12/10/2014 1 Marketing Research and Information Dr.Vesselin Blagoev.

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Marketing Research and Information

Dr.Vesselin Blagoev

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Market research (1) and Marketing research (2) are distinct :

(1) Simply aims to describe markets – their size, location and pattern of development

(2) Is much wider in application. Marketing is not an exact science – any problem has a number of alternative solutions. Marketing research is used to select the best option

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Analysis of information

needsDecisions can be classified

as recurrent and occasional

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Analysis of information needs

Example: Recurrent hospitality marketing problems requiring continuous information inputs:

Regular appraisal of salespersons’ performance Analysis of actual sales of accommodation, food and

beverage against forecast sales Tracking of seasonal patterns in sales Setting monthly sales targets for regional sales offices Monitoring actual promotion expenditure against

budget Considering whether to match changes in

competitors’ bar prices

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Analysis of information needs

Occasional hospitality marketing problems requiring ad hoc information inputs:

Whether to co-operate with adjacent hotels in joint promotion

Whether to sponsor a sport events Whether to launch a new food and beverage format Whether to close a floor during winter To discover the reasons for poor sales performance

from a particular office To see if profitable opportunities exist in franchising a

fast-food format

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Behavioral Environment

Socio-Cultural PsychologicalEconomic Environment

Com

petitionS

cien

ce a

nd T

echn

olog

y

Political and Legal Environment

The Company

Consultants ResearchOrganizations

The Sales Organization

Middlemen

Facilitating Agencies

Publications of All types

TradeAssociations

Marketing ResearchDept.

Suppliers

Related Marketers

Advertising Agencies

Advertising Media

Marketing Information:Main Sources

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Primary Research Diagnostic/exploratory

Focus groupsDepth interviews

Surveys Experiments Observations

Test markets

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Secondary research Somebody else gathered for some other

purpose Statistics Trade associations report Government reports Company records Audits Internet web sites Articles

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Secondary internal data Sales records Delivery and stock records Prices and quotations Sales promotion – price offers, etc. Advertising – media and messages –

size of budget Sales personnel call reports Past studies of marketing

effectiveness

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Secondary external data Internet Statistics Company reports Catalogues, brochures Advertising (TV, radio, newspapers, etc.) Ready-made surveys Official reports Other publications Intelligence sources

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The search engines, stupid !

Secondary external

data

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On-line secondary data sources

Site URL CommentsAmerican Marketing Association

www.ama.org

Brainstorm Business Forum

www.brainstorm.co.uk

Chambers of Commerce best practice

Business Link National

www.businesslink.co.uk

Good for small businesses

World Wide Web Virtual Library

http://W3.org

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On-line secondary data sourcesSite URL CommentsEurope Business Monitor

www.businessmonitor. co.uk

European business information

UK National Statistical Office

www.statsbase.gov.uk

Statistics

Department of Trade and IndustryMintel

www.DTI.gov.uk

http://www.mintel.com/

Business, trade, economic, investment data

Intelligence in time

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On-line secondary data sourcesSite URL Comments

US Census Data

www.census.gov Social and economic census and surveys

Keynote http://www.keynote.com/

Institute of Export

www.export.co.uk

Europages

www.europages.com 500,000 companies

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Research Procedures

1. Analysis of information needs2. Finding information sources3. Collecting the information4. Analyzing the information5. Using the information

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Sources of Information Available to a Marketing Decision Maker

Accounting reports Marketing ResearchSales

ExpensesProfits

Consumer behaviour studiesProduct testsAdvertising effectiveness reportsPublished government and trade

journals reportsPricing response studiesDistribution reports

Personal contactswith other managers

Decision

MarketingDecision Maker Experience

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MR – Steps in the research process

1. Establish the need for information

2. Specify research objectives and information needs

3. Determine Sources of data

4. Develop the data collection forms

5. Design the sample

6. Collect the data

7. Process the data

8. Analyze the data

9. Present research results

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Primary data is obtained through:

ObservationsSurveys (interviews)Projective techniquesExperimentation

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Observations

Observing, recording and subsequently analyzing consumer or market behaviour in particular contexts

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SurveysDirecting a series of questions at samples of customers/users by:

Personal interview Mail/postal survey Telephone On-line questionnaire completion

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Omnibus surveysOmnibus surveys are periodic, e.g. every month, questionnaire surveys with pre-recruited samples of customers, using composite questionnaires that cover a differing

mix of product fields each survey period. The marketing research agency sales sections of the questionnaire to third parties (users).

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Focus groupsA group interview with 8 to 12 (in some sources 6 to 8) people led by a discussion leader, with a broad focus on some particular market, product field or consumer decision situation. Focus groups are often used as exploratory research to develop ‘a feel’ for a market or issue, prior to more detailed research.

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Select the survey method

1. Face to face methods: Interviewer and interviewee actually meet.(a)Personal interview(b)Group-administered questionnaire

This method is valued by advertising researchers who wish to pre-test commercials.

(c) Self-administered questionnaire It is not uncommon to have a callback 4 times in order to obtain a 75% response rate.

