RESEARCH FOR MARKETING

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RESEARCH FOR MARKETING
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Marketing Research

• CONTENTS
• The Research process
• What is Research
• Why research
• The research plan
• B) Types of Research
• Desk or Secondary Research
• Field or Primary Research
• Market and Marketing Research
• Quantitative and Qualitative Research
• C) Sources of Information
• External and Internal sources
• Macro-statistical and Micro-statistical
  information
• Government sources
• External database
• D) Research Methods
• Interviews and Discussions
• Observation
• Questionnaires

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Contents Marketing research

• E) Using External Research Agencies
• In-house or External?
• Finding, Selecting and Recruiting an Agency
• Briefing
• Controlling
• F) Information Systems
• Management Information Systems (MIS)
• Marketing Information Systems
• Content and Purpose of MKIS

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Marketing research

• LEARNING OBJECTIVES
• After reading this chapter, you should be able
  to
• Explain the meaning of marketing research
• Explain the importance of information to the
  company.
• Describe the marketing information system and
  discuss its parts
• Describe the four steps in the marketing research
  process
• Compare the advantages and disadvantages of
  various methods of collecting information
• Discuss the main methods for estimating current
  market demand
• Explain specific techniques that companies use to
  forecast future demand.
• Explain the types of marketing research, the
  research techniques and research instruments.

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WHAT IS RESEARCH

• Marketing Research is the systematic process of
  gathering, recording, analysing and reporting of
  all facts relating to the transfer and sale of
  goods and services from producers to consumers.
  It is usually based on statistical probability
  theory and always uses scientific methods.
• Research is the
• Gathering
• Analysis
• Storage
• Retrieval
• and
• Dissemination of information to aid in decision
  making

Steps taken in the research activity.
Source Association of business executives
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Other definitions

• Marketing research is the function that links the
  consumer, and the public to the marketer through
  information that is used to identify and define
  marketing opportunities and problems to generate,
  refine and evaluate marketing action, to monitor
  marketing performance and to improve
  understanding of the marketing process.( Philip
  Kotler principles of marketing 4th European
  Edition)
• Marketing research is the systematic design,
  collection , analysis and reporting of data and
  findings relevant to a specific marketing
  situation facing the company. Philip Kotler-
  principles of marketing - 3rd European Edition).

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WHY RESEARCH

• To find out cost involved in advertising
• To find out what customers want to buy
• To determine which distribution methods are more
  efficient
• To analyze what competitors are doing
• To reduce risk
• To help in planning and forecasting results
• To aid the Marketing mix decisions Product,
  price, place, promotion, people, physical
  evidence and processes.
• To improve decision-making capabilities
• To find out about the size, composition and
  trends in the market.
• Thus, research is necessary in marketing if the
  organization is to reduce risks and carry
• out its plans successfully and with minimum
  effect. To put it another way research is a
• management tool which, in tandem with other
  available management techniques, can
• help a much more effective outcome to be
  achieved.

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THE MARKETING RESEARCH PROCESS
Defining the problem And research objectives
Developing The plan for Collecting information
Interpreting And reporting The findings
Analysing the data
Implementing The research Plan- Collecting and
record data
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INTERNATIONAL MARKETING RESEARCH AND ANALYSIS

• THE MARKETING RESEARCH PLAN (WH QUESTIONS)
• The research plan includes objectives, strategies
  and programmes and above all it should be logical
  and
• structured.
• What are the research problems? ( outline the
  research problems)
• What are the research objectives?(
  Define/outline the research objectives)
• Determine the target to be researched crucial
  to the research plan.
• Which research methodology are you using?
  Determine how the research is to be carried out
  questionnaires, panels, interviews etc. How will
  data be collected?
• Who will be responsible for carrying out the
  research? In-house or external agency.
• Determine the time scales when will the research
  be carried out? Determine How long the research
  will take. (set time limit)? time scale is
  important.
• How much budget have you set aside for the
  research? Set or agree the budget
• Where will the research be carried out?
• Implement the plan Start carrying out the
  research set everything in motion. This is
  where the PROCESS comes into being. Gather and
  record the information
• Monitor and control constant checking to make
  sure that all activities are being done and time
  targets, budgets, etc are still on course.
• Reach conclusions Report the information and
  take action.
• Store the information to be retrieved in future.

