Transcript MARKETING RESEARCH

FUNCTIONS AND TYPES OF
MARKETING RESEARCH; FIELDS
OF APPLICATION.
ALENA KLAPALOVÁ
[email protected]
Sources: Exploring Marketing Research, 10th Edition William G.
Zikmund, Barry J. Babin. 2010 Cengage Learning.
Marketing Research David A. Aaker; V. Kumar; George Day
John Wiley & Sons, Inc., 2001
An Introduction to Marketing Research , Scott M. Smith and Gerald S.
Albaum, 2010
What is the nature and purpose of marketing research?
http://www.youtube.com/watch?v=_X5CfPGYx-o
What Must Be Considered When Using Research in
Marketing Decision-Making
http://www.youtube.com/watch?v=PgxDXOmMmHU&feature=
related
COMPANIES/ORGANIZATIONS AND
MARKETING RESEARCH
•
Existence of companies/organizations =
 many questions to answer:
1.
What is the purpose of our existence?
2.
…………………….?
3.
…………………….?
 many decisions to make:
1.
Which product should we offer?
2.
Which price to set?
3.
……………………….?
4.
………………………?
 many problems to solve:
1.
competition is stronger and stronger…
2.
Customers are no loyal enough………..
3.
……………………………………………………..
INFORMATION IS NEEDED!!!
Primary marketing research’s function is:
 to supply information that helps provide these answers, thereby
leading to more informed and more successful decision making. Managers
that use this information
reduce the risk associated with decision making.
Marketing research seeks to deliver accurate and precise information that can
make marketing strategy and management more effective.
Marketing research attempts to supply accurate information that reduces the
uncertainty in decision making.
Marketing research helps decision makers shift from intuitive information
gathering to systematic and objective investigating.
Marketing research is the application of the scientific method in searching for
the truth about marketing phenomena.
providing relevant, accurate, and timely (RAT) information
= research quality, conformity to prior expectations, clarity of presentation,
political acceptability within the firm, challenge to the status quo
In other words…..
The context for decisions where the information from
marketign research can be needed is…
the MARKETING PLANNING PROCESS – ALL STAGES:
 Situation analysis
Strategy development
Marketing programe development
Implementation
Evaluation
Marketing Information System and Marketing
research
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
MIS and MDSS and MKT R and MI
An information system (IS) is 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.
While marketing research is concerned mainly with the actual content of the
information and how it is to be generated, the information system is concerned
with managing the flow of data from many different projects and secondary
sources to the managers who will use it. This requires databases to organize and
store the information and a decision support system (DSS) to retrieve date,
transform it into usable information, and disseminate it to users.
The purpose of a marketing decision support system (MDSS) is to combine
marketing data from diverse sources into a single database which line managers
can enter interactively to quickly identify problems and obtain standard, periodic
reports, as well as answers to analytical questions.
+++++++
Marketing intelligence includes everyday information about
developments in the marketing environment that helps
managers prepare and adjust marketing plans and shortrun tactics (competence and commitment)
MARKETING RESEARCH APPLICATIONS
 defining marketing opportunities and problems,
 generating and evaluating marketing ideas,
 monitoring performance,
 generally understanding the marketing process.
Marketing research is relevant to all aspects of the marketing mix.
Research can facilitate managerial decision making in all aspects of
the firm’s marketing mix: product, pricing, promotion, and distribution.
• WHICH AREAS OF MARKETING MANAGEMENT CAN BE
COVERRED BY MARKETING RESEARCH AS WELL?
Marketing research – introduction – coffee industry
(example)
ARE THERE THE ABOVE MENTIONED ISSUES?
ANOTHER EXAMPLE OF APPLICATION DEVELOPING AND IMPLEMENTING A
MARKETING STRATEGY
1. Identifying and evaluating market opportunities;
2. Analyzing market segments and selecting target markets;
3. Planning and implementing a marketing mix that will provide
value to customers and meet organizational objectives;
4. Analyzing firm performance……
MARKETING AND/OR MARKET RESEARCH

can be synonymous in practice
BUT
Market research is: the “systematic gathering, recording, and analyzing
of data with respect to a particular market, where ‘market’ refers to a
specific group in a specific geographic area.”
