Marketing notes - comprises all units PDF

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Table of ContentsUnit 1 – Role of marketing research, process, and secondary research...............................Unit 2: Exploratory and Observatory research designs.......................................................Unit 3 – Qualitative research and descriptive research..........................

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Table of Contents Unit 1 – Role of marketing research, process, and secondary research...............................1 Unit 2: Exploratory and Observatory research designs.......................................................5 Unit 3 – Qualitative research and descriptive research.....................................................13 Unit 4: Casual research and Sampling theories.................................................................18 Unit 5: Measurement, Construct development & Scaling..................................................23 Unit 6: Designing the questionnaire.................................................................................24

Unit 1 – Role of marketing research, process, and secondary research The 4 phases of research 1. Determine the research problem

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Identify and clarify information needed Define the research problem and questions Specify research objectives and confirm information values

2. Select the appropriate research design

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Determine research design Develop sampling plan and sample size Examine measurement and scaling Design and pretest the questionnaire

3. Execute the research design

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Collect and prepare data Analyse data Interpret data to create knowledge

4. Communicate the research results

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Prepare and present final report

Step 1: Identify and clarify information needed The Iceberg Principle – Identify the true problem, not the symptoms

Applying the iceberg principle involves trying to look at both the top of the iceberg (representing the problems seen by the decision makers) and the submerged side of the iceberg (representing the problems seen by researchers and marketers). Low quality product If the company's product or service isn't up to par with what the competition has to sell, it's no wonder that profits aren't high enough. Many small businesses underestimate the value of a high-quality product and its potential to help develop their company from a marketing standpoint. A low-quality product may only result in negative consequences.

Inappropriate delivery system There are two forms of delivery mechanisms in my agenda: one that is successful and one that is clearly ineffective. Many customers buy goods based on the product's specifications as well as the delivery time. These standards are becoming increasingly relevant as time passes. This is why a reliable supplier and an intelligent distribution system must be developed.

Poor image The importance of the company's reputation to the consumer cannot be overstated. It is extremely difficult to be effective if you have a negative image generated by a poorly promoted brand or a bad reputation in the market. Any minor flaw in the company's presentation would be judged by the customer. The image quality is generally assessed based on the quality of the competitors' displays on the market.

Marginal performance of the sales force As you can see, we looked at loss of revenue from the viewpoint of the decision maker, which is a very broad subject. However, research can pinpoint a specific issue that is linked

to the larger picture. In this situation, much of the time when sales are down and it can't be attributed to market competition, it's due to something internal, such as a sales force that isn't performing well. In this situation, sales are significant.

Step 2: Define the research problem and questions Most important step here is defining the problem.

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After identification, problem is reformulated as research question Exploratory research is done to refine questions, possibly into testable hypotheses

Initial research questions > Do literature review and other background or exploratory research > Redefined research questions E.g. Problem: Our brand not well-known by consumers Initial research questions: How low is our brand awareness? Why is our brand awareness so low? What can we do about it? Redefined research questions: What percentage of our target consumers do not know of our brand? How many of consumers can recall our brand unaided? What marketing activity can best increase our brand awareness? (advertising? Social media? Promotions?)

Step 3: Specify research objectives and confirm information value Formulating research questions as objectives: 1. How low is brand awareness? 2. Why? 3. What can we do? So, 1. Measure level of brand awareness 2. Assess reasons for low brand awareness 3. Determine the best method to increase brand awareness Confirming information value

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Can the information be collected at all? Does the information tell us something not already know? Will the information provide significant insights to address problem?

2 kinds of data sources 1. Primary data

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Data that are specifically collected for research problem at hand

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Various methods available e.g. surveys (online and offline), telephone or face-to-face interviews, on-site questionnaires etc.

2. Secondary data

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Published data that were collected for a different purpose previously

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Many of these data sources are free but some specialized data sets are collected by market research films and can involve fees

E.g. Internet, libraries and other public sources, internal data warehouses, syndicated studies (external)

e.g. If an entrepreneur is thinking about starting a new company, census data collected by the government might be useful. While the entrepreneur will not be collecting the data, census data contains information that could be very useful to the entrepreneur, such as the average age, household income, and level of education in a specific geographic area. The entrepreneur is conducting secondary data analysis by digging into this census data to inform his or her decision on whether or not to start a new company. Benefits and Limitation of Secondary data Benefits:

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Readily available (Since the data from a secondary data set is usually already cleaned and stored in an electronic format, the researcher can spend his or her time analyzing the data rather than having to spend time preparing the data for analysis.)

