sheena.linkedin@gmail.com 1(MR)(MRT301) Study Guide

Market Research (MR)Marketing Research Theory

(MRT301)

Study Guide

References:Wiid, J. and Diggines, C. 2009. Marketing Research. Cape Town: JutaAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & SonsAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & Sons – summarised Mel Hall 2004

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References:Wiid, J. and Diggines, C. 2009. Marketing Research. Cape Town: JutaAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & SonsAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & Sons – summarised Mel Hall 2004

Chapter 1The nature and scope of marketing research

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What is Marketing Research?

• Systematic collection, analysis and interpretation of information about all marketing problems.

• By means of recognised scientific methods

• To provide information that marketing management can use in the decision-making process (Wiid & Diggines, 2009)

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Market Research provides the:

• Data: all statistics, opinions, facts & predictions

• Information : is the data component that is relevant to the decision in question

• Knowledge: blend of information, experience and insights providing a framework

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Link between the Organisation and the Customer

MR Helps Management To Understand The :

• Needs, values and perceptions of customers.

• Purchase patterns of customers and it allows a company to monitor customers.

• Marketing research information provides a basis for the development of a product strategy.

Socio-Cultural

Technological

Consumer Pressure

Shorter Product Life Cycle

Expansion new markets

Multi-Distribution Channelsorganisation

Customer

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3 Key Roles of Marketing Research

Descriptive

• Current Issues

• Focus on providing historical & current data about the consumer industry & enviroment.

• Impact and relevance of the data

Diagnostic

• Diagnoses the effects of a event in a given situation

• Cause & Effect

• Introducing a new strategy or how the increase in price may affect sales

Predictive

• Predict or forecast the outcomes of new strategies being developed

• Focus is on moving forward and identifying new opportunities

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Scientific Method & Non-Scientific Method

Objectivity

Scientific research is based on facts & not on intuition or preconceived notions.

Accuracy

Measuring must be as accurate as possible. However measurement is not accurate when testing the opinion of consumers using a questionnaire because the surveys are conducted under differing circumstances.

Continuous & Comprehensive

When conducting Scientific research, All aspects that can influence the results of the research are taken into consideration. The best research is based on previous research results as it leads to a better understanding of the problem & continuity

Differences: The scientific method which

features so prominently in the definition

of marketing research can be

differentiated from the non-scientific

method by means of the objectivity of

the researcher, the accuracy of

measurement and the implementation of

continuous and comprehensive research

Validity & Reliability (Page 6-7)

Validity, describes research that measures what it is supposed to measure.

Reliability, describes research that obtains the same results when the same research is repeated or undertaken by different researchers.

The scientific method involves five basic steps: 1. Problem identification and hypothesis formulation 2. Design of a research project 3. Implementation of the design 4. Test of the hypothesis 5. Report of the results.

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Characteristics Of Good Research

• Clearly defined research problem

• Detailed description of the research methodology

• Properly planned procedural design of the research

• Honest researchers who identify any shortcomings in the research design

• Data analysis method that are able to reveal the significance of the collected data

• Research conclusions that are limited to the findings (data analysis)

When is Marketing Research Necessary

• Time limits

• Availability of data

• Nature of the decision

• Advantages versus cost

• Resources

Difference between MR and MIS.

Marketing research is mainly concerned with the actual content of the information, and how it is to be generated.MIS is concerned with managing the flow of data from many different projects and secondary sources .

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MISMARKETING INFORMATION SYSTEMS

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MISMARKETING INFORMATION SYSTEMS

1. The Criteria For Evaluating Marketing Information

2. The Objectives Of An MIS

3. Different Types Of MIS

4. The Components Of An MIS

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The Criteria For Evaluating Marketing Information

Relevant

Useful

Timeous

Accurate

Adequate

Available

Mgt must be able to make use of the information. Decisions about TM, products, prices, distribution and marcom

Can the user understand and apply?

Available on a continuous basis and up to date

Information must reflect realities of the situation in which the org. is operating

Qualitative & Quantitative information must be available i.e decision making

Information should be in a form that is easy to access when required.

RUTA3

Benefits Gained

Costs Associated

Value of Marketing

Page 14

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The Objectives Of An M.I.S

R.U.T. available to marketing management on a continuous basis, therebyReducing the risk of making wrong decisions.

Identify

Distribute

Determine

Motivate

Secondary Objectives

Primary Objectives

I2DDM

Shortcomings in product sales & improve sales performance P/S in specific sales areas or market segments.

NB: THAT ARE NOT CONTRIBUTING TO THE ACHIEVEMENT OF THE FIRMS SALES VOLUME,PROFIT & MARKET SHARE OBJECTS

The need for new products and provide information about possible development and marketing of such products

Marketing activities more effectively among products or brands, ad campaigns, sales areas and advertising media

Prices in order to remain competitive in a changing market enviroment

Sales Staff in the field

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Different Types Of M.I.S

MIS of a SME establishment

low competition

levelSimple MIS

Type Of M.I.S depends on • Size• Industry

SMALL –MED Business

MIS of a Large establishment

Diversified product range or High competition

level

Complex MIS

LARGE Business

A Simple MIS consists of a routine data component and a special purpose component. (Page 16)

The Components Of An M.I.S

Internal reporting

subsystem

Marketing intelligence subsystem

Statistical subsystem

Marketing research

subsystem

Large organisations employ more extensive M.I.S.(Page 17)

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MDSSMARKETING DECISION SUPPORT SYSTEMS

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MDSS: A coordinated collection of data, tools and techniques with supporting software and hardware with which an organisation

gathers and interprets relevant information from business and the environment and turns it into a basis for marketing decisions.

MDSSMARKETING DECISION SUPPORT SYSTEMS

Characteristics Of A Good MDSS

Interactivity

Flexible

Discovery-oriented

User Friendly

Components of MDSS

Modeling

Reports &

Displays

Database

Analysis

Marketing Manager

Enviroment

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Internal & External Research

Suppliers

Credibility

Competence

Capacity

Cost

Advantages

• Ext.Org are independent

• Internal expertise about the research project lack

Disadvantages

• External researchers are not always familiar with all aspects of the Org

• Take longer than internal researchers

• Expensive

Ethics

Do not harm respondent

Do not deceive the respondent

Respondents should be willing and informed

Data should be held in confidence

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References:Wiid, J. and Diggines, C. 2009. Marketing Research. Cape Town: JutaAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & SonsAaker, D., Kumar, V., and Day, G. 2008. Marketing Research. New York: John Wiley & Sons – summarised Mel Hall 2004

Chapter 2The nature and scope of marketing research

(MR)(MRT301) Study Guide

After 20th March