AND
Marketing research is the process of designing, gathering, analyzing,
and reporting information that may be used to solve a specific
marketing problem.
OR
Marketing research: the function that links the consumer, customer, and
public to the marketer through information – information used to
identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing
performance; and improve the understanding of marketing as a
process. (AMA def.)
TYPES OF MARKETING RESEARCH (1)
Programmatic research is performed to develop marketing
options through market segmentation, market opportunity
analysis, or consumer attitude and product usage studies.
Selective research is done to test different decision alternatives
such as new product concept testing, advertising copy testing,
pretest marketing, and test marketing.
Evaluative research is carried out to evaluate performance of
programs, including tracking advertising recall, corporate and
brand image studies, and measuring customer satisfaction with
the quality of the product and service.
BASIC (FUNDAMENTAL OR PURE or Theoretical) MARKETING
RESEARCH (2)
 is conducted without a specific decision in mind;
 it usually does not address the needs of a specific
organization;
 it attempts to expand the limits of marketing knowledge in
general;
 as such it is not aimed at solving a particular pragmatic
problem.
Basic research can be used:
 to test the validity of a general marketing theory (one that
applies to all of marketing)
or
 to learn more about some market phenomenon.
APPLIED (decisional) MARKETING RESEARCH
is conducted to address a specific marketing decision for a specific
firm or organization.It attempts to use existing knowledge (or newly
obtained) to aid in the solution of some given problem or set of
problems.
MARKETING RESEARCH AND
SCIENTIFIC METHOD
All marketing research, whether basic or applied, involves the
scientific method.
The scientific method is the way researchers go about using
knowledge and evidence to reach objective conclusions about the
real world. The scientific method has evolved objective and rigid
procedures for verifying hypotheses or evaluating evidence.
The essential tenets of the scientific method are:
• Direct observation of phenomena.
• Clearly defined variables, methods, and procedures.
• Empirically testable hypotheses.
• The ability to rule out rival hypotheses.
• Statistical rather than linguistic justification of conclusions.
• The self-correcting process.
Types of marketing research (3)
Exploratory Research. Exploratory research is used when one is seeking insights into
the general nature of a problem, the possible decision alternatives, and relevant
variables that need to be considered. Typically, there is little prior knowledge on which
to build. The research methods are highly flexible, unstructured, and qualitative (need
not to be always), for the researcher begins without firm preconceptions as to what will
be found. The absence of structure permits a thorough pursuit of interesting ideas and
clues about the problem situation.
Descriptive Research. Descriptive research embraces a large proportion of marketing
research. The purpose is to provide an accurate snapshot of some aspect of the market
environment. In othr words, this research describes data and characteristics about the
population or phenomenon being studied. However, it does not answer questions about
eg: how/when/why the characteristics occurred
Causal Research. When it is necessary to show that one variable causes or
determines the values of other variables, a causal research approach must be used.
Descriptive research is not sufficient, for all it can show is that two variables are related
or associated. Of course, evidence of a relationship or an association is useful;
otherwise, we would have no basis for even inferring that causality might be present. To
go beyond this inference we must have reasonable proof that one variable preceded the
other and that there were no other causal factors that could have accounted for the
relationship or to have expectations.
IN PRACTICE THESE TYPES OF RESEARCHES (RESEARCH APPROACHES)
USUALLY MIX.
Research (basic) approaches can be also:
Observational research - (or field research) is a social research
technique that involves the direct observation of phenomena in
their natural setting.
Survey research is a means of analysis involving a respondent and
questionnaire to obtain qualitative and/ or quantitative information
in a sociological study. The respondent is a person who provides
data for analysis by responding to a survey questionnaire. A
questionnaire is a document containing questions and other types
of items designed to solicit information appropriate for analysis.
Experimental research - a quasi-artificial environment is created to
control for spurious factors, and where at least one of the variables
is manipulated as part of the experiment.
Other typologies of marketing research
PRODUCT RESEARCH (4)
Studies designed to evaluate and develop new products and to find
out how to adapt existing product lines.
