6 fy 2010 mktg research 1

8/12/2019 6 FY 2010 Mktg Research 1

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Lecture Objectives

By the end of the lecture, you should be able to:

Define the differences between marketand marketing research

Understand the role and use of MR

information in marketing Explain the elements of a MIS and

stages of the MR process


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Marketing research

defined


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Definitions of MR

Marketing Research is the function that links theconsumer, customer, and public to the marketerthrough information... used to identify and define

marketing opportunities and problems; generate,refine and evaluate marketing actions; monitormarketing performance; and improve understanding ofmarketing as process. Marketing research specifies

the information required to address these issues,design the method for collecting information, managesand implements the data collection process, analysesthe results, and communicates the findings and their

implications.(McDaniel, Jr. & Gates, 2010)


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Definitions of MR

Market ing Research is: the collectionand analysis of data from a sample ofindividuals or organisations relating to

their characteristics, behaviour,attitudes, opinions or possessions. Itincludes all forms of marketing and

social research such as consumer andindustrial surveys, psychologicalinvestigations, observational and panelstudies

Market Research Society (1997) - UK

www.mrs.org.uk


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Definitions of MR

Chisnall (2005)

there was originally a difference between thescope of activities [covered by market and marketing

research] The responsibilities of marketresearchextend comprehensively, whereas market ingresearch is limited to findings out information about

the market for a particular product.

but this narrow view restricts the focus for thepurposes of marketing as a wider managementfunction.

MR should be: applied, scientific, pragmatic,

objective, impersonal, factual


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MR definition summary

Market Research aims to describe and

analyse markets (size, structure, growth

etc) Marketing Research covers a much

broader range of topics - customers,

products, competitors, channels, suppliersetc. Strictly speaking, Marketing Research

is broader than Market Research


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Most marketers dont need moreinformation, they need the right

information and the managers need to be

able to determine how to use thisinformation appropriately and effectively

so as to enhance performance.

Kotler, Wong, Saunders and Armstrong (2005);Similar point argued by McDaniel, Jr. & Gates (2010),

Malhotra (2010) and Keegan and Green (2011)

Do you agree with this? Why?

Information


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Short cut

Marketing research is the

systematicand objectivesearch for and analysis ofinformation relevant to the

identification and solution of anyproblem in the field of marketing

Armstrong and Kotler (2011), Malhotra (2010)


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DefinitionSystematic: It is planned, following a

sequence of logically ordered steps,

starting with problem definition andending with its use in problem solution

Objective: Data are collected usingscientific methods and are analyzedusing proven statistical processes


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Marketing Research

Problem-Identification

ResearchProblem-Solving

Research

Market Potential ResearchMarket Share Research

Image Research

Market Characteristics

Research

Sales Analysis Research

Forecasting Research

Business Trends

Research

Segmentation ResearchProduct Research

Pricing Research

Promotion Research

Distribution Research

Malhotra (2010, p.40)


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Types of market Potential market

Consumers have some stated interest in a product orservice.

Avai lable market

Set of consumers who have the interest, income and access

to the product or services.

Quali f ied avai lable market

Set of consumers who have the interest, income, accessand qualifications for a particular product or service.

Served or target market Part of the qualified market that the company decides to

pursue.

Penetrated m arket

Set of consumers that have already bought a particular productor service.


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Measuring market demand

The total market demand is the total

volume of a product or service that

would be bought by a definedconsumer group in a defined

geographic area, in a defined time

period in a defined marketingenvironment under a defined level

and mix of industry marketing effort.


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Measuring market demand

Kotler, Wong, Saunders and Armstrong (2005)


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Estimating market demand

Q= n x q x p

Where

Q= total market demand

n= number of buyers in the market

q = quantity purchased by an

average buyer per year p= price of an average unit


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Forecasting future demand

Environmental forecast

Inflation, Unemployment, Interest rates,Consumer spending and saving, Business

investment, Government expenditure. Indu stry forecast

What is currently happening?

Company sales forecast

Buyers intentions, Composite of sales forceopinions, Expert opinion.

Test market method.

Time series analysis, Leading indicators,Statistical demand analysis, Informationanalysis.


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Forecasting future demand

Kotler, Wong, Saunders and Armstrong (2005)


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Sources of information

Internal records

Marketing intelligenceCompetitor intelligence

Marketing research


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MR Research Dimensions

Continuous versus Ad hoc

On-going research

One-off

Qualitative versus Quantitative Why? (motivations, attitudes, behaviours)

How many, how often?

Secondary versus Primary Data that already exists and was collected for

another purpose

Data collected for the specific purpose at hand


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Get a research method
http://www.youtube.com/watch?v=WDo7jwikqqI&feature=relatedhttp://www.youtube.com/watch?v=WDo7jwikqqI&feature=related


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Primary collection methods

Primary datacan be collected in 4 ways:

observational research

focus-group research

survey research

experimental research

2 main research instruments used are:questionnaires (open-end and closed-end)

mechanical instruments

e.g. Eyetracking of screen use on internet/TV


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Marketing Research Step1

1. Def in ing the prob lem and research ob ject ives

Exploratory research

Gathering preliminary information that will help to

better define problems and suggest hypotheses.

Desc ript ive research

Defining marketing problems, situations or

markets, such as the market potential for a

product or the demographics and attitudes ofconsumers.

Causal research

Marketing research to test hypotheses about

cause and effect relationships.


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Marketing Research Step 2

2. Developing the research plan for col lect ion o f

informat ion

Determining information needs

Secondary data: information that already exists,

having been collected for another purpose. Primary data: information collected for the

specific purpose at hand.

Qualitative research

Exploratory research used to uncover consumersmotivations, attitudes and behaviour.

Quan titative research

Research data which involves interviews from asufficient volume of customers to allow statisticalanalysis.


