The findings / information should be presented in a simple and understandable form.in a simple and understandable form.

Report should focus on the original problems Report should focus on the original problems and objective of the research.and objective of the research.

The result is presented to the appropriate The result is presented to the appropriate parties for further actions.parties for further actions.

International International ConsiderationsConsiderations Eight common errors in conducting international Eight common errors in conducting international

research projectsresearch projects. . • Global Vs Domestic (experience is important)Global Vs Domestic (experience is important)• Rigidity standardising methods across countries e.g. postal Rigidity standardising methods across countries e.g. postal

problems, communication systems)problems, communication systems)• Interviewing in EnglishInterviewing in English• Inappropriate sampling techniquesInappropriate sampling techniques• Communication with local research companies (working culture)Communication with local research companies (working culture)• Considerations in language (especially in interpretation)Considerations in language (especially in interpretation)

• Misinterpreting data across countriesMisinterpreting data across countries

• Effectiveness in conducting the qualitative research (training in Effectiveness in conducting the qualitative research (training in psychology - for focus group in Europe), In asia, mixed-sex psychology - for focus group in Europe), In asia, mixed-sex group do not yield useful informationgroup do not yield useful information