Concept testing exposes potential customers to a new product idea
to judge the acceptance and feasibility of the concept.
Product testing reveals a product prototype’s strengths and
weaknesses or determines whether a finished
product performs better than competing brands or according to
expectations.
Brand-name evaluation studies investigate whether a name is
appropriate for a product.
Package testing assesses size, color, shape, ease of use, and other
attributes of a package.
Product research encompasses all applications of marketing
research that seek to develop product attributes that will add value
for consumers.
PRICING RESEARCH
How consumers will respond to a product offering two different
prices.
Pricing involves finding the amount of monetary sacrifice that
best represents the value customers perceive in a product after
considering various market constraints.
How much are customers willing to pay for XXX?
Will customers behave the same way after price will rise?
Pricing research also investigates the way people respond to
pricing tactics.
Do consumers view prices and/ or quantity discounts as fair in a
given category?
DISTRIBUTION RESEARCH
Studies aimed at selecting retail sites or warehouse locations.
A survey of retailers or wholesalers may be conducted because
the actions of one channel member can greatly affect the
performance of other channel members.
Studies to gain knowledge about retailers’ and wholesalers’
operations and to learn their reactions to a manufacturer’s
marketing policies.
Research examining the effect of just-in-time ordering systems or
exclusive distribution on product quality.
Research focused on developing and improving the efficiency of
marketing channels
PROMOTION RESEARCH
Investigates the effectiveness of advertising, premiums, coupons,
sampling, discounts, public relations,and other sales promotions.
Media research helps businesses make decisions about whether
television, newspapers, magazines, or other media alternatives
are best suited to convey the intended message.
Ansoff matrix and marketing research
Likelihood of
adoption of new
products
Measuring customer
satisfaction to find out
how to maintain a
competitive edge
Showing unmeet
needs and
providing and
understanding of
unfamiliar markets
Find new
territories for
products or
services
ANALYZING MARKETING PERFORMANCE (5)
 serve to inform managers whether planned activities were
properly executed and are accomplishing what they were
expected to achieve = marketing research may be conducted
to obtain feedback for evaluation and control of marketing
programs.
Performance-monitoring research refers to research that
regularly, sometimes routinely, provides feedback for evaluation
and control of marketing activity.
Marketing metrics refer to quantitative ways of monitoring and
measuring marketing performance.
TWENTY DIFFERENT TYPES OF
MARKETING SURVEYS (6)
1 - Market Description Surveys
To determine the size and relative market share of the market.
Such studies provide key information about market growth,
competitive positioning and tracking share of market.
2 - Market Profiling-Segmentation Surveys
To identify who the customers are, who they are not, and why they
are or are not your customers. This is often a descriptive market
segmentation and market share analysis
3 - Stage in the Purchase Process / Tracking Surveys
Where is the customer in the adoption process? This information
shows market Awareness – Knowledge – Intention – Trial –
Purchase – Repurchase of the product.
4 - Customer Intention - Purchase Analysis Surveys
Directed at understanding the current customer. What motivates
the customer to move from interest in the product to actual
purchase? This is a key to understanding customer conversion,
commitment and loyalty.
5 - Customer Attitudes and Expectations Surveys
Does the product meet customer expectations? What attitudes
have customers formed about the product and/or company. Used
to direct advertising and improve customer conversion,
commitment and loyalty.
6 - Customer Trust - Loyalty – Retention Analysis Surveys
Especially for high priced consumer goods with long decision and
purchase processes (time from need recognition to purchase),
and depth of consumer attitudes formed about the product and/or
company.
7 - New Product Concept Analysis Surveys
Concept test studies are appropriate in the initial screening of new
product concepts. Likes and dislikes about the concept and
evaluation of acceptability and likelihood of purchase are
especially useful measures.
8 - New Product Acceptance and Demand Surveys (Conjoint
Analysis)
Primarily for estimating demand for new products that can be
described or have been developed in drawing or concept, but
have not yet been developed physically. Develops develop market
share estimates of market potential for the alternative potential
products.
9 - Habits and Uses Surveys
Directed at understanding usage situations, including how, when
and where the product is used. Habits and uses studies
sometimes include a real or virtual pantry audit.
