Marketing Research

what is marketing research

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Quite often, the terms 'market research' and 'marketing research' are wrongly interpreted and substituted for one another.market research, in simple words, is nothing but the research that is directed towards a very specific i.e. particular market area, whereas marketing research has a much wider, broader spectrum. Marketing research can be further expanded into two specific domains: consumer-related marketing research and business to business marketing (B2B) research. However, the basic steps involved in both of these marketing research process types are generally the same.

Basic Steps of Marketing Research Process

Problem Identification and Definition

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This is the introductory phase of the marketing research process. Basically, it involves a clear and precise understanding of the problem at hand. It is crucial that the research team identifies, understands and defines the problem in its entire capacity, as it affects all the subsequent activities involved in the research process. Research teams make use of customer feedback, internal and external data reports, sales graphs, purchasing patterns, etc. to come up with an accurate problem definition.

Designing a Proper Approach

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The next step is to come up with a near-flawless approach which is aimed at solving the identified problem. During this process, the research team has to analyze and examine a variety of factors such as the company's targets, goals and objectives, financial resources, skill sets, manpower, industry environment, changing business trends, etc. This phase often involves joint discussions between the research team, industry experts and higher management.

Developing the Actual Research Design

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This is the decisive step of the marketing research process. The research design is the very fulcrum of the entire marketing research process. The solidity of the research design alone decides the success or failure of the research program to a large extent. Naturally, this step is the most time-consuming of all the steps and it needs careful thinking and precise execution. Different activities involved in this process include feedback analysis, qualitative and quantitative analysis, preparing questionnaires as well as sampling of data and processes.

Data Collection and Survey

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This process mainly involves a lot of field-related work activities such as outdoor interviews, survey campaigns and feedback sessions which are done by specially assigned data collection agents or field agents. Almost all of those doorbell-ringing pamphlet guys or the irritating tele-callers who telephone at the most untimely of hours, are data collection agents who are just doing their duty, as part of their company's marketing research process. Data collection and surveying is also implemented by means of Internet surveys, group discussions, mail surveys, etc.

Data Structuring and Analysis

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Once the data collection and surveying activities have yielded sufficient and relevant data, it is time to systematically organize the data so that it can be interpreted and analyzed by decision makers. This typically involves activities such as data mining, clustering of data, preparing statistical graphs and curves, etc.

Report Generation and Presentation

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All the effort that goes into designing an approach, developing a research design, collecting data and finally analyzing the data, completely goes waste, if the findings and the results are not presented properly. It is imperative that the whole marketing research project be properly documented and accounted for. The entire purpose of the research campaign is to enable the higher management to make informed decisions which will benefit the progress and the sales of the concerned product or service. Hence, it is crucial that the research findings be presented accurately, clearly and relevantly. For this purpose, the use of appropriate statistics, graphs, pie-charts, etc. is recommended. Marketing research is a thoroughly linked process, wherein every step is individually as well as collectively important. A slight mistake or shortcoming in any of these steps can largely affect the eventual success or failure of the entire marketing research campaign

Marketing Discussion

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Characteristics of Good Marketing Research

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Typical Problems in Rural Research

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Low literacy levels require innovations in questionnaire design scales

Wide geographical dispersion requires long travels

A large number of languages and dialects, requiring multiple translations

Non-availability of working population at normal places of residence

Poor access to women respondents

Villages layout based on caste lines, requiring innovative sampling

Barriers Limiting the Use of Marketing Research

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A narrow conception of the research

Uneven caliber of researchers

Poor framing of the problem

Late and occasionally invalid findings

Personality and presentational differences

What is a Marketing Decision Support System (MDSS)?

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A marketing decision support system is a
1.coordinated collection of data, systems, tools, and techniques with supporting hardware and software
2. by which an organization gathers and interprets relevant information from business and environment
3.and turns it into a basis for marketing action.

Step: 4 Interpreting and Reporting Findings

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Interpret the findings

Draw conclusions

Report to management

Step: 3 Implementing the Research Plan

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1. Collecting the data
---Most expensive and subject to error
2. Processing the data
3. Analyzing the data

Question Types

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Question Types—Dichotomous

Question Types—Multiple Choice

Question Types—Likert Scale

Question Types—Semantic Differential

Question Types—Importance Scale

Question Types—Rating Scale

Question Types—Intention to Buy Scale

Question Types—Completely Unstructured

Question Types—Word Association

Question Types—Sentence Completion

Question Types—Story Completion

Question Types—Picture (Empty Balloons)

Question Types—Thematic Apperception Test

Qualitative Measures

Technological Devices

Nielsen Outdoor Leverages GPS to Track Billboard Reach

Questionnaires

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1. A questionnaire consists of a set of questions presented to respondents.
2. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data.
3. Questionnaires need to be carefully developed, tested, and debugged before being administered.
-- The researcher carefully chooses the questions, wording, and sequence.
-- The form of the question can influence the response.
4. Marketing researchers used both closed-end and open-end questions.

