Transcript Marketing Research Problem is

Marketing Research
Marketing Information System
Definition of Marketing Research
(Procedure)
The systematic and objective identification,
collection, analysis, dissemination and use of
marketing information for the purpose of
assisting management in achieving marketing
objectives.
Why Marketing Research
• Links the company to its customer base through
information
• Monitors, evaluates and corrects marketing actions
and performance
• Enhances the quality of marketing management and
decisions
• Spotting and solving marketing problems and
opportunities
• Improves understanding of marketing as a business
philosophy and functional process
Some forms of Marketing research
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Ad Tracking
Advertising Research
Brand equity
Brand name testing
Concept testing
Buyer decision processes
Copy testing
Customer satisfaction
research
• Demand estimation
• Distribution channel
audits
• Marketing effectiveness
and analytics
• Mystery Consumer
• Positioning research
• Price elasticity testing
• Segmentation research
Research May Not Be Advisable
•
•
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The information exists already
Research is used to justify a prior decision
Research would alarm competition
Time is the enemy
The budget is inadequate
The problem is vague or unclear
The research is not technically feasible
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step One: Problem (Opportunity)
Definition
Management Problem
Vs.
Marketing Research Problem
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Step One: Problem (Opportunity)
Definition
The Difference b/w….
• Management problem is
• Action oriented: concerned with the possible
courses of action that management can take.
• Marketing Research Problem is
• Information Oriented: involves determining what
information is needed.
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Step One: Problem (Opportunity)
Definition
Think of this Problem ….
Loss of Market Share
What to do? ….
1………………………………..
2…………………………………
3………………………………….
Step One: Problem (Opportunity)
Definition
Management Problem
Marketing Research Problem
- What Should be done to improve the performance of Metro?
- Determine strengths & weakness of Metro vis-à-vis other comp.
- Should a new product be introduced?
- Determine customer preferences & purchase intentions for the proposed new
product?
- Should the advertising campaign be changed?
- Determine Effectiveness of current advertising campaign?
Step One: Problem (Opportunity)
Definition
1. Analysis of secondary data
2. Review of relevant literature
3. Qualitative research with Concerned problem parties
such as decision makers, customers, industry
experts, knowledgeable specialists, employees, and
supply chain partners.
4. Understanding the context of the problem
5. Management and research statement of the problem
Step One: Problem (Opportunity)
Definition
Examples of research problems:
• Determine the relative strengths and weakness of
product/service X vis-à-vis other major competitors.
• Constructing a customer profile of product/service X.
• Product/Service X Concept Testing
• Evaluation of customer satisfaction/overall experience with
service X
• Evaluation of customer satisfaction/overall experience with
Product X
• Measuring the Effectiveness of the Adverting Message of
product/service X
Basic Concepts
• Problem versus symptom
• Secondary versus primary data
• Qualitative versus quantitative
research
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Two: Research questions
Formulation
• The Marketing Research problem has to be broken down into
what we call ‘Research Questions’
• Example:
Evaluation of Customer Satisfaction / Overall Experience with
Service X (problem)
(Questions)
1. How do our customers perceive the quality of our Tangibles
/physical facilities?
2. How reliable is our service as perceived by our customers?
3. How responsiveness is our staff to customers?
4. How assured our customers are in our hygiene measurements?
5. How do our customers perceive the empathy of our staff?
Step Two: Research questions
Formulation
Further Break Down the Research Questions into ‘Variables’
Research Question #1
How do our customers perceive the quality of our physical
facilities/tangibles?
Research Question #1 Variables:
• Overall atmosphere
• Theme & Decoration
• Menu Variety
• Taste of dishes and beverages
• Location
• Entertainment
• ………………….
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Three: Selecting a Marketing
Research Design
Research Type
Contact Method
Research Instrument
Step Three: Selecting a Marketing
Research Design
Research Type
Exploratory
Descriptive
Conclusive
Causative
Step Three: Selecting a Marketing
Research Design
Comparison of Basic Research Designs
Exploratory
Conclusive
Objective:
To provide insights, understandings.
Test hypothesis/examine relationships.
Characteristics:
Information needed defined loosely.
Information needed is clearly defined.
Research process flexible/unstructured.
Research process is formal and structured.
Sample is small and non-representative.
Sample is large and representative.
Analysis of primary data is qualitative.
Data Analysis is quantitative.
Findings:
Tentative.
Conclusive.
Outcome:
Followed by conclusive research.
Findings input into decision making.
Step Three: Selecting a Marketing
Research Design
Comparison of Basic Research Designs
Exploratory
Descriptive
Objective:
Discovery of ideas
Describes market
characteristics
Determine cause and effect
Characteristics:
Flexible, versatile.
Prior formulation of
hypothesis. Planned,
structured design
Manipulate independent
variables. Control of
other variables.