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Saves time, money; relatively inexpensive (The researcher does not need to spend any money, time, or effort in the data collection stages of his or her analysis because someone else has already done so. Although a researcher may need to buy secondary data in order to use it in a report, the costs are almost always less than what the researcher would incur if the researcher created the data themselves.)

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Becoming more accurate Can be more objective than primary data

Limitations:

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Relevancy – the data may not exactly match the needs or too old (A secondary data set could not contain the precisely detailed details that would allow the researcher to address his or her query if a researcher sets out to conduct a study with a very specific question in mind. Also, may be difficult to find secondary data that is valid for use when a researcher has a particular query or target in mind, since the data might not have been collected within the period the researcher was looking for, or in the correct geographical area, etc.)

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Accuracy and reliability – may be from untrustworthy source (Whatever a researcher does to vet a secondary data collection, they will never know how the data was obtained or how well the process was carried out.)

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Prior data manipulation – previously manipulated to suit other research projects; hence information may be incomplete or unfit for use

Internal and External secondary data Internal secondary data Collected in-house by company from its various functions – marketing, finance, accounting, operations etc. such as:

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Sales invoices and reports, customer transactions Accounting ledgers Customer letters and feedback Customer forms and warranty cards Past marketing research studies

External secondary data Collected by outside organisation such as government, marketing research agencies, trade associations etc. Can include data on:

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Market trend analysis Business and competitive intelligence Customer brand perceptions and purchase behavior e.g. panels

How to evaluate validity of secondary data 1. Purpose – Most are for other purposes, does this fit you? (The provider may have had a biased reason for posting the data, based on why it is presented. Commercial companies and even political parties post information on the internet that might benefit them or reflect their own interests in some way. As a result, the details you assume would benefit your organization might not be completely correct.) 2. Accuracy – Is the data collected at source or through non-validated sources 3. Consistency – Can you triangulate from different sources to check for consistency (If you notice that specific facts differ from one source to the next, you should investigate which responses are the most reliable. You will only benefit from using external data if it is accurate. Take the time to make sure your source is trustworthy so you can rely on the information they provide.) 4. Creditability – Does the organisation which collected the information have technical competency, service quality, reputation, personnel expertise, training, etc. (Who collected the data has an effect on its reliability. Data obtained from a government agency is much more accurate than data obtained from a personal website or blog. When it comes to market research studies, make sure you dig deep to find out the publishers are involved so you can be sure you're dealing with a well-known brand.) 5. Methodology – Any flaws in the way the data is collected by researcher? Sample size, response rate, the instruments 6. Bias – Is the source of this report neutral? Ethical and unethical pg 7

Situation when marketing research might not be needed pg 14

Unit 2: Exploratory and Observatory research designs Major difference between qualitative and quantitative research

Qualitative: Exploratory analysis is the focus of qualitative research. It's used to figure out what's driving people's decisions, thoughts, and motives. It offers information about the issue or aids in the development of ideas or theories for quantitative analysis. Qualitative research is also used to discover patterns in thinking and beliefs, as well as to delve deeper into an issue. Unstructured and semi-structured approaches are used in qualitative data collection. Focus groups (group discussions), individual interviews, and participation/observations are all standard approaches. The sample size is usually limited, and respondents are chosen to meet a predetermined quota. Quantitative: Quantitative research entails generating numerical data or data that can be converted into usable statistics in order to measure a problem. It's used to measure attitudes, beliefs, habits, and other well-defined variables, as well as to extrapolate findings from a broader sample population. In quantitative analysis, observable data is used to shape facts and reveal patterns. Methods for collecting quantitative data are far more systematic than methods for collecting qualitative data. Online surveys, paper surveys, smartphone surveys, and kiosk surveys, face-to-face interviews, telephone interviews, statistical research, website interceptors, online polling, and systematic observations are all examples of quantitative data collection methods. Advantage and Disadvantage of Qualitative research methods Advantage:

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Except for ethnography, data can be collected relatively quickly Richness of data Accuracy of recording marketplace behaviours Provide preliminary insights into building marketing models and scale measurements, including those from qualitative researchers with skills in social behavioral sciences e.g. psychology and psychiatry 

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Understand attitude: Consumer habits are subject to change on a regular basis. Businesses can be left wondering what happened when this occurs unexpectedly. Qualitative analysis processes can help you understand why someone's attitude could change. This might also contribute to a definitive explanation, allowing the company to adjust to the change in perspective. Since qualitative research lets us all better understand behaviors, it's easier to keep customer relationships going Content generator: Even for a seasoned marketer, coming up with new ways to show old content can be challenging. Genuine ideas from particular socioeconomic demographics can be obtained using a qualitative research approach. These concepts are then transformed into information that can be used to produce useful content that represents the brand message. All benefits from a refined and advantageous value proposition when this method is carried out correctly. Provides insights specific to industry: The two most significant factors in customer satisfaction are relationships and commitment. Modern brands can use qualitative research to uncover new insights that can help them advance these two critical things, ensuring that their contact with their core demographics is as reliable and genuine as possible. The information a company obtains can lead them to change their jargon, add value to the products/services they provide, or look for ways to repair a deteriorating reputation. When conducting qualitative research, the chances of receiving a negative response due to misunderstanding are significantly reduced.

