Marketing research - Lecture notes 1-12 PDF

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Market researchUNIT 1Definition: The systematic and objective identification, collection, analysis, dissemination, and use of information that is undertaken to improve decision making related to identifying and solving problems (also known as opportunities) in marketing.Marketing research is not: A ...

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Market research UNIT 1 Definition: The systematic and objective identification, collection, analysis, dissemination, and use of information that is undertaken to improve decision making related to identifying and solving problems (also known as opportunities) in marketing. Marketing research is not: A science, it does not have a set of rules and there’re little rules to govern it. Marketing research problems: 1-Defining the problem 2-Developing an approach to the problem 3-Formulating a research design 4-Data collection 5-Data preparation+analysis 6-Report preparation + debrief (dar parte de esa info )

Marketing research is governed by a wide variety of guidelines and codes of conduct, as well as a vast variety of research org adhere of a multitude.(global and national bodies and specialist field bodies also) THREE MAIN ROUTES TO A CAREER IN MKTING RESEARCH: 1-Research agency- Client facing and support role 2-Client side-research or insight function within a mkting department 3-Advertising-agency planner ETHICAL RESPONSIBILITIES: Client: ● Cannot use research to sell or fundraise. ● Must not use research for a personal agenda ● Must not solicit research proposals with no intention to purchase

Mkting researcher: ● ● ● ●

Must not design a larger / more detailed than necessary study, or a study which better meets the needs of the researcher than the client. Must not mislead, frighten or embarrass respondents Must respect privacy and right of anonymity respondents have Must report in an honest manner, avoiding bias or misleading interpretation

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UNIT 2 MANAGEMENT DECION VS MKTING RESEARCH PROBLEM Management decision problem: ● Asks what the decision maker needs to do ● Action oriented ● Focuses on symptoms Marketing research problem: ● Asks what info is needed and how it should be obtained ● Information oriented ● Focuses on the underlying causes PROBLEM DEFINITION AND APPROACH DEVELOPMENT PROCESS

CONDUCTING A PROBLEM AUDIT:History of the problem->Alternative courses of action avaliable to DM->Criteria for evaluating alternative courses-> Nature of potential actions based on research->Info needed to answer DM’s questions->Who will each item of info be used by the DM->Corporate decision making culture ENVIRONMENTAL FACTORS TO BE CONSIDERED:Past info and forecast-> resources and constraints->objs of the decision makers->buyer behaviour-> Legal env-> eco envir->Mkting and techno skills

MANAGEMENT DECISION AND MKTING RESEARCH PROBLEM Management decision problem: ● Should a new product be introduced? ● Should the price of the brand be increased? ● What can subaru do to expand its automobile mket? Mkting research problem: ● To determine consumer preferences and purchase intentions for the proposed new product. 3

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To determine the effectiveness of the current advertising campaign To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes To determine the various need of the automobile users and the extent to which those needs were being satisfied by the current product offering.

Problem definition based on symptoms can be misleading. Discussion between researcher and DM Focus of the DM -Decision maker

Focus of the researcher

Symptoms

Underlying causes

Loss of market share

Superior promotion by competition Inadequate distribution of the company’s products Lower product quality Price undercutting by a major competitor

The interaction between the DM and the researcher should be characterized by the seven Cs: (so trust is the key) 1. Communication 2. Cooperation 3. Confidence 4. Frankness 5. Closeness 6. Continuity 7. Creativity The common errors when defining a problem in mkting research are mainly 2 : 1. Problem definition is too broad and so it does not provide guidelines for subsequent steps.Ex: Improving the company’s image 2. The problem definition is too narrow, as a consequence we may miss some important components of the problem.Ex: Changing prices in response to a competitor's price change . RESEARCH APPROACH Components: 1. Analytical framework and models:set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. a. Graphical models:They are very visual and they help in isolating variables and to suggest directions of rs but are not designed to provide numerical results.

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b. Mathematical models: Explicitly specify the rs among variables, usually in equation form.Unless you’re a data analyst that won’t be a requirement if u’re a mkting researcher.Companies have developed models which are applied in certain circumstances. RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. Some of the tasks involved in the research design process are: 1. Define the information needed 2. Design the exploratory,descriptive and causal phases of the research 3. Specify the measurements and scaling procedures 4. Construct a questionnaire 5. Specify the sampling process and the sample size 6. Develop a plan of data analysis

Differences between the differents kinds of analysis:

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EXPLORATORY RESEARCH: USES 1. Formulate or define the problem more easily 2. Identify alternative courses of action 3. Develop hypotheses 4. Isolate key variables and rs for further examination 5. Gain insights for developing an approach of the problem 6. Establish priorities for further research

