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
you.
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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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