10 - Product Fulfillment Surveys (Attribute, Features,
Promised Benefits)
Evaluation of the product’s promised bundle of benefits (both
tangible and image). Are expectations created for the product by
advertising, packaging and the produce appearance fulfilled by
the product?
11 - Product Positioning Surveys (Competitive Market
Position)
A “Best Practices” study of “How does the market view us relative
to the competition?” Competitive positioning analyses often
compare the attributes and benefits that make up the product
using multidimensional scaling.
12 - Brand Equity Analysis Surveys
What is psychological value that a brand holds in the market
place? Brand equity is a composite of brand awareness, brand
quality, brand associations and brand loyalty measures.
13 - Advertising Value Identification and Analysis Surveys
Advertising value analysis focuses on mapping the hierarchical
attributes, benefits and values that are associated with and portrayed
by an advertisement. Means-end analysis is often part of this type of
study.
14 - Advertising Message Effectiveness Surveys (Media and
Message)
Message effectiveness testing identifies the impressions, feelings,
and effectiveness in moving the respondent to a desired goal
(increased awareness, more product information, trial, repeat
purchase).
15 - Sales Force Effectiveness Surveys
A combination of measures that focus on the sales activities,
performance and effectiveness in producing the desired and
measurable effect or goal. Often measured as a 360 degree survey
completed by the sales person, the client (evaluating the sales call)
and the supervisor responsible for evaluating the sales person.
16 - Sales Lead Generation Surveys
Sales lead generation surveys for (1) assuring timely use and followup of sales leads, (2) qualifying sales leads (thereby saving valuable
sales force time) and (3) providing more effective tracking of sales
leads.
17 - Customer Service Surveys
Akin to customer satisfaction surveys, but focus in detail on the
actual customer service that was received, the process involved in
receiving that service and the evaluation of the participants in the
service process.
18 - Customer Service Representative (CSR) Surveys: Attitudes,
Burnout, Turnover and Retention:
CSRs hold attitudes that reflect on their job related activities including
(1) the allocation of time; (2) solutions to customer needs; (3) how to
improve their job; (4) best practices; (5) How well internal
departments help customers. CSRs often exhibit frustration, burnout
and high turnover and surveys focus on CSR retention, reducing
costs and increasing the quality of customer relationships.
19 - Sales Forecasting and Market Tracking Surveys
Sales forecasting and market tracking studies can include expert
opinion (experts estimate the market), judgmental bootstrapping
(expert based rules describing how to use available secondary
market information), conjoint analysis (estimation of consumer
intentions based on product attributes that are important in the
decision), and intentions evaluations (consumer self reported
intentions of future purchases) are to be made.
20 - Price Setting Surveys and Elasticity of Demand Analysis
Price surveys estimate the elasticity of demand and show optimal
price points, including prices too low or too high. Price surveys
may estimate the demand for different product or service
segments, or different usage situations.
Source: Twenty Different Types of Marketing Surveys:
http://www.qualtrics.com/wiki/index.php/Market_Surveys.
A JD Sports case study
Questions to case study:
1. For what purposes can marketing managers of JD Sports
use marketing research?
2. Which types of marketing research can be applied to the
practice of JD Sports? Why?
3. Are there some specificities of JD Sports marketing
research in comparison to for instance HORECA sector
companies, to mobile phones producers or to electricity
suppliers companies?
Other questions in the full case study
THE POSITION OF MARKETING RESEARCH
Research isn’t performed to support preconceived ideas but to
test them!
The researcher should be personally detached and free of bias
attempting to find truth.
If bias enters into the research process, the value of the research
is considerably reduced.
+++++
Ethical issues in marketing research
Summary – functions and tasks
of marketing research
The task of research is:
To provide and maintain for management the research
systém, to work with management in such a way as to be
able to understand its needs, to help define informational
requirements, to specifiy the filter and generate, through
application of professional methodology, meaningful
information in the most efficient manner. Its role is to
broaden managerial decision alternatives and reduce the
range of decision error through application of the scientific
method to analysis of data and evaluation of information.
(Cayley, 1968, p. 36)