Unit 1 chapter 1 & 2MR

8/7/2019 Unit 1 chapter 1 & 2MR

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Dr. Silky Vigg Kushwah


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Unit 1Chapter 1Introduction of Marketing Research

y

Define marketing researchy Aims & objectives of marketing research

y Applications of marketing research

y Marketing Information System

y

Evaluation & control of marketing researchy Value of information in decision making

y Steps in marketing research


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Unit 1Chapter 2

Research Designy Formulating the research problem

y Choice of research designy Types of research design

y Sources of experimental errors


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Continuey Every marketing opportunities translate into a

research problem to be investigated, so the terms

problem and opportunity are usedinterchangeably.


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Aims & objectivesofMR1. To understand why customers buy a particular

product.

2. To know the marketing opportunities.3. To understand the marketing problems.

4. To help in the selection of right course of action.


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Continue5. To know about customer acceptance of the product.

6. To understand the distribution network of the

product.7. To forecast the probable volumes of the future sales.

8. To analyze the expected market share.

9. To assess the competitive strengths and policies.


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ApplicationsofMR

Research on markety Analyzing market potential for the existing products

and estimating demand for the new ones

y Sales forecasting

y Studying the characteristics of product markets

y Studying the market trends


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Research on product/servicey Customer acceptance of the proposed new producty Comparative study of competitive products

y Determining new uses of the present products


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Continuey Test marketing the proposed producty Product line research

y Packaging and design research

y Studying the extent of customer satisfaction with theproduct


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ContinueResearch on promotiony Evaluating advertising effectiveness

y Analyzing advertising and selling practices

y Selecting advertising media

y Establishing sales territories


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Continuey Evaluating the present and the proposed salesmethods

y Studying competitive pricing

y Analyzing the salesmens effectiveness


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ContinueResearch on distributiony Location and design of distribution centers

y Handling and packing of merchandisey Cost analysis of transportation methods

y Dealer supply and storage requirements


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ContinueResearch on pricesy

Demand elasticityy Perceived prices

y Cost analysis

y Margin analysis


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Marketing Information Systemy MR is to be distinguished from MIS.

y MIS is defined as :

A structured, interacting, complex ofpersons, machines, and procedures designedto generate an orderly flow of pertinentinformation, collected from both intra andextra firm sources, for use as the basis fordecision making in specified areas ofmarketing management.


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ContinueyWhile MR generates information, MIS concentrates

on the storage and f low of information tomarketing managers.

y

MIS is a much wider concept than MS.y MIS has four sub systems. They are:

1. Internal Reports System

(data on sales, CF, cost, inventories, ARs, APs)

2. Marketing Intelligence System(day to day information through magazines,newspapers)


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Continue3. Marketing Research System

4. Analytical Marketing System (two parts)

Statistical bank which ascertain the relationshipbetween different data through statisticalprocedures.

Model bank which helps in decision making

through various models.


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Evaluation & ControlofMRy Need for MR in any organization is found at two levels:

1. Individual projects

2. Total research activity within a firm

y Management can use certain tools to evaluate & controlresearch projects. They are as follows:


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yCheck listIt serves as a reminder for the types of problems that arelikely to come up during the course of projects.

yFlow chartsIt enables management to maintain an overall controlover the project.

yGnatt ChartIt enables the management to develop an overallresearch schedule by allocating a time period to eachcomponent.


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yAdvisoryCommitteeIt comprises representatives from allfunctions and is the most effective way of

evaluating and controlling the total MRactivity. Its main task is to give directions.

yMarketing Research Audit

yBudget ControlSome % of sales or each department decidesits budget or Ad hoc basis


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Valueof Information in DecisionMaking

y Unless the information collected does not lead the

manager to change or modify his decision, theinformation has no value.

y Generally, information is most useful in cases

1.Where one is unsure of what is to bedone

2.Where huge values, say, huge profits or

losses, are involved.


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F

ormulating the

Rese

archProblemy Defining a research problem is the most vital step in

research.

y Inadequate problem definition is a leading cause offailure of marketing research projects.

y There is a proper process of defining the problem &developing an approach


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yTasks involved1. Discussion with decision makersMeeting with the DM is very important to know theactual problem for which the study will be conducted(Problem Audit)

2.Interviews with expertsThis will help the researcher to understand the realproblem more clearly.


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3.Secondary data analysisIt includes information made available by business &govt. sources, internet and marketing research firms.

4.Qualitative researchAn unstructured, exploratory in nature, based on smallsamples intended to provide insight and understandingof the problem setting (focus groups, personal

interviews, pilot study, case studies).


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Environmental context of the

problem

y The researcher should understand the clients

firm and industry.

y The researcher must analyze the followingfactors, encompassing the environmental context

of the problem:1.Past performance & forecasts

2.Resouces & Constraints


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Defining the MR problemThe general rule to be followed in defining the MR

problem is that the definition should

1.Allow the researcher to obtain all the informationneeded to address the mgmt. decision problem.

2.Guide the researcher in proceeding with theproject.


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Twoerrorsoccury When the research problem is defined too

broadly.

y When the research problem is defined toonarrowly.


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ChoiceofResearch Designy Research design is a framework or blueprint

for conducting the MR project.

y it specifies the details of the proceduresnecessary so as to obtain answers to researchquestions.

y It is the specification of methods andprocedures for acquiring information needed.


