4 Mktg Hughes Cep MR

8/8/2019 4 Mktg Hughes Cep MR

1/78

MarketingMarketingResearchResearch


2/78

Making of a PresidentMaking of a President

US President Bill Clinton used marketresearch information collected fromSurveys, Focus group discussions etc to

understand what people expect from him. Instituting New Policy means offering a

new Product.

New Economic package with higher taxes. Public was willing to pay higher taxes to

reduce national debt.


3/78

Marketing DecisionsMarketing Decisions

New Product launchwhat, when ,how, where.. ??

What should be the price ? What sghould be the

promotionadvertisement??

What channel ofdistribution..distributor, wholesaler,direct .?


4/78

Marketing Information SystemMarketing Information System

MARKETING DECISIONS needs INFORMATION

What decisions do you regularly make?

What information do you need to make thesedecisions?

What information would you want daily? Weekly?Monthly? Yearly

What special studies do you periodically request?


5/78

Companys Internal InformationCompanys Internal Information--

Internal Record SystemsInternal Record Systems

The Order-to-Payment Cycle.

Sales Information Systems.

Databases, Data Warehouses AndData-Mining


6/78

Defining Marketing ResearchDefining Marketing Research

Marketing research is the systematic and objective

identification

collection

analysis

dissemination

and use ofinformation

for the purpose of improving decision making related to

the

* identification and

* solution of problems and opportunities in

marketing.


7/78

Marketing research provides informationabout a market in order to improvemarketing decisions.

market

improve

Decisions

The function which links the consumer, thecustomer, and public to the marketerthrough INFORMATION


8/78

Used to identify anddefine market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

INFORMATION


9/78

HowDoes Marketing ResearchHowDoes Marketing ResearchHelp?Help?

Lifebuoy soap

Nirma Bath introduction at lower price

How should HUL respond ?

Famous cases of contradictions

New Coke in US

Sony walkman


10/78

Problem Solving ResearchProblem Solving Research

Market SEGMENTATION RESEARCH

Determine the basis of segmentation, Establish market potential and

responsiveness for various segments, Select target markets

Create lifestyle profiles: demography, media, and

product imagecharacteristics

PRODUCT RESEARCH

Test concept , Determine optimal product design, Package tests

Product modification, Brand positioning and repositioning

Test marketing,


11/78


PROMOTIONAL RESEARCH Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness

PRICING RESEARCH

Pricing policies Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes


12/78


DISTRIBUTION RESEARCH

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets


13/78

Marketing Research SuppliersMarketing Research Suppliers& Services& 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


14/78

The MarketingThe Marketing

ResearchResearchProcessProcess


15/78

Marketing Research ProcessMarketing Research Process

Step 1: Problem Definition, approach to the

Problem and research objectives.

Step 2: Research Design/Plan Formulation.

Step 3 Fieldwork or Data Collection.

Step 4: Data Preparation and Analysis.

Step 5: Report Preparation and Presentation


16/78

The Problem Definition ProcessThe Problem Definition Process

DiscussionwithDecision Maker(s)

InterviewswithExperts

SecondaryDataAnalysis

QualitativeResearch

ManagementDecision Problem

MarketingResearch 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

AnalyticalModel: Verbal,

Graphical,Mathematical

Specificationof

Information

Needed


17/78

Components of an ApproachComponents of an Approach

Objective/Theoretical Foundations

Analytical Model Research Questions

Hypotheses

Specification of the InformationNeeded


18/78

The Role of Theory in AppliedThe Role of Theory in AppliedMarketing ResearchMarketing Research

Research Task Role ofTheory

1. Conceptualizing

and identifying

key variables

Provides a conceptual foundation and understanding of the basic processes

underlying the problem situation. These processes will suggest key dependent

and independent variables.

2. Operationalizing

key variables

Theoretical constructs (variables) can suggest independent and dependent

variables naturally occurring in the real world.3. Selecting a

research design

Causal or associative relationships suggested by the theory may indicate whether

a causal or descriptive design should be adopted.

4. Selecting a

sample

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying

the population (see Chap. 11).

5. Analyzing and

interpreting data

The theoretical framework (and the models, research questions and hypotheses

based on it) guide the selection of a data analysis strategy and the interpretation

of results (see Chap. 14).

6. Integrating

findings

The findings obtained in the research project can be interpreted in the light of

previous research and integrated with the existing body of knowledge.


19/78

ModelsModels

An analytical model is a set ofvariables and their interrelationshipsdesigned to represent, in whole or inpart, some real system or process.

In verbal models, the variables andtheir relationships are stated in proseform. Such models may be mererestatements of the main tenets of a

theory.


