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RESEARCH METHODOLOGY & REPORT PREPARATION

Semester-4

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Module I: Introduction Nature and scope of marketing research,

Marketing research as input in decision making process, Marketing research and marketing information system. Applications of marketing research, Planning a research project, Problem identification and formulation of Research Design, introduction to Research Design, Market research on the Internet.

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Module III: Sampling

Sampling decisions, Sampling frame, Sample selection methods - Probability and non probability, Sample size, sampling error and error in sampling. Application of sampling methods to marketing problems.

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Module II: Data collection methods

Attitudes measurement and scaling techniques, Ratio, Interval, Ordinal and nominal scales, Likert's scale, Thurstone scale, Semantic differentiation method. Observation methods and questionnaire method, Questionnaire design, Steps in constructing a questionnaire, Types of questions, introduction to Projective techniques and perceptual mapping

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Module IV: Data Collection Field Force

Data collection field force, Fieldwork procedure, common sources of error in the fieldwork, minimizing fieldwork errors, Tabulation of collected data.

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Module V: Data Analysis

Data analysis-1, Test of significance Z, t, F and chi-square, Data analysis-II, Correlation and regression techniques, Data analysis – III – Cluster Analysis, Introduction to Statistical Package.

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Module VI: Report Writing

Research presentation and research process examination; Report writing - Types of research report. Examination of the research procedure, Selected applications of marketing research, identifying market segments, Product research, Advertising research.

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Module I

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Research &Research Methodology

It is a systematic and intensive study directed towards a more complete knowledge of the subject studied.

In other words,a research is an organized set of activities to find the result of a realistic problem supported by literature and data such that its objective is optimized.

A system of models,procedures and techniques used to find the results of a research problem is called a research methodology.

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Types of Research

Research

Basic Research/ Fundamental Research/ Theoretical Research/ Pure Research

Applied Research/ Decisional Research

Problem Solving Research

Problem-oriented Research

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Marketing Research is the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of assisting management in decision making related to the identification and solution of problems in marketing.

It may be emphasized that it is not restricted to any particular area of marketing but is applicable to all its phases and aspects.

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Applications of Marketing Research

Procter & Gamble (P&G) launched Menthol based, Head &Shoulders, extra-conditioning anti-dandruff Shampoo.

The company conducted a market research study prior to its launch. The findings of the study indicated a distinct need for a menthol-based shampoo. The study showed that in hot and humid conditions as in India, consumers prefer a shampoo which not only removes dandruff but also provides a cool and tingling sensation to the scalp.

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Another example from P&G shows how marketing research is used to identify new opportunities in the marketplace. The company was getting a lot of data on Vicks-Vaporub. The analysis of such data revealed that the common symptom of cold was a headache and that majority of adults typically take a pill to cure it. This disclosed an opportunity for a product that can treat headache as well as the other symptoms.

The company thus launched Action 500. It not only treated headache but also gave relief from blocked nose.

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Malayala Manorama, Which is Kerala’s largest publication group, has launched a monthly women’s magazine in Hindi, Vanita. While launching this magazine, the management observed through market research that there was a huge vacuum in the Hindi magazine segment. The first print run of Vanita was one lakh copies.

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• Pepsi Food has assigned great importance to marketing research. Through research it gets systematic information about its markets and its customers.

• Another multinational company Whirlpool Asia lays considerable emphasis on marketing research. In this company, every activity, strategy and decision is based on data collected through the research process.

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Several factors have contributed to the growth of

marketing research•The result of large scale production , producers do not have direct contact with the consumers.

•There has been shift from a seller’s market to buyer’s market.This necessitates a better understanding of buyer behaviour.

•Change in composition of population,particularly shift from rural area to urban area.

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Nature of Marketing Research• Marketing research is descriptive.• Marketing research is exploratory.• Marketing research is evaluatory.• Marketing research is predictive.• Marketing research is an essential input for decision-

making.• Marketing research is objective.• Marketing research is continuous and dynamic.• Marketing research converts data into information.• Marketing research is a multi-dimensional cross-

disciplinary subject.• Marketing research is a tool to the decision makers.

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Marketing research is a multi-dimensional cross-disciplinary subject.

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Scope of Marketing Research

• Market Potential Research• Market Segmentation Research• Product Research• Price Research• Sales Research• Distribution Research• Consumer Behaviour Research• Packaging Research• Promotional Research• Brand Image Research• Export Marketing Research

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Function of Marketing Research is to link an organization to its market through information.

Identify and define marketing opportunity and problems.

