Chapter-2 Marketing Research

ITC Used Extensive Market Research before launching the Sunfeast range of biscuits

Objective of Marketing Research

Formation of Policy TO identify market opportunity To asses competitive strength To estimate potential buying power of the customer formation of the marketing plan Evaluation of plans and policies To define probable market for specialized product

To estimate expected share of Market To estimate sales volume To make the product acceptable & salable. To solve the Branding & Packaging Problems To reduce the marketing cost To select right course of action

What is Marketing Research?

Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Scope of Marketing Research

Market Measurement research Environmental Research Competition Research Marketing Mix Research Behaviouristic Research

The Marketing Research Process (Executing Marketing Research Studies)

Define the problem Develop research plan

Collect information
Analyze information Present findings

Make decision

Step 1: Define the Problem

Define the problem Specify decision alternatives State research objectives

Step 2: Develop the Research Plan

Data Sources Research Instruments Contact Methods

Research Approach Sampling Plan

Research Approaches
Observation

Ethnographic
Focus Group Survey

Behavioral Data
Experimentation

Focus Group in Session

Research Instruments
Questionnaires Qualitative Measures Technological Devices

Questionnaire Dos and Donts

Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use response bands Use mutually exclusive categories Allow for other in fixed response questions

Question TypesDichotomous
In arranging this trip, did you contact American Airlines?
Yes No

Question TypesMultiple Choice

With whom are you traveling on this trip?

No one
Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group

Question TypesLikert Scale

Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

Question TypesSemantic Differential

American Airlines Large ....Small Experienced..Inexperienced

Modern...Old-fashioned

Question TypesImportance Scale

Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important

Question TypesRating Scale

American Airlines food service is _____. Excellent Very good Good Fair Poor

Question Types Intention to Buy Scale

How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy

Definitely not buy

Question TypesCompletely Unstructured

What is your opinion of American Airlines?

Question TypesWord Association

What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________

Travel ________________________

Question Types Sentence Completion

When I choose an airline, the most important consideration in my decision is: __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ ______________________________.

Question TypesStory Completion

I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings. Now complete the story. ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ______________

Question TypesPicture (Empty Balloons)

Question TypesThematic Apperception Test

Make up a story that reflects what you think is happening in this picture.

Qualitative Measures
Word Association
Projective Techniques

Visualization
Brand Personification

Laddering

Technological Devices
Galvanometers Tachistoscope Eye cameras Audiometers GPS

Sampling Plan
Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?

Table 4.2 Types of Samples

Probability Samples Simple random Stratified random Cluster Nonprobability Samples Convenience Judgment Quota

Contact Methods
Mail Questionnaire Telephone Interview Personal Interview Online Interview

Pros and Cons of Online Research

Advantages Inexpensive Fast Accuracy of data, even for sensitive questions Versatility Disadvantages Small samples Skewed samples Technological problems Inconsistencies

What is a Marketing Decision Support System (MDSS)? A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.

Barriers Limiting the Use of Marketing Research

A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences

Typical Problems in Rural Research

Low literacy levels require innovations in questionnaire design scales Wide geographical dispersion requires long travels A large number of languages and dialects, requiring multiple translations Non-availability of working population at normal places of residence Poor access to women respondents Villages layout based on caste lines, requiring innovative sampling

Problem of Accuracy
Expensive Activity Wastage of Time Misleading Flexibility of Market Difficult to get expert Employee

Data Ananalysis
Frequency Distribution, Cross Tabulation & Hypothesis Testing - Frequency Distribution and Crosstabulation are basic techniques that provide rich insight into the data and lay the foundation for more advanced analysis Objective of Frequency distribution is to count of the number of responses associated with different variable.

Hypothesis Statement
1. Null Hypothesis : A statement on which no difference or effect is expected. If null hypothesis accepted , no changed will be made. 2. Alternate hypothesis: A statement that some difference or effect is expected. Accepting the alternative hypothesis will lead to changes in opinions or action.

Hypothesis testing
Parametric Test - Hypothesis Testing Procedure that assume that the variable of interest are measures on at least an interval scale. E.g. t-Test, z-Test Nonparametric Test - Hypothesis testing Procedure that assume that the variable are measured on a nominal or ordinal scale. E.g. Chi-square, Binomial, Median, Mann-Whiteney

Analysis of Variance-Co variance

Analysis of various is a straightforward way to look at difference among more that two groups of responses measured on interval or ratio scales. 1. Analysis of Variance (ANOVA) 2. Analysis of Co-variance (ANCOVA)

Correlation and Regression

Correrelation is a simple but powerful way to look at the linear relationship between two metric variables. Multiple regression extends this concept, enabling the researcher to examine the relationship between one variable and several others.

Discriminant and Logit Analysis

Often we have to measure different groups of respondents on many metric variables. Discriminant analysis is a useful way to answer the question 1. Are the groups different? 2. On what variable are they most different? 3. Can I predict which group a person belongs to using these variables?

Cluster Analysis
Cluster analysis helps us identify groups or segments that are more like each other than they are like members of other groups or segments

Market Research Reports

1. 2. 3. 4. 5. 6. 7. 8. Title Page Letter of transmittal Letter of authorizatipn Table of Contents List of Tables List of Graphs List of appences List of exhibits

9. Executive Summary a. Mojor Findings b. Conclusion c. Recommendation 10. Problem Definition a. Background to the problem b. Statement of the problem 11. Approach to the problem

12. Research design a. Types of Research Design b. Information Needs c. Data Collection from Secondary Sources d. Data Collection from Primary Sources e. Scaling Technique f. Questionnaire Development & Pretesting g. Sampling Technique h. Field work.

13. Data Analysis a. Methodology b. Plan of the data analysis 14. Results 15. Limitation & caveats 16. Conclusion and Recommendation 17. Bibliography 17. Exhibits a. Questionnaire & Forms b. Statistical Output 1