Questionnaire Do’s and Don’ts

Ensure questions are free of bias

Make questions simple

Make questions specific

Avoid jargon

Avoid sophisticated words

Avoid ambiguous words

Avoid negatives

Avoid hypotheticals

Avoid words that could be misheard

Use response bands

Use mutually exclusive categories

Allow for “other” in fixed response questions

Research Instruments

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Marketing researchers have a choice of three main research instruments in collecting primary data: questionnaires, qualitative measures, and mechanical devices.

Questionnaires

Qualitative Measures

Technological Devices

Contact Methods

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Personal Interviews
Advantages
1- High response rate
2- Great flexibility (ability to adapt/explain questions)
3- Can show or demonstrate items
4- Fuller explanations can be given
5- Very timely data
Disadvantages
1- Relatively expensive
2- Possibility of interviewer bias
3- Personal nature of questions (e.g., age or income)
4- Respondents not relaxed (put on the spot)
5- Time may not be convenient for respondents

Mail Surveys
Advantages
1-Relatively inexpensive
2- No interviewer bias
3- Consistent questions (for all respondents)
4- Large number of respondents can be included
5- Anonymity
6-Respondents can choose the most convenient time to answer
Disadvantages
1- Low response rates (relative to other survey types)
2- Junk mail syndrome
3- Impersonal nature

Telephone Surveys
Advantages
1- More flexibility compared to mail surveys
2- Quick and inexpensive
3- High response rates
Disadvantages
1- More obtrusive than mail
2- Greater difficulties in rapport building
3- Long-distance calls are expensive

Pros and Cons of Online Research

Advantages
1- Inexpensive
2- Fast
3- Accuracy of data, even for sensitive questions
4- Versatility

Disadvantages
1- Small samples
2- Skewed samples
3- Technological problems
4- Inconsistencies

Sampling Plan

Sample – segment of the population selected to represent the population as a whole”. (Require three decision)
---Sampling unit: Who is to be surveyed?
---Sample size: How many people should be surveyed?
---Sampling procedure: How should the respondents be chosen?

Types of Samples

1----Probability Samples
Simple random
Stratified random
Cluster
2----Nonprobability Samples
Convenience
Judgment
Quota

Research Approaches

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Observational Research

1. The gathering of primary data by observing relevant people, actions, and situations.
2. Ethnographic research:
Observation in “natural environment”
3. Mechanical observation:
People meters
Checkout scanners

Survey Research
1. Most widely used method for primary data collection.
2. Approach best suited for gathering descriptive information.
3. Can gather information about people’s knowledge, attitudes, preferences, or buying behavior.

Ethnographic research
It is a particular observational research approach that uses concepts and tools from social sciences to provide deep understanding of how people live and work.

Behavioral Data
- Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Much can be learned by analyzing these data.
- Customers’ actual purchases reflect preferences and often are more reliable than statements offered to marketing researchers.

Experimental Research
1.Tries to explain cause-and-effect relationships.
2. Involves:
selecting matched groups of subjects,
giving different treatments,
controlling unrelated factors, and
checking differences in group responses

Focus Group in Session

1. A focus group is a gathering of six to ten people who are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length.
2. A professional research moderator provides questions and probes based on a discussion guide or agenda to ensure that the right material gets covered.
3.Moderators attempt to track down potentially useful insights as they try to discern the real motivations of consumers and why they are saying and doing certain things.
4. The sessions are typically recorded.

Data Sources

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Gathering Secondary Data

Information that already exists somewhere
¨Internal databases
¨Commercial data services
¨Government sources

Available more quickly and at a lower cost than primary data.

Must be relevant, accurate, current, and impartial.

Advantages

Inexpensive
Easily accessible
Immediately available
Disadvantages

Frequently outdated
Potentially unreliable
May not be applicable

Primary Data Collection

Consists of information collected for the specific purpose at hand.

Must be relevant, accurate, current, and unbiased.

Must determine:
Research approach
Contact methods
Sampling plan
Research instruments

Develop the Research Plan step

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Step 2: Develop the Research Plan

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Includes:

Determining the exact information needed

Developing a plan for gathering it efficiently

Presenting the written plan to management

Outlines:

Sources of existing data

Specific research approaches

Contact methods

Sampling plans

Instruments for data collection

Step 1: Define the Problem

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Define the problem

Specify decision alternatives

State research objectives

The Marketing Research Process

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Types of Marketing Research Firms

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Reasons for Not Doing Marketing Research

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Timing: It will take to much time.

Cost: The cost of the research is too high.

Reliability: There is no reliable research method available for doing the research.

Competitive intelligence: There is a fear that competitors will learn about the organization’s intentions.

Management decision: Management prefers to use own judgment.

What is Marketing Research?

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Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Reasons for Doing Marketing Research: The Five Cs

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Customers: To determine how well customer needs are being met, investigate new target markets, and assess and test new services and facilities.

Competition: To identify primary competitors and pinpoint their strengths and weaknesses.

Confidence: To reduce the perceived risk in making marketing decisions.

Credibility: To increase the believability of promotional messages among customers.

Change: To keep updated with changes in travelers’ needs and expectations.