METHODS 1. Survey of experts 2. Pilot surveys 3. Secondary data analyzed in quantitative way 4. Qualitative research (used to gain

an understanding of underlying reasons, opinions, and motivation)

DESCRIPTIVE RESEARCH USE 1. To describe the characteristics of relevant groups, such as consumers, sales people, organizations, or market areas 2. To estimate the percentage of units in a specified population exhibiting a certain behavior 3. To determine the perceptions of product characteristics

METHODS 1. Secondary data analyzed in a quantitative (Quantitative  Research is used to quantify the problem by way of generating numerical data or data that can be transformed into usable statistics.)as  opposed to a qualitative manner 2. Surveys 3. Panels (polls) 6

4. To make specific predictions 5. To determine the degree to which marketing variables are associated

4. Observation and other data

Descriptive studies: 1. Sales studies: mket potential,mket share,sales analysis 2. Consumer perception and behaviour studies: image,product usage,advertising,pricing 3. Mket characteristic studies: Distribution,competitive analysis. CROSS-SECTIONAL AND LONGITUDINAL DESIGNS. A cross-sectional design involves the collection of information from any given sample of population elements only once. In a longitudinal design, a fixed sample (or samples) of population elements is measured repeatedly on the same variables. A longitudinal design differs from a cross- sectional design in that the sample or samples remain the same over time.

Evaluation criteria

Cross-sectional design

Longitudinal design

Detecting change

Relative disadvantage

Relative advantage

Large amount of data collection

Relative disadvantage

Relative advantage

Accuracy

Relative disadvantage

Relative advantage

Representative sampling

Relative advantage

Relative disadvantage

Response bias

Relative advantage

Relative disadvantage

USES OF CAUSAL RESEARCH ● To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon ● To determine the nature of the relationship between the causal variables and the effect to be predicted ● To determine the nature of the relationship between the causal variables and the effect to be predicted

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UNIT 3 FORMULATING A RESEARCH DESIGNED Design the info needed-> design the exploratory,descriptive and or causal phases of the research-> Specify the measurement and scaling procedures->Construct a questionnaire->specify the sampling process and the sample size->Develop a plan of data analysis.

EXPLORATORY RESEARCH (via secondary data) ● A study exploring an area to understand it better. ● Uncovers unknown and previously undocumented marketing variables ● Flexible,loosely structures process Secondary data: Data  which have already been collected for purposes other than the problem at hand.Quick to find cheap or free.

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Uses: ○ Typically used in the early stages of the project.The 3 firsts. ■ Identify the problem ■ Better define the problem ■ Develop an approach to the problem ■ Formulate an appropriate research design ● Ex:Identifying the key variables ■ Answer certain research questions and test some hypotheses ■ Interpret primary data more insightfully 8

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Internal sales data ■ Sales by product line,by major department, by specific time periods… ○ Also the sales data can be accesses via third parties ○ Demographics ■ Sex,Marital status,income,occupation… ○ Psychographics ■ Personality,motivations,values... Sources of secondary data:

Benefits: ● May solve the problem and save time/money ● Can provide vital aid to problem definition/research objectives ● Helps define target populations and/or appropriate sampling methods ● May help to generate hypotheses ● Can indicate how other researchers tackle similar problems Guidelines: ● Go from internal to external data sources ● Go from gral to specific data ● Funnel rule ● Be methodical ● May to need use of assumptions and lateral thinking

EXPLORATORY RESEARCH (via syndicated data)

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Syndicated data:Companies  that collect and sell common pools of data of known commercial value designed to serve a number of clients. Ex:TNS Common consumer syndicated data:

NOTES: CRM-customer relationship mket. Trying to personalize the rs with cust. Government-How much people are looking for a job how much aren’t Psychographics-personality… how the person is.. Panel studies-> utilize the same sample from the same population over time (what they watch and what they buy)

Banking advertising, Central bank, bank of ireland, ->Qualitative research.Focus groups, interviews + 50 year old. 6 oct-research proposal 20 oct-Questionnaire/Topic guide review 22 Nov-Presentation y hacer una hard copy para darsela en mano. 29 nov-Reflective essay 2 hojas proposal.

