Marketing research

Chapter 1

An Introduction to Marketing Research

What is marketing research?

• Marketing research: is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. (Burns & Bush)

…is the function that links the consumer, customer, and public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process. (AMA)

What is online research?

• Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution

The Marketing Research Process: 11 Steps

• Step One: Establishing the Need for Marketing Research

• Step Two: Defining the Problem• Step Three: Establishing Research Objectives• Step Four: Determining Research Design• Step Five: Identifying Information Types and

Sources• Step Six: Determining Methods of Accessing

Data

The Marketing Research Process: 11 Steps cont…

• Step Seven: Designing Data Collection Forms• Step Eight: Determining Sample Plan and Size• Step Nine: Collecting Data• Step Ten: Analyzing Data• Step Eleven: Preparing and Presenting the Final

Research Report

The Marketing Research ProcessStep One: Establish the Need for Marketing

Research

• Marketing Research is not needed when the:• required information is already available• decisions need to be made now• organization can’t afford the research• costs outweigh the value of the research

The Marketing Research ProcessStep Two: Define the Problem

• The most important step in the marketing research process is defining the problem.

The Marketing Research ProcessStep Three: Establish Research Objectives

• What information is needed in order to solve the problem?

The Marketing Research ProcessStep Four: Determine Research Design

• Exploratory Research: collecting information in an unstructured and informal manner

• Descriptive Research: refers to a set of methods and procedures describing marketing variables

• Causal Research (experiments and other approaches): allows isolation of causes and effects

The Marketing Research ProcessStep Five: Identify Information Types and

Sources

• Secondary Data: information that has been collected for some purpose other than the research at hand

• Primary Data: information that has been gathered specifically for the research objectives at hand

The Marketing Research ProcessStep Six: Determine Methods of Accessing

Data

• Secondary Data: accessing data through sources such as the Internet and library

• Primary Data: collecting data from participants through methods such as telephone, mail, online, and face-to-face (quantitative), and observation studies and focus groups (qualitative)

The Marketing Research ProcessStep Seven: Design Data Collection Forms

• The design of the data collection form that is used to ask or observe and record information in marketing research projects is critical to the success of the project.

• It is easy to write a set of questions but very difficult to construct a questionnaire.

• General types of “instruments” (forms)• Questionnaires• Observation Study forms (protocols)

The Marketing Research ProcessStep Eight: Determine Sample Plan and

Size

• Sample plan: refers to the process used to select units from the population to be included in the sample

• Sample size: refers to determining how many elements (units) of the population should be included in the sample

The Marketing Research ProcessStep Nine: Collect Data

• Sound data collection is very important because, regardless of the data analysis methods used, data analysis cannot “fix” bad data. 12

• Nonsampling errors may occur during data collection. These are related to poor design and/or execution of the data gathering.

• Sampling errors may occur based purely on chance

The Marketing Research ProcessStep Ten: Analyze Data

• Data analysis: involves entering data into computer files, inspecting data for errors (data cleaning), running tabulations (frequencies), and conducting various statistical tests

The Marketing Research ProcessStep Eleven: Prepare and Present the Final

Research Report

• Findings are presented, often by research objective, in a clear and concise way.

• The need for a good report cannot be overstated. It is the report, and/or its presentation, that properly communicates the results to the client.

Scope of Marketing Research

• Sales Analysis• Product Management• Advertising Research• Corporate Research• Syndicated Research

Growing Importance of Research in India

• Monopolistic Business• Demand was more than Supply• Business was local; hence close to customers

Challenges faced in India

• Country’s vast size• Diversity in the population• Infrastructure problem• Literacy Issues• Attitudinal problems

Marketing Research: A Brief History

• Pre-Marketing Research Era: colonization to the Industrial Revolution

• Early Development Era: Industrial Revolution to 1920• Questionnaire Era: 1920-1940• Quantitative Era: 1940 to 1960• Organizational Acceptance Era: 1960 to 1980• PC Technology Era: 1980 to 1990• Globalization-Online Era: since 1990

Research Suppliers

Research Design

• A Statement of Objectives

• Data inputs required on the basis of which the research problem has to be solved

• Method of Analysis

• Simply a BluePrint!