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ComponentsofResearch Designy Design the exploratory, descriptive and/or causal

phases of the design.

y Define the information needed.y Specify the measurement &scaling procedures.

y Construct & pretest a questionnaire or an appropriateform for data collection.

y Specify the sampling process & sampling size.

y Develop a plan for data analysis.


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Typesof Research DesignResearch design

Exploratory

research design

Conclusive

research design

Descriptiveresearch Causalresearch

Cross sectional

design

Longitudinaldesign

Single cross sectionaldesign

Multiple cross sectiona

design


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Exploratory research designy It is conducted for the following reasons:

1. Define a problem more precisely.

2. Identify alternative course of action.3. Develop hypothesis.

4. Gain insight for developing an approach to theproblem.


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Descriptive researchy The major objective of descriptive research is to

describe something-usually marketcharacteristics.

y It is conducted for the following reasons:

1.To describe the characteristics of relevantgroups.

2.To estimate the % of units in a specificpopulation exhibiting a certain behavior.

3.To determine the perception of customers.

4.To make specific predictions.


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Typesofdescriptive researchCross sectional design

y It involves the collection

of information from anygiven sample of population only once.

y

It may be either single ormultiple cross sectionaldesign.

Longitudinal design

y A type of research design

involving a fixed sampleof population elementsthat is measuredrepeatedly on the samevariables.


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Typesofcrosssectional designsy MultipleCS design

y

A CS design in whichthere are two or moresamples of respondents, andinformation from each

sample is obtainedonly once.

y Single CS design

A CS design in whichone sample of respondents is drawnfrom the targetpopulation and

information isobtained from thesample once.


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Sources

ofEx

pe

rime

ntalE

rrors

Several potential sources of error can affect a researchdesign. The errors are as follows:

Total errorIt is the variation between the true mean value in thepopulation of the variable of interest and theobserved mean value obtained in the marketingresearch project.


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Total error

Random sampling

error

Non sampling

error

Response errorNon response

error

Researcher error Interviewer error

Respondent error


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Researchererror

Surrogate

information

error

Measurement

error

Population

definition

error

Sampling

frame

error

ata

Analysis

error


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Interviewererror

Respondentselection

error

Questioning

error

Recording

error

Cheating

error


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Respondenterror

Inabilityerror

Unwillingnesserror


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Random sampling errory The error due to the particular sample selected being

an imperfect representation of the population of

interest.

y It can be defined as the variation between the truemean value for the sample and the true mean value

of the population.


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Non sampling errorsy These are errors that can be attributed to

sources other than sampling, and they can berandom or non random.

y Example :Poor questionnaire

y

It consists of 2 types of error:1. Non response error

2. Response error


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Non responseerrory A type of non sampling error that occurs when

some of the respondents included in the sample

do not respond.

y This error may be defined as the variationbetween the true mean value of the variable in the

original sample and the true mean value in thenet sample.


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Researcher errory A type of response error made by the researcher

is called researcher error.

y Researcher error includes:

1. Surrogate information error

2. Measurement error

3. Population definition error4. Sampling frame error

5. Data analysis error


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Surrogateerrory Surrogate information error may be defined asthe variation between the information needed forthe research and the information sought by the

researcher.

Example: Instead of obtaining information onconsumer choice ,researcher gets it on consumerpreference


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Measurement errory Measurement error may be defined as the

variation between the information sought and theinformation generated by the measurementprocess employed by the researcher.

y Example: liking scale instead of satisfaction scale


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Population definition errory It may be defined as the variation between the

actual population relevant to the problem at handand the population as defined by the researcher.


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Sampling frameerrory It may be defined as the variation between the

population defined by the researcher and thepopulation as implied by the sampling frame used.

y Example: the telephone directory used to generate alist of no. does not accurately represent thepopulation because of unlisted, disconnected and

new no. in service.


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Data analysis errory It occurs when raw data is transformed into

research findings using an inappropriate

statistical procedure, resulting in incorrectinterpretation and findings.


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Interviewer errory Response errors can be made by the interviewer

also. This kind of error is known as interviewer

error.

y Interviewer error includes:

1. Respondent selection error2. Questioning error

3. Recording error

4. Cheating error


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Respondent selection errory It occurs when interviewers select respondents

other than those specified by the sampling

design.


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Questioning errory Errors made in asking questions of the

respondents or in not probing when moreinformation is needed are called questioningerrors.


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Recording errory Recording error arises due to errors in hearing ,

interpreting, and recording the answers given bythe respondents.


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Cheating errory Cheating error arises when the interviewerfabricates answers to a part or all of the interview.

y Example : Not asking sensitive question related torespondent debt but later fills in the answersbased on personal assessment.


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Respondent errory Response errors made by the respondent are

called respondent errors.

y Respondent errors includes:

1. Inability error

2. Unwillingness error


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Unwillingnesserrory It arises from the respondents unwillingness to

provide accurate information. Respondents may

intentionally misreport their answers because ofa desire to provide socially acceptable answers,avoid embarrassment, or please the interviewer.


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y In formulating a research design, the researcher shouldminimize the total error.

y Increasing the sample size may decrease sampling error

but may increase non sampling error (Interviewererror).

y Non sampling error is likely to be more problematicthan sampling error.

Documents

Unit 1 chapter 1 & 2MR