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Secondary and Exploratory Research

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Title: Secondary and Exploratory Research


1
Secondary and Exploratory Research
2
  • SALES/PATRONAGE RESULTS ( OUTCOMES )
  • MARKETING ACTIVITY ( INPUTS )
  • COST INFORMATION
  • DISTRIBUTOR REPORTS AND FEEDBACK
  • CUSTOMER FEEDBACK

Sources of Secondary Data
3
Uses of Secondary Data
  • Can solve the problem on hand all by its own
  • Can lead to new ideas and other sources
  • Helps to define the problem more clearly
  • Can help in designing the primary data
    collections process
  • Helps in defining the population / sample
  • Can serve as a reference base

4
Benefits and Limitations of Secondary Data
Benefits
Limitations
  • Low cost
  • Less effort
  • Less time
  • At times, more accurate
  • At times, only way to obtain data
  • Collected for some other purpose
  • No control over data collection
  • May not be accurate
  • May not be in correct form
  • May be outdated
  • May not meet data requirements
  • Assumptions have to be made

5
Computer-Retrievable Methods
Limitations
Advantages
  • Scope of information available
  • Speed of information access and retrieval
  • Commercially available search procedures provide
    considerable flexibility and efficiency
  • Rely solely on the accuracy of the abstract
    author
  • Depend on the journal and article selection
    policy of the database producer
  • Might miss important information, or retrieve a
    lot of irrelevant data if searching by keyword

6
Appraising Secondary Sources
  • Factors to Be Considered
  • Who has collected the data (did they have
    adequate resources)?
  • Why was the data collected (how the interests of
    agency match with ours)?
  • How the data was collected (to determine the
    quality of data on-hand)?
  • What data was collected (geographic and
    demographic limitations)?
  • When the data was collected (how old/obsolete is
    the data)?

7
Applications of Secondary Data
Demand Estimation
Monitoring the Environment
  • Census data
  • Standard Industrial Classification (SIC)
  • Trade association data
  • Experts and authorities
  • Press releases
  • Legislation and laws
  • Industry news
  • Business and practitioner literature, such as
    magazines

8
Applications of Secondary Data (Contd.)
Segmentation and Targeting
Developing a Business Intelligence System
  • Competitors annual reports
  • Press releases
  • Canadian Facts
  • Gallup (Natl Omnibus)
  • Market Facts (Omnibus)
  • DMI (Duns market identifiers
  • SIC
  • Nielsen

9
Growth of Standardized Sources
  • Factors
  • Multitude of information users having common
    information needs
  • When cost of satisfying individual user's need is
    prohibitive
  • The increasing use of scanner systems at the
    check out points

10
Nielsen Retail Index
  • Biggest research company in the world
  • Their auditing services cover four groups
  • Grocery products
  • Drugs
  • Mass merchandisers
  • Alcoholic beverages

11
Consumer Purchase Panels
  • To Cover the Gap Between Warehouse Withdrawal
    Audits and Actual Purchases Following Methods Can
    Be Used
  • Home Audit Approach
  • Panel member agrees to permit an auditor to check
    the household stocks of certain product
    categories at regular intervals
  • Mail Diary Method
  • Panel member records the details of each purchase
    and returns the diary by mail at regular intervals

12
Advantages and Limitations of Consumer Panels
  • Limitations
  • Possibility of selection bias
  • Mortality effect
  • Testing effect
  • Can Provide Information On
  • Aggregate Sales Activity
  • Brand shares
  • Shifts in buyer characteristics
  • Shifts in retail outlets

13
Applications of Standardized Sources of Data
  • Measuring product sales and market share
  • Measuring advertisement exposure and
    effectiveness
  • Measuring promotion effectiveness
  • Estimation And evaluation of models

14
Information Collection Qualitative and
Observational Methods
  • Qualitative Methods
  • Recommended to capture the basic feel of a
    problem prior to conducting more analytical study
  • Observational Methods
  • These methods are limited to providing
    information on current behavior

15
Qualitative Research Methods
  • Exploratory
  • Conducted primarily to explicitly define the
    problem and formulate hypotheses
  • Orientation
  • To learn more about target consumer (e.G.
    Culture, language)
  • Clinical
  • To gain insights into topics that are difficult
    in a structured research

16
Focus Group Discussions
  • Exploratory Focus Groups
  • Used in the exploratory phase of the market
    research process
  • Used for generating the hypotheses
  • Clinical Focus Groups
  • Based on the premise that an individual's true
    feelings and motivations are subconscious in
    nature
  • Experiencing Focus Groups
  • Allows the researcher to experience the emotional
    framework in which the product is being used