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CATS

• When carrying out research, you must think
• of the following
• Cost
• Accuracy
• Time
• Security

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The research Activities

• The process of research describes the steps taken
• in the research activity
• Gathering
• Analysis
• Storage
• Retrieval
• Dissemination

Source Association of business executives
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RESEARCH PROPOSAL

• The research proposal defines what the marketing
  research promises to do for its client, and how
• much it will cost.
• Like the research brief, the proposal should be
  written to avoid misunderstandings.
• A client should expect the following to be
  included.
• A statement of objectives to demonstrate an
  understanding of the clients marketing and
  research problems
• What will be done an unambiguous description of
  the research design including the survey method,
  the type of sample, the sample size, and how the
  fieldwork will be controlled.
• Timetable if and when a report will be produced.
• Costs how much the research will cost and what
  specifically is/is not being included in those
  costs.

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• TYPES OF RESEARCH
• Primary (field) research Research which is
  carried out using techniques such as
  questionnaires, visits, surveys, discussions,
  test marketing, hall testing, interviews etc. It
  deals with new information( first hand
  information) or original information.
• Secondary (desk) research This is research
  carried out by using information which has
  already been published by another party. The
  information can be obtained from internal or
  external sources. The information may be out of
  date, irrelevant, inaccurate and may be based on
  different statistical basis.
• Exploratory research Marketing research to
  gather preliminary information that will help to
  better define problems and suggest hypothesis.
• Casual research Marketing research to test
  hypothesis about cause-and-effect relationships
• Market research This is focused on the size,
  composition, trends, structure of the market,
  competitors and the environmental factors
  affecting the market.
• Marketing research Research which is focused on
  the marketing mix elements Product, price,
  place, promotion, people, physical evidence and
  process.
• Experimental research The gathering of primary
  data by selecting matched groups of subjects,
  giving them different treatments, controlling
  related factors and checking for differences in
  group responses
• Quantitative researchQuantitative comes from
  quantity meaning numbers. Results can be in the
  form of numbers or percentages. This type of
  research is used to assess trends, potential and
  actual growth or decline of a market or product
  consumption.
• It is research which involves data collection by
  mail or personal interviews from a sufficient
  volume of customers to allow statistical
  analysis.
• Qualitative research Its about ideas and
  opinions, likes and dislikes Likert scale or
  semantic differential scale is normally used in
  qualitative research, which allows responses to
  be quantified.
• Qualitative research is exploratory research used
  to uncover consumers motivations, attitudes and
  behaviour. Focus-group interviewing, elicitation
  interviews and repertory grid techniques are
  typical methods used in this type of research.
• 10. Observational research The gathering of
  primary data by observing relevant people,
  actions and situations.

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Types of research

• 11. Survey research The gathering of primary
  data by asking people questions about their
  knowledge, attitudes, preferences and buying
  behaviour Postal survey, telephone survey,
  through observations.
• 12. Descriptive research Survey research may
  be undertaken to describe customers beliefs,
  attitudes, preferences, behaviour, etc. For
  example, a survey into advertising effectiveness
  might measure awareness of the brand, recall of
  the advertisement, and knowledge about its
  content.
• Descriptive research is marketing research to
  better describe marketing problems, situations or
  markets, such as the market potential for a
  product or the demographics and attitudes of
  consumers

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Conclusive research

• Research aimed at coming into a conclusion about
  what is affecting for instance buying behaviour
  of customers.
• Example a business may want to carry out
  research to draw a conclusion about what is
  affecting consumer behaviour There are several
  factors affecting consumer behaviour such as
  price, product, place, promotion, people,
  physical evidence, process, psychological,
  personal etc.
• This kind of research aims at drawing a
  conclusion about what factor or factors actually
  affect their customers buying behaviour.

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RESEARCH METHODS
Primary method

• Interviews and discussions
• Observations
• Questionnaires
• Test marketing
• Sampling

Research instrument and source of primary data
Secondary method
Internet Library Government statistics Magazines,
newspapers etc
Research instrument and source of secondary data
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SOURCES OF INFORMATION

• External Sources
• Government departments
• Employers federations
• Trade associations
• Private firms
• Professional institutes
• Public and private research agencies
• Newspapers
• Magazines
• TV and Radio
• Banks embassies
• Chambers of Commerce.
• Suppliers
• Competitors

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SOURCES OF INFORMATION

• 2. Internal Sources
• Past history of customer buying
• Sales results
• Return on investment
• Money spent on promotional campaigns
• Details of enquiries received from unserved
  markets
• Production capabilities
• Personnel details, etc.