20/78

Graphical ModelsGraphical Models

Graphical models are visual. They are used to

isolate variables and to suggest directions of

relationships but are not designed to provide

numerical results.

Awareness

Understanding: Evaluation

Preference

Patronage


21/78

Mathematical models explicitly specify therelationships among variables, usually in

equation form.

Where

y = degree of preference

= model parameters to be estimated

statistically

Mathematical ModelsMathematical Models

!

!

n

iii xaay

10

aa i,

0


22/78

Development of ResearchDevelopment of ResearchQuestions and HypothesesQuestions and Hypotheses

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFramework

AnalyticalModel

Marketing Research Problem


23/78

Research Questions andResearch Questions andHypothesesHypotheses

Research questions (RQs) arerefined statements of the specificcomponents of the problem.

A hypothesis (H) is an unprovenstatement or proposition about afactor or phenomenon that is ofinterest to the researcher. Often, ahypothesis is a possible answer to

the research question.


24/78

Discussions with Decision Makers

Interviews with Industry Experts

Secondary Data Analysis

Qualitative Research

Tasks Involved in ProblemTasks Involved in ProblemDefinitionDefinition


25/78

Management Decision Problem Vs.Management Decision Problem Vs.Marketing Research ProblemMarketing 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 elasticitybrand be increased? of demand and the impact on sales

and profits of various levelsof price changes.


26/78

Management decision problemfocuses on symptoms, while the

Marketing research problem focuseson underlying causes.

Fever is symptom & Chest infectionmay be the cause.


27/78

Research ProblemResearch Problem

Marketing Research Problem

Broad Statement

Specific Components


28/78

Step 2: Research DesignStep 2: Research Design

Definition

A research design is a framework

or blueprint for conducting themarketing research project. Itdetails the procedures necessary forobtaining the information needed to

structure or solve marketingresearch problems.


29/78

A Classification of ResearchA Classification of ResearchDesignsDesigns

Single Cross-

Sectional

Design

Multiple Cross-

Sectional

Design

Research Design

Conclusive

Research

Design

Exploratory

ResearchDesign

Descriptive

Research

Causal

Research

Cross-SectionalDesign

LongitudinalDesign


30/78

Exploratory research : Provideinsights and understanding ofproblem/situation.


31/78

Exploratory & Conclusive ResearchExploratory & Conclusive ResearchDifferencesDifferences

Objective:

Character-istics:

Findings

/Results:

Outcome:

To provide insights and

understanding.

Information needed is definedonly loosely. Research process is

flexible and unstructured. Sample

is small and non-representative.

Analysis of primary data is

qualitative.

Tentative.

Generally followed by further

exploratory or conclusive

research.

To test specific hypotheses and

examine relationships.

Information needed is clearly defined.Research process is formal and

structured. Sample is large and

representative. Data analysis is

quantitative.

Conclusive.

Findings used as input into decisionmakin .

Exploratory Conclusive


32/78

Objective:

Characteristics:

Methods:

Comparison of Basic Research DesignsComparison of Basic Research Designs

Discovery of ideasand insights

Flexible, versatile

Often the front end

of total research

design

Expert surveys

Pilot surveys

Secondary data

Qualitative research

Describe marketcharacteristics or

functions

Marked by the prior

formulation of specific

hypotheses

Preplanned and

structured design

Secondary data

Surveys

Panels

Observation and other

data

Determine cause andeffect relationships

Manipulation of one

or more independent

variables

Control of other

mediating variables

Experiments

Exploratory Descriptive Causal


33/78

Types of Marketing ResearchTypes of Marketing Research

Exploratory QualitativeMethods

Conclusive :Quantitativemethods

Descriptive Surveys

Causal Experiments


34/78

A Classification of QualitativeA Classification of QualitativeResearch ProceduresResearch Procedures

AssociationTechniques

CompletionTechniques

ConstructionTechniques

ExpressiveTechniques

Direct (Nondisguised)

Indirect(Disguised)

Focus Groups Depth Interviews

ProjectiveTechniques

Qualitative ResearchProcedures


35/78

Marketing Research SystemMarketing Research System

The Marketing Research Process

Step 1: Define the Problem, theDecision Alternatives, and theResearch Objectives.