Surveys
Experiments
Front end research.
Methods:
Secondary data
Causal
Step Three: Selecting a Marketing
Research Design
Exploratory Research:
• Objective:
– defining the research problem
– formulating research hypothesis and questions.
• Sample: non representative
• Methods:
– interview with expert and knowledgeable persons.
– Focus group
Step Three: Selecting a Marketing
Research Design
Descriptive Research:
• Objectives such as:
– Seeks to describe the users of a product
– Determine the proportion of the population that
use the product.
– Predict the future demand of a product.
• Sampling: representative
Step Three: Selecting a Marketing
Research Design
Descriptive Research:
• Longitudinal design:
– Time series analysis, repeated measurements on
the same individuals.
– Allow to monitor behaviors as brand switching.
– Relying on panels
• Cross-sectional design:
– Make measurements at a specific point of time.
Step Three: Selecting a Marketing
Research Design
• Causal Research:
– Seeks to find cause and effect relationship.
– Causal research is including:
1. The Dependent Variable (Marketing Ends)
2. Independent Variables (Marketing Tools)
3. Control Variables (Marketing Parameters).
– Single Experimentation: one sample
– Dual Experimentation: Two independent samples
Step Three: Selecting a Marketing
Research Design
Contact Method
Mail
Telephone
Personal
Online
Flexibility
Poor
Good
Excellent
Good
Quantity of
Data Collected
Control of
Interviewer
Control of
Sample
Speed of Data
Collection
Response Rate
Good
Fair
Excellent
Good
Excellent Fair
Poor
Fair
Fair
Excellent
Fair
Poor
Poor
Excellent
Good
Excellent
Fair
Good
Good
Good
Cost
Good
Fair
Poor
Excellent
Step Three: Selecting a Marketing
Research Design
Research Instruments
Focus Groups/Interviews
observation: manual/mechanical
Projective techniques
Survey: Questionnaire
Step Three: Selecting a Marketing
Research Design
Focus group
• An interview conducted and led by a trained
‘moderator’ among a small group of respondents.
• To gain insights by listening to a group of people of the
appropriate Target Market talk about a topic of
interest to the researcher.
• For qualitative research.
Step Three: Selecting a Marketing
Research Design
Focus group
• Includes 8 to 12 respondents (how to recruit them…?)
• Time Duration: 1-2 hours
• Must:
– Participants to be homogenous in terms of both demographic
and socioeconomic characteristics.
– Conducted in a relaxed/informal setting to allow for a free,
insightful, spontaneous flow of discussion.
• Moderator must …
– Observant…
– Possess high level of intrapersonal and communication skills…
– Always keep the conversation forward
Step Three: Selecting a Marketing
Research Design
In-depth interview
An unstructured, direct, personal, interview in which a
single respondent is probed by a skilful interviewer to
uncover underlying motivations, attitudes, and feelings
on the topic of interest.
Step Three: Selecting a Marketing
Research Design
In-depth interview
•Interviews with industry experts.
•Probing is of critical importance in obtaining
meaningful responses and uncovering hidden issues.
•“Why do u say that?”
•Avoid appearing superior
•Not accept brief yes or no answers
Step Three: Selecting a Marketing
Research Design
Survey
Synonymous with quantitative research.
Structured questionnaire given to a sample of
population and designed to directly elicit specific
information from respondents.
Step Three: Selecting a Marketing
Research Design
Designing a questionnaire :
• Determine type of interviewing method
(telephone/mail/personal)
• Choose Question Structure
• Choose question wording
• Determine the order of questions
• Overcome unwillingness to answer
• Pre-testing the questionnaire (piloting).
Step Three: Selecting a Marketing
Research Design
Determine Method of Interviewing
- Lengthy
Personal
- Complex
- Varied
- Simple
Telephone
- Short
- Limited range of questions
- Lengthy
Mail/E-mail
- Detailed instructions
- Simple
Step Three: Selecting a Marketing
Research Design
Choose Questions Wording….
Question wording is the translation of the desired question content
and structure into words that respondents can
clearly and easily understand
If a question is worded poorly:
Nonresponse?
Response Error?
Step Three: Selecting a Marketing
Research Design
To avoid these two problems
(1) Clearly & precisely Define the issue.
(2) Use ordinary words
(3) Use unambiguous words
(4) Avoid leading questions
(5) Use positive & negative statements
(6) Don’t use double-barreled questions
Step Three: Selecting a Marketing
Research Design
Clearly & precisely Define the issue.
Which Brand of Shampoo do You Use?
Which brand or brands of Shampoo have you personally used at
home during the last one month?
Step Three: Selecting a Marketing
Research Design
Use ordinary words No technical jargon
‘Do you think that the distribution of soft drinks is
adequate?
Do you think soft drinks are readily available when you want to buy
them?
