research methodology & report preparation 1

Copyright © Amity University1

PAN African eNetwork Project

Bachelor of Finance and Investment

Research Methods and Report Presentation

Semester - III

Prof- Sonia Singh

Copyright © Amity University

Session Outline

1) Overview

2) Definition of Marketing Research

3) A Classification of Marketing Research

4) Marketing Research Process

5) The Role of Marketing Research in Marketing Decision Making

6) Marketing Research and Competitive Intelligence

7) The Decision to Conduct Research


8) Importance of Defining a Problem

9) The Process of Defining the Problem and

Developing an Approach

10) Tasks involved in Problem Definition

11) Environmental Context of the Problem

12) Management Decision Problem andMarketing Research Problem


Redefining Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer

through INFORMATION


Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Redefining Marketing Research


Definition of Marketing Research

Marketing research is the systematic and objective

identification

collection

analysis

dissemination

and use of information

For the purpose of improving decision making related to the

identification and

solution of problems and opportunities in marketing.


Market Research

• Specifies the information necessary to address these issues

• Manages and implements the data collection process

• Analyzes the results

• Communicates the findings and their implications

• Helps managers use this information to make decisions


Classification of Marketing Research

Two types1.Problem-Identification Research• Research undertaken to help identify

problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.


2. Problem-Solving Research

• Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.


A Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem-Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Pricing Research

Promotion Research

Distribution Research


Product research

• Test concept

• Determine optimal product design

• Package tests

• Product modification

• Brand positioning and repositioning

• Test marketing


Problem Solving research

• Segmentation research• Determine the basis of segmentation• Establish market potential and

responsiveness for varioussegments

• Select target markets • Create lifestyle profiles:

demography, media, and product image characteristics


Problem-Solving Research

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

0.00% APR


Problem-Solving Research.

DISTRIBUTION RESEARCH

Determine…Types of distributionAttitudes of channel members Intensity of wholesale & resale coverage

Location of retail and wholesale outlets


Marketing Research Process


Marketing Research Process

Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation


Marketing Research ProcessStep 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report


The Role of Marketing Research

ControllableMarketing

•Product•Pricing•Promotion•Distribution

VariablesMarketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

•Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

• Economy• Technology• Laws &

Regulations• Social &

Cultural Factors

• Political Factors

• Consumers• Employees• Shareholders• Suppliers

Customer Groups


ClientNeeds Fin

dSeek Pla

nAct

Solve Problem

Achieve Goal

How WeHelp

ClarifyDecisions

Research

Analysis

EvaluateInterpretFacilitate

Recommend

MarketPlanResearch

AdviseAssistExecution

Opportunity scan

Option generation

Refine options

Decision

Power Decisions’ Methodology


Selected Marketing ResearchCareer Descriptions

Vice President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department.

Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects.

Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.

(Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.

Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.


Selected Marketing Research Career Descriptions

Vice President of Marketing Research

• Part of company’s top

management team

• Directs company’s entire

market research operation

• Sets the goals & objectives of

the marketing research

department

Research Director

• Also part of senior management

• Heads the development and execution of all research projects

Assistant Director of

Research

• Administrative assistant to

director

• Supervises research staff

membersSenior Project Manager• Responsible for design, implementation,

& research projects

.


Analyst• Handles details in execution of

project• Designs & pretests questionnaires• Conducts preliminary analysis of

data

Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of

data

Fieldwork Director•Handles selection, training, supervision, and evaluation of interviewers and field workers

Senior Analyst• Participates in the development of projects• Carries out execution of assigned projects• Coordinates the efforts of analyst, junior analyst, & other personnel in

the development of research design and data collection• Prepares final report

Statistician/Data Processing

• Serves as expert on theory and application on statistical techniques

• Oversees experimental design, data processing, and analysis

Selected Marketing Research Career Descriptions


Marketing Research Suppliers & Services

• Internal suppliers • External suppliers

– Full-service suppliers • Syndicated services• Standardized services• Customized services• Internet services

– Limited-service suppliers • Field services• Coding and data entry services • Analytical services • Data analysis services• Branded marketing research products


Criteria for Selecting a Research Supplier

What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier

have? Has the firm had experience with projects similar to this one?

Do the supplier's personnel have both technical and non-technical expertise?

Can they communicate well with the client? Competitive bids should be compared on the

basis of quality as well as price.


Chain Restaurant Study

One day I received a phone call from a research analyst who introduced himself as one of our alumni.

He was working for a restaurant chain in town and wanted help analyzing the data he had collected while conducting a marketing research study.



When we met, he presented me with a copy of the questionnaire and asked how he should analyze the data. My first question to him was,



When he looked perplexed, I explained that data analysis is not an independent exercise.

