Download Marketing Research Problem

MARKETING
RESEARCH
DR. D. ISRAEL
DEFINITION
A systematic and objective gathering,
recording and analyzing of data about
problems relating to marketing of goods and
services
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MR is a function that links the consumer,
customer and public to the marketer through
information used to
- generate, refine and evaluate marketing
actions;
- monitor marketing performance; and
- improve understanding of marketing as a
process.
WHAT MARKETING
RESEARCH CAN DO?
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Enhances the effectiveness of decisions
made
Analyzes customer preferences
Identifies new users and new uses of the
product
Identifies the core-customers
Differentiates customers from others on
values, perception, life-style etc.
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Analyzing the customer purchase patterns
Continual monitoring of customers
Forecasting
Measures the characteristics of the market
Market tracking
Market segmentation
Market performance
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Making Decisions on Marketing-Mix
variables:
- Product
- Price
- Place
- Promotion
MARKETING RESEARCH LIMITATIONS
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MR does not guarantee success
MR is quite expensive
MR is time consuming
MR is susceptible to extraneous factors
MR yields misleading results owing to the
improper use of analytical techniques
MARKET RESEARCH Vs.
MARKETING RESEARCH
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Market Research limits its interest to the
information relating to market and customers
only.
Marketing Research covers issues
pertaining to everything: market, customers,
distribution strategies, impact studies,
experimentation etc.
ROOTS OF MARKETING RESEARCH
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Statistics
Economics
Psychology
Sociology
Anthropology
SCIENTIFIC METHOD IN THE PHYSICAL
SCIENCE AND MARKETING SCIENCE
Similarities
Body of knowledge
Systematic inquiry
Welfare of humanity
Dissimilarities
Verification
Method of research
Prediction
Precision
Objectivity of investigation
Influence of measurement process
MARKETING RESEARCH PROCESS
STEP 1: Problem Formulation:
This involves identifying the management
problem and translating the management
problem into a research problem.
Management Problem
Should a new product be introduced in the
market?
Marketing Research Problem
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Profile of consumers likely to buy the product;
Consumers’ attitude toward the company and
features of the product;
Extent of consumer brand loyalty for the
existing products;
Demand pattern for the product in the longrun;
Technical, financial and managerial resources
to achieve the objective;
DISCUSSION QUESTIONS
Management Problem
a) Should the advertisement be changed?
b) Should the price be changed?
Question: Identify the marketing research
problems for each of the above cases.
Step 2: Developing an Approach to the
Problem:
This involves framing research questions,
models and hypotheses in order to obtain
information.
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Research questions help the researcher in
determining the specific information that are
needed to be collected toward solving the
research problem.
Each subcomponent of research problem is
broken into an interrogative form.
Enables the researcher in formulating the
research hypotheses.
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Hypotheses:
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Off-shoots of Research questions
Tentative statement that requires scientific testing for
acceptance or rejection
Connects two or more variables
Declarative forms
Enables to decide what variables are to be
measured and how they need to be measured
Helps deciding on the type of analytical tools
Stated in two major forms: Null and Alternate
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Model
A frame that specifies a set of variables and their
interrelationships. It is of three types:
Verbal Model is a written representation of
relationships among variables;
Graphical Model is a visual representation of
relationships among variables; and
Mathematical Model is a equation-representation of
relationships among variables.
Management Problem
What should be done to improve the store
patronage?
Marketing Research Problem
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Measure customers’ perception of quality of services
and goods provided by the store;
Measure customers’ perception of level of service
satisfaction;
Comparing the store with other similar stores in
respect of major attributes such as convenient
location, parking facilities, assortment of goods
available, friendliness of sales personnel etc.
Measure whether the customers are intending to buy
from the store in future;
Determine whether customer perception of service
quality and service satisfaction lead to increased
customer patronage (loyalty).
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Research Questions and Hypotheses:
RQ1:
Do the customers perceive favorably the quality of services
provided in the store?
HYPO1:Customers have favorable perception toward the quality of
services provided by the store.
RQ2:
Are customers satisfied with the quality of services extended by
the store?
HYPO2: Customers are highly satisfied with the quality of services
provided by the store.
RQ3:
Do customers have an intention to buy from the same store in
future?
HYPO3: Customers exhibit a strong willingness to make their future
purchase from the store.
RQ4: Is there any significant difference between the
loyalists and defectors?
HYPO4: ????
RQ5: Are service quality and service satisfaction
important parameters in explaining store loyalty?
HYPO5: ????
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Verbal Model: Customers who perceive the
store quality favorably will tend to have store
satisfaction. Both store quality and store
satisfaction influence customers' intended
store patronage (loyalty) behavior.
Graphical Model:
SQ
SS
SL
Mathematical Model
Y = a + b1x1 +b2x2
Where Y= willingness to repurchase
a= constant
b1,b2 = model parameters or coefficients
x1,x2 = store quality and store satisfaction
Step 3: Research Design Formulation
This involves preparing a framework on how to
execute the marketing research project for
obtaining information for solving the research
problem.
