Marketing Research 1& 2

*Marketing Research

Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. It always incorporates some form of data collection whether it be secondary research (often referred to as desk research) or primary research which is collected direct from a respondent.

Examples include- product research, pricing research

How Market Research has evolved?

Marketing research has evolved in the decades since Arthur Nielsen established it as a viable industry, one that would grow hand-in-hand with the B2B and B2C economies. Markets naturally evolve, and since the birth ofACNielsen, when research was mainly conducted by in-person focus groups and pen-and-paper surveys, the rise of the Internet and the proliferation of corporate websites have changed the means by which research is executed.*

Why Market Research reqd?Applications of marketing research can be divided into two broad areas:1. Strategic2. Tactical Among the strategic areas, marketing research applications would be demand forecasting, sales forecasting, segmentation studies, identification of target markets for a given product, and positioning strategies identification. In the second area of tactical applications, we would have applications such as product testing, pricing research, advertising research, promotional research, distribution and logistics related research. In other words, it would include research related to all the Ps of marketing: how much to price the product, how to distribute it, whether to package it in one way or another, what time to offer a service, consumer satisfaction with respect to the different elements of the marketing mix (product, price, promotion, distribution), and so on. In general, we would find more tactical applications than strategic applications because these areas can be fine-tuned more easily, based on the marketing research findings.*

Role of Marketing ResearchTo identify need gaps or conscious dissatisfactions with existing ways of satisfying needs.

To identify opportunities for offering a product plus in situations when the consumer has latent but not articulated dissatisfactions with existing ways of satisfying needs. Toilet soaps as a product category do not usually experience much stated customer dissatisfaction. However when Dove soap was introduced by Hindustan Lever as 25% moisturizing cream it was adopted enthusiastically by users as an improved brand.

Project feasibility study

Johnson & Johnson introduced the wash and dry plastic version of their band aid adhesive bandages after making thorough marketing research.

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Case Coca Colas market share was eroding in the late 1970s and early 1980s. Blind taste tests suggested that people preferred Pepsi over Coke. Managers at Coca Cola believed that Cokes lack of sweetness was the culprit. After several nationwide taste test a sweeter new Coke was introduced. Managers thought they had fixed the problem. But from the start the sales of new Coke were flat. A few months later a new poll found that 60% of consumers who had tried new Coke thought that the original Coke tasted better. So the company reintroduced the original beverage as Classic Coke and its sales went on to far outperform those of new Coke. Had their marketing research been done properly they would have known that lack of sweetness was not the problem and that many consumers viewed the original Coke as apple pie. Their lack of choice seemed to affect the acceptance of New Coke and the perceived taste of New versus Classic Coke. *

Top Market Research CompaniesBrainjuicerTNS GlobalVision CriticalSynovateIpsosNielsenAnderson AnalyticsItracksGFKPeanut Labs

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Marketing Research ProcessDefine the decision problemSpecify the research objectivesDevelop a research designPrepare for data collectionCollect dataAnalyze the dataWrite and present the research report

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Qualitative Research-

Research of this sort is mostly done face-to-face. One of the best-known techniques is market research group discussions (or focus groups). These are usually made up of 6 to 8 targeted respondents, a research moderator whose role is to ask the required questions, draw out answers, and encourage discussion, and an observation area usually behind one way mirrors, and video and/or audio taping facilities.In addition, qualitative research can also be conducted on a one on one basis i.e. an in-depth interview with a trained executive interviewer and one respondent, a paired depth (two respondents), a triad (three respondents) and a mini group discussion (4-5 respondents).*

*Quantitative Research-Quantitative marketing research- generally used to draw conclusions tests a specifichypothesis- uses randomsamplingtechniques so as to infer from the sample to the population involves a large number of respondents examples includesurveysandquestionnaires. Techniques includechoice modeling,maximum difference preference scaling, andcovariance analysis. For example, a bank might ask its customers to rate its overall service as either excellent, good, poor or very poor. This will provide quantitative information that can be analysed statistically.The main rule with quantitative research is that every respondent is asked the same series of questions. The approach is very structured and normally involves large numbers of interviews/questionnaires. Perhaps the most common quantitative technique is the market research survey. These are basically projects that involve the collection of data from multiple cases such as consumers or a set of products. Quantitative surveys can be conducted by using post (self-completion), face-to-face (in-street or in-home), telephone, email or web techniques. The questionnaire is one of the more common tools for collecting data from a survey, but it is only one of a wide ranging set of data collection aids.