36/78


Step 2: Develop the Research Plan

Type of research

Research Approaches Observational research

Focus group research Survey research

Behavioral data

Experimental research


37/78

Data Sources & Measurement


38/78

Two Broad Categories ofTwo Broad Categories ofData CollectionData Collection

Primary Data : New datagathered and data is tailored to themanager's needs

Secondary Data: data that wasgathered for another purpose andalready exists

P i S l fP i S l f


39/78

7 38

Primary Scales ofPrimary Scales ofMeasurementMeasurement

ScaleNominal NumbersAssignedto Runners

Ordinal Rank Orderof Winners

Interval Performance

Rating on a0 to 10 Scale

Ratio Time toFinish, inSeconds

Thirdplace

Secondplace

Firstplace

Finish

Finish

8.2 9.1 9.6

15.2 14.1 13.4


40/78

Primary Scales ofPrimary Scales ofMeasurementMeasurement

Scale Basic

Characteristics

Common

Examples

Marketing

Examples

Nominal Numbers identify

& classify objects

ocial ecurity

nos., numbering

of football players

Brand nos., store

types

Percentages,

mode

Chi-square,

binomial test

Ordinal Nos. indicate the

relative positions

of objects but not

the magnitude of

differences

between them

Quality rankings,

rankings of teams

in a tournament

Preference

rankings, market

position, social

class

Percentile,

median

Rank-order

correlation,

Friedman

ANOVA

Ratio Zero point is fixed,

ratios of scale

values can be

compared

Length, weight Age, sales,

income, costs

Geometric

mean, harmonic

mean

Coefficient of

variation

Permissible Statistics

Descriptive Inferential

nterval Differences

between objects

Temperature

(Fahrenheit)

Attitudes,

opinions, index

Range, mean,

standard

Product-

moment


41/78

Research InstrumentsResearch Instruments

Questionnaires

Psychological tools

Mechanical devices

Quantitative measures


42/78

Questionnaire: Types of QuestionsQuestionnaire: Types of Questions

1_____ 2 _____ 3_____ 4_____ 5_____

Small airlines generally give better service than large ones.

Strongly Disagree Neither agree Agree Strongly

disagree nor disagree agree

A statement with which the respondentshows the amount of agreement/

disagreement.

Likert scale

An organized tourgroupSpouse andchildren

Business associates/friends/relativesSpouse

Children onlyNo one

With whom are you traveling on this flight?A question with three or more answers.MultipleChoice

In arranging this trip, did you personally phone American?

Yes No

A question with two possible answers.Dichotomous

ExampleDescriptionName

A. Closed-end Questions


43/78

Sampling Plan

Sampling unit

Sample sizeSampling procedure


44/78

A.Probability Sample

Simple random sample Every member of the population has an

equal chance of selection

Stratified random sample The population is divided into mutually

exclusive groups (such as age groups),and random samples are drawn from each

group

Cluster (area) sample The population is divided into mutually

exclusive groups (such as city blocks), and

the researcher draws a sample of thegroups to interview

Probability and Nonprobability SamplesProbability and Nonprobability Samples


45/78

B. Nonprobability Sample

Convenience sample The researcher selects the most

accessible population members

Judgment sample The researcher selects populationmembers who are good prospects for

accurate information

Quota sample The researcher finds and interviews aprescribed number of people in each of

several categories

Probability and Nonprobability SamplesProbability and Nonprobability Samples(Continued)(Continued)


46/78

Contact Methods

Mail questionnaire

Personal interviewing

Arranged interviews Intercept interviews

Online methods

Click-stream

Cookies Automated

telephone surveys


47/78


After formulating research designthen starts actual field work

Step 3: Collect the Information

Step 4: Analyze the Information

Step 5: Present the Findings Step 6: Make the Decision


48/78

The Seven Characteristics of Good MarketingThe Seven Characteristics of Good MarketingResearchResearch

1. Scientific

method

Effective marketing research uses the principles of the

scientific method: careful observation, formulation of

hypotheses, prediction, and testing.

2. Research

creativity

At its best, marketing research develops innovative

ways to solve a problem: a clothing company cateringto teenagers gave several young men video cameras,

then used the videos for focus groups held in

restaurants and other places teens frequent.

3. Multiple

methods

Marketing researchers shy away from overreliance on

any one method. They also recognize the value ofusing two or three methods to increase confidence in

the results.


49/78


Overcoming Barriers to the Use ofMarketing Research

A narrow conception of the researchUneven caliber of researchers

Poor framing of the problem

Late and occasionally erroneousfindings

Personality and presentationaldifferences


50/78


51/78

Quantitative Tools Used in Data AnalysisQuantitative Tools Used in Data Analysis

Statistical Tools

1. Multipleregression:

A statistical technique for estimating a best fitting equationshowing how the value of a dependent variable varies with

changing values in a number of independent variables.Example: A company can estimate how unit sales are

influenced by changes in the level of company advertising

expenditures, sales force size, and price.