Disadvantage:

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Lack of generalizability and representativeness (The qualitative research method does not allow for statistical analysis. It can only present research findings from a variety of angles. Responses to this type of research are rarely measurable. Only comparisons are possible, which leads to data replication in the long run. If statistical data is needed, qualitative analysis should not be used.)

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Difficulty in estimating small-magnitude differences of the phenomena being investigated

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Low reliability Difficulty in finding well-trained interviewers and observers (The data gathered by qualitative research is influenced by the experience of the researchers concerned. Industry-specific data must be gathered by a researcher who is well-versed in the

field. To ensure the consistency of the results, researchers must have strong interviewing skills, the confidence to ask follow-up questions, and the ability to develop professional bonds with participants. )

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Reliance on subjective interpretation of the qualitative researcher (The researcher's bias, whether conscious or unconscious, may have an impact on the data. This bias may also affect the study findings. To avoid researcher bias from affecting performance, controls must be included in the data collection process.)

Focus-Group interviews

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A formal process of bringing a small group of people together for an interactive, spontaneous discussion on a particular topic or concept

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usually 8 – 12 participants guided by trained moderator sessions are recorded and may observed through one-way mirror

Objectives:

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to provide data for defining or redefining marketing problems to identify specific hidden information requirements to provide data for better understanding quantitative research results to reveal consumers hidden needs, wants, feeling and attitude to generate new ideas on products and services to discover new constructs and measurement methods to help explain changing consumer preferences

Advantage and Disadvantage of Focus groups Advantage:

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generate new ideas, thoughts and feeling about a topic explain and understand consumer behavior client participation in the research breadth of topics covered information on special market segments A focus group is an effective method for gauging customer reaction to new products or company strategies. Focus groups typically generate immediate suggestions for improving specific products or concepts. They also assist in identifying end-user product requirements as well as other needs not addressed by the company or its competitors. Furthermore, focus groups provide insights into your contenders' present position in the minds of customers, but also measuring reactions of customers to a product's design, packaging, price, and message

Disadvantage:

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findings lack generalizability to target population (Don't believe the focus group is representative of the whole population. It'll never be easy to bring together a true social image, so keep that in mind when evaluating the production, since any deal will only represent a limited portion of the target market. Rather than depending on the conversation as the primary source of knowledge, it's easier to use the results of a focus group to feed into supplementary analysis.)

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questions of data reliability

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Groupthink: undie influence of one or two group members over others (There would be extroverts and introverts in every group of those; people who are relaxed sharing their opinions and others who are not. Any focus group's aim is to make sure that everyone's voice is heard. Participants must be convinced that what they say will be heard and respected, rather than mocked, ignored, or yelled down, in order to gain useful knowledge. This is where the moderator enters the image. They must ensure that all participants are included in the conversation, perhaps by expressly asking shyer participants for their feedback.)

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high cost per participation and cost of moderator (Focus groups are much more costly to conduct than polls and questionnaires. Any participants volunteer their services for free, while others must be paid in cash or in kind. The majority of the costs, however, are hidden. Questionnaires and product demonstrations must be specifically designed to pose the correct questions to evoke the types of answers that would be more useful to the consumer study of the business.)

subjectivity of data interpretations as trustworthiness of interpretation is based on researchers’ insights

3 steps to focus-group interviews Phase 1: Planning the study

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What’s the purpose of running this focus group?

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Incentives offered to participants

What data/information needed? Where to recruit participations and size of the group (focus group sampling) – Purposive sampling, stratified purposive sampling, theoretical sampling

Locations of the session and number of sessions

Phase 2: Conducting the focus group discussion

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Role of moderator and the moderator guide to ensure discussion is productive (exercise mild unobstructive control, adequate knowledge of topic)

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Beginning (begin with presession activities to create comfortable environment), conducting (directs the discussion) and closing the session (provides overview of discussion)

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Focus group moderators (interviewers) are critical to their performance. Moderators should have traits that are similar to those of the groups, as well as experience in group dynamics. Their job is to keep the conversation flowing and on track, to steer the conversation away from trivial subjects, to make changes to the next subject, and to be receptive to the group's mood. When to move on to the next question Moderators may also have some background information on the topic at hand.

Phase 3: ...