Transcript What is Market Research?

TOPIC 5/6
marketing
information and
research
learning objectives_1
• Recognise the importance of information
to an organisation and the role
information plays in effective marketing
decision-making
• Understand the role of a marketing
information system and a decision
support system, and develop an
awareness of the various types of
information available
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learning objectives_2
• Become familiar with the various steps
involved in the marketing research
process
• Outline the sources of secondary and
primary data, understand their role and
the issues involved in their collection and
analysis
• Appreciate some of the ethical concerns
surrounding marketing research
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The Importance of
Information
• Companies need
information about their:
– Marketing environment
– Competition
– Customer needs
• Managers don’t need more
information, they need
better information.
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Information Types
Internal
Secondary
Primary
Information must be timely and accurate
Information Systems
Data
vs.
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Information
Systematic Approach
• Managers need to set up a systematic approach to
– gather,
– sort,
– analyse,
– evaluate and
– distribute
the right information to the right managers
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What is a Marketing
Information System (MIS)?
•
A MIS consists of people, equipment, and
procedures to gather, sort, analyze, evaluate and
distribute needed, timely, and accurate information
to marketing decision makers.
•
The MIS helps managers to:
1. Assess Information Needs,
2. Develop Needed Information,
3. Distribute Information.
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Marketing information
system (MIS)
Figure 9.1 The marketing information system (Taken from Kotler Book)
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Functions of a MIS:
Developing Information
Information Needed by Managers Can be Obtained
From:
Internal Data
Computerized Collection of Information from
Data Sources (i.e. Accounting) Within the
Company.
Marketing
Intelligence
Collection and Analysis of Publicly Available
Information about Competitors and the
Marketing Environment (i.e. Technological).
Marketing
Research
Design, Collection, Analysis, and Reporting
of Data about a Specific Marketing Situation
Facing the Organization.
Internal: What Information Have You Now?
What you can learn from an
invoice
1. The average sale per customer.
2. The top ten customers.
3. The geographical breakdown of sales.
4. Your customers by various categories e.g.
builders, farmers, retailers.
5. Value of different products in your overall sales.
6. Seasonal patterns in sales.
7. Average length of credit taken by customers.
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MARKETING INTELLIGENCE
• A relatively unstructured approach to gathering
information about the marketing environment
• Sources:
– regularly scanning newspapers
– using specialised media cutting services
– listening to employees
– listening to intermediaries
– employing consultants
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Information Analysis Systems:
Decision Support Systems
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Information Analysis Systems:
Databases
• a collection of data that is arranged
in a logical manner and organized in
a form that can be stored and
processed by a computer
– e.g.: customer names, addresses, zip
codes, previous purchases, sizes,
shipping and payment preferences,
etc.
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Information Analysis Systems:
Data Warehousing & Data Mining
The use of powerful
computers and relational
database software to dig
through exceedingly large
volumes of data to discover
patterns of behavior.
e.g. Classification trees
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Marketing Information &
Research
Marketing
Research -
the systematic collection and
analysis of data relevant to a
particular product or service
Research information should facilitate
decision making
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THE NATURE AND IMPORTANCE
OF MARKETING RESEARCH
• It is essentially about KEEPING IN
TOUCH with the marketing environment
• Information is a source of competitive
advantage
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Marketing Research is …
• The process of listening to the voice of the
market and conveying it to management.
• It answers questions such as:
– Who are my customers?
– Where do they shop?
– What do they want?
– What price will they pay?
– Who are my competitors, what do they offer?
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Marketing Research Defined
Marketing research is the function which
links the consumer, customer, and public
to the marketer through information used
to identify and define marketing
opportunities and problems; generate,
refine, and evaluate marketing actions;
monitor marketing performance; and
improve understanding of marketing
process.
AMA definition as quoted by McDaniel and Gates, 1996
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Columbia Tri-Star Conducted Research
to Determine Perceptions of
Spider-Man Brand
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Voodoo Research Meets
Consumers at Festivals
Source: Voodoo research www.voodoores.com
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WHO CARRIES OUT MARKET RESEARCH?
