The Marketing Research Process
Capturing Marketing
Insights Dr. Ananda Sabil HusseinWhat is Marketing Research?
Marketing research is the systematic design
collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
The Marketing Research
Process
4-3
Defne the problem Develop research plan Collect information Analyze information
Present fndings
Make decision Step 1
Define the problem (e.g., Will offering an in-flight Internet service create enough incremental preference and profit for American Airlines to justify its cost?)
Specify decision alternatives (e.g., Should American offer an Internet connection?) st
State research objectives (e.g., types of 1 class
passengers are likely to use internet?)
4-4 Step 2
1) Research 2) Research
Approach Instruments 3) Sampling 4) Contact Plan Methods5) Data Sources
4-5 Research Approaches Observation—unobtrusive (LP) Ethnographic--link between culture & behavior
&/or how cultural processes develop over time
(participant observation) Focus group—discuss topics of interest (LS) Survey—knowledge, beliefs, preferences, satisfaction Behavioral data--Data—purchasing data
Experimentation—cause and effect relationships
Research Instruments Questionnaires Qualitative Measures Technological Devices
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Questionnaire Do’s and Don’ts
Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words
Avoid negatives Avoid hypothetical's Avoid words that could be misheard Use mutually exclusive categories Allow for “other” in fixed response questions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types – Thematic Apperception Test 4-9 Make up a story that reflects what you think is happening in this picture.
Qualitative Measures
Word association—words are presented, one at a time, and respondents mention the first word that comes to mind. Projective techniques—give people an incomplete stimulus and ask them to complete it.
Empathy—the experiencing as one’s own of the feelings or another.
Visualization—requires people to create a collage from magazine or drawing to depict their perceptions Brand personification—ask subjects what kind of person they think of when the brand is mentioned.
Qualitative Measures
Shadowing—observing people Shadowing—observing people
—photographing
Behavior mapping
—photographing
Behavior mapping
people with a space—2 or 3 days people with a space—2 or 3 days —keeping track of
Consumer journey
—keeping track of
Consumer journey
interactions a consumer has with a product, interactions a consumer has with a product, service, or space service, or space
—ask consumers to
Camera journals
—ask consumers to
Camera journals
keep visual diaries of activities and keep visual diaries of activities and impression related to a product impression related to a product
—talking Extreme user interviews
—talking Extreme user interviews to people about a product and evaluating to people about a product and evaluating their experience with it their experience with it
Storytelling—prompting people Storytelling—prompting people
to tell personal stories about their to tell personal stories about their consumer experiences consumer experiences
—interview
Unfocused groups
—interview
Unfocused groups 4-11
a diverse group of people to a diverse group of people to Technological Devices
Galvanometers (measure
interest or emotions aroused by Exposure to a specifc ad or picture)
Tachistoscope (fashes an ad to a
Subject with an exposure interval and
respondent describes everything he/she recalls)
Eye cameras (study respondents’ eye movement to see where their eyes st land 1 and how long, etc.)
Audiometers (record when TV is on and the channel)
GPS (global positioning system, can
Determine how many billboards a person may walk or drive by during a day)
4-12
Sampling Plan
Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?
Types of Samples
Non-probability
Probability
Simple random Every member of population has an equal chance of selection
Stratified random Population is divided into mutually exclusive groups
(age groups) and random samples are drawn from each group
Cluster area Population is divided into mutually exclusive groups
(city blocks) and a sample is taken from each group
Convenience Selects the most accessible population members
Judgment Selects population members who are good prospects for accurate information Quota
Selects and interviews a prescribed number of people in each of several categories
4-14 Contact Methods
Mail Questionnaire
( For people that would not give
personal interviews or whose responses might be biased or distorted by interviewer)
Telephone Interview
(Gather information quickly, however interview are short and non-personal)
Personal Interview
(Most versatile and expensive, subject to interview bias or distortion)
Online Interview
(Inexpensive, faster, honest, versatile, samples small and skewed, tech problems and inconsistencies)
4-15 Pros and Cons of Online Research
Advantages
Disadvantages
Inexpensive Fast Accuracy of data, even for sensitive questions Versatility
Small samples Skewed samples Technological problems Inconsistencies
Barriers Limiting the Use of Marketing Research
A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences
What are Marketing Metrics?
Marketing metrics are the set of measures that
helps marketers quantify, compare, and interpret marketing performance.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Metrics
Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers Loyalty
Internal Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy
External
4-19 Sales Analysis
Micro- Sales Analysis
Sales- Variance Analysis
4-20
(views specifc products, territories that fail to produce expected sales)
(Relative contribution of diferent factors to a gap in Sales performance) The Measures of Market Demand
Potential market—interest Available market—interest, income, access Target market—qualified available, company pursues Penetrated market—buying product
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Estimating Current
Demand
Total market potential Maximum amount of sales available to all the firms in an industry during: a given period under a given level of industry marketing effort, and environmental conditions.
Area market potential Market buildup method Identifying all potential buyers in each market and estimating their potential purchases
Multiple-factor index method Sales are directly related to a series of indices Brand development index
4-22 Estimating Future Demand
Survey of Buyers’ Intentions—probability of purchase
Composite of Sales Force Opinions—salespeople
Expert Opinion—dealers, distributors, suppliers, marketing consultants, trade associations Past-Sales Analysis—trend, cycle, seasonal, erratic
Market-Test Method—select some territories to sell
the product 4-23What is a Marketing Information
System?
A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to . marketing decision makers
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
What is a Marketing Intelligence
System?
A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday
information about developments in
the marketing environment.Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Steps to Quality Marketing Intelligence
Train sales force to scan for new developments Motivate channel members to share intelligence Hire external experts to collect intelligence Network externally Utilize a customer advisory panel Utilize government data sources Purchase information
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Sources of Competitive Information
Independent customer goods and service review forums Distributor or sales agent feedback sites Combination sites offering customer reviews and expert opinions Customer complaint sites Public blogs
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Major Forces in the
Environment
Demographi c Political- Economic legal
Socio- Technologica cultural l
Natural Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Population and Demographics
Population growth Population age mix Ethnic markets Educational groups Household patterns
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Forecasting and Demand Measurement
How can we measure market demand?
Potential market Available market Target market Penetrated market
A Vocabulary for
Demand Measurement
Market Demand Market Forecast Market Potential Company Demand
Company Sales Forecast Company Sales Potential Market Demand Functions
Estimating Current Demand:
Total Market Potential
Calculations Multiple potential number of buyers by average quantity each purchases times price Chain-ratio method
Estimating Current Demand:
Area Market Potential
Market-Buildup Estimating Current Demand:
Area Market Potential
Multiple-Factor Index
Estimating Future Demand
Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion Past-Sales Analysis Market-Test Method