Generate, redefine and evaluate marketing actions.

Monitor marketing performance.

Improve understanding of marketing as a process.

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Significance of Marketing Research

1. It studies the market to determine the characteristics. It helps in improving productivity of the organization through continuous research of the demand.

2. It helps in expansion through the discovery of new market ,new products and new uses for the existing products.

3. It helps in reducing costs -:• It helps reduce distribution cost through

optimum coverage and • It helps to reduce production cost through the

increase in sales leading to economies of large scale production and simplification of product line.

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4. It helps to increase the effectiveness of advertising through-:

1.The most fruitful timing of promotions.

2.The market where the advertising investment will bring in the greatest return.

3.The best campaign and media schedule to reach the target consumers.

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Case of Tanishq- The Branded Jewellery

In 1995, Titan industries launched the Tanishq range of gold jewellery. Till than, the Indian jewellery market was entirely disorganised with few brands like Bhimji Jhaveri and Mehrason’s. As expected , tanishq suffered a major loss in the initial period due to its faulty designs and marketing strategies. The models were conceived from the western market and lacked the culture and traditions of the local people.

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• The story of Tanishq, once written off as a

losing proposition, made a remarkable turn around story in the jewellery market.

Performance of Tanishq

Year Profits Generated

(in Rs. Crores)

1996-97

1997-98

1998-99

2000-01

2001-02

2002-03

-10.60

-21.96

-10.40

2.07

1.87

7.87

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• Things were made to happen in Tanishq only through continuous anlysis of the market and customers.

• From its systematic network of retail outlets across the country, to the revolutionary system of measuring purity of gold, Tanishq has become synonymous with trust. And with range that includes both contemporary and traditional designs.

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• The brand has established itself as a highly ethical player in a market which is marked by unethical practices, with the introduction of the Karatometer (an instrument which values Karatage of gold in jewellery).

• It keeps in mind region specific festivals and activities, value-added services like the Golden Harvest saving Scheme and Gold exchange Programme give Tanishq its edge over other traditional jewellers.

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Limitation of Marketing Research

1. One should not assume that marketing research can solve all the problems of marketing.

2. Marketing research is often used by those who have had no formal training in the subject. Such persons avoid using detailed investigations and sophisticated techniques which require both time and patience on the part of marketing researchers.

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3.There is an absence of a meaningful dialogue between the marketing management and the marketing research team.

4.Marketing research is not an exact science. There are several imponderables which come in the way of getting accurate results.

5.Marketing Research is considered to be wasteful activity in India. As a result, organization do not allocate resources for research purposes.

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NEW COKE: “Blind”Test

Coca Cola Company conducted a blind taste test on some 200,000 consumers, in which people were not informed about what they tasted. The company used three different formulations, which it tested against traditional Coke and Pepsi.

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On the basis of these results the Coca cola Company decided that it was time to change its formula to make Coke sweeter like Pepsi. New Coke was finally launched after months of fine-tuning the formula.

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The launch of New Coke was met with negative reactions to the extent that there was a revolt among customers, who could not accept such a change in so called “tradition” of an American product. Coke reacted quickly by introducing “ Coca cola Classic” which was, basically the original Coke. Gradually New Coke was replaced by Coke Classic.

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This is a classic example of the fact that spending millions on gauging consumer opinion may not necessarily give desired results if a wrong choice is made regarding technique.

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Sony India

Sony, a multinational corporation based in Tokyo, Japan, stepped into India in early 1995, in the post-liberalization period. Within a couple of months in the same year, it set up its manufacturing unit. The company makes its presence felt in India through Sony entertain Television, Sony Music and Sony India. While the first two are comfortably placed in their niche markets, it is the third which is expected to bring in all those exciting Sony digital products.Although the government has cleared its plans to manufacture its various products, it has not been smooth sailing for Sony India.

Sony India

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Sony India is facing some major problems, one of which is the emergence of a grey market for its brands. While it is targeting its sales around Rs,1050 crores by the turn of the century, it has to have a better understanding of India’s economic, social and political environment.

Sony India would like to develop itself as its parent company developed its business units in United States, Europe and Singapore. Since it is a multinational company manufacturing multi-products, it has a challenging task.

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Questions1. Do you think research can play an important

role in the development of Sony India?

2. If Sony India takes recourse to research, should it set up “in-house” research or hire the services of marketing research agencies?

3. If the choice is in favour of marketing research agency, what factors should it consider while selecting a particular agency?

