Download Model answers Marketing Resea rch Exam Nov 2 012

MARKETING RESEARCH ANSWERS AND MARKING SCRIPT
SECTION A
QUESTION 1
STAGES OF THE MARKETING RESEARCH PROCESS.
Marketing research involves the following five steps.
a) Definition of the problem
An individual marketing research project cannot be undertaken successfully until the marketing
problem which management wishes to resolve has been properly defined.
b) Who will do the research
A decision has to be made according to what data is available, the nature of the problem, the
budget available, whether confidentiality is important, and whether specialist skills are required
which are not available in – house.
c) Design of the research
Once the research team knows what problem it must help to resolve, it will establish the type of
data needed (secondary or primary) what data is already available, what sample of population
will be interviewed e.g. will actual customers or potential customer interviewed, the collection
method to be used (e.g. postal questionnaire, personal interview, focus groups), and if a
sample is to be taken, the design of the sample. Any questions put to the respondents must be
carefully designed.
d) Data collection and Analysis.
e) Presentation of a report
When the research problem has been defined the research objectives should be specified.
When selecting the data collection method it is useful to remember that secondary data is often more
easily accessible, and at less cost, then primary data. The use of samples is almost inevitable when
the population is large; however for some surveys a census is possible and desirable.
An estimation of time and resources needed to complete the research should be made and approval
sought from the commissioner of the research before data collection starts
Scheme/Script;
Three (3) marks for explainationof each of the five stages. (3x5);
Total 15 marks.
Total 15 marks.
1
QUESTION 2
2a
There are several ways in which to overcome the disadvantages of postal surveys.
a) People may throw them away:
This may be because they associate them as junk mail. A way to get around this would
be to mark clearly on the envelope the fact that it is a survey, not trying to sell anything.
It might also be because the envelopes are not personalised and just say ‘to the occupier’. The
obvious way around this is to ensure the surveys are targeted and sent to a maintained list of
contacts.
Another way to prevent people throwing them away would be to captivate and engage the
audience. For example using bold images of abused animals to shock people. This might make
people feel guilty about throwing them away without completing them.
b) People don’t fill them in:
Incentivising the respondents is the best way to boost response rates. Including some sort of
voucher for money off a product or service might make people respond.
Providing a pen and a return envelope could boost response rates as it removes two reasons
not to fill it in.
c) People confuse them with junk mail:
People are bombarded with junk mail from all sorts of place. So another unmarked envelope is
likely to be tarred with the same brush. A way around this would be to identify the envelope
clearly or make it different in some way.
d) Collating returns:
If a postal survey is done, someone has to collate all the information, input the data which can
lead to human error mistakes. This could be avoided if the questionnaire was laid out to be read
by a computer. This would not work for open questions or questions about name, age etc. but
for questions that required a yes or no or scaled answer. An example of this some exam papers
that are multiple-choice, you have to block out a square in relation to your answer and the
computer reads the blocked out areas when the papers are scanned in.
2b
There are advantages and disadvantages to both postal and email surveys as outlined below:
Email based Surveys vs. postal surveys
Advantages:
a) Quicker responses – immediate results than postal.
b) People check email frequently throughout the day whereas post only comes once, usually when
everyone is at work.
c) More cost effective than postal, cheaper to send out and get responses
d) Can contact a lot of people quickly by email – sending one email to a lot of addresses – postal
requires individual letters which is costly and time consuming.
e) Responses are cost effective.
2
f) Easier to collate the results of email, postal requires data inputting which allows for human
error.
Disadvantages:
a) Email is not tangible – it does not provide a physical result.
b) Email addresses can be easily typed incorrectly, bouncing them back.
c) Email has junk filters which could prevent it from reaching the recipient – postal does not.
d) Because of the speed of filling in an email, people may not think through their answers but
might rush them to get the offered incentive – postal is likely to be e more through.
Scheme/Script; 2a; Three (3) marks for each of any three disadvantages with solutions, total
nine (9) marks.
2b; One (1) mark each for any three (3) advantages and again one (1) mark
each for any three (3) disadvantages of email over postal. Total 6 marks.
Total 15 marks.
QUESTION 3
a) Primary and Secondary Research.
