introduction to research methodology
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Research Methodology
An Introduction
A Marketing Manager of FMCG brand is faced with a situation where the sales figure for his most popular brand is declining in Hubli Region when compared to others. He wants to do a study to assess the sitution
Is this a Problem or an Opportunity?
Problem or an Opprotunity
Marketing and Marketing Research are two faces of the same coin
Marketing is about identifying and meeting the social needs and Marketing Research aids this function of the marketing
It helps in the most important phase of marketing in the decision making or strategizing process
Marketing and Marketing Research
Definition – “Search for Knowledge” Business Research is defined
as the systematic and objective process of gathering, recording and analyzing data for aid in making business definitions
Marketing Research Defined
The scope of Business Research limited by ones definition of “Business”
Business Research covers wide range of phenomena A Broader definition includes problems or
opportunities related to For Profit and Not for Profit Organizations
Intuition without Research can lead to disappointment
Business Research questions require information about how the environment, employees, customer or the economy will respond to Executives decisions
Scope of Marketing Research
Basic Research attempts to expand the limits of knowledge
Basic Research is conducted to verify the acceptability of a given theory or to discover more about a certain concept
Applied Research – Research undertaken to answer questions about specific problems
Basic & Applied Research
For managers research reduces uncertainty by providing information that improves the decision making process
Research reduces managerial uncertainty in taking decisions
Four interrelated stages a. Identifying problems or opportunities b. Diagnosing and assessing problems or
opportunities c. Selecting and implementing a course of action d. Evaluating the course of action
Managerial Value of Business Research
Research is the backbone of Strategy development
Research in an organization helps managers to identify problems or opportunities
Research can be used as a scanning activity to know what is happening in the organization
Research provides alternatives for taking decisions on intuition or experience
Identifying Problems or Opportunities
Managers gain insights in to underlying problem
If a problem exists then what happened and why?
If an opportunity exists then explore, clarify, and refine the nature of an opportunity
If multiple opportunities exist research may be conducted to set priorities
Diagnosing and Assessing Problems or Opportunities
Evaluation of alternatives and in selecting the best course of action
Opportunities may be evaluated through the use of various performance criteria
A fax machine manufacturer must decide to build a factor in South Korea or Japan
Selecting and Implementing a Course of action
The formal objective measurement and appraisal of the extent to which a given activity, project or program has achieved its objectives
Provides feedback for evaluation and control of strategies and tactics
Evaluating the course of action
a. Time Constraints
b. Availability of Data
c. Nature of the Decision
d. Benefits versus Cost
When is Business Research Needed
Scientific - Scientific research refers to a body of techniques for investigating phenomena, acquiring new knowledge or correcting and integrating previous knowledge consist of collection of data through observation and experimentation and formulation and testing of hypothesis
Methods
Non Scientific - Non scientific research is investigating about human society and of individual relationships in and to society. It consist of data through observation and presume relations among natural phenomena
Methods continued
Descriptive Vs Analytical
Applied Vs Fundamental
Quantitative Vs Qualitative
Conceptual Vs Empirical
Types of Research
1. Good Research is systematic
2. Good Research is logical
3. Good Research is Empirical
4. Good Research is Replicable
Criteria for Good Research
What are Research Ethics? Importance of Ethics in Research Ethical Treatment of Participants a. Explain study benefits b. Explain participant rights and protection c. Obtain informed consent Deception an ethical thorn
Research Ethics
A narrow conception of the Project
Uneven caliber of Researchers
Poor Framing of the problem
Late and occasionally erroneous findings
Personality and Presentational Differences
Do’s and Don’ts in Research
Marketing Manager
Research Manager – The backbone of Research Process
Research Firm
Investigators
Respondents
Players in the Marketing Research Scenario
A firm that cannot conduct an entire marketing research project in-house must select an external supplier for one or more phases of the project
Trade Publications, Professional Directories and word of mouth
When developing a criteria for selecting an outside supplier, a firm should keep some basics in mind as follows
Selecting a Research Supplier
What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier have? Has
the firm had experience with projects similar to this one? Do the supplier's personnel have both technical and non-technical
expertise? Can they communicate well with the client?
Competitive bids should be obtained and compared on the basis of quality as well as price.
The internet is very efficient for identifying marketing research
firms that supply specific services
Selecting a Research Supplier
The entry level position in a business firm would be Junior Research Analyst (for BBA) or Research Analyst for (MBA)
The entry level employees learn about a particular industry and receive training from a senior staff member, usually the Marketing Research Manager
Careers in Marketing Research
Skills Required at Different Levels
Careers continued Career opportunities are available with marketing research firms
(e.g., AC Nielsen, Burke, Inc., M/A/R/C) Careers in business and non-business firms and agencies with in-
house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau)
Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam)
Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.