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Macro-statistical Information

• This is data produced by external organisations
  which relate to a country or a market as a whole.
  All governments produce this type of information,
  as well as many other public authorities and
  organisations covering whole industrial sectors (
  such as employer federations, professional
  bodies, etc)

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Micro statistical Information

• This is data which is specific to the
  organisation. This type of data is compiled by
  monitoring the activities of the business itself,
  e.g. production sales labour supply return on
  investment. In effect it is the result of the
  internal records system of the company.

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GOVERNMENT SOURCES

• In Britain, most government statistics are
  available on subscription from Her Majestys
  Stationery Office (HMSO) and include
• Business Monitors
• Census of population
• Employment Gazette
• Economic trends
• Monthly Digest of Statistics.

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EXTERNAL DATABASE

• Kompass Register
• Key British Enterprises
• Times 1000
• Who Owns Whom
• Extel Cards
• Research Index
• Marketing Surveys Index.

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RESEARCH METHODS

• Primary Method
• Interviews and Discussions
• Observation---- Hall tests, laboratory test
• Questionnaires---- Postal surveys, Telephone
  Surveys
• Test Marketing
• Sampling

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SAMPLING

• All the methods of gathering information are
• based on some form of sampling.
• There are several types of samples
• Random any one item/person can be included.
• Purposive Based on the choice of selector (18-25
  year olds)
• Systematic define system used (e.g. every 10th
  house in street).
• Stratified Sample divided into groups (age, etc)
  and then random selection
• Quota interviewer given basis of selection (50
  male/50 female)
• Cluster/area Breaking area into sub-divisions
  and then random sampling
• Multi-stage e.g. country, then county, then
  town, district, street.
• Panels groups who are interviewed at regular
  intervals on various topics.
• Snowball
• Sampling frames
• Quasi-random sampling e.g. systematic,
  stratified and multistage sampling.
• Non-random sampling This is used when a sampling
  frame cannot be determined or established.

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USING EXTERNAL RESEARCH AGENCIES

• An organisation can decide to carry out an
  In-house or External research. Either research
  have their advantages and disadvantages.

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In-house Research

• Advantages
  Disadvantages
• Knowledge of personnel
  Time away from normal duties
• Tighter security
  Possible biased views
• Instant access to information
  Lack of research skills.
• Can be less expensive
• 
  AGENCY
• Research skills
  Possible lack of control
  
• Access to target sector(s)
  Lack of knowledge of product
• Brings objective viewpoint
  Agency dynamics may cause bias
• May be quicker
  Cost

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INTERNATIONAL MARKETING RESEARCH AND ANALYSIS

• SOURCES OF INFORMATION
• Main sources of information
• Internal Sources
• External Sources

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INTERNATIONAL MARKETING RESEARCH AND ANALYSIS
DATA COLLECTION/SOURCES OF INFORMATION

• PRIMARY DATA Interview, questionnaires, surveys,
  test marketing, hall testing, etc
• Original data . Data from the
• horses mouth.
• It takes time and it is expensive
• SECONDARY DATA library, government, media,
  publications etc
• Existing data
• Takes less time
• It is not expensive
• There is a possibility of getting
  obsolete/outdated data

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Finding, Selecting and Recruiting an Agency

• Before selecting an agency, the organisation has
  to do the following
• Define the organisational needs
• Carry out desk research about the available
  agencies.
• Compile a short list of possible agencies that
  meet you requirements.
• Select the best agency/agencies.