17
Managers checklist When to use Exploratory
Research
  • when existing background information is limited
  • to more clearly define problem or opportunity
  • to clearly establish research objectives
  • to determine if conclusive research is needed
  • to help design a questionnaire for conclusive
    research
  • to investigate in more depth the findings of a
    conclusive study

18
Managers checklist When to use Focus Groups
  • In the exploratory phase of market research
  • when manager desires first-hand observation of
    the research process
  • when quick results are needed
  • to generate new ideas or concepts
  • when group interaction is likely to generate more
    useful information than individual interviews

19
Projective Techniques
  • Respondent is asked to comment upon rather
    unstructured or ambiguous object, activity
  • The Various Categories of Projective Techniques
    Are
  • Word Association
  • Completion Test
  • Picture Interpretation
  • Third Person Techniques
  • Role Playing

20
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21
Limitations of Qualitative Methods
  • Potential susceptibility of the results to get
    misused or misinterpreted
  • Results not necessarily representative of the
    whole population
  • Moderator or interviewer's role is extremely
    critical can lead to ambiguous or at times
    misleading results

22
Observational Methods
  • Casual Observation
  • Systematic Observation
  • Direct Observation
  • Contrived Observation
  • Content Analysis
  • Physical Trace Measures
  • Humanistic Inquiry
  • Behavior Recording Devices

23
Limitations of Observational Methods
  • Cannot be used to observe motives, attitudes or
    intentions
  • More costly and time consuming

24
Recent Applications of Qualitative and
Observational Methods
  • Get inside minds of shoppers by providing tape
    recorders and having them record their thoughts
    while shopping
  • Virtual Customers system for evaluating service
    quality
  • On-site observation

25
Qualitative vs. quantitative
  • qualitative quantitative
  • question type open closed
  • instrument structure little high
  • sample size small large
  • analysis subjective objective
  • interviewer training high low
  • ability to replicate low high
  • usual research type exploratory conclusive
  • length (admin.time) longer shorter
  • cost low large

26
Summary
  • Secondary data is fast and inexpensive, but often
    lacks the detail needed
  • is the data right for your purpose?
    (availability, relevance, accuracy, sufficiency)
  • qualitative research good for generating
    hypotheses - is flexible, may be biased
  • focus groups provide insights can be ambiguous
  • observation often more systematic, but caanot
    reveal motives
  • secondary and exploratory important initial tasks

27
Barkley Foods
28
Barkley Foods secondary data sources
  • for market analysis
  • - size, growth rate
  • - industry trends
  • - emerging technologies
  • - distribution trends
  • - core competencies
  • for environmental analysis
  • - SWOT
  • - what future scenarios
  • for customer analysis
  • - major segments
  • - motivations, unmet
  • needs?
  • for competitor analysis
  • - existing and potential
  • - sales, share, profits
  • - strategies and differentiation

29
Barkley Foods focus on data
  • Market facts (US) 2000
  • - 85 billion home meal replacement
  • -67.7 billion frozen foods (37 in
    supermarkets)
  • - dinners account for 21 of frozen food sales
    in
  • supermarkets
  • - upward trends 4 growth in 1999,
  • subcategories much higher

30
Barkley Foods focus on data
  • environment
  • - frozen food appreciated as home meal
  • replacement (R)
  • - frozen entrees among top 10 in-home suppers
  • - women in workforce spurred trend

31
Barkley Foods focus on data
  • customers
  • - boomers and Xers key segments for breakfast,
  • juice, veggies, pizza
  • - customers very promotion-receptive
  • - 50 of purchases heavily influenced by
    teenagers
  • - despite growth of ethnic foods, 75 enjoy
    plain
  • domestic tastes

32
Barkley Foods focus on data
  • competitors
  • - healthfulness and taste provide marketing
    advantage
  • - 20 more supermarket space over past 10 years
  • - very competitive, 586 companies account for
    over
  • 90 of frozen food production in US
  • - 1,527 new products in 1998

33
Barkley Foods strategic info fast
  • gt trade magazines (Quick Frozen Foods, Chain
    Store Age,
  • Frozen Food Age, Supermarket business,
    Advertising Age)
  • provide expert commentary
  • syndicated statistics (I.e.Nielsen)
  • surveys
  • gt government reports, statistics (population
    growth,
  • segments, income clusters)
  • provide demographic trends (working women,
    mothers)
  • personal income spending patterns
  • industry statistics

34
Barkley Foods strategic info fast
  • gt exploratory in-depth interviews with major
  • supermarket buyers
  • provide product/sales trends in high
    quality/price
  • segments
  • provides feel for competitive climate
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