A Sample of Marketing Research Jobs
Vice-President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department.
Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects.
Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.
(Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.
Selected Marketing Research Career Descriptions
Vice President of Marketing Research
• Part of company’s top
management team
• Directs company’s entire market
research operation
• Sets the goals & objectives of the
marketing research department
Research Director
•Also part of senior
management
•Heads the development
and execution of all
research projects
Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members
Senior Project Manager•Responsible for design, implementation, & research projects
Analyst• Handles details in execution of
project• Designs & pretests questionnaires• Conducts preliminary analysis of
data
Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of data
Fieldwork Director•Handles selection, training, supervision, and evaluation of interviewers and field workers
Senior Analyst• Participates in the development of projects• Carries out execution of assigned projects• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection• Prepares final report
Statistician/Data Processing• Serves as expert on theory and
application on statistical techniques• Oversees experimental design, data
processing, and analysis
Selected Marketing Research Career Descriptions
Marketing Research Suppliers & Services Internal suppliers External suppliers
◦ Full-service suppliers Syndicated services Standardized services Customized services Internet services
◦ Limited-service suppliers Field services Coding and data entry services Analytical services Data analysis services Branded marketing research products
The Role of Marketing Research
ControllableMarketing
•Product•Pricing•Promotion•Distribution
Variables
Marketing Research
MarketingDecisionMaking
ProvidingInformation
AssessingInformationNeeds
Marketing Managers
• Market Segmentation
• Performance & Control
• Target Market Selection• Marketing Programs
UncontrollableEnvironmentalFactors
•Economy•Technology•Laws & Regulations•Social & Cultural Factors•Political Factors
Customer Groups
• Employees• Shareholders
Suppliers•
• Consumers
Fig 1.2
The Importance of InformationThe Importance of Information
WhyInformation
IsNeeded
MarketingEnvironment
StrategicPlanning
Customer Needs
Competition
MIS is defined as a formalized set of procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis
OR Marketing Information System (MIS) is a set of procedures
for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis
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.
.
Marketing Information System
MIS focuses on each decision makers responsibilities, styles and information needs
Information gathered from various sources, such as invoices and marketing intelligence, including marketing research is combined and presented in a format that can be readily used in decision making
MIS helps to identify ,select and resolve marketing problems or opportunities
Characteristics of MIS
Three distinct types of information are generally supplied to marketing managers through the MIS – Recurrent, Monitoring and Requested
Recurrent Information is information that is provided on a periodic basis. Market share by region, customer awareness of the firms advertising, Customers satisfaction etc is the information provided on a Weekly, Monthly, Quarterly or Annual Basis
Recurrent information is particularly useful for indicating problems and opportunities
Types of Information in an MIS
Monitoring Information is information derived from the regular scanning of certain sources
Monitoring Information comes primarily from external sources. Government reports, patents, Articles, Annual Reports of competitors and public activities of competitors are common sources that are monitored
Article Summaries are prepared and distributed any time a relevant article appears
Monitoring Information is particularly useful for alerting firms to potential problems such as new competitors or new marketing activites
Requested information is developed in response to a specific request by a marketing manager. Without such a request the information would not flow to the manager and might not exist in the system
Example – Request on the size of the market not currently served by the firm and assessment of rivalry in the market
Specialized MIS – Firms typically evolve smaller, specialized systems designed to meet the needs of a subset of mangers such as Sales Managers or Brand Managers or systems are developed for specific types of information such as data
DSS are integrated systems including hardware, communication network, database, model base, software base, and the DSS user that collect and interpret information for Decision Making
DSS
Management Information Systems vs.Decision Support Systems
Unstructured Problems
Use of Models
User Friendly Interaction
Adaptability
Can Improve Decision
Making by Using “What if”
Analysis
DSSMIS
Structured Problems
Use of Reports
Rigid Structure
Information Displaying
Restricted
Can Improve Decision Making
by Clarifying Data
Marketing Information Systems and Marketing Research
Developing Information
Four Main Sources and Types
1. Internal records information2. Marketing intelligence3. Marketing research4. Information analysis
Developing InformationDeveloping Information
Obtains Needed Information for Marketing Managers From the Following Sources
Obtains Needed Information for Marketing Managers From the Following Sources
Internal DataCollection of Information from Data Sources Within the Company
Internal DataCollection of Information from Data Sources Within the Company
Marketing IntelligenceCollection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
Marketing IntelligenceCollection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales
From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies
From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies
Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation
Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation
Developing information.