2. Discriminantanalysis:

A statistical technique for classifying an object or persons intotwo or more categories. Example: A large retail chain store

can determine the variables that discriminate between

successful and unsuccessful store locations.

3. Factor

analysis:

A statistical technique used to determine the few underlying

dimensions of a larger set of intercorrelated variables.

Example: A broadcast network can reduce a large set of TV

programs down to a small set of basic program types.


52/78

Forecasting andForecasting and

Demand MeasurementDemand Measurement The Measures of Market

Demand

Figure5-3: Ninety

Types ofDemand

Measurement

(6X5X3)


53/78

Which Market to

Measure? Market

Potential market Available market

Target market

(severed market)

Penetrated market

A Vocabulary for DemandMeasurement Market Demand

Market share

Market penetration index

Share penetration index

Forecasting andForecasting and

Demand MeasurementDemand Measurement


54/78

Figure 5Figure 5--4: Market Demand Functions4: Market Demand Functions

Forecasting and

Demand Measurement


55/78

Research ParticularsResearch Particulars

Measurements

Sampling plan

Anticipate the analysis

Once those things are done, it is time

to check the costs


56/78

A Classification of QualitativeA Classification of QualitativeResearch ProceduresResearch Procedures

AssociationTechniques

CompletionTechniques

ConstructionTechniques

ExpressiveTechniques

Direct (Nondisguised)

Indirect(Disguised)

Focus Groups Depth Interviews

ProjectiveTechniques

Qualitative ResearchProcedures

h fh f


57/78

Characteristics of FocusCharacteristics of FocusGroupsGroups

Group Size 8-12

Group Composition Homogeneous, respondents,prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and videotapes

Moderator Observational, interpersonal, andcommunication skills of the moderator


58/78

Variations in Focus GroupsVariations in Focus Groups Two-way focus group. This allows one target group to listen

to and learn from a related group. For example, a focusgroup of physicians viewed a focus group of arthritis patientsdiscussing the treatment they desired.

Dual-moderator group. A focus group conducted by twomoderators: One moderator is responsible for the smoothflow of the session, and the other ensures that specific issuesare discussed.

Dueling-moderator group. There are two moderators, but

they deliberately take opposite positions on the issues to bediscussed.


59/78

Depth Interview Techniques:Depth Interview Techniques:LadderingLaddering

In laddering, the line of questioning proceeds from

product characteristics to user characteristics. This

technique allows the researcher to tap into the

consumer's network of meanings.

Wide body aircrafts (product characteristic)

I can get more work done

I accomplish more

I feel good about myself (user characteristic)

Advertising theme: You will feel good about yourself whenflying

our airline. You're The Boss.


60/78

Depth Interview Techniques:Depth Interview Techniques:Hidden Issue QuestioningHidden Issue Questioning

In hidden issue questioning, the focus is noton socially shared values but rather on personal

sore spots; not on general lifestyles but ondeeply felt personal concerns.

fantasies, work lives, and social lives

historic, elite, masculine-camaraderie,

competitive activities

Advertising theme: communicateaggressiveness, high status, and competitive

heritage of the airline.


61/78

Depth Interview Techniques:Depth Interview Techniques:Symbolic AnalysisSymbolic Analysis

Symbolic analysis attempts to analyze the symbolicmeaning of objects by comparing them with theiropposites. The logical opposites of a product that areinvestigated are: non-usage of the product, attributes of animaginary non-product, and opposite types of products.

What would it be like if you could no longer use airplanes?

Without planes, I would have to rely on letters and longdistance calls.

Airlines sell to the managers face-to-face communication.

Advertising theme: The airline will do the same thing for a

manager as Federal Express does for a package.


62/78

Descriptive:Descriptive:

Survey &Survey &ObservationObservation


63/78

A Classification of Survey MethodsA Classification of Survey Methods

TraditionalTelephone

Computer-AssistedTelephoneInterviewing

MailInterview

MailPanel

In-Home MallIntercept

Computer-AssistedPersonal

Interviewing

E-mail Internet

SurveyMethods

Telephone Personal Mail Electronic


64/78

A Classification of ObservationA Classification of ObservationMethodsMethods

Observation Methods

Personal

Observation

Mechanical

ObservationTrace

Analysis

Content

AnalysisAudit


65/78

Causal Research Design:Causal Research Design:ExperimentationExperimentation


66/78

A Classification ofA Classification ofExperimental DesignsExperimental Designs

Pre-experimental

One-Shot CaseStudy

One GroupPretest-Posttest

Static Group

TrueExperimental

Pretest-PosttestControl Group

Posttest: OnlyControl Group

Solomon Four-Group

QuasiExperimental

Time Series

Multiple TimeSeries

Statistical

RandomizedBlocks

Latin Square

FactorialDesign

Experimental Designs


67/78

Types of QuestionsTypes of Questions

1_____ 2 _____ 3_____ 4_____5_____

Small airlines generally give better service than largeones.