Types of Research Designs

• Refer to Book 1, page 24– We must have one strong evidence to say that

there exist a strong association between an action (causal variable) and ultimate outcome (effect variable)

– Action (causal variable) must precede outcome (effect variable)

– There must be no other possible factor (causal factor) which could have resulted in the observed outcome

Exploratory Research Design

• Provides info to enable a more precise problem definition or hypothesis formulation

• Establishing research priorities• Gives researched a feel of the problem• Good start

• Methods Used– Survey of literature– Survey of experienced individuals– Analysis of selected case situations

Descriptive Research Designs

• Most commonly used

• Combination of qualitative and quantitative

• More formal as compared to Exploratory

• Types– Panel Discussion– Focus Groups– Cross Sectional Designs

Quasi Experimental Designs

• R = Random

• X = Experimental Treatment

• O = Observation

After-Only Without Control Group

• X O• Also called one-shot case study• Test unit not selected at random• Single group is exposed to treatment and then

measurement is taken• Eg: Effect of training on sales force• No meaningful

– No prior observation available for comparison– The level of ‘O’ could be result of other factors in addition

of the effect of ‘X’

Before-After without Control Group

• O1 X O2• Eg: Before training how did the sales perform in comparison

to after training• Limitation as does not consider:

– Selection Bias: not randomly selected– History: Economic conditions may have improved– Maturation: Salesforce may have gained more experience– Testing: The pre-test measurement might have affected the

performance– Instrumentation: Prices may have changed during that period– Mortality: Some test units may have left during the period of training

The Static Group Comparison Design

• Use of two groups• Group 1 exposed to treatment and Group 2 is not• Group 1 (experimental Group): X1 O1• Group 2 (Control Group): X2 O2

– Note X2 is regular routine or program

• Experiment result is obtained by O1 – O2• Limitation: Groups not sleeted on random and some

test units may have left during the period of trainin

Time Series Design

• Refer to fig in Book 1 page 34

• Extension of one group pre-test and post-test design

• Periodic measurement are taken for the same unit

• Ex: Advertising campaign’s effect on Market Share

• Refer the Dig.

Multiple Time Series Design

• Experimental Group: O1 O2 O3 X O4 O5 O6

• Control Group: O1’ O2’ O3’ O4’ O5’ O6’

Experimental Designs

• After-only with One Control Group

• Before-After with One Control Group

• Four Group Design

Data Collection

Primary Versus Secondary Data

• Primary data: information that is developed or gathered by the researcher specifically for the research project at hand

• Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand

Classification of Secondary Data

• Internal secondary data: data that have been collected within the firm

• Internal databases: databases (collection of data and information describing items of interest) consisting of information gathered by a company typically during the normal course of business transactions

Classification of Secondary Data…cont.

• External secondary data: data obtained from outside the firm

• Types:• Published• Syndicated Services Data• External Databases

Advantages of Secondary Data

• Obtained quickly (compared to primary data gathering)

• Inexpensive (compared to primary data gathering)

• Usually available• Enhances existing primary data

Disadvantages of Secondary Data

• Mismatch of the units of measurement Need daily data yet only monthly available, need incomes

of $75,000 and over only available $50,000 and over

• Differing class definitions used – Need users “in between” heavy, medium or light users

• Timeliness (how current is the secondary data)• Lack of information needed to assess the

credibility of the reported data (next slide)

Evaluating Secondary Data

• What was the purpose of the study?• Who collected the information and when was this

done?• What information was collected (questions,

scales, etc.)?• How was the information obtained (sampling

frame, method of sample draw, communication method, resulting sample, etc.)?