Step Three: Selecting a Marketing
Research Design
Use Unambiguous Words
‘In a typical month, how often do you shop for
groceries?’
--------- Never
--------- less than once
--------- Occasionally
--------- 1 to 2 times
--------- Sometimes
--------- 3-4 times
--------- Often
--------- more than 4 times
Step Three: Selecting a Marketing
Research Design
Avoid Double-Barreled questions:
(two or more questions are combined into one)
‘Do you think Coca Cola is a tasty and
refreshing soft drink?’
Step Three: Selecting a Marketing
Research Design
Avoid leading or biasing questions
‘ Do you agree with the American dental
Association that Colgate is effective in preventing
cavities?’
Step Three: Selecting a Marketing
Research Design
Use positive and negative statements
Strongly
disagre
e
1. I like variety in my life
2. I usually follow the latest trends and fash
ion
3. I like being in a charge of a group
4. I don’t really like to learn about new thin
gs
5. I like the challenge of doing something I
have never done before.
6. I’m often interested in theories
Disagree
Neutral
Agre
e
Strongly
agree
Step Three: Selecting a Marketing
Research Design
Increasing the Willingness of Response:
 Introduction; researcher, purpose of the research and
benefit to respondent.
 Place sensitive topics at the end of the questionnaire
 Ask the question using the third-person technique: as it
is referred to other people
 Hide the questions in a group of other questions that
respondents are willing to answer.
 Provide response categories rather than to ask for
specific figures…
Step Three: Selecting a Marketing
Research Design
Provide response categories rather than to ask for
specific figures
What was your total household income before taxes for the past calendar year (January
through December)? (Please include income from all sources, including salaries, pensions,
interest, dividends, bonuses, capital gains, profits, other.)
- less than $10,000
- $20,000 - $24,999
- $40,000 - $49,999
- $100,000 - $199,999
- $10,000 - $14,999
- $25,000 - $29,999
- $50,000 - $74,999
- $200,000 or more
- $15,000 - $19,999
- $30,000 - $39,999
- $75,000 - $99,999
Step Three: Selecting a Marketing
Research Design
Overcoming Inability to Answer
Respondent is not informed
Respondent cannot remember
Respondent cannot articulate/express
Filtering questions
Aided recall
Minimize open-ended
questions
Step Three: Selecting a Marketing
Research Design
Determining the Order of the Questions
• Questions should be asked in a logical order
• Questions dealing with a particular topic should be asked before beginning a new
topic
• If you are not sure that you are addressing the right respondents ask filtering
questions first.
• Difficult or sensitive or dull questions should be placed at the end of the
questionnaire
• General questions should precede specific questions….
Step Three: Selecting a Marketing
Research Design
Determining the Order of the Questions
General questions should precede specific questions….
Q1: In selecting a grocery store, how important is convenience of location?
Q2: What considerations are important to you in selecting a grocery store?
Step Three: Selecting a Marketing
Research Design
Questionnaire Dos and Don’ts….
1. Ensure the questions are without bias… Don’t lead the respondent into an answer.
2. Make the questions as simple as possible. Questions including two ideas/questions in one
will confuse respondents.
3. Sometimes, it is advisable to add memory cue.
4. Words that aren't in everyday use should be avoided. Only use words in common speech.
5. Words such as ‘usually’ and ‘frequently’ have no specific meaning… don’t use them.
6. Avoid questions with negative in them. It is better to say ‘Do you ever…?’ than ‘Do you never
…?
7. Avoid hypothetical questions. It is difficult to answer questions about imaginary situations.
8. For questions asking respondents about their age/income, it is best to offer response
categories to band/group respondents.
9. These response categories should be ‘mutually exclusive’ no overlap.
10. Allow for ‘others’ in fixed response questions.
Step Three: Selecting a Marketing
Research Design
Test the questionnaire on some respondents
before producing it
You will be surprised
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Four: Sampling Design and Plan
Two Questions that you have to answer:
- How many people should be surveyed?
Sample Size
- How should the respondents be chosen?
Sampling Procedure
Step Four: Sampling Design and Plan
Definitions:
• Sampling unit is the person/organization
genuinely and directly exposed to/involved in
the business phenomenon under research and
thus represents the original source of sought
information ---- data owner
• Population is the sum of all eligible sampling
units.
Step Four: Sampling Design and Plan
Determination of sample size
1. Population size
2. Standard deviation of the business phenomenon
under research
3. Adequacy for subsequent analysis
4. Homogeneity of population
5. Time and Budget Constraints
Representative Sample = SD x population
Step Four: Sampling Design and Plan
• Standard Deviation
Step Four: Sampling Design and Plan
Probability Sampling:
A sampling technique in which each
element of the population has a fixed
probabilistic chance of being
selected for the sample
Non-Probability Sampling:
A sampling technique that entirely
depends on the personal judgment
of the researcher to choose who to
include in the study
Step Four: Sampling Design and Plan
Non-probability
1. Convenience Sampling ---- homogeneous
population
2. Judgment Sampling ---- special importance of
some sampling units for specific research
objectives
3. Quota Sampling ---- heterogeneous
population
4. Snowball Sampling ---- Limited access to
population
Step Four: Sampling Design and Plan
Probability Sampling:
- Each element in the population has a known and equal
probability of selection.
