Lecture 3 (Nature of Marketing Research) Ppt

Definition of Marketing Research

The systematic and objective identification, collection, analysis and reporting of information for the purpose of assisting management in decisions relating to the identification and solution of problems and opportunities in marketing.

Goal of Marketing Research

To provide:

relevant

accurate

valid

and timely

information to facilitate marketing decision making.

Research May Not Be Advisable

• the information exists already

• research is used to justify a prior decision

• research would alter competition

• time is the enemy

• the budget is inadequate

• the problem is vague or unclear

• the research is not technically feasible

The Research Process

Problem Definition

Develop an Approach to the Problem

Formulate Research design

Fieldwork/Data Collection

Data Preparation & Analysis

Report Preparation & Presentation

Feedback

A Classification of Marketing Research

Marketing Research

Problem Identification

Research

Problem Solving Research

•Market Potential Research•Market Share Research•Image Research•Market Characteristics •Sales Analysis Research

•Segmentation Research•Product Research•Pricing Research•Promotion Research•Distribution Research

Decision and Research Problems

• Develop package for new product

• Increase repeat buying behaviour

• Introduce new product

• Evaluate effectiveness of various designs

• Assess current repeat buying patterns

• Design test market

Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components

The Problem Definition Process

Tasks Involved

Environmental Context of the problem

Problem Definition

Discussions with

Decision Makers

Interviews With

Experts

Secondary Data

Analysis

Qualitative Research

Management Decision Problem

Marketing Research Problem

Problem Definition

• What decisions will be made on the basis of this study?

• How will research influence these decisions?• What is the most (least) desirable outcome of the

research? Why?• What information will make a difference in the

decision?• Why not make a decision on the basis of sound

judgement?

A Classification of Marketing Research Designs

Research Design

Exploratory Research Design Conclusive Research Design

Descriptive Research Causal Research

Cross-Sectional Design Longitudinal Design

A Comparison of Basic Research Designs

Objective:

Characteristics:

Methods:

Discovery of ideas

Flexible, versatile.

Front end research.

Secondary data

Describes market characteristics

Prior formulation of hypothesis. Planned, structured design

Surveys

Exploratory Descriptive Causal

Determine cause and effect

Manipulate independent variables. Control of other variables.

Experiments

Differences Between Exploratory and Conclusive Research

Objective:

Characteristics:

Findings:

Outcome:

To provide insights, understandings.

Information needed defined loosely.

Research process flexible/unstructured.

Sample is small and nonrepresentative.

Analysis of primary data is qualitative.

Tentative.

Followed by conclusive research.

Test hypothesis/examine relationships.

Information needed is clearly defined.

Research process is formal and structured.

Sample is large and representative.

Data Analysis is quantitative.

Conclusive.

Findings input into decision making.

Exploratory Conclusive

A Classification of Marketing Research DataMarketing

Research Data

Secondary Data

Primary Data

Qualitative Data

Quantitative Data

Descriptive Causal

Survey Data Observational & Other Data

Experimental Data

Marketing Research Suppliers and Services

Research Suppliers

SyndicatedServices

CustomizedServices

FieldServices

Coding andData EntryServices

Data AnalysisServices

Internal External

Full Service Limited Service

The Marketing Research Process:

An Exemplar

Background to Research Project

• Retail Location (micro-scale)

• Pre-purchase Information Seeking

• Marketing Research Methodology

Research Objectives

• Unobtrusive Observation

• Face-to-face Interviews

• Retailer Survey

Methodological Matters

• Ethics?

• Choice of Location?

• Observation Possible?

• Interview Possible?

• Sampling Procedure?

Layout of Abbeycentre

Response

Total Observed = 250

Refusal = 28

Lost = 12

Staff = 8

Other = 13

Total Non-response = 61

Response Rate = 75.6%

Observation Response Rate = 86.9%

Retailer Response Rate = 100.0%

Findings

• Shopper Recall

• Retailer Perceptions

• Shopper Behaviour

Shopper Recall

• 40% of interviewees has total recall of shops visited

• 62% of total shops visited recalled by interviewees

• Exaggeration of time spent in centre

Retailer Perceptions

• Time Expended

• Sex

• Percentage Purchase

Layout of Abbeycentre

Shopper Circulation

• Limited in Extent

• Variation in Intensity

• Problem Area Identification

Shopper Circulation Behaviour

Mall Section

Pass Ratio1

Pass-Enter Ratio2

Pass-Buy Ratio3

1. 0.55 0.76 0.51 2. 0.63 0.42 0.20 3. 0.61 0.75 0.53 4. 0.89 N/A N/A 5. 0.58 0.98 0.88 6. 0.73 0.61 0.47 7. 0.73 0.54 0.17 8. 0.53 0.98 0.62

1. The proportion of shopping groups passing through mall2. Shop entrants as a proportion of passers-by3. Purchasers as a proportion of passers-by

Shopper Circulation & Problem Areas

Compatibility Tables

Shop Linkages

• Shop to Shop Movement

• Advantages of Proximity

• Variation by Trade Type

Other Issues

• Group Behaviour

• Window Shopping

• Social Interaction