• In house
– OK for small projects or where there is a
routine and constant level of work
• Specialist research company (e.g. MORI)
– Likely to have much broader range of skills
– Can handle peaks and troughs in activity
– May be more objective
– Need close working relationship with “client”
company
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What is Market Research?
• Market Research is a formal study which;
– Specifies the information needed to address
a particular marketing issue
– Designs the method for collecting that
information
– Manages and implements the data collection
process
– Analyses and interprets the results
– Communicates the implications of findings to
the marketing manager
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The Origins of Research Data
Qualitative
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Quantitative
Qualitative Research
Uses
Characteristics
• Investigating
– Motivations
• Non-probability
samples
– Attitudes
• Small samples
– Beliefs
• Grounded in
behavioural
sciences
– intentions
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Quantitative Research
Characteristics
• Probability and non-probability
samples
• Relatively large sample sizes
• Statistical analysis
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QUALITATIVE v QUANTITATIVE
RESEARCH
• Qualitative Research:
– rich in meaning, but usually limited to
small samples
• Quantitative Research:
– large scale data may be reliable, but
meaning may not be valid
• Both approaches should be used in
combination
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Types of Research
Exploratory
Descriptive
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Causal
Exploratory Research
Exploratory research utilizes
qualitative research approaches and
is undertaken to collect preliminary
data in order to clarify or identify a
problem.
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Forms of exploratory
research
Exploratory research
Secondary
research
Qualitative
research
Consultation
with experts
• Internal records
• Past marketing
research reports
• Government and
EU statistics
• Market reports
• Directories
• Newspapers,
journals, magazines
• focus groups
• depth interviews
• practitioner
experts
• financial experts
• university-based
experts
• journalists
Observation
• watching
purchasing
behaviour
• ethnography
Descriptive Research
Descriptive research utilizes
quantitative research approaches
and aims to provide the marketer
with a better understanding of a
particular issue or problem.
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Causal (Predictive) Research
Causal research utilizes quantitative
research approaches in order to test
cause-and-effect relationships with a
goal of making reasonably accurate
predictions about the probable
outcome of particular actions.
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Experimentation
Marketplace
or
Field
Low
Laboratory
Degree of Control
High
THE MARKETING
RESEARCH PROCESS
• To be useful, research must be accurate and
reliable
• Similar to other scientific research processes
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Figure 5.2 The Market
Research Process
Problem definition
Conduct research
Research objectives
Analyse and
interpret data
Planning research:
Prepare research brief
Agree on research plan
Prepare and
present report
Data collection
Research evaluation
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Develop the Research Plan
Gathering Secondary Information
Information That
Already Exists
Somewhere.
+ Obtained More
Quickly, Lower Cost.
- Might Not be
Usable Data.
Both Must
Be:
Relevant
Accurate
Current
Impartial
Information
Collected for the
Specific Purpose
at Hand.
Sources of Data
Secondary
Primary
(desk research)
(field research)
• Published data
• In-house staff
– Commercial sources
– Government research
– Academic research
• Internal databases
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• Marketing research
agency
Secondary vs Primary Data
• Secondary data is data already collected and
documented for purposes other than the
problem at hand by others.
• Primary data is specifically collected by the
researcher for the specific problem/opportunity
and involves all steps of the marketing
research process.
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Secondary research
•
Sometimes referred to as desk research.
•
Consists of data and information that is already in
existence and which can be accessed by the
organisation.
•
Can be cheaper and quicker to access than primary
research.
•
May provide an organisation with information that it
would not otherwise have time to gather.
•
Secondary data may not always be up to date, be
applicable to an organisation, or give the full picture.