The MIS develops the required information from: internal records, marketing intelligence activities and marketing research.
1)Internal Records This is the most basic system used by most marketing executives to monitor reports of orders, sales, inventories and debts. The internal accounting system can be used to provide information quickly, since most organisations produce monthly or weekly records of sales, and so on, to help the financial management of the organisation.
Marketing Information Systems and Marketing Research
Internal RecordsInformation from sources within the organization used to evaluate marketing performance and to identify marketing problems and opportunities
g Customer history information and information trendsg Customer information management (e.g., guest/customer
registration and comment cards, mystery shoppers)g Corporate customer and marketing intermediary
information (e.g., customer and prospective customer databases)
Marketing Information Systems and Marketing Research
Marketing IntelligenceInformation from internal and external sources
about developments in the marketing environment that helps managers to prepare and
adjust marketing plans and short-run tactics.
g Internal sources of marketing intelligenceg External sources of marketing intelligenceg Sources of competitive informationg Commercial sources of marketing information
Marketing Intelligence
Marketing intelligence is the information that is collected, often informally, by reading books, newspapers, trade journals, talking to customers, sales staff and suppliers. Well run organisations have some way - usually weekly or monthly meetings - where marketing intelligence information collected from the marketplace or the general environment is discussed by the members of the marketing team.
Marketing Information Systems and Marketing Research
Marketing ResearchA process used to identify and define marketing
opportunities and problems, to monitor and evaluate marketing actions and performance, and
to communicate research findings to management.
Steps in the Marketing Research Process:1. Defining the problem and research objectives2. Developing the research plan to collect information3. Implementing the research plan4. Interpreting and reporting the findings
Marketing Information Systems and Marketing Research
Marketing Research Process1. Defining the Problem and Research Objectives Research projects can have one of three types of
objectives:a. Exploratory: to collect preliminary information that will help
define the problem or hypotheses.b. Descriptive: to describe the size and characteristics of the
market.c. Causal: to test hypotheses about cause-and-effect
relationships.
Marketing Information Systems and Marketing Research
2. Developing the Research Plan & Design
a. Determine specific information needs
b. Decision on data
c. Research approaches – Observational, Focus group , Survey , Behavioral & Experimental
d. Questionnaire & Sampling
Marketing Information Systems and Marketing Research
3. Planning Primary Data Collection. Contact methods: mail questionnaires,
telephone interviewing, personal interviewing, Internet surveying, focus group interviewing
Marketing Information Systems and Marketing Research
4. Implementing the Research Plan
a. Gather the research data.b. “Enter the data” or process information.c. Analyze the data.
Marketing Information Systems and Marketing Research
5. Interpreting and Reporting the Findings
a. Interpret the findingsb. Draw conclusionsc. Acknowledge any research limitationsd. Report findings and conclusions
Marketing Information Systems and Marketing Research
Information Analysis
Information gathered can often benefit from additional analysis that may help to answer questions such as “what if?” and “what is best?”
Marketing Information Systems and Marketing Research
Information Analysis
This involves further and more detailed analysis of marketing intelligence and marketing research
data (sometimes this is called “secondary analysis” of primary data) through:
1. Advanced statistical analysis2. Mathematical models
International Marketing Research USA accounts for only about 40 percent of the
marketing research expenditures
About 40% of all marketing research is conducted in Europe and 10% in Japan
In Europe UK, Germany, France, Italy and Spain
Japan leads in Asia Specific region followed by Australia, China, Korea and Taiwan
Brazil and Mexico lead in Central and South American markets
International Marketing Research
Foreign Research
Multinational Research
Research Design A Research Design provides the framework
to be used as a guide in collecting and analyzing data
Research Design Exploratory – This is generally used to
clarify opinions and thoughts about the research problem or the respondent population or to provide insights on how to conduct more conclusive research
One major application of exploratory research, therefore, is to generate hypotheses for further studies
Descriptive Research – Most marketing research of this type
Descriptive Studies are either Longitudinal or Cross Sectional
Longitudinal Studies generally takes the form of a sample of respondents who are studied over a period of time – from a few months to a few years
Cross Sectional Design – This is most commonly used in marketing research. This is a one shot research study at a given point of time, and consists of a sample (cross section) of the population of interest
Cross sectional design gives a good overall picture of the position at a given time
Causal Research Design – Causal design seeks to establish causation as far as possible, by employing controls and conditions under which we can state with reasonable confidence whether or not Y is affected by X
Case Snippet Study about a English daily in 1980s in
Bangalore a Comparative Analysis was performed
Thank You Any Questions?