• How consistent is the information with other published information?

Basic Method of Data Collection

• Structured & Direct– Questionnaire / Interviews

• Unstructured & Direct– Sentence Completion/ Picture Interpretation/ Word

Association/ Focus groups

• Structured & Indirect– Observations & Media

• Unstructured & Indirect– Observations & Media

Sources of Error in Data Collection

• Investigator– Personal Bias– Misinterpretation

• Respondent– Ambiguity– Not true feedback provided

Sampling

• Population: Entire Universe

• Sampling Unit: List of those elements that can be considered as ‘Available’ for selection at some stage

• Sampling Frame: List of sampling units

• Sample: Actual selection for research

• Element: An individual item in the sample

Sampling Process

• Define Population

• Specify sampling frame

• Choose appropriate sampling design– Non-probability Method– Probability Method

• Determine sample size

• Select actual members of sample

Probability Sampling

• Simple Random sampling

• Systematic sampling

• Stratified sampling

• Cluster Sampling

Non-probability Sampling Method

• Convenience: – 100 stores in one location– 50 students in a class– One state in a country

• Judgment: Researcher draws a sample that he thinks is the representation of the population

• Quota Sampling: Like Stratified sampling but the difference is that the selection of sample in the quota is not random (but judgment of researcher) the way it is with Stratified sampling

Questionnaire Design

• Questionnaire Format– Structure: Open ended/ Close Ended

• Disguise– Mostly non-disguised questionnaires are used. At times

disguised questionnaires are designed in ‘motivation research’ to handle sensitive issues like attitude, aids patience, abortion cases etc.

Method of Administration:– Personal Interview– Telephone – Email

Steps involved in Design

• Preliminary Decisions– What info can be obtained from secondary data– Who is the Target Respondent

• Type of Questionnaire &Method of Administration• Question Content

– Is the question really essential?– Can respondent understand the question?– Can respondent answer the question?– Will respondent answer the question?

• Question Phrasing– Are there any ambiguities in question framing?– Is there an implied answer/ alternative to the question– Are there any assumptions to be made to answer the question?– Will the respondent approach the question with the same frame of reference as

that of the designer?

Steps involved in Design

• Form of response to each question– Open ended/ Close ended?

• Sequence of questions– Simple and open ended– Logical sequence– Design Branching question with care

• Lay-out of questionnaire

• Pre-test Questionnaire

Constructing a Questionnaire

• Refer Book 2, page 44

Avoid

• Too long questionnaire

• Too long questions

• Using vocab unfamiliar to respondent

• Ambiguous words

• Combined questions

Qualitative Research

• Exploratory or diagnostic in nature• Small number of people; usually non-

probabilistic method of sampling• Impressionistic rather than Definitive• Used to generate hypothesis for further

research• Better insights into consumers• Trained professionals required to carry

research

Methods of Qualitative Research

• In-depth Interviews• Focus Group Discussions• Projective Techniques

– Word Association Test– Sentence Completion Test– Fantasy Situation– Cartoon Completion– Picture Interpretation

• Observations

Data Procession

• Editing of data– Field Editing

• To be done as soon as the data is collected by field officer• Standardization is the objective• Care should be taken that data is not manipulated

– Central Editing• To be done when all forms are collected and before they are sent to

the HQ• Standardization is the objective• Editor may correct obvious mistakes (like entry in wrong field etc.)• All incorrect and incomplete entries to be deleted• Respondent/ field office may be contacted for clarification

Coding of Data

• Generally close ended questionnaires are coded at the beginning; at the time of questionnaire design

• What is your monthly income?– Less than 5,000

– 5,001 – 10,000

– 10,001 – 20,000

– 20,001 – 40,000

– More than 40,001

• What is your monthly income?

Coding of Data

• Book no. 3, page 19

Classification of Data

• FINO Report

Report Writing

• FINO Report

Thank You