Transcript Identify and explain the major forms of marketing research

4. Marketing research
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After carefully studying this chapter, you should
be able to:
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Define marketing research;
Identify and explain the major forms of marketing research;
Distinguish quantitative and qualitative data;
Explain the use of secondary and primary research;
Describe the key methods of data collection;
Explain random and quota sampling.
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2.1 Marketing research defined
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The American Marketing Association defines
marketing research as:
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The systematic gathering, recording and analysing of
data about problems relating to the marketing of goods
and services.
4.1.1 Purpose of marketing research
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Marketing research provides data that contains
information to help managers take decisions.
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Marketing research does not provide solutions.
Research, and researchers, do not take decisions. They
plan and carry out the research.
It’s the manager who commissions the research that has
to decide how to use the data, and how to extract the
information he needs.
4.1.2 Constraints of marketing research
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CATS:
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C – Cost
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A – Accuracy
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T – Time
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S – Security
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Cost
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The cost of conducting the research must be
less than the value of the information provide.
Accuracy
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Inaccurate result will have no value.
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Time
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The research must be completed before the
decision must be taken.
Security
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We must not let competitors hear about what
we plan to do.
4.2 Types of marketing research
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Be careful to use the terms carefully:
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Marketing research describes the range of research that
is used by marketing managers.
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Market research is one of the many types of marketing
research.
4.2.1 Market research
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The systematic analysis of a single market.
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A market research could provide the following
data:
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Estimated size of the total market.
Estimates of the location and size of potential markets.
trends and changes.
Identification of specific market characteristics.
Sales forecasts.
4.2.2 Competitor research
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There are direct and indirect competitors.
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Competitor information should include:
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The strength and weakness of their product offers,
resources and key personnel.
Pricing, distribution and promotional strategies.
Their relationships with suppliers.
The speed, timing and reliability of their delivery
service.
4.2.3 Promotional research
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Promotion can be seen as communication.
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Promotional research is used to check things like:
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Target audience identification.
How to get a message across to the target audience(s).
The number or times to repeat the message.
Media cost and effectiveness.
The results achieved.
4.2.4 Retail audits
Past stocks + Purchases － Present stocks = Sales
Count the opening stock
= 10,000
Go away.
6 weeks later:
Count the deliveries made in the 6 weeks:
2,000 + 2,500 + 2,700 + 2,200 = 9,450
Total stocks in period
= 19,450
Count stock in the shop
= 9,235
Deduct from total stock to give sales = 10,215
4.2.5 Other forms of marketing research
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Distributor research finds out the most costeffective way of distribution.
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Pricing research discovers what customers and
consumers feel is good value.
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Product research carries out evaluation of own and
competitors product offers.
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Sales research locates potential new customers.
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Remember:
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The marketing professional specifies the questions that
need to be answered.
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Researchers decided how to carry out the research and
which research tools to use in order to provide the
answers.
4.3 Quantitative and qualitative data
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4.3.1 Quantitative data
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4.3.2 Qualitative data
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Deals with numbers and hard facts.
Deals with opinions and subjective issues.
Dustbin survey (p.75)
Getting facts indirectly (p.75)
4.3.3 The 3As
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Awareness – Attitude – Action
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Marketers must first make the customers become aware
of the product offer(s).
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Then the marketers have to try to develop a positive
attitude within the minds of customers.
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Only then will the customer take action.
4.3.4 Measuring feelings and opinions
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Likert scaling
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The researcher presents some statements, and ask
respondents to say for each statement whether they:
 5 – Agree strongly
 4 – Agree
 3 – Are uncertain
 2 – Disagree
 1 – Strongly disagree
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The higher the score the more agreement there is with
the statement.
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Osgood scaling
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This rating scales are more open than Likert’s.
It uses adjectives that have a universal understanding.
Originally Osgood has 20 rating scales (p.77)
But researchers can use any adjectives that meet their
needs.
It can also be done easily (see p.78)
4.4 Secondary and primary research
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Secondary research
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looks at data that already exists.
is also called Desk research, because it can be done
with PCs on our desks.
Primary research
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looks for data that have not been found in the secondary
research.
is also called Field research, because it is conducted
outside the office.
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Remember:
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Always use secondary research first.
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Then use primary research to fill the information gaps
that the secondary research left.
4.5 Data collection
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The three basic methods for gathering data are:
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Observation
 A researcher watches what happens.
Experimentation
 A situation is created and the results measured.
Questioning
 Direct contact, face-to-face, over the phone, by post.
4.6 Random and quota sampling
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Why sampling?
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It is not possible to interview every person, so a way
must be found to interview only some – yet get results
that are reliable.
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There are various statistical software which can help
you with this.
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Probability / random sample:
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First, identify every individual.
Then every person has an equal chance of being
selected, at random, like in a lottery draw.
The problems are:
 The selected ones may be widespread. It is timeconsuming and costly to visit each one.
Random sampling is often used in quality control, but
not in marketing research.
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Quota sample:
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A quota sample represents the make-up of the whole.
See the example on p.82
Quota sampling is widely used in marketing research
because it is cost effective and useful.
Error:
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There will always be a degree of error in any research
findings. Usually in marketing research this is plus or
minus 5%.