Scope of Marketing ResearchObjectives of the decision

Time schedules

Resources

Experienced and knowledgeable analysts

The research requirement would be necessary for developing marketing programmes

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Branding and positioning

Diversification

Market development

Measurement and forecast of market trends

Customer satisfaction surveys

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Characteristics of Good Marketing researchDetailed dialogue with clientUnderstanding of marketing problemClear linkages between research hypothesis and objectivesBased on details of information requiredAppropriate to information needsData based conclusion linked to analysis

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Limitations of Marketing ResearchMarketing Research (MR) is not an exact science though it uses the techniques of science. Thus, the results and conclusions drawn upon by using MR are not very accurate.

The results of MR are very vague as MR is carried out on consumers, suppliers, intermediaries, etc. who are humans. Humans have a tendency to behave artificially when they know that they are being observed. Thus, the consumers and respondents upon whom the research is carried behave artificially when they are aware that their attitudes, beliefs, views, etc are being observed.

MR is not a complete solution to any marketing issue as there are many dominant variables between research conclusions and market response.MR is not free from bias. The research conclusions cannot be verified. The reproduction of the same project on the same class of respondents give different research results.

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Obstacles in AcceptanceDue to globalization, liberalization and privatizationNarrow conceptionImproper orientation of the investigator Late resultsConditional findings Biasness Improper research techniqueInadequate skill of investigator Research inclined towards predetermined research

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Ethics in Marketing ResearchInformation should not be misused

Do not force the customer to answer

Respondent reply should also be kept confidential

Ask sensible personal questions

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CaseWhen Allen Solly considered launching womens western wear, they needed to answer all these questions- should they target the product at women executives who have already adopted western wear or should try to change the taste of women who currently wear salwar kameez to work. Which age group, income group, and educational background should be targetted? What brand characteristics should they emphasize? What positioning would be suitable? These could only be answered through research.

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Applications of Marketing ResearchOpening Case- Johnson and Johnson had positioned their Johnsons baby lotion brand for teenagers on the assumption that girls were most likely to be concerned about their appearances at the age and would therefore be suitable target for skin care product. Research revealed that the concept of good looks varies with age. The thirty plus woman on the other hand becomes aware of the effects of ageing and is certainly interested in skin care products like moisturizers. The result was the repositioning of the brand towards the thirty plus woman.Market and Economic Analysis- Market analysis involves analyzing market-segment factors to determine the market potential of a given product or service. The marketing researcher gathers data and analyzes the factors that affect possible sales in a given market segment. The economic analysis is also used by marketing research departments to determine:

How actively a company should market in a given market segment?How much money it should invest in marketing to that segment?How much it may have to produce to fulfill the needs of the market segment? Economic analysis often involves economic forecasting, which analyzes and attempts to forecast developing market trends and demands.*

Product Research- Marketing research departments conduct product research for a variety of reasons, including: Measuring potential acceptance of new products, Finding improvements or additions for existing products, Making changes or improvements in product packaging, Determining acceptability of a product over a competitor's product. When a new product is being developed, marketing research departments will often use product concept testing to see how customers might react to the new product.Pricing Research- Marketing research can be used to evaluate the acceptability of product or service prices in the marketplace. While businesses must price their products to make enough money to cover production and operating costs, often the formula they use for achieving a given profit margin causes them to price their products or services above or below acceptable market levels.

