Lecture # 3 - Marketing Reaserch

8/14/2019 Lecture # 3 - Marketing Reaserch

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MARKETING

RESEARCHMETHODS


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Types of Research

Quantitative research

Qualitative research

Managing Marketing information/Marketing Research - 4


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Quantitative research

Statistical basis

Gathers statistically valid, numerically

measurable data Usually related to data on the market-size,

growth and market shares

Sampling plays a key role Data obtained through surveys



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Qualitative Research

Subjective and personal

Concerned with finding out soft

information Main purpose is to understand consumer

behavior, attitudes and perceptions

Obtained by methods designed to getdetailed responses e.g. interviews



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Marketing Research Process

Define the problem

Define the research objectives

Choose data sources

Choose research methods

Construct sample

Set budget and deadlines

Undertake research

Analysis and evaluation



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Methods of collecting data

Desk research in which secondary data is

collected. Secondary data is defined as the re-

using of data that already exists

Field research collecting original data i.e.Primary data

Data collection is only one stage in the process

Data has to be analyzed & evaluated Conclusions & recommendations have to be

drawn



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Internal

- Sales figures

- Customer reports

- Trend data- Sales reports

- Cost data

- Company reports

- MIS data

External

- Competitor information

- Government publications

- Commercial publications- Trade association data

- Retail audits

- Directories

Secondary data sources



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Field research to collect primary

data

Experiments

Observations

Surveys Interviews

Focus groups

Panels



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Experiments

Method of obtaining primary research data Aim is to measure & evaluate customer

reactions to the changes in marketing mix

Can be done in the field or under controlledconditions

Examples: test markets, simulated test markets,blind test

Pilot trials of new products are a common use ofexperiments it provides a chances to see howthings work out before a large scale roll out.



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Observation

Information collected without asking questions

Involves watching people, noting & analyzing

their reactions

It is useful to find out how people buy products,Where they shop? What appeals them?

Can be carried out under controlled (laboratory)

as well as uncontrolled conditions (field) Examples: Traffic audits, Radio & TV panels,

Retail store audits


M i M k i i f i /M k i R h 4


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Observation

STRENGTHS- What people do rather

than say?

- Carried out without

informing the customer- Doesnt rely on the

memory or honesty of the

respondents

- Potential bias is reduced- Counters the refusal rate

associated with most

methods of MR

WEAKNESSES- Time consuming and

costly

- Doesnt reasonify

- Chances ofmisinterpretation of

behavior

- Only gives partial

information


M i M k ti i f ti /M k ti R h 4


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Surveys

Key research method for large samples

Wide range of uses: to ascertain facts,

beliefs, opinions, attitudes

Examples: Interviews (one-one, over

telephone, online), by postal mail, email

etc.




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Postal Surveys

STRENGTHS

- Wide coverage

- Low cost

- No interviewer bias- Respondents

convenience

- Lack ofembarrassment

- Avoids travelingcosts

WEAKNESSES

- Low response rate

- Lack of control of

respondent- Limited scope for

open ended questions

- Limited to short

questionnaires- Long response time

- Biased response




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Telephone Surveys

STRENGTHS

- Saves time

- Higher response rate

- Greater control over

respondents than with

postal surveys

- Sample less likely to be

biased

- Cost limited to time spent

on phone

- Saves cost of traveling

- Allows probing

WEAKNESSES

- Questions maybe

more limited than with

postal surveys

- Data may not be

available

- Respondent has little

time to consider

questions

- Intrusion into privacy

- Can be time

consuming


Managing Marketing information/Marketing Research 4


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Comparison of survey methods

HighFastLowModerateElectronic

ModerateFastModerateModeratePhone

HighSlowLowLowPostal

LowSlowHighHighFace-face

Non-response

bias

TimeCostResponserate

Method




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One-one interviews

STRENGTHS- Interviewer can prompt the

respondent

- Can see respondents

reaction

- Respondents have more timeto think

- Detailed responses

- Can get opinions

- Respondents get fullattention

- Flexible

- Allows probing

WEAKNESSES High cost

Time consuming

Risk of bias

Requires interviewingskills




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Focus groups

Used for qualitative information gathering

Usually consists of 8-10 respondents & amoderator

Moderator introduces topics & guidesconversation

The aim is to seek opinions and find out

attitudes Composition of the group should reflect

target audience




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Focus groups

STRENGTHS

- Quick

- Range of attitudes

- Detailed qualitative

information obtained

- Flow of discussion

encourages ideas &participation

WEAKNESSES

- Need to build rapport

- Discussions must stay

focused- Needs good control by

the moderator

- Some members may be

inhibited- Expensive




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Panels

Continuous rather than ad hoc

Useful in assessing shifts of attitude and

opinion over time

A consumer panel consists of a

representative sample of people

Panel members are usually induced to be

permanently available by means of smallpayments or free samples




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Panels

STRENGTHS- A good trend indicator

- Useful for analyzing

changes

- More probing

WEAKNESSES- Expensive

- Biased sample of people

- Panels have to replaced

periodically

- When novelty wears off

members become less

cooperative




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Electronic online surveys

STRENGTHS

- Economical

- Devoid of boundary

limitations- Versatile and quick

WEAKNESSES

- Incomplete directory of

names

- Unrepresentativesample

- Brevity of email

responses can be a

problem- Little control over

sample


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Limitations of marketing research

Problems relating to surey and sampling

Sampling errors

Non response errors Data collection errors

Analytical and reporting errors

Marketing research information canquickly become dated



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Lecture # 3 - Marketing Reaserch