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Research Designs

A Research Design is a plan of proposed research work. It may be defined as the specification of the

methods and procedures for acquiring the information needed.It is a framework or blueprint

for conducting the marketing research.A good research design will ensure that the marketing research project is conducted effectively and

efficiently.

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Classification of Research Design on the basis of the objective of the

research

Research Design

ExploratoryResearch

ConclusiveResearch

Descriptive Experimental

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Exploratory Research- Exploratory Research is an initial research which analyzes the data and explores the possibility of obtaining as many relationships as possible between different variables.– Used when seeking insights into the general nature of a

problem, the possible decision alternatives, and the relevant variables that need to be considered .It discovers ideas and insight.

• Discover what people think about a new shampoo

• Discover what eating habits people have during the day

• Discover what people think of an advertisement

• Discover what people look for in a leisure trip

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Exploratory Research

Types of Exploratory Research

1.Literature Survey- : This is quickest and most economical way to find possible hypothesis from the available literature. The post researches may be suitable sources of information to develop new hypothesis. The findings of marketing research is generally published in trade and professional journals which can be fruitful sources of information.

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2.Experience survey-: All persons who have information of market-variables are potentials sources of information.Top executives of the company,the sales managers and product manager may be a source of information to the researcher.

3. Focus Group:-In a focus group, a small number of individuals are brought together in a room to sit together and talk about some topic of interest to the focus group sponsor. The discussion is directed by a moderator.

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4. Case study:- A detailed case analysis of selected organizations or of individuals may be helpful in gaining information and new ideas. All aspects of a particular case is examined. The findings of a case study are always suggestive rather than conclusive.

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Descriptive Research– Provides an accurate snapshot of some aspect of the market

environment, such as:• The proportion of the adult population that supports the Cancer

Society.

• Consumer evaluation of the attributes of our product versus competing products.

• The socioeconomic and demographic characteristics of the readership of a magazine

• The proportion of stores that are carrying, displaying, or merchandising our products

• Etc.

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Descriptive Research

Descriptive studies are undertaken , when the researcher is interested in knowing the characteristics of certain groups such as age, educational level, occupation or income.

Descriptive studies can be divided into two categories-

1. Survey Methods

2. Observation Methods

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• Survey method- The survey method involves a structured questionnaire given to respondents and designed to elicit specific information. These questions may be asked verbally, in writing or via computer, and the responses may be obtained in any of these forms.

• Observation method- Observation methods are the type of methodology used in descriptive research. Observation involves recording the behavioral patterns of people, object, and events in a systematic manner to obtain information about the phenomenon of interest.

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Vague Problem

Exploratory Research

Hypotheses

New Ideas Conclusive Research

Decision

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Difference between Exploratory and Conclusive Research

Exploratory1.Objective:To provide insight and understanding

2.Characteristics:Information needed is defined only

loosely.Research process is flexible and

unstructured.Sample is small and nonrepresentative.

Analysis of primary data is qualitative.

3.Findings\Results:Tentative

4.Outcome:Generally followed by further

exploratory or conclusive research

Conclusive

To test specific hypotheses and examine relationships

Information needed is clearly defined.

Research process is formal and structured.

Sample is large and representative.

Data analysis is quantitative.

Conclusive

Findings used as input into decision making.

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Causal Research- A type of conclusive Research where the major objective is to obtain evidence regarding cause-and-effect-relationship.

– Used when it is necessary to show that one variable causes or determines the values of other variables

• Measuring the impact of a change in price on the level of sales

• Measuring the impact of an increase in advertising on the level of awareness

• Measuring the impact of product demonstration on intention to buy

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Causal Research

Selected Experimental Design1.“After Only” Design – This design consists of applying the experimental variable (e.g., advertising ) to an experimental group (e.g., consumers) and measuring the dependent variable after the application of the of the experimental variable.

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2.“Before-After” Design – In this design , the experimenters measure the dependent variable before exposing the subjects to the experimental variable and again after exposure to the experimental variable. The difference between the two is considered to be a measurement of the effect of the experimental variable.

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3.“Before- after with Control Group” Design – The experimental group and the control group are selected in such a way that they are similar. The control group is measured at the same times as the experimental group, but no experimental variable is introduced. Thus , the difference between the “after” and “before” measurement of the control group (y2-y1) is the result of uncontrolled variables. The difference between the “after” and “before” measurement in the experimental group (x2-x1) is the result of the experimental variable plus the same uncontrolled variable affecting the control group. The effect of the experimental variable alone can be determined by (x2-x1)-(y2-y1).

