CHAPTER 4

Conducting Marketing Research and forecasting demand.

Marketing Research

Marketing Research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organisation.

Define the problem and Research objective

Develop the research plan

Collect the information

Analyze the information

Present the findings

Make the decision

Step 1: define the problem, the decision alternatives, and the research objectives.

• Problem should not be defined too broadly or too narrowly.

• Should set up research objectives3 types of objectives Exploratory research Descriptive research Causal research

Step 2: develop the research plan

Develop plan for gathering of information Concerns:• Data sources• Research approaches• Research instruments• Sampling plan• Contact methods

Data sources• Secondary data• Primary data

Research approachesCollect primary data in 5 ways• Observation• Focus groups• Surveys• Behavioral data• experiments

Observational research• Gather fresh data by observing the relevant actors

and settings.• Unobtrusively observing as they shop or they

consume product.

Ethnographic ResearchA form of observational research that involves sending

trained observers to watch and interact with consumers in their ‘natural habitat’

Uses concepts and tools from anthropology and other social science disciplines to provide understanding of how people live and work.

Following baby-boomer, women rounded financial transactions because it was more convenient

Focus group ResearchA gathering of 6 to 10 people selected by researchers

based on certain demographic, psychographic considerations

Brought together to discuss various topics.

Survey research• Gathering primary data by asking people questions

about their knowledge, attitudes, preferences and buying behavior.

• Widely used for descriptive information

Experimental researchGathering primary data by selecting matched groups of

subjects , giving them different treatments, controlling related factors and checking for differences in group responses.

Test effects on sales of two different prices in 2 cities

Research Instruments1. Questionnaires2. Mechanical devices

Questionnaires • Most common instrument • Closed-end questions• Open-end questionsClosed-end questionsDichotomous questionsMultiple choiceLikert scale: agreementSemantic scale: bipolar

• Importance scale• Rating scale• Intention- to- buy scaleOpen end questionsCompletely unstructuredWord associationSentence completionStory completionPictureThematic apperception test (TAT)

InstrumentsMechanical device to monitor consumer behaviorPeople meters to television sets Check out scanners to record shopper’s purchasesAdvertisers use eye cameras to study viewers eye

movements

Sampling plan

Sample: a subgroup of elements of the population selected for participation in the study.

Sampling unit: who should be surveyed?Sample size: how many people should be surveyed?Sampling procedure: how should we choose the

respondents?

Sampling techniques

Non probability probability

convenience judgement quota

Simplerandom Stratified

randomCluster

Contact methods Mail questionnaire Telephone interview Personal interview Online interview

Step 3: collect the information

ConstraintsUnavailabilityBias

Step 4: Analyze the information

Extract finding by tabulating the data and developing frequency distributions.

Step 5: Present the findings

Translate data and information into insights and recommendations

Step 6: Make the decision.

Weigh the evidenceMay go according to research findingsMay proceed for further research