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Briefing

• This is basically the means by which the client
  tells the agency what they
• want. The process is logical but managers need to
  be quite clear on exactly
• what needs to take place
• The client brief the agency on so many issues
  regarding the research
• process and plan.
• The brief can be considered as being the
  foundation of an agreement it must contain
  precise and clear information on exactly what is
  required as part of that agreement. A typical
  example would contain
• Names of the client/agency
• A brief background of the client company/product,
  etc.
• The reasons for the research being undertaken,
  e.g. finding new markets in an overseas
  territory/identifying how many buyers are likely
  to take up a new product.
• Details of the target population (audiences to be
  researched)
• The agreed methods and techniques to be used.
• The time scales involved, with start and finish
  dates.
• The manner in which information is to be reported
• The timing of reports
• The member of staff (client) who is to receive
  the reports.
• The financial details such as cost and penalty
  payments.

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Controlling

• Assuming that an agency accepts a brief and is
  engaged for the project, the work should begin in
  the time scales agreed, with relevant personnel
  carrying out their duties as and when required.
• However, it is the client who holds the
  responsibility for seeing that everything is
  going according to plan.
• There should be monitoring and measuring of the
  whole research process.
• Any client who is lax enough to allow agencies to
  work without regular reporting or supervision
  deserves to have something go wrong.
• If the brief has been done correctly there will
  be clear parameters for the agency to work within
  and it is simply a matter of the client
  allocating responsibility to someone in their
  organisation to keep an eye on things.
• Control can be achieved by
• Making sure that contracts are issued and
  understood.
• Insisting on regular reports
• Setting clear objectives and parameters
• Checking that agreed schedules are being met
• Checking that budgets are being adhered to
• Checking that required results are being achieved.

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DATA COLLECTION
Primary source primary data( questionnaires,
interviews, test Marketing, observations
etc Secondary sources secondary data(
government, suppliers, Media, internet, library,
internal records etc)
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SURVEY RESEARCH

• THE SURVEY METHOD
• Face-to-face interviews
• Telephone interviews
• Mail surveys
• Postal survey

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QUESTIONNAIRE DESIGN

• When using questionnaires the following must be
  considered
• PLANNING STAGE
• DESIGN STAGE
• Ordering of topics it should have a logical
  flow
• Types of questions Closed end questions and open
  end questions.
• Wording and instructions
• Layout
• Scaling
• Probes and prompts
• Coding

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QUESTIONNAIRE

• Open end allows the respondent to give his/her
  personal opinion and analysis of a particular
  situation.
• Closed end respondent is restricted in the
  response to questions you are allowed in most
  cases to answer yes or not , good or bad, agree
  or disagree to questions.

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DATA ANALYSIS AND INTERPRETATION

• Data collected needs to be analysed and
  interpreted.
• If data is poorly analysed and interpreted the
  consequences may be very high. It can lead to the
  wrong decisions being taken by management
• In order to make sure the right decisions are
  taken by management, the data collected needs to
  be correctly analysed and interpreted.

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REPORT WRITING AND PRESENTATION

• After conducting the research, findings needs to
  be put in a report form.
• This is vital for future retrieval and also to be
  read by the concerned stakeholders.
• The information also needs to be presented to the
  management to help them to make important
  decisions.

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INFORMATION SYSTEMS
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INFORMATION SYSTEMS

• Information is vital for management to help them
  make important decisions.
• Information is needed about customers,
  competitors, suppliers, distributors, businesses,
  government, media, banks, etc.
• The information collected is being stored in the
  information system. The system is responsible for
  the processing and storage of this information
  for future use and reference.

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MARKETING INFORMATION SYSTEM(MIS)

• MIS is made up of people, equipment and
• procedures to gather, sort, analyse, evaluate
• and distribute needed, timely and accurate
• information to marketing decision makers.

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MARKETING INFORMATION SYSTEM
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THE MARKETING INFORMATION SYSTEM

• This is a place where information needed by
  management is being stored.
• Information is vital for decision making.
• The system helps in the collection/ gathering,
  recording, storage, retrieval and dissemination
  of the information needed by management in order
  to take decisions.
• The marketing information system stores
  information about the market, customers,
  demographic statistics of customers, size,
  composition and trends in the market and also
  about consumer behaviour.

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INFORMATION SYSTEM

• There are different types of information system
  which may be available in an organisation
• Marketing/Customer Information system
• Supplier Information system
• Management Information system
• Production Information system
• Human Resource Information system

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MARKETING INFORMATION SYSTEM

• The information needed by marketing managers
  comes from internal company records, marketing
  intelligence, and marketing research. The
  information analysis system then processes this
  information to make it more useful for managers.