Overseas mkt research 2

The Market Research Process

1. Defining the problem and objectives

2. Developing the research plan

3. Collecting the information

4. Analysing the information

5. Presenting the findings

Steps

Comments

Distinguish between the research type needed e.g.

- exploratory

- descriptive

- causal

Decide on

- budget

- data sources

- research approaches

- research instruments

- sampling plan

- contact methods

Information is collected according to the plan ( it is often done by external firms)

Statistical manipulation of the data collected (e.g. regression) or subjective analysis of focus groups

Overall conclusions to be presented rather than overwhelming statistical methodologies

If a problem is vaguely defined, the results can have little bearing on the key issues

The plan needs to be decided upfront but flexible enough to incorporate changes/ iterations

This phase is the most costly and the most liable to error

Significant difference in type of analysis according to whether market research is quantitative or qualitative

Can take various forms:

- oral presentation

- written conclusions supported by analysis

- data tables

Stages in Research Process

Designing the Research Project

Research design An overall plan for obtaining the information

needed to address a research problem or issue

Hypothesis An informed guess or assumption about a certain

problem or set of circumstances Accepted or rejected hypotheses act as conclusions

for the research effort

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Determining the Research TechniqueSelection of the research technique

depends on a variety of factors:The objectivity of the data sought must be

determined. Unstructured data will require more open-ended questions and more time than structured data.

Whether the data should be collected in the real world or in a controlled environment.

Whether to collect historical facts or information about future developments.

The Marketing Research Process

Collecting DataTypes of data

Primary data: data observed and recorded or collected directly from respondents

Secondary data: data complied both inside and outside the organization for some purpose other than the current investigation

Methods for Developing Primary Data

DataQualitative?

Quantitative?

Focus Groups

ObservationInterviews

Panels

Surveys

Experiments

Methods of Collecting Primary Data

Sampling Population—all the elements, units, or individuals of

interest to researchers for specific study Sample—a limited number of units chosen to

represent the characteristics of a total population

Types of sampling Probability—each element has an known chance for study Random—each element has an equal chance for study Stratified—study population divided into like groups Quota: population is grouped and elements are arbitrarily

chosen

Basic Survey MethodsMail surveyTelephone surveyOnline surveyPersonal interview survey

In-home (door-to-door) interview Focus-group interview Telephone depth interview Shopping mall intercept interviews On-site computer interviews

Observation (for Data Collection) MethodsDirect contact with subject is avoided to reduce possible

awareness of observation process.Physical conditions, subject actions, and demographics are

noted.Data gathered may be influenced by observer bias.

ExperimentationA research method that attempts to maintain (control) certain

variables while measuring the effects of experimental (uncontrolled) variables

Delphi studies : Delphi studies are a means for aggregating the judgements of a number of experts who cannot come together physically.

-The Delphi technique is particularly valuable because it uses mail, fax, or electronic communication to bridge large distances and therefore makes experts accessible at a reasonable cost.

External Market Research FirmsTypes Description

1. Syndicated - service research firms

Data gathered periodically from customers and distribution channels and then sold to clients (e.g. A.C. Nielson)

2. Custom market research firms Hired to carry out specific research projects for clients. The firm conducts the survey and the results are the property of one client only (e.g. Research International)

3. Specialty line research firms Firms providing a specialised service to other market research firms, e.g. a firm selling field interviewing services

Questionnaire Construction

Open-ended question Question which invites the respondent to answer as

their own interests or personal subjectivity dictates

Dichotomous question Question which to which the respondent can make

only an either/or or yes/no response

Multiple-choice question Question asks the respondent to choose a response

from a fixed set of responses

Interpreting Research FindingsStatistical Interpretation

Analysis of survey data to determine what is typical or what deviates from the average that indicates: How widely the responses vary How the responses are distributed Which hypotheses are supported Which hypotheses are rejected

Interpreting Research FindingsReporting Research Findings

Take an objective look at survey findings Report deficiencies and reasons for

deficienciesPrepare a formal, written document

Summary and recommendations Short, clear, and simply expressed for executives

Technical report Contains more detailed information about research

methods and procedures and important data gathered

Benefits of Marketing Research

Helps firms stay in touch with customers’ changing attitudes and purchase patterns

Assists in better understanding market opportunities

Determines the feasibility of a particular marketing strategy

Aids in the development of marketing mixes to match the needs of customers

Improves marketer’s ability to make decisions