Marketing Research

Dheeraj Chadha B.Tech ( Chemical & Bio Engineering) MBA ( HR & Marketing)

Idea What to Marketing How to. Distribution Where to. Adsales Whom to. Research Why to.

Idea What to..

What type of products will tick with my customers ? What is the best time to try & keep them with the network ? Is this product, unique enough ?

Research-in-Charge

Checks product varieties Checks strong/weak slots of competition Pre-tests

Idea-in-Charge

Marketing How to..

How do I measure as an entertaining destination in the consumers consideration set ? Which markets are strong/weak markets ? When do I re-visit my priorities ?

Research-in-Charge

Marketing-in-Charge

Measures Brand Positioning Segments Markets Strong / Weak Aids setting of short/midterm priorities

Distribution Where to..

What is the current penetration of the productl ? Where is the scope for renewed focus ? What is the nature of the market?

Research-in-Charge

Distribution-in-Charge

Channel Penetration Update Identifies markets/zones calling for short/mid-term focus Provides critical market descriptors

Adsales Whom to..

Which channel/services should the product pursue for advertising revenue ? Which product has the client currently/historically been using ?

Research-in-Charge

Brand Mapping Role Definition for the product

AdSales-in-Charge

United we stand, Divided

Research,.

as a function, is undertaken by each specialized division aids in transformation of a mission into a quantifiable, time-bound goal provides for improved corporate efficiency

In the lack of which,

What is a Market ?

Marketing Research
Introduction To Marketing Research Meaning Need of Marketing Research Size and Growth of Marketing Research

Introduction
Meaning
The American Marketing Association defines market research as:
Consumer
INFORMATION

Researcher

Marketing Research is the function which links the consumer,customer and public to the marketer through marketing opportunities INFORMATION- Information used to: and problems identify and define marketing opportunities and marketing problems actions generate, refine and evaluate marketing actions monitor marketing performance& improve understanding of market as a process

marketing performance

underst anding of market as a process

Introduction
Need of Marketing Research Managers are separated from their final consumers & Managers need Information from their Final Consumers

Introduction

Introduction

Need of Marketing Research during Different Phases: Setting Goals and Establishing Strategies Developing a Plan Putting the Plan into Action Evaluating the Plans Effectiveness

Introduction
Extent and Share of Marketing Research
Acc. to Arthur C. Nielsen Marketing Research is doubling in every 5 years. Its growing rapidly As can be seen Share and Category of Marketing Research:
Share More than 99% More than 95% More than 90% More than 83% Category of Research Market Potential,Characteristics of Market,Share of Market Short Run and Long run forecasts New Product Opportunities and Acceptance Existing v/s Competitive Product Advertising Decisions Marketing Strategy Studies

Introduction
When Research is not Recommended:

Distant/Far off Future Events Unimportant Events Emotional & Sentiments No Time for Research

Marketing Research Process

S p e c iy in g th e R e s e ra c h O b je c tiv e s

L is tin g N e e d e d In fo rm a tio n

D e s ig n in g th e D a ta C o lle c tio n P ro je c t

S e le c tin g a S a m p le ty p e

D e te rm in in g th e S a m p le S iz e

O r g a n is in g & C a r r y in g o u t th e F ie ld w o r k

A n a ly s in g th e C o lle c te d D a ta & r e p o r tin g th e F in d in g s

Errors in Research Process

Sampling Errors Non Sampling Errors

Defective Problem Definition Defective Population Definition Frame Error Non Response Error Measurement Error

Errors in Research Process

Experimental error Poor Questionnaire Design Interviewer bias Data Processing Error Data Analysis Error Interpretation Error

Marketing Research Process

Process Steps in 3 Different Situations
Describing a Problem 1)Specifying Research Objectives 2)Listing the needed Information 3)Designing the data collection project Cause of the Problem Researchers to gather information themselves Unstructured Identifying Opportunity Not Specific: New Ideas General,Not Specific,No Evaluation Unstructured/ Exploratory Developing a Choosing Marketing Plan between Specific Alternatives Devising a Specifying the suitable Strategy best Alternative Managers Not really conceptual needed framework gives guidelines Formal/ Experimentation Structured/ Descriptive

Case
Company: Hero Cycles Problem Situation: Sales Decline Information Needed: Customers Requirements Purchase Behavior Studying the buyers Needs & Behavior Studying Dealers Attitudes Distinguishing rural buyers Needs & Urban Buyer Needs Data Collection: Exploratory /Secondary/Primary Sample: Non Probability/Stratified Sampling Sample Size:100 buyers;50 dealers

Case
Company: Cellphone Provider Problem Situation: Study on Value Added Services Information Needed: Whether people actually use phone just for talking Extent of VAS Factors influencing choice of a service provider Data Collection: Primary data though questionnaires Sample: Non Probability Sample Size:75 Age Group:18-45 years

Types of Research Design

Types of Research

Exploratory Research Conclusive Research

Types of Research
Degree Of Problem Definition Exploratory Research (Unaware of Problem)
Our sales are declining and we dont know why. Would people be interested in our new product idea?