-
The sample is drawn by a random procedure from what we call
sampling frame .
-
What is a sampling frame?:
- Yellow pages
-
-
Mailing list purchased from a commercial organization
-
Directories listing the firms in an industry
How the sample is drawn?
Step Four: Sampling Design and Plan
Probability Sampling:
1. Select a suitable sampling frame…………… Mailing List Database
2. Assume that this Mailing list contains 1000 record (population N)
3. Assign each record a number from 1 to N (1000: the population
size)
4. Determine your sample size (n) which will be in this case 100
record
5. How to select these 100 (n) records out of the 1000 (N)?
1. Using a computer software/
2. Statistical Tables…..
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Five: Measurement, Scaling and
Data collection
Step Five: Measurement, Scaling and
Data collection
Multiple Choice Questions (MCQs)
Example:
Which of the following represent the reason why you are doing
this marketing diploma
(Choose One only / Tick as many as apply)
1)
2)
3)
4)
5)
6)
Because you are just Interested in the subject
Because you want to gain certain qualifications
Because it would improve your chance of promotion
Because you just enjoy learning and studying
Because it would help to change jobs
Because it would be a chance to meet new people
This MCQ follows what we call ‘Nominal Scale’
Step Five: Measurement, Scaling and
Data collection
Rank Order Questions/Scaling
Rank the various brands of toothpaste in order of preference. Begin by picking out the one brand
that you like most and assign it a number 1. Then find the second most preferred-brand and assign
it a number 2. Continue this procedure until you have ranked all the brands of toothpaste in order of
Preference. The least preferred brand should be assigned a rank of 10.
No two brands should receive the same rank number
The criterion of preference is entirely up to you. There is no right or wrong answer.
1.
2.
3.
4.
5.
Brand
Crest
Close Up
Signal 2
Colgate
Synsodin
Rank Order
(...)
(…)
(…)
(…)
(…)
This Q follows what we call ‘Ordinal Scale’
Step Five: Measurement, Scaling and
Data collection
Constant Sum Scaling
Below are eight attributes of bathing soaps. Please allocate 100 points among the attributes
so that your allocation reflects the relative importance you attach to each attribute. The
more points an Attribute receives, the more important the attribute is.
If an attribute is not at all important, assign it Zero points. If an attribute is twice
as important as some other attribute, it should receive twice as many points.
Attributes
1. Mildness
(…)
2. Lather
(…)
3. Shrinkage
(…)
4. Price
(…)
5. Fragrance
(…)
6. Packaging
(…)
7. Moisturizing
(…)
8. Cleaning Power
(…)
Sum
100 points
This Q follows what we call ‘Ratio Scale’
Step Five: Measurement, Scaling and
Data collection
Likert Scale
‘I get a feeling of accomplishment from the work I’m doing’
Strongly
Disagree
1
Disagree
2
Neutral
3
Agree
4
Strongly
Agree
5
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Six: Data Preparation
1. Data Editing -- Detecting and removing
physical problems from questionnaires.
2. Data Coding ---- assigning numerical values to
all possible responses to questions
3. Data Tabulation ---- transcribing given
responses to computerized input data files
4. Data cleaning ---- consistency checks (outliers
and low/no variation) and missing responses.
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Steps Seven: Data Analysis and
Interpretation
Steps of data analysis and interpretation:
1. Selection of appropriate statistical technique(s).
2. Administration of computational procedures of
selected technique(s).
3. Interpretation of the outputs of statistical
analysis
Encoding
Marketing
Problems and
Opportunities
Defining of the Marketing Research
Problem/Opportunity
Formulating Marketing Research
Hypotheses/Questions
Selecting a Marketing Research Design
Applying
Scientific
Marketing
Research
Methods
Sampling Plan and Design
Measurement, Scaling and Data Collection
Data Preparation
Decoding
Scientific
Marketing
Solutions
Data Analysis and Interpretation
Preparation and Presentation
Step Nine: Preparation and
Presentation
Report includes:
1. Title Page
2. Abstract
3. Table of Contents
4. Introduction
5. Exploratory Work – Company and subject
matter background
6. Exploratory Work – Qualitative evidence
Step Nine: Preparation and
Presentation
7. Literature Review
8. Research Methodology
9. Empirical analysis and results of hypotheses
testing
10.Conclusions and Recommendations
11.References
12.Appendices