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4.“After only with Control Group” Design- In this design the experimental and control groups are selected in such a way as to be equivalent. No “before” measurement is made in either group. The effect of the experimental variable is determined by computing the difference between the two “after" measurement (x2-y2).

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5.Continuous Diary Panel Design - In this a sample is recruited , and information is obtained from the members continuously or at intervals over a period of time. A permanent or fixed sample of this type is called a panel.

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Marketing Research Proposal

The marketing research proposal contains the essence of the project and serves as a contract

between the researcher and management.

The Research proposal covers all phases of the marketing research process.

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Basic Contents of a Research Proposal

• Executive Summary

• Purpose and Scope

• Objectives

• Research Approach

• Time and Cost Estimates

• Appendices

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Marketing Information System-MIS

A continuing and interacting structure of people, equipment and procedures designed to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information to marketing decision makers.

Marketing research generates information, while MIS concentrates on storage and flow of information.

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Marketing Information System

Internal report system

Marketing Researchsystem

MarketingIntelligence

system

AnalyticalMarketing

system

MIS

Target marketCompetitors

PublicsMarketing Channels

AnalysisPlanning

ImplementationControl

Marketing managementMarketing

Environment

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Types of Information

Marketing Information System usually supplies three types of information to marketing managers.

1. Recurrent

2. Monitoring

3. Requested

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• Recurrent information is that information which is provided on a periodic basis.

• Monitoring information is the information obtained from regular scanning of certain sources.

• Requested information, as the name implies, is the information sought by a marketing manager.

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Role of Research in Decision making

Organizational/Business Decision Makers

Marketing Research

Marketing Decisions

Customer/ Society

informs

influences

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Steps in research process

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Formulating the Research ProblemWhere research topics come from?Practical problems in the field

In order to identify the research problem, three categories of symptomatic situation, namely, Overt difficulties, Latent difficulties, Unnoticed opportunities should be studied.

Literature in the specific field.

by reading the literature and thinking of ways to extend or refine previous research.

Requests For Proposals

published by government agencies and some companies describing some problem that the agency would like researchers to address.

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• Choice Of Research Design-A research design specifies the methods and procedures for conducting a particular study. The researcher should specify the approach he intends to use with respect to the proposed study. Broadly speaking research designs can be grouped into three categories-exploratory research, descriptive research and causal research.

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• Determining sources of data-The marketing researcher has to decide whether he has to collect primary data or depend exclusively on secondary data. Sometimes, the research study is based on both secondary and primary data.

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• Designing data collection forms – Once the decision in favour of collection of primary data is taken, one has to decide the mode of collection . The two methods available are observation method and survey method.

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• Determining sampling design and sampling size-It is necessary to have a clear definition of the population from which the sample has to be drawn. The researcher then selects a specific type of sample design. As regard sample size, there are two basic approaches-practical approach and the statistical approach.

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• Organizing and conducting the field survey- Two important aspects are there-interviewing and the supervision of field work. Supervision of field work is very important to ensure timely and proper completion of the field survey.

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• Processing and Analyzing the collected data- Once the field survey is over and questionnaire have been received , the next task is to aggregate the data in a meaningful manner. Analysis uses a variety of technique to determine important relationship amongst several variable.

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• Preparing the Research Report- Once the data have been tabulated , interpreted and analyzed , the market researcher is required to prepare his report embodying the findings of the research study and his recommendations.

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Internet– Provides more rapid access– Improves response time to customer needs– Increases follow-up studies and longitudinal research– Creates cost cutting opportunities

• Internet Enhances the Research Process and Dissemination of Information– Virtually replacement of printed material– Distributions of request for proposals (RFPs) – Collaboration between effected parties– Data management and online analysis– Publishing and distribution of reports– Online presentation

Impact of the Internet on Marketing Research

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Case Study- H.P.Kaldarshak Kaldarshak is a Hindi word for calendar. Each year the

Mathura based Hindi Pustakalaya, brings out a Kaldarshak. The company has been in this line for the past several years. The calendar has one page for each month. It shows various festivals of major religions. This apart, it contains overall astrological forecasts, as well as number of useful information including health tips. In view of so many useful features, the calendar has been quite popular in North India over the years.

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During the past two years, its sales have somewhat declined. The company is surprised to see this unexpected and sad development. It is unable to ascertain as to what has gone wrong to bring about this situation. The managing director of this company is seriouly thinking about seeking professional help in this regard. He thinks that a good marketing research agency should be approached.

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Question:

Assuming yourself as a consultant in the marketing research agency, describe the procedure you would adopt in ascertaining the reasons for the recent decline in the sale of these calendars. Be specific.