Research Design involves detailed
description on
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Type of research
Data collection methods
Data collection instruments
Units to be interviewed/observed
Sampling design
Plan of analysis
Step 4: Organizing Fieldwork and Data
Collection
This involves considerations on selection,
training, supervision and evaluation of the
field-force in minimizing data collection
errors.
Step 5: Data preparation and Analysis
This involves
editing,
coding,
transforming,
tabulating and
Analyzing the data collected
Step 6: Report Preparation
This involves the procedure involved in
documenting the entire research process involved.
Should contain all relevant information
Should be comprehendible and easy to use
MARKETING RESEARCH SUPPLIERS
Two sources: Internal and External
 Internal Supplier
Nothing but the MR department within the
firm.
 External Suppliers
The outside firms hired by organization for
supply of information.
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Types of External Suppliers
a)
Full service suppliers which provide the
full range of marketing research services
from the beginning to the end
b) Syndicated services:
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Involves collection and tabulation of marketing information from a
large sample base, with large number of questions on a continuing
basis for sale to a large number of clients;
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Provides wealth of information, involves low cost, and no
proprietorship;
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Example: collection of information on TV viewer ship, newspaper
and magazine readership etc.
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Research is done voluntarily by the research organization;
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Research is conducted on a particular theme or product;
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Everything is decided by the research firm;
Some more examples for Syndicated
services:
 Continuous analysis of brand positioning for
all brands of a specific product;
 Continuous analysis of brand-switching and
brand-loyalty for a specific product;
 Life-style profiles of users of different brands;
 Trends & shifts in competitors’ pricing, their
promotion effort and their impact.
c) Standardized services:
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Make use of standardized procedure for
providing research information to various
clients. For example, the same questionnaire
or even same or similar respondents may be
used for obtaining information;
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Help in comparing results across clients and
across time;
d) Customized services
These are the research firms that fulfill the
specific research requirements of the clients.
Hence, each client is treated distinctly.
e) Limited service suppliers:
They are the specialists in any one or more of
the marketing research process tasks. Some
firms may offer only field services, other only
coding and data entry and still others only
data analysis services.
CRITERION IN SELECTING A
RESEARCH SUPPLIER
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Economic feasibility
Technical expertise
Reputation
Reliability
ROLE OF MARKETING RESEARCHER & THE
MANAGER
Marketing Researcher:
-Technical consultant
- Performing data analysis & providing
initial interpretation
- Consultant in problem formulation &
implementation stages
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Manager
- providing
adequate information for formulating research
problem;
- responsible for implementing final recommendation;
- needs to have at least non-technical understanding of basic
design of the project;
- reasonably realistic (e.g., he should not ask for a single
estimate for the sales forecast for next year, or set
unrealistic time schedule);
- accept research project as useful aid to decision making rather
than a perfect panacea.
MARKETING RESEARCH & MARKETING
INFORMATION SYSTEMS
MIS is a formalized set of procedures for
generating, storing, analyzing and distribution
information to marketing decision makers on
an ongoing basis rather than adhoc.
The information cannot be altered.
MR Vs. MIS
MR
MIS
Focus
Past
Future
Aim
Problem-solving
Emphasis
Handles external
data
Adhoc
Problem identification
and solving
Handles both internal
and external data
continuous
Continuity
MARKET RESEARCH AGENCIES IN INDIA –
SOME HIGHLIGHTS
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MR industry is estimated to be 500 crores with potential to
grow 1000 crores
MR is mainly used by MNCs
Allocation to MR is between .005 to .01of turnover (this
includes HLL also)
Presently it is only 4% the size of advertising industry
Only 50 odd corporations make use of MR in India
Stagnant growth rate in Indian MR industry(10%) while it is
close to 50% in U.K. and U.S.A.
MAJOR MARKET RESEARCH AGENCIES IN
INDIA
A.C. Nielsen
A.C. Nielsen ORG-MARG
IMRB International
Pathfinders
NCAER
MRAS
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A.C. Nielsen
- held by VNU, a Dutch company
- Presently operates under dual brand
- A.C. Nielsen ( for retail measurement)
- A.C. Nielsen ORG-MARG ( for
customized
research services)
- ORG-GKF (for retail audit for consumer
durables)
- Specialized in soft-drink audit, ice-cream audit,
media audit, cigarette audit, & pharmaceutical
audit
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IMRB International
- 35 year old
- operates as a division of HTA
- major clients include Johnson &Johnson,
Philips, Indian Oil, Indian Airlines, ITC.
- enters in to consultancy service (The
Henley Centre) for new product and
development of product portfolios.
- known for NRS, BRS, TRPS, Market Pulse,
Rural Market Profile, CSMM, BIRD.
CHALLENGES FOR MARKETING RESEARCH
INDUSTRY IN INDIA
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Cost-consciousness (unwillingness on the
part of the management to spend money on
research);
Lack of Professionalism (because MR draws
on a variety of other disciplines);
High turnover rate (resulting in dearth of
skilled people)
Absence of Databases
QUESTIONS?