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3. Present ing the research p lan

Outline of research construct.

Summarised written proposal.


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4. Imp lemen ting the research p lan ,

co l lect ing and analysing the data

Interpreting and repo rt ing the f ind ings.

Present the relevant data so that the

information can be used to make meaningful

decisions.

Team effort between marketers andresearchers and joint responsibility.


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Table 9.6Types of question


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Table 9.6Types of question (continued)


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Table 9.6Types of question (continued)


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Demand estimation Estimation of market demand is essential for effective

marketing and as illustrated below, demand is

measured on a number of levels.

Figure 9.3Ninety types of demand measurement (6 5 3)


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Secondary Sources

Internal sales records, databases, customer

feedback, experienced employees

Government reports

Chambers of Commerce often available on gov.uk website

Trade Associations Industry Reports & Country-based reports

e.g. GMID/Euromonitor (available via www.port.ac.uk/library)

Marketing area specific articles/reports e.g. Promotions
http://www.port.ac.uk/libraryhttp://www.port.ac.uk/library


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MR: key criterion

MR information has the purpose of supportingmarketing decisions

Organisations as they grow in size tend to loseclose customer contact

New markets entered may be geographicallydistant and unfamiliar

New products require research into their potential

appeal to customers Communications need researching - are the right

messages being given and received

Need to think clearly about the issue to be decided,

before spending money on MR


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Marketing Research in practice

Marketing research is concerned with

investigating and understanding buyer behaviour

Buying behaviour is merely one element of

human behaviour; it is complex and influenced bymany factors

Motivations may be a mixture of business

specific, personal, economic, psychological,sociological and demographic variables

Behavioural sciences give insights into

consumption

M k ti h i ll


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Marketing research in small

businesses and non-profit

organisationsOften limited by budgetary

constraints, but the following can be

accomplished:

Observation of market, competitors

and industry

Secondary data collection

Surveys

Experiments


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Main divisions of MR

Product

CustomerPricing

Sales

Promotion


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Overview of MR divisions

Type Product Customer Pricing Sales Promotion

Examples of

issues

needinginvestigation

through MR

Failure,

reduced

demand,

portfolio

inequity, lack ofUSP, poor

quality

Target segment

profile,

preference,

loyalty,

Macro/Microenv. issues,

habits,

motivation

Sensitivity,

ceiling, match

to other mix

elements,

competition,incentives

needed, vs.

perception of

quality,

Increasing cost

of sales,

comparative

mkt

performance,falling sales,

force

organisation,

distribution

methods

Relevant

methods to

audience, rising

costs, reduced

exposure/coverage,

effectiveness,

integration,

Types of

info.

Demand, sales,

market share,competitive

advantage

Demographics,

purchasebehaviours,

level of

influence of

int./ext. factors

Costs, profit

objectives,mkt/competitive

prices, trade

/channel vs.

consumer

prices

Value, volume,

quantity sold,mkt coverage,

latent potential,

buyer power

Media usage /

availability,readership/

viewer rates,

public image,

awareness,

perceptual

positioning,

brand strength


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Why MR is important

Traditionally, small

firms have close links

with their customers

Large-scale operations

have widened the gap

between producers and

consumers Modern communities

are knowledgeable,

experienced and critical

Effective penetration ofmarkets requires

specialised and

sophisticated

approaches to identify,assess and satisfy

market demands.

Effective marketing

information and researchenables an organisation

to make better decisions

on the most appropriate

market entry and

competitive strategies.


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Marketing information

system (MIS)

The marketing information system

(MIS) is comprised of:

people technology

procedures

to gather, sort, analyse, evaluateand distribute necessary, timely and

accurate information to marketing

decision makers.


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Marketing

Information

System (MIS)

Brassington & Pettitt, 2007

Effective system

of organising,structuring and

managing the

storage, access

and

dissemination ofmarket research

data


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The Marketing Research Process

Brassington & Pettitt, 2007


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Useful statistics??
http://www.youtube.com/watch?v=5in-3BmKtFIhttp://www.youtube.com/watch?v=5in-3BmKtFI


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MR in the Marketing Process

MR information needed at allstages:

new product idea generation andproduct development

marketing testing

launch implementationbrand performance management

positioning and repositioning etc


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Market research ethics

Increasing consumer resentment has become amajor problem in the research industry due to howthe market research has been used and abused.

Consumers fear researchers may usesophisticated techniques to obtain informationthat may be intrusive and infringe consumerrights.

There is also the fear that the research findingsmay be manipulated and misinterpreted to suit

the company paying for the research. To minimise abuse the research industry has

developed broad standards such as ESOMARsInternational Code of Marketing and SocialResearch Practice.


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Summary Marketing research aids decision making by providing

management with specific kinds of information whichshould form the foundation of all strategic decisionmaking and tactical planning

Marketing Research is vital in identifying, anticipatingand satisfying customer needs profitably

Accurate information enables intelligent decision

making in pursuit of organisational objectives

Information must be continuously collected,monitored, analysed and communicated all around theorganisation (via a MIS)

All businesses can conduct research, whether in-

house or via an external consultancy


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Further reading suggestions

Armstrong, G. and Kotler, P. (2011), Marketing, 9thed.,Pearson

Cooper, D. & Schindler, P. (2006), Marketing research.

Boston: McGraw Hill Keegan, W.J.& Green, M. (2011), Global Marketing, 6thed.,

Pearson

Kotler, P. & Armstrong, G. (2010), Principles of Marketing,13rd ed., Pearson

Malhotra, N. (2010), Marketing Research. An Applied

Orientation, 6th ed. Pearson

McDaniel, Jr. C. and Gates, R. (2010), Marketing

Research, John Wiley & Sons, 8thed.

6 fy 2010 mktg research 1

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