Conclusive Research (Aware of Problem)

What kind of people are buying our product? Who buys our competitors product? What features do buyers prefer in our product?

Types of Research

Uncertainty Influences The Type Of Research

CONCLUSIVE

COMPLETELY CERTAIN

ABSOLUTE AMBIGUITY

EXPLORATORY

Exploratory
1. Qualitative

Conclusive
Quantitative

2. Used to Identifying Problems & Used to developing a plan or Opportunities choosing between specific alternatives i.e. it is used to make decisions 3. Exploratory Research provides It test specific hypotheses and insight and understanding and examine relationships formulates hypotheses 4. Exploratory Research succeeds Conclusive Research cannot conclusive research i.e further succeed Exploratory research i.e research conclusive results for decision making 5. Designs: Designs -Search of Secondary Data -Descriptive Research -Survey of Knowledgeable -Case Study Persons - Statistical Study -Case Study -Experimentation 6. Unstructured/Informal Study Structured/Formal Study

Types of Research

R e s e r a c h D e s ig n E x p lo r a t o r y R e s e a r c h D e s ig n S econ dary Sou rces K n o e l e d g a b l e I n d i v id u a ls C a se M e th od C o n c lu s iv e R e s e r a c h D e s ig n D e sc r ip t iv e C a se M e th od S t a t is t i c a l M e t h o d L o n g itu d in a l E x p e r im e n ta t io n

C r o s s S e c tio n a l

Exploratory Research
Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. Exploratory research is usually conducted when the researcher does not know much about the problem and needs additional information or desires new or more recent information. i.e. It is particularly used to identifying problems and potential opportunities. Initial Research Conducted To Clarify And Define The Nature Of A Problem Emphasis on finding Hypotheses. Does Not Provide Conclusive Evidence Subsequent Research Expected

Exploratory Research
Vague Problem Exploratory Research Hypotheses Conclusive Research Decision
New Ideas

Exploratory Research
Exploratory Research Designs 1) Study of Secondary Sources of Data 2) Survey of Individuals with ideas 3) Case Study

Exploratory Research Designs

1. Study of Secondary Sources of Data

Most economical way for researchers to find hypotheses is to take advantage of the work already done by others Sources of Secondary Data: Research Libraries/Research Organizations/ Company Records/Trade Journals/ Government Documents/Books/Newspapers etc.

Exploratory Research Designs

2. Survey of Individuals with Ideas Various Techniques: -Depth Interviews: (Individual One on One Interviews) -Projective Techniques -Focus Group Interviews

Exploratory Research Designs

Depth Interviews
Advantages: Brings out Information clearly Flexibility Disadvantages: Interviewer Bias Longer Time Involved Costs Involved Difficulty in Interpretation A man is least himself when he talks in his own person; when given a mask he will tell the truth. --Oscar Wilde

Exploratory Research Designs

Projective Techniques
Association Techniques: Word Association Tests: Subject Is Presented With a List of Words Asked to Respond With First Word That Comes to Mind Completion Techniques: Sentence Completion Method People Who Drink Beer Are ______________________ A Man Who Drinks Light Beer Is ___________________ Imported Beer Is Most Liked by ___________________ The Woman in the Commercial ____________________ Story Completion Method

Projective Techniques
Construction Techniques: Pictorial Method(TAT) Cartoon Tests Expressive Techniques: Role Playing

Exploratory Research Designs

Focus Group Interviews

Unstructured Free Flowing Group Interview Start With Broad Topic and Focus in on Specific Issues

Exploratory Research Designs

Focus Group Interviews
Selecting Samples for focus Groups: No. varies between 6 to 12 People Relatively Homogeneous Similar Lifestyles and Experiences Individuals preferably should not know each other Moderators Develops Rapport - Makes People Relax Interacts Listens to What People Have to Say Everyone Gets a Chance to Speak

Exploratory Research Designs

Focus Group Interviews
Advantages: Economical Quicker Results in New Ideas usually Disadvantages: Moderators need to be well trained Results may be influenced by the moderators Dominant personalities may take over group

Exploratory Research Designs

3.Analysis of Selected Cases
It involves the comprehensive study of complex situations in which interrelations among factors are studied.