Rather, the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE

PROBLEM COMPONENTS.


Chain Restaurant StudyI was surprised to learn that he did not have a clear understanding of the marketing research problem and that a written definition did not exist. So before going any further, I had to definedefine the marketing research problem.Once that was done, I found that

much of the data collected was not relevant to the problem. In this sense, the whole study was a waste of resources. A new study had to be designed and implemented to address the problem defined.


The Problem Definition Process

Discussionwith

Decision Maker(s)

Interviewswith Experts

SecondaryData Analysis

QualitativeResearch

Management Decision Problem

Marketing Research Problem

Tasks Involved

Environmental Context of the Problem

Step I: Problem Definition

Step II: Approach to the Problem

Objective/ TheoreticalFoundations

ResearchQuestions

Hypotheses

Step III: Research Design

Analytical Model: Verbal, Graphical, Mathematical

SpecificationofInformationNeeded


• Discussions with Decision Makers

• Interviews with Industry Experts

• Secondary Data Analysis

• Qualitative Research

Tasks Involved in Problem Definition


The Problem AuditThe problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.1. The events that led to the decision that action is needed, or the history of the problem. 2. The alternative courses of action available to the DM. 3. The criteria that will be used to evaluate the alternative courses of action.


4.The potential actions that are likely to be suggested based on the research findings.

5. The information that is needed to answer the DM's questions.

6. The manner in which the DM will use each item of information in making the decision.

7. The corporate culture as it relates to decision making.


The Seven Cs of Interaction

The interaction between the DM and the researcher should be Characterized by the seven Cs:

1. Communication2. Cooperation3. Confidence 4. Candor5. Closeness6. Continuity7. Creativity


Factors to be Considered in theEnvironmental Context of the Problem

PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL SKILLS


Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the

proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales

and profits of various levels of price changes.


Proper Definition of the Research Problem


Broad Statement

Specific Components


Department Store Project

Problem DefinitionIn the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-à-vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.

1. What criteria do households use when selecting department stores?2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific

product categories?4. What is the market share of Sears and its competitors for

specific product categories?5. What is the demographic and psychological profile of the

customers of Sears? Does it differ from the profile of customers of competing stores?6. Can store patronage and preference be explained in terms of store evaluations and customer characteristics?


Components of an Approach

Objective/Theoretical Foundations

Analytical Model

Research Questions

Hypotheses

Specification of the Information Needed


ModelsAn analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process.

In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.


Graphical ModelsGraphical models are visual. They are used to

isolate variables and to suggest directions of

relationships but are not designed to provide

numerical results.


Mathematical Models

n

iii xaay

10

aa i,

0

Mathematical models explicitly specify therelationships among variables, usually inequation form.

Wherey = degree of preference

= model parameters to be estimated statistically


Development of Research Questions and Hypotheses

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFrameworkAnalyticalModel



Research Questions and Hypotheses

• Research questions (RQs) are refined statements of the specific components of the

problem.

• A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.


Department Store Project• RQ: Do the customers of Sears exhibit store

loyalty?

• H1: Customers who are store-loyal are less knowledgeable about the shopping environment.

• H2: Store-loyal customers are more risk-averse than are non-loyal customers.



Specification of Information Needed

Component 1• The researcher identified the following factors as part of the

choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection.

Component 2• The researcher identified nine department stores as

competitors to Sears based on discussions with management. The respondents should be asked to evaluate Sears and its nine competitors on the eight choice criteria factors.


Component 3

• Sixteen different product categories were selected, including women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the ten stores for each of the 16 product categories.

Component 4

• No additional information needs to be obtained from the respondents.



Component 5• Information should be obtained on the standard

demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.

Component 6• No additional information needs to be obtained

from the respondents.



Marketing research provides information to help implement…

• The Study of Marketing• The Use of the Marketing Concept• Marketing Strategy

Let’s look at each of these in turn



• Marketing: process of all activities necessary for the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives



• Marketing Concept: the business philosophy that holds the key to achieving organizational goals consists of determining the benefits sought by target market members and delivering these benefits more effectively & efficiently than competitors. This is to be done at a “profit.”



• Marketing Strategy: consists of selecting one or more segments of the market as the company’s target market(s) and designing the proper “mix” of the “4Ps”


Sales Research• Sales Analysis by territory

• Sales Analysis by Product

• Sales Analysis by Customers

• Sales Forecasting

Thus MR helps in


Product Research• Concept Testing

• Product Testing

• Usage Test

• Test Marketing


Advertising Research

• Media Research

(a) Circulation Number

(b) Number of people exposed to media

(c) number of people buy the product

• Copy testing


Segmentation Targeting and Positioning

• Bases of Segmentation

• Target Market

• Positioning of Product


Application of MR

• Traditional Applications: 4P (product, price, promotion, Place)

• Contemporary Applications: Competitive Advantage, Brand Equity, Customer Satisfaction

Emerging Applications: database marketing, Relationship Marketing


What is online research?

• Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution


What is online research?

• Web-based research: research that is conducted to evaluate various facets of Web applications; may use traditional methods as well as on-line research methods in conducting research on Web-based applications

• Online survey research: collection of data using computer networks


Overview of Marketing Research Process

MR Process Evolves From Answers to Five Key Questions

• Why should we do research?

• What research should be done?

• Is it worth doing the research?

• How should the research be designed to achieve the research objectives?

• What will we do with the research?


Marketing Research in Practice

Programmatic Research• Develops market options through market segmentation,

market opportunity analysis, or consumer attitude and product usage studies

Selective Research• Tests different decision alternatives such as new product

testing, advertising copy testing, pre-test marketing, and test marketing

Evaluative Research• Evaluation of performance of programs


Information System• A continuing and interacting structure of

people, equipment, and procedures, designed to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information to decision makers.


Databases

Contain 3 types of information:

• 1st type: Recurring day-to-day information

• 2nd type: Intelligence relevant to the future strategy of the

business

• 3rd type: Research studies that are not of a recurring

nature


Decision Support Systems (DSS)

• DSS models are developed and adapted to support each firms own decision problems

• Used to retrieve data, transform it into usable information, and disseminate it to users

• Allow managers to interact directly with database

• To retrieve information

• Provides a modeling function to help interpret information retrieved


Use of Information Systems (IS) in Marketing Research

• IS emphasizes that market research should part of systematic and continuous effort to improve decision-making process

• Marketing research used to close gaps in data bank revealed by use of models and IS


Marketing Decision Support System

• Combines marketing data from diverse sources into a single database, enabling product managers, sales planners, market researchers, financial analysts, and production schedulers to share information.


Marketing Decision Support Systems Cont..

Managers’ needs for decision relevant information:

• Routine comparisons of current performance against past trends on each of the key measures of effectiveness

• Periodic exception reports to assess which sales territories or accounts have not matched previous years’ purchases

• Special analyses to evaluate the sales impact of particular marketing programs, and to predict what would happen if changes were made



Characteristics of MDSS:• Interactive

• Flexible

• Discovery oriented

• User friendly



Four components of MDSS:• Database

• Reports and Displays

• Analysis capabilities

• Models


Information suppliers and services

Information Supplier

Corporate In-house Supplier

Structured (Independent Department

Syndicated Services

Customized Services

Standardized Services

External Supplier

Unstructured (one or more MR employees)

Field Services

Branded Product/Services

Selective Services


Factors Influencing Choice of Information Supplier

• Internal personnel may not have skills or experience

• Outside help may be called to boost internal capacity in response to urgent deadline

• Often it is cheaper to go outside


Factors Influencing Choice of Information Supplier (Contd.)

• Outside suppliers may have special facilities or competencies which would be costly to duplicate for a single study

• Political considerations

• Increased credibility of research used in litigation or in proceedings before regulatory or legislative bodies


Type and Nature of Services

Customized – Work with individual clients

Syndicated – Routinely collect information on several different issues

and provide it to firms that subscribe to their services (e.g.,Nielsen television index)

Standardized – Projects conducted in standard, prespecified manner

and supplied to several different clients. (e.g., Starch readership surveys)


Type and Nature of Services (Contd.)Field

– Suppliers concentrate only on collecting data for research projects

Selective – Specialize in just one or two aspects of marketing

research, mainly concerning data coding data, editing or data analysis

Branded products / services – Develop specialized data collection and analyses

procedures to address specific of research problems that they market as branded products


Criteria For Selecting External SuppliersSteps in deciding if supplier can deliver promised data, advice, or conclusions:

1. A thorough search for companies with an expertise in the area of study

2. Selection of a small number of bidders on basis of recommendations of colleagues or others with similar needs

3. Personal interviews with potential project leaders, asking for examples of previous work, their procedures for working with clients, and they should provide references

4. Check of references on each potential supplier, with special attention on expertise, creativity, and quality and adequacy of resources available


International Marketing Research

Definition

• International Marketing Research can be defined as marketing research conducted to aid in making decisions in more than one country

Function

• Provides a systematic, planned approach to the research process

• Ensures all aspects of the research project are consistent with each other

Thank You

Copyright@ Amity University

Please forward your query To: [email protected]

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research methodology & report preparation 1

Documents

research design step

ale problemsolving research

research design formulation

understanding of marketing

marketing researchused

information marketing

problem step

specific marketing problems