Primary research;
This is the collection of data for the for the first time. It is also called field research as it normally
involves the interviewer going to the field to collect data. Primary data can collected by either or
e blend of: Observation, experiments, questionnaire.
Secondary/Desk research
Secondary research is carried out by using information which has already been published by
another party. Such information can be: Internal information, available within the firm or
organization or
external information, available from sources outside the firm or organization.
Desk research is so called because it can literally be carried out from a desk in an
office. Using the Internet, telephone and postal services, researchers can obtain a vast
amount of previously published material which can help in making initial assessments
of a market.
b) Qualitative and Quantitative data.
Qualitative data is data that is non quantifiable. It is data about;
Attitudes
Opinions
Perceptions
Ideas
Beliefs
The collection of qualitative data is called qualitative research.
Quantitative data
Quantitative data is data that is expressed in figures such as data about the market share of a
firm i.e. 20%. The collection of quantitative data is called quantitative research. Quantitative
research is numerically oriented, requires significant attention to the measurement of market
3
phenomena and often involves statistical analysis. For example, a bank might ask its customers
to rate its overall service as excellent, good, poor or very poor. This will provide quantitative
information that can be analysed statistically.
c) Continuous and Ad hock Research.
Continuous research is research that is done periodically or every after a while. Example would
be; you do research to find out if the market will accept a new product, and after launching it,
five months down the line you may have to go back to find out what people think of the product
etc. Ad hock research is research that is done once and you complete the survey.
Scheme/Script;
Five (5) marks for each of the three. (3x5); Total 15 marks.
Total 15 marks.
QUESTION 4
There are three widely used methods of gathering primary data which are;
a) Survey
b) Experimentation
c) Observation depending on the structure of the questionnaire.
Survey
Surveys which collect data through the use of questionnaire are the most common method of
primary research. They can be used to collect both qualitative and quantitative data depending
on the structure of the questionnaire.
Through the questionnaire, researchers can measure many factors such as;
a)
b)
c)
d)
e)
Buying patterns and trends
Competitors’ performance
Expectations related to products and services
Attitudes to products and brand names
Media exposure
Survey interview may be done by the researcher in person, by telephone or by mail. Personal
interviews are more flexible than the other two types because interviews can probe more deeply
if an answer is incomplete.
Experimentation:
An experiment is a method of gathering primary data in which the researcher is able to observe
the results of changing one variable in a situation while holding all others constant.
Experiments can assess the impact of variations to the elements in the marketing mix. Prices,
promotions, packaging or other aspects of the product (taste, colour, size) are varied under
controlled conditions to estimate the impact on buying preferences.
Example:
4
A retailer with a chain of shops can experiment with promotional discounts in one outlet and
compare the impact on sales to outlets where the offer is not made.
Observation
In an observation method data is collected by observing the actions of person. There are no
interviews, though an interview may be used as a follow up to get additional information. For
instance, if customers are observed buying soft drinks in cans instead of plastic bottles, they
may be asked why they prefer that form of packaging.
Marketing research uses observation in a number of ways, such as:
a) Mechanical observation:
Which count activities like the number of shoppers in a street or the number of cars using
a road.
b) Behavioral observation :
Which note how people go about buying or using products. Example; watching how
people select brands in a shop or use products in the work place
c) Informal observation:
Which keeps an eye on the market place, for instance, by attending exhibitions and
noting the activity level on competitive stands.
Scheme/Script;
Five (5) marks for each of the three. (3x5); Total 15 marks.
Total 15 marks.
QUESTION 5
Advantages of bringing all research activities in house.
a) Costs can be absorbed into existing departmental overheads.
b) It can broaden the experience and skills of existing staff.
c) It might promote team spirit and encourage results oriented approach.
d) Better chance that information collected will not land in the hands of other parties. ie
competitors.
e) Likely to do a good job as the organization has a better understanding of the industry.
f) It’s a vote of confidence on the staff capability and good for motivation.
5
QUESTION 5
Disadvantages of bringing all research activities in house.
a) There is a danger of overstretching current resources.
b) Bias could result from using staff with pre - conceived views.
c) Company politics may influence the results.
d) There may be lack of appropriate skills.
e) Considerable computing skills with appropriate software would be required and the firm may not
have it.
f) Training and recruitment is required and this could be costly and time consuming.