UNIT 4

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Step 4-Field work and data collection Qualitative research:An unstructured, exploratory research methodology based on small samples that provide insights and understanding of the problem. (Malhotra) Research designed to help organisational decision-making, focusing on understanding the nature of phenomena and their meaning, rather than their incidence. It tends to have the following characteristics: 1. direct face-to-face contact between the primary researchers and those being researched 2. in-depth examination of small-scale samples or small numbers of observations 3. unstructured interviewing guides which are responsive to context and may be amended throughout the project 4. the researcher and his/her interpretative input is key to the process. QUANTITATIVE VS QUALITATIVE

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USE OF QUALITATIVE RESEARCH: 1. Exploratory studies: To provide a full explanation of possible influences,attitudes, needs, decision making processes in a given market, uncover opportunities for new product development, define consumer segmentations 2. Brand positioning/repositioning: to provide a holistic overview of a market and brand perceptions 3. Advertising development: to understand and evaluate appeal and communication of creative ideas or to help develop the strategy/creative brief 4. New product development: to generate ideas and expose gaps in market for new product to fit, evaluate and build on new ideas 5. As input into quantitative research:to provide a real understanding of the issues and reveal consumer vocabulary

TYPES OF FOCUS GROUPS:

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1. Standard focus groups; 6-8 respondents, for 90 minutes, reviewing a topic from a broad angle, through to more detailed/focused discussion. 2. Longitudinal groups; reconvened groups; Creative development research, projects looking at planned v. what happened), Christmas spending, pregnancy and baby’s early months etc. 3. Mini-groups; more extensive probing on sensitive topics (new mums, constipation, incontinence, dentures) 4. Extended creative groups; in depth exploration, for brand positioning or creative development work (use modelling clay to show me how your migraine feels) 5. Altered state groups; primed to some or all of the topic in advance, think about ads for charities, think about issues affecting Ireland today 6. Shopper safaris; preliminary discussion in hotel, prior to moving to relevant store / aisle in supermarket to get “live” discussion 7. On-line groups; in dedicated chat room typically due to geographical barriers. FOCUS GROUP LOGISTICS Definition of target respondents, including quantity per session (usually 6-8) Development of recruitment questionnaire to deliver those respondents (keeping it short and not revealing the client) Development of topic guide, the questions to be covered in the focus group (20-40 questions, with probes / follow ups) Convene at a central location (hotel or viewing facility) Discussion may run for 90 minutes (can be 60-120) Session may be recorded (audio or video) and / or viewed (either with client / agency sitting in or via two-way mirror) Viewing facilities Positive

Negative

Clients hears it from the horses mouth

Client only sees a subset of the research,may not see or hear the full picture

Client becomes an advocate for the research

Client may take respondents at face value;they dont have the expertise to decode the real feelings

No surprises in the belief

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SOCIAL CLASS AB

Higher & intermediate managerial, administrative, professional occupations

C1

Supervisory, clerical & junior managerial, administrative, professional occupations

C2

Skilled manual occupations

DE

Semi-skilled & unskilled manual occupations, Unemployed and lowest grade occupations

F

Farmers

RECRUITMENT WATCHOUTS Ethics - a few essential points which respondents need: › Reassurance of anonymity › The ‘bona fides’ of the research › No sales are involved › Right to withdraw at any time › Abide by Data protection laws › Honesty, in so far as possible o Exclusions - done to: › ensure the integrity of the work › maintain confidentiality as much as possible › avoid unhelpful/obstructive/’expert’ respondents GROUP DYNAMICS 14

All group go through a sequence of stages, although respondents are largely unaware them ● Forming:All members to talk ● Storming:Group settling down ● Norming:Accept and agree ● Performing:Task orientate, cooperative activities ● Mourning:Closing of group SUCCESSFUL QUALITATIVE RESEARCH; THE MODERATOR ● A critical factor influencing the effectiveness and usefulness of focus groups. ● Sensitive but firm, and a good communicator. ● Ability to draw out responses from people — ask the right ‘probing’ questions. • Appreciation of group dynamics. ● Subject knowledge (well briefed). ● Need to be able step outside own narrow frame of reference. ADVANTAGE OF FOCUS GROUPS POSITIVE

NEGATIVE

Quantity and scope of data

Focus group participants not representative of desired population.

Ability to get more emotional/personal responses not obtainable with other tools (snowballing, group dynamics, spontaneity).

Due to this, and the small sample size, there are severe limitations extrapolating to the population in general.

Flexibility: moderator can direct/steer the research as it is taking place.

Inherent subjectivity of results.

Speed: A number of opinions at the same time.

Misjudging of results — treating them as conclusive when they can never be any more than exploratory.

DEPTH INTERVIEWS ● One to one interview o Informal interviewing style ● Encouraging, empathetic towards respondent ● Delving more into the personal experiences, reactions, perceptions and interpretation ● Easier to analyse one by one, but challenging to pull together...no consensus reached ● When to use in-depth interviews? ○ Probing consumer motivation/needs or complex decision making — ‘motivation research’. ○ Examining potentially embarrassing subject matter. ○ Eliciting confidential personal data. ○ Examining social behaviour/norms. ○ Interviewing professional people. 15

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Interviewing competitors.

POSITIVE

NEGATIVE

More personal

No group dynamic

Can be intimate

Can be challenging to respondent