Intensely Investigates One or a Few Situations Similar to the Problem Investigate in Depth Careful Study

Advantages Disadvantages 1. Study of Entire Situation rather 1. Subjective rather than than a single entity Objective 2. Description of a real event or a 2. Analysis based on Intuition of situation Investigators 3. Accurate data obtained 3. Generalization in Analysis

Conclusive Research
Conclusive Research provides information that helps the executives make a rationale decision. It can be classified as :

Descriptive Research

Experimental Research

Descriptive Research
Meaning

Descriptive research is undertaken to provide answers to questions of who, what, where, when, and how but not why.
Descriptive Studies as the name implies are designed to describe something-a situation/product etc A Descriptive study can be designed to test the hypotheses i.e. a descriptive study must collect data for a definite purpose Situations are:

Describing characteristics of relevant groups. Number of people who behave in a certain way Specific predictions Determining perceptions of product characteristics

Types 1. Case Method 2 Statistical Method Study of a few factors in large no. of cases as compared to case study which involved the study of a few cases

Descriptive Research

Case Method
1.Individual Analysis 2.Subjective 3.Results based on intution & judgement 4.Jumps to conclusions 5.Cases may not be a typical of universe under investigation

Statistical Method
1.Mass Analysis 2.Objective 3.Same results with different reserachers 4.Accurate Generalization 5.A properly selected sample represents universe.

Descriptive Research
Descriptive Research The analysis of this Method can be done by using : 1.Cross Sectional Studies: Cross-sectional studies measure units from a sample of the population only once. Sample surveys are cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population.
Single cross sectional studies (One Sample) Multiple cross sectional studies (Two or more)

Descriptive Research The analysis of this Method can be done by using : 2.Longitudinal Studies Longitudinal studies repeatedly draw sample units of a population over time. One method is to draw different units from the same sampling frame. A second method is to use a panel where the same people are asked to respond periodically.

Descriptive Research
Advantages and disadvantages of Longitudinal and Cross Sectional Designs

Criteria

Cross Sectional Design

Longitudinal Design
+ + + _

Detecting Change _ Large Amount of Data _ Collection Accuracy _ Representative Sampling Response Bias + +

Categories of Research

Exploratory Causal Descriptive

Each element plays a distinct and complementary role!

Experimental Research
Meaning Experimentation can be used for two major purposes in marketing: - to explain the relationship that exists between certain variables - to study the nature of changes resulting from the relationships Experimentation relates to a situation where an artificial situation is created whereby particular data can be measured accurately. Experimentation is defined as a process where events occur in a setting at the discretion of the experimenter and controls are used to identify the sources of variation in subjects response It is a process of manipulating one variable in a controlled environment while holding all other variables constant in order to establish a causal relationship.

Experimental Research
Uses of Experimentation: Product Design
What Product character consumer chooses against changing conditions?

Package Design Pricing Policies Promotion Policies Distribution Policies

What package should be used to increase the product sales?

How pricing affects sales?

How various promotion policies affect sales?

How Distribution policies can affect sales?

Experimental Research
Types of Experimentation Laboratory Experiments Field Experiments

Usually consumers are brought to a The experimental variable is taken conference room and exposed to an to the field experimental variable

Experimental Research
E x p e r im e n t a l V a r ia b le ( e g . A d v e r t is i n g , T r a in i n g )
In d e p e n d e n t V a r i a b le ( P d t / P r ic in g / P r o m o t io n / D is t r ib u t io n )

E x p e r im e n t a l U n it ( e g . c o n s u m e r s ,g r o u p )

T e s t U n its ( C o n s u m e r s / O r g / S t o r e s / G e o g r a p h ic A r e a s )

M e a s u r a b le E f fe c t

D e p e n d e n t V a r i a b le ( S a le s / P r o f it / M k t S h a r e )

Experimental Research
Uncontrollable External Influencing Variables: 1.History
It

refers to the specific events that occur at the same time as the experiment. The longer the time interval between observations,the greater the possibility that history will confound an experiment.