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Advertising Research- Advertising can be a costly endeavor for businesses. To determine the potential effect their advertising might have on a target audience, businesses often conduct research into the content, the media, and the effectiveness of advertisements before they invest heavily in the advertising campaign. Content research measures how the desired content comes across to an audience sample (a limited number of people).

Sales Research- When a marketing research department conducts a sales analysis, it studies customer records and other available data to determine where marketing opportunities lie among potential target markets. Selling research, on the other hand, analyzes the approach used by the person selling the product or service to determine whether the sales presentation is effectively piquing the interest of customers and allowing them to understand the product. The selling research can determine:The kinds of collateral materials (e.g., brochures, charts, lists) that work best to sell the productThe percentage of sales that are closed in a sales callOther aspects of the selling process that show what methods have been most effective with the target market

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QuestionsIn what areas, if any, could the following use marketing research ?

A new business school opening in your city- Suggest how the marketing research carried out by it for a marketing issue faced by it differ from the marketing research conducted by a manufacturing company.*

QuestionsMake a trip to your local library. Write a report explaining how you would use library to collect secondary data for market research project assessing demand potential for cross soft tip pens. Please be specific.

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Starbucks SuccessStarbuck achieved success in their coffee business after its research agency explored about the pricing factors, variety of snacks etc. They executed the plan and got success.

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Cases- Ethical DimensionsA researcher buyer asks for competitive proposals from a number of research suppliers. The buyer takes ideas from a number of these proposals without offering payment for the ideas and then awards the contract to one of the research suppliers to conduct the study using all the ideas. Identify the ethical issue.

A research organization uses questions developed for one client in designing a questionnaire for another client. Identify the ethical issue.

A research firm is asked to conduct a study by a firm that is in direct competition with one of the research firms clients.

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Prominent Research Agencies in IndiaIMRB- Indian Market Research Bureau is a multi-country market research, survey and business consultancy firm that offers a range of syndicated data and customized research services. With over 1200 employees, IMRB is one of the largest providers of market research in India in an industry estimated to be worth a minimum of $ 187 million

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RNB Research- RNB Research is a global market research company, headquartered in New Delhi, India. RNB Research operates through its own offices in 15 cities across 9 countries - China, Egypt, GCC, India, Kenya, Philippines, Russia, South Africa, Thailand & Vietnam.

RNB Research specializes in qualitative and quantitative custom market research. It has experience in most major sectors, particularly consumer products, media, retail, financial services, food and beverages, technology, telecommunications and internet research.

Today's Chanakya is the registered TradeMark of RNB Research and it is famous with its Opinion poll in name of Today's Chanakya Poll

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Hansa Research- A full-service global market research agency conducting market research in 77 countries globally with offices in India and US. It is the only global market research agency headquartered in India. Under the leadership of Mr. Ashok Das, the Managing Director, Hansa Research became one of the fastest growing market research agencies in India. In 2006 it was the first Indian market research company to acquire a U.S.-based firm, GCR. With research offices across India and the U.S., Hansa Research's infrastructure is comparable to the best in the industry.

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MiniCaseThe marketing department of a major U S fast food retailer has hired you to develop a set of research designs and data sources to assist the company with performance monitoring, and with problem and opportunity identification. What research designs and data sources would you recommend? How would your recommendation change if the company expanded into Korean and Hong Kong markets?

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Summarizing *

Primary and Secondary ResearchMarket research can be either primary or secondary. Primary research is new research, carried out to answer specific issues or questions. It can involve questionnaires, surveys or interviews with individuals or small groups. Secondary research makes use of information previously researched for other purposes and publicly available. This is also known as 'desk research'. Secondary research includes published research reports in a library, surveys or the Internet.There are different ways of obtaining and analysing information:Questionnaires provide answers to standard questions. These can be carried out by mail, online or face-to-face and can cover a large number of people.Interviews are usually one-to-one and focus on a list of questions.Focus groups enable a number of people to discuss ideas or topics together and provide a range of views.Organizations often undertake secondary research first to find out what already is known about the subject. It is cheaper than setting up primary research.

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