26/06/22 1 Marketing Research and Information Dr.Vesselin Blagoev
Apr 01, 2015
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Marketing Research and Information
Dr.Vesselin Blagoev
11/04/232
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