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Select the survey method 2

2. Telephone interviewAbout 75% with 3 callbacks

3. Mail questionnaire Response between 10 and 70%

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Strengths and Weaknesses

Mail Telephone

Personal

1 Flexibility Poor Good Excellent

2 Quantity of data collected

Good Fair Excellent

3 Control of interviewer effects

Excellent

Fair Poor

4 Control of sample Fair Excellent Poor5 Speed of data

collectPoor Excellent Good

6 Response rate Poor Good Good7 Cost Good Fair Poor

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Errors in reactive research

Respondent error

Investigator error

Sampling error

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Respondent errors

Testing effect: People behave when they know that they are being watched

Role-selection effect: Sometimes they chose a role (What kind of person I am?)

Measurement effect:The pre-campaign questioning of ads may cause special attention to them during the survey

Response sets: People tend to say Yes more often than to refuse

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Investigator error

Interviewer effect: Race, sex and age matter as well as tone and voice

Instrument effect: Do you read the question in identical way to all interviewed people?

Recording error

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Sampling error Sampling-frame error Sample bias: Some people in

the sample may be absent or refuse to answer

Administrative error: In a rainy day you get different answers compared to a sunny day

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Techniques which are recommended for increasing the mail questionnaire response rate

Send a “warning” card mentioning imminent arrival of the questionnaire

Send the questionnaire with covering explanatory letter

Have each letter personally addressed and signed

Offer a small gift for taking part in the survey

Assure confidentiality of results Use the shortest questionnaire possible Word questions simply

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Techniques which are recommended for increasing the mail questionnaire response

rate 2

Keep to questions which require concrete, not abstract responses

Include a stamped addressed envelope Send reminders to non respondents Be rigorous in screening out sample

members from whom responses are not required

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Surveys Stage 1 Preparation: involves

setting research objectives and defining the information that is needed to meet them

Stage 2 Preliminary decisions: begins with a review

of the secondary information and an appraisal of constrains

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Selecting a sample

Step 1

Step 2

Step 3

Step 4

Step 5

Define the population1. Elements2. Units3. Extent4. Time

Identify the sampling frame

Determining sample size

Select a sampling procedure

Select the sample

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Surveys 2Main questions:-What is our population of interest?

-Can we obtain an accurate listing of this population from which to draw the sample (known as a sampling frame)?

-Should we use a probability sample (every member of the population has an equal chance of being selected) or a non-probability sample?

-What size of sample should we select?-What should be the sampling unit (a person or a

householder – who should answer the questions)

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Surveys 3The Law of statistical regularity: any

subset of the population selected at random will tend to process the same characteristics of the larger group

The Law of inertia of large numbers: large groups are more stable that small groups

Stage 3 Design and test of the questionnaire

Stage 4 Main run

Stage 5 Producing results

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Probability samples(a) Simple random sample: sample members

are selected using either a lottery method or a random number method

(b) Systematic random sample: for a large population. It is wise only if the sampling frame is itself randomly ordered or unrelated to the purpose of the survey

(c) Stratified sample: all sectors of the population are in the final sample

-proportionate (PSS)-disproportionate (DSS)

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Probability samples 2(d) Multistage sample

-cluster sample-area sample:Stage 1: Divide country into constituencies.

Randomly select constituenciesStage 2: Divide constituencies into wards.

Randomly select wards.Stage 3: Divide wards into polling districts.

Randomly select polling districtsStage 4: Divide polling districts into groups of

households. Randomly select of them and interview all members

(e) Multiphase sample

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Non-probability samples(a) Quota sample

The interviewer may be told to interview 20 females under 30. Looks like choosing stratified sampling.

(b)Convenience sampleThe least satisfactory form of sample except for exploratory work and

hypothesis generation.(c) Judgmental sample

A loose form of quota sample in which the researcher’s judgment replaces any overt attempt to find relevant quota controls.

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What is a focus group? Usually 8-12 participants Usually employs a videotape or audio

recording equipment Used to: Collect background data Generate hypotheses Gather impressions on new product

concepts Stimulate new ideas about older

products Interpret previously obtained

quantitative results

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Panel dataLongitudinal histories

What you bought ? How much did you pay for

that ? How many did you buy ? When did you buy ? Where did you buy it ?

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Sampling proceduresAll sampling procedures

Non-probability procedures(1)Convenience sample(2)Judgment sample(3)Quota sample

Probability procedures(1)Simple random sample(2)Stratified sample(3)Cluster sample

a) systematicb) area sample

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Sampling procedures 2(1)As the name sample implies: whoever is

“around”(2) Experts propose/decide about the sample, i.e.

which city will present in a better way the whole population

(3) The sample is similar to the population (on the pre-specified characteristics)

(1) The mean (central tendency) (2) m

Σ xi

μ= i=1 , i=1, …, N

N

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Marketing mix

Marketing Environment

•Consumers•Competitors•Distribution• Economic conditions•Government•Technology

•Other

Internal marketing information

ExternalMarketing information

Informationlibrary

Information processing

Analytical system

Marketing Decision-Makers

•Requests forAnalysis

•Regular info •Requests for information•Special info

Marketing Information System

Marketing research