2.Maturation
Gradual change in the experimental units arising due to the passage of time Biological or Psychological changes that take place with the passage of time are called maturation

Experimental Research
3.Testing Effects

Pretesting can also at times influence the minds of the consumer. The more artificial & the more obvious the measurement process the more effect it may be expected to haveon later results. A prior measurement affects the test units response to the independent variable.

4.Instrumentation (Measurement Variation)

It refers to changes in the measuring instrument,in the observers or in the score themselves

Experimental Research
5.Statistical Regression
It occurs when test units with extreme scores move closer to the average score during the course of the experiment.

The average effects may have got distorted on account of other factors.

6.Selection Bias
It refers to the improper assignment of test units to treatment conditions which differs in terms of effects even before the exposure to the treatment condition.

7.Mortality
It refers to the loss of one or more test units while the experiment is in progress i.e loss of respondents from the various groups

Experimental Research

Types of Experimental Designs

Natural Experiments Time Series & Trend Designs The One Shot Case Study Before After without Control Group Cross Sectional Designs A Combination of the First Two

Controlled Experiments After only with Control Group Before After with Control Group Four Group Six Study Design

Other Statistical Designs Ex Post Facto Design Continous Diary Panel Design Factorial Designs Latin Square Design

Types of Experimental Designs

Natural Experiments
1.After Only Design (The One Shot Case Study) Effect of Experimental Variable =After Experimental VariableImplicit Before measurement
Methodology: Applying the experimental variable to an experimental group and measuring the dependent variable after and only after the application of the experimental variable. Used in: New Products when the before measurement is known to be zero. Used in Exploratory Research,else should be avoided.

Types of Experimental Designs

2.Before-After without Control Group Effect of Experimental Variable =After Experimental Variable(X2)Before measurement Experimental Variable(X1)
Methodology: Measures the dependent variable before exposing to group and again after exposure to the experimental variable.The difference is considered to be a measurement of the effect of experimental variable. Superior and preferred to After Only Design Uncontrollable Variables: History/ Maturation/ Pretesting/ Measurement Variation

Types of Experimental Designs

Controlled Experiments
1.After Only with Control Group Effect of Experimental Variable = Aftermeasurement(Experimental Group) (X1) After measurement (Control Group) (Y1)

Methodology: Used in: The experimental group and the control Cases where before measurement is not group are selected in such a way as to be possible equivalent. Used in where testing and instrument No Before measurement is made in affects are likely to be serious either groups The Effect is computed from the difference between the two after measurements.

Types of Experimental Designs

Controlled Experiments
2..Before After with Control Group Effect of Experimental Variable = [Aftermeasurement(EG) (X2) -Before measurement (EG) (X1) -Aftermeasurement(CG) (Y2) -Before measurement (CG) (Y1) ]
Methodology:

The experimental group and the control group are selected in such a way as to be equivalent. The Effect is computed from the difference between the two measurements of before & after between EG & CG .

Types of Experimental Designs

Controlled Experiments
2.Four Group Six Study Design
Experimental Group1(X2-X1) Experimental Group2[X3-1/2(X1+Y1)] Control Group1(Y2-Y1) Control Group 2[Y3-1/2(X1+Y1)]
Methodology:

EG1 &CG1 form the before after with control group Additional 2 groups with no before measurements, only after measurements (EG2 & CG) . Before measurements assumed to be the same for all four groups. If the Before measurements had no effect then EG1=EG2 & CG1=CG2, else treated as four different equations.

Used in: Ideally used wherein the Before measurements create an influence on after measurements.

Types of Experimental Designs

Other Statistical Designs
1. Ex Post Facto Design
(Combination of Cross Sectional & Time Series) On an ex post facto basis the exposure to an experimental variable can be introduced. I.e. the Experimental and the Control Groups are selected after the experimental variable is introduced instead of Before. Advantages: No influence on the selection of the test units for experimental and control

2. Continuos Diary Panel Design

(Combination of Cross Sectional & Time Series) A permanent or fixed sample from whom information is selected is called a panel. Measurements are taken at intervals and experimental variables are introduced when desired. Similar to the before-After measurements

Types of Experimental Designs

Other Statistical Designs
The Effects of more than one independent variable can be measured. Extraneous variables can also be controlled

3.Factorial Design
Factorial design helps to test two or more variables at the same time. A factorial design may be conceptualized as a table

4.Latin Square Design

To economize in situations where more than two variables are present a Latin Square Design is adopted.

Experimentation
Limitations Time Consuming Cost Difficulty in controlling Extraneous variables Difficulty in Cooperation Competitive Circumstances