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Research and Data Types
Desk Research
Purpose:
Relevancy:
Objectivity:
Process:
Cost:
Time:
Secondary Data
Collected for other
reasons by others
Some to little
Unknown
Easy to gather
Relatively cheap
Relatively little
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Field Research
Primary Data
Collected for specific problem
in hand by researcher
Complete
High
Difficult to gather
Relatively expensive
Relatively much
Do Not Re-invent the Wheel
Find inexpensive answers to questions:
Do Desk Research
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PRIMARY v SECONDARY
RESEARCH
• Begin with secondary research
– quick, relatively inexpensive
– but out of date and may not be specific
enough
• Follow up with primary research
– provides information to current needs
– but is expensive and time consuming
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Classification of Secondary Data
Secondary Data
INTERNAL
Ready to Use
EXTERNAL
Needs
Modification
Government
State Bodies
Directories
Trade/Professional
Bodies
Internet/WWW
Databases/
CD-ROMs
Syndicated
Services
Grey Material/
Other
Secondary Data
Internal Records
External Sources
• Customer records
• Government sources
• Financial statements
• Inventory records
• Trade Association
statistics
• Research reports
• Commercial sources
• Credit data
• Internet sources
• POS register
information
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SOURCES OF SECONDARY RESEARCH
• Government departments and official publications
General Household Survey,
• National media
e.g. Financial Times country surveys
• Professional and trade associations
• Trade, technical and professional media
• Local chambers of trade and commerce
• Year-books and directories, e.g. Dataquest
• Companies' Annual Reports and Accounts
• Subscription services, e.g. Keynote, MEAL, Mintel etc.
• Subscription electronic databases, e.g. Mintel OnLine
e.g.
Useful Web – some sources
• www.cso.ie
• www.irlgov.ie
• www.esri.ie
• www.kompass.ie
• www.acnielsen.com
• www.mintel.co.uk
• www.tnsofres.com
• www.europages.com
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Using Published Sources of
Information
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Evaluating Secondary
Data Sources
Pertinency
of data
Who collected
and why
Method of
collecting
data
Evidence of
careful work
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• Session 6
(Primary Data
Collection: begins
here)
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Primary research
•
Sometimes called field research.
•
Is undertaken or commissioned by an organisation
for a specific purpose.
•
The required information does not already exist.
•
It is exactly tailored to a problem.
•
Can be expensive and time consuming.
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Research Techniques
Focus groups
In-depth interviews
Surveys
Observation
Experimentation
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Develop the Research Plan Planning
Primary Data Collection
Observational
Research
Gathering data
by observing
people,
actions and
situations
(Exploratory)
Research Approaches
Survey
Research
Asking
individuals
about attitudes,
preferences or
buying
behaviors
(Descriptive)
Experimental
Research
Using groups of
people to
determine
cause-and-effect
relationships
(Causal)
Primary Research Methods_1
• Personal Interviews
– Unstructured
– Structured
– Semi-structured
• Group interviews
– Focus groups
Source: Leapfrog Research http://www.leapfrogresearch.co.uk
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– Telephone interviews
Primary Research Methods_2
• Surveys
– Mail
– Telephone
– Internet
– Others
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Primary Research Methods_3
• Observational
– New product trials
– Consumer
shopping
– Mystery shopping
– Physiological
responses
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Primary Research Methods_4
• Experimentation
– Laboratory
– Real-world
– Simulation
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Table 5.1 Comparative Performance
of Data Collection Techniques
Personal
Interview
Group
Interview
Telephone
Survey
Mail
Survey
Cost/response
High
Fairly high
Low
Very low
Speed
Fast
Fast
Very fast
Slow
Large
Large
Moderate
Moderate
Sample dispersion
Low
Low
High
High
Response rate
High
Very high
Fairly high
Low
Probing
High
High
Fairly high
None
Quantity of data
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Table 5.1 Comparative Performance
of Data Collection Techniques
Personal
Interview
Group
Interview
Telephone
Survey
Mail
Survey
Visual aids
High
High
None
Fairly
high
Flexibility of
questioning
High
High
Fairly high
Low
Sensitive
questions
Fairly low
Fairly high
Fairly high
High
Anonymity
Possible
Possible
None
None
Good
Very good
Good
Poor
Cooperation
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Table 5.2 Advantages of
Internet Research
Quantitative
Qualitative
• Faster/cheaper
• Faster/ cheaper
• Automated
• Enhanced control
• Visual aids
possible
• Illustration of
concepts
• Enhanced data
quality
• Easier recruitment
Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray (2000b)
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Table 5.2 Disadvantages of
Internet Research
• Internet coverage (respondent
universe)
• Sampling issues
• Potential for self-selection bias
• Technical problems
Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray (2000b)
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Figure 5.3 Stages in the
Sampling Process
Population definition
Sampling frame development
Sampling unit specification
Sampling method selection
Sample size determination
Source: Adapted from Tull and Hawkins (1990).