Scheme/Script; One and half marks (1.5) marks for each point. Students expected to
produce five advantages and five disadvantages. Total 15 marks.
Total 15 marks.
SECTION B
QUESTION 6
VALUE OF MARKETING RESEARCH
Marketing decisions are inevitably made under conditions of uncertainty and risk. The use of
marketing research cannot eliminate risk but can reduce it by indicating the likely outcome of a certain
course of action.
Markets are dynamic and competitive; success in business depends on greater investment and more
frequent innovation so as not to lose ground to competitors. Important decisions have to be made
6
frequently, and in order to make decisions with confidence management needs relevant and
comprehensive information. It is the task of marketing research to provide this information.
1) Marketing research helps the marketing manager link the marketing variables with the
environment and the consumers.
2) It helps remove some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information, consumers'
response to marketing programs cannot be predicted reliably or accurately.
3) Ongoing marketing research programs provide information on controllable and
non-controllable factors and consumers; this information enhances the effectiveness of
decisions made by marketing managers.
4) Marketing research provides information which enables managers to make decisions about the
marketing mix – product, place, price and promotion.
It is impossible to remove all sources of error in a research exercise but it is useful to be aware of the
main sources of error which may limit the value of marketing research.
a) Sampling errors
These are faults or weaknesses that might occur in the design or collection of sample data.
Bias in a sample is one of the biggest problems.
b) Non-response errors
It possible that members of a sample who did not respond (for example to a mailed
questionnaire) are different in some ways to those who did respond.
c) Data collection errors
Many errors can occur in data collection, such as simple clerical errors, misinterpretation or
carelessness. Leading questions and the respondent providing answers to please or impress
the interviewer (rather than the real truth) also dilute the value of market research.
d) Analytical errors can occur.
e) Errors can occur in the reporting stage, such as misinterpretation or bias on the part of the
writer of the report.
f) If the research has adopted an experimental design then errors can occur, for example
problems with the control group.
Scheme/Script; Two (2) marks for each of any four (4) points on value of research;
total 8 marks.
Three (3) marks for any four (4) sources of errors. Students to explain the
errors; total 12 marks.
Total 20 marks
7
QUESTION 7
DATA COLLECTION USING QUESTIONNAIRES
Once it has been decided that quantitative data will be collected using a structured questionnaire,
there are various ways in which the questionnaire can be administered.
a)
b)
c)
d)
e)
Face –to- face in the person`s home or office
Face-to-face in the street or shopping mall
Over the telephone (with the interviewers either working from home or from a central location).
By post or fax.
Via the internet (e-mail)
Each of these methods will be looked at in the table below which shows the relative positive and
negative points .
Method
Advantages
Disadvantages
a)
Respondent at ease; body
Language visible; home/office can
Be observed; interviewer can
Explain / probe; long interview
Possible (up to 1 hour); visual
Aids can be used;
Growing resistance to letting
strangers into one`s home;
expensive; difficult to monitor
interviews: may be many
interruptions.
b)
Interviewer can show , probe and
explain.
c)
Sample can be chosen randomly;
Interviewer can probe and explain;
supervisors can listen in ( central
from location of interviewers ).
Difficult to use visual aids unless sent in
advance; long interviews not possible;
supervisor cannot listen in ( interview
Home ; respondent may be distracted.
d)
Similar to (postal. May be treated as
more urgent ( until junk faxes start to annoy).
Similar to postal. Confidentiality could be
Problem; only owners of fax machines
would be sampled.
People often in a hurry; many potential
Interruptions; can be uncomfortable
(weather, nowhere to sit etc); sample =
people who shop in that locality at that
time of day.
8
e)
Only reach e –mail subscribers;
size of questionnaire may be
limited (form configuration); fear
of computers.
Fast and easy to use ; delivery is
Certain; reasonable cost; flexibility
In response (e- mail, mail or fax);
Less paper wasted.
Scheme/Script; 7a; One (1) mark for each; total four (4) marks.
7b; Two (2) marks for two advantages and again two (2) marks for two
disadvantages for each of the four methods of administration.
(4x4), Total 16 marks.