Strongly Disagree Neither agree AgreeStrongly

disagree nor disagreeagree

A statementwithwhich therespondent shows the amount ofagreement/ disagreement.

Likertscale

An organized tour groupSpouse andchildren

Businessassociates/friends/relatives

Spouse

Children onlyNoone

Withwhom are you traveling on this flight?A question with three or moreanswers.

MultipleChoice

In arranging this trip, did you personally phoneAmerican?

Yes No

A question with two possibleanswers.

Dichotomous

ExampleDescriptionName

A. Closed-end Questions


68/78


Sampling Plan

Sampling unit

Sample sizeSampling procedure

The Sampling DesignThe Sampling Design


69/78

The Sampling DesignThe Sampling DesignProcessProcess

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process



70/78

A.Probability Sample

Simple randomsample

Every member of the population hasan equal chance of selection

Stratified random

sample

The population is divided into

mutually exclusive groups (such asage groups), and random samplesare drawn from each group

Cluster (area) sample The population is divided intomutually exclusive groups (such as

city blocks), and the researcherdraws a sample of the groups tointerview


Continued on next slide . . .



71/78

B.NonprobabilitySample

Convenience sample The researcher selects the mostaccessible population members

Judgment sample The researcher selects populationmembers who are good prospects foraccurate information

Quota sample The researcher finds and interviews aprescribed number of people in eachof several categories

Probability and Nonprobability SamplesProbability and Nonprobability Samples(Continued)(Continued)

Ma keting Resea chMa keting Resea ch


72/78

Marketing ResearchMarketing ResearchSystemSystem

Contact MethodsMail questionnaire

Personal interviewing

Arranged interviews Intercept interviews

Online methods

Click-stream

Cookies

Automated

telephone surveys

D t A l i Cl ifi ti fD t A l i Cl ifi ti f


73/78

Data Analysis: Classification ofData Analysis: Classification of

Statistical techniquesStatistical techniques

Univariate techniquesSingle measurement of each element in

a sample or several measurements on

each element, each variable analysed inisolation.

Multivariate techniques

For analysing data when there are twoor more measurements in each elementand variables are analysed in isolation

A Cl ifi ti f U i i tA Cl ifi ti f U i i t


74/78

A Classification of UnivariateA Classification of UnivariateTechniquesTechniques

Independent

Related

Independent

Related* Two-Grouptest

* Z test* One-Way

ANOVA

* Pairedt test

* Chi-Square* Mann-Whitney

* Median* -

* Sign* Wilcoxon* McNemar

* Chi-

Metric Data Non-metric Data

Univariate Techniques

One Sample Two or MoreSamples

One Sample Two or MoreSamples

* t test* Z test

* Frequency* Chi-Square* K-S* Runs

* Binomial

Multivariate TechniquesMultivariate Techniques


75/78

Multivariate TechniquesMultivariate Techniques

More Than OneDependentVariable

* MultivariateAnalysis ofVariance andCovariance

* CanonicalCorrelation

* MultipleDiscriminant

Analysis

* Cross-Tabulation

*Analysis ofVariance andCovariance

* MultipleRegression

* ConjointAnalysis

* FactorAnalysis

One DependentVariable

VariableInterdependence

InterobjectSimilarity

* Cluster Analysis* Multidimensional

Scaling

DependenceTechnique

InterdependenceTechnique

Multivariate Techniques


76/78


Step 3: Collect the Information

Step 4: Analyze the Information

Step 5: Present the Findings Step 6: Make the Decision


77/78

The Seven Characteristics of GoodThe Seven Characteristics of GoodMarketing ResearchMarketing Research

1. Scientificmethod

Effective marketing research uses the principlesof the scientific method: careful observation,formulation of hypotheses, prediction, andtesting.

2. Research

creativity

At its best, marketing research develops

innovative ways to solve a problem: a clothingcompany catering to teenagers gave severalyoung men video cameras, then used thevideos for focus groups held in restaurants andother places teens frequent.

3. Multiplemethods

Marketing researchers shy away fromoverreliance on any one method. They alsorecognize the value of using two or threemethods to increase confidence in the results.

See text for complete table


78/78


Overcoming Barriers to the Use ofMarketing Research

A narrow conception of the researchUneven caliber of researchers

Poor framing of the problem

Late and occasionally erroneousfindings

Personality and presentationaldifferences

Documents

4 Mktg Hughes Cep MR