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The sampling process
Define the population
Search for sampling frame
Specify
sampling
method
Determine
Sample
size
Select the sample
Develop the Research Plan
Planning Primary Data Collection
Probability or
Non-probability
sampling?
How should the
sample be
chosen?
Sampling
Plans
Who is to be
surveyed?
(What Sampling
Unit?)
Sample representative
segment of the
population
How many
should be
surveyed?
Stages in the
Development of a
Questionnaire
Planning stage
Design stage
Pilot stage
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5
Stages in the
development of a
questionnaire
Planning stage
• Definition of the research problem
• Exploratory research
Design stage
•
•
•
•
Pilot stage
Information required
Definition of population
Target groups
Survey method
Stages in the
development of a
questionnaire
Planning stage
Design stage
Pilot stage
•
•
•
•
•
•
•
Ordering of topics
Type of question
Wording and instructions
Layout
Scaling
Probes and prompts
Coding
Stages in the
development of a
questionnaire
Planning stage
Design stage
Pilot stage
• Pilot testing
• Redesign
• Final questionnaire
Types of Questions
Closedended
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Openended
Table 9.6 Types of question (continued)
Table 9.6 Types of question (continued)
Poorly Worded Questions
What type of wine do you prefer?
‘Type’ is ambiguous: respondents could say ‘French’ , ‘red’, ‘claret’,say,
depending on their interpretation.
Do you think that prices are cheaper at Asda than Aldi?
Leading question favouring Asda; a better question would be ‘Do you think that
prices at Asda are higher, lower or about the same as Aldi?’ Names should
be reversed for half the sample.
Which is more powerful and kind to your hands: Ariel or Bold?
Two questions in one: Ariel may be more powerful but Bold may be kinder to
the hands. Ask the two questions separately.
Do you find it paradoxical that X lasts longer and yet is cheaper than Y?
Unfamiliar word: a study has shown that less than a quarter of the population
understand such words as paradoxical, chronological or facility. Test
understanding before use.
Likert Scale
• TESCO prices are generally lower than
those of other supermarkets
– Strongly agree
– Agree
– Neither
– Disagree
– Strongly disagree
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Semantic Differential Rating
Scale
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ANALYSIS OF STATISTICAL
DATA
• Use appropriate techniques, e.g.
– Descriptives
– correlation analysis
– regression analysis
– cluster analysis etc
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The Report
• Title page
• Research methods
• Contents
• Findings
• Preface
• Conclusions
• Executive
summary
• Recommendations
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• Appendices
Ethical Issues in Marketing
Research
Intrusions of privacy
Misuse of marketing research
findings
Competitive information
gathering
Selling under the guise of
marketing research
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Market research ethics
• Increasing consumer resentment has become a
major problem in the research industry due to
how the market research has been used and
abused.
– Consumers fear researchers may use
sophisticated techniques to obtain
information that may be intrusive and infringe
consumer rights.
– There is also the fear that the research
findings may be manipulated and
misinterpreted to suit the company paying for
the research.
• To minimise abuse the research industry has
developed broad standards such as ESOMAR’s
International Code of Marketing and Social
Research Practice.