Total 20 marks
QUESTION 8
a) Random sampling gives each member or item of the population the same chance of being
selected: it is one way of ensuring that the selection is free from bias. This may be achieved by
a number of random methods: drawing lots, sticking pins in a list or – for much greater speed
and convenience where large samples are concerned – using a computer to generate random
numbers identifying names, or even to select names at random from a computerized database.
b) Stratified sampling involves classifying the population into groups (strata) which you wish to
be proportionally represented in the sample and then selecting a random sample from each. So
if you wished to survey 100 employees in a company which employed 600 professional and 400
administrative staff, you might randomly sample 60 professionals and 40 administrators.
c) Quota sampling is where interviewees are told to interview all the people they meet, up to a
certain quota or number: 50 men aged 25-3, 70 women aged 17-25, say.
d) Multi stage sampling is a process whereby you take a random sample from the population,
then a sample of the sample , a further sample from that sample and so on, until you have a
small enough sample to be practicable . if you were researching company pensions, say you
would randomly sample a number of companies ; then , from each, randomly sample a number
of departments; then perhaps , from each, a number of employees . You end up with a wide –
ranging but manageable sample size.
Scheme/Script; Five (5) marks each of the four (4) sampling technique. Total 20 marks.
Total 20 marks
9
QUESTION 9
Market research
a)
b)
c)
d)
e)
Customer/ consumer surveys ( qualitative and quantitative)
Market trends analysis
Marketing environment analysis (SLEPT factors)
Market share analysis
Geodemographic analysis
Product research
a)
b)
c)
d)
e)
Brand perception / image studies
Packaging and product design studies
New product development research
Test marketing
Comparative studies between competitive products
Promotion research
a)
b)
c)
d)
e)
f)
Promotion effectiveness (i.e. recall)
Sales impact of promotional activity
Corporate image
Publicity generated
Media research
Sales force effectiveness
Distribution research
a)
b)
c)
d)
e)
f)
Sales performance analysis
Service delivery performance
Costs/ profitability studies
Dealer satisfaction studies
Location analysis
Dealer advertising requirements
Scheme/Script; Five (5) marks each of the four (4) tasks.
Total 20 marks
Total 20 marks
10
QUESTION 10
NEW PRODUCT RESEARCH
To:
Sales and Marketing Director
From:
A Marketing Manager
Date:
XX.XX.XX.
Re:
New Product
The steps that would need to be taken are as follows.
a) Define objectives of the research relating to `acceptability`.
b) Identification of suitable sources of data and collection techniques relating to acceptability.
a) In assessing the acceptability of the new product, primary research will be required and it is
likely that qualitative techniques will be more helpful than quantitative, as feelings and opinions
need to be gauged.
b) There are three difficult types of primary research techniques that could be used to assess what
the market thinks.
1) Depth interviews. These consist of one –to-one interview with members of the target group
lasting between 1 and 2 hours. They e.g useful to find out more about what motivates people and
what they feel about different things. As no-one else is present, weaker people are not swayed by
others as they might be in group discussions. As a general opinion on the product acceptability or
otherwise is required, this is less likely to be used here.
2) Focus groups. Group of 6-10 individuals from the target age (23-35 years old) would need to be
recruited. They would then be invited to a suitable venue (ideally with one-way mirrors and
recording equipment) so that proceedings could be observed. Discussions would be led by a
trained moderator who would be briefed to ascertain what the participants look for provided).
3) Test market. Either the product could be launched on a trial basis in a particular area or a
promotional evening could be arranged . This information collected could help in assessing
demand .people may say they like a new product but not necessarily want to buy it.
4) Data collection. To be able to complete this stage, suitable samples representative of the target
audience will need to be located.
11
Date analysis. Interpretation of qualitative research takes training and experience. Analysis of
market shares and competitive pricing ideally requires a spreadsheet package.
Presentation of results. key findings, including opinions of the target consumers , forecasts of what
they are likely to buy and at what price , will all need to be presented to the marketing director and
possibly other members of the board.
Assuming the product is launched, further research will be needed to check that the product is still
popular, that the forecasts are on target and that the pricing strategy is correct.
Scheme/Script; Two (2) marks for each of the five steps; total 10 marks.
Five (5) marks for each research method. A minimum of two research methods
is expected. (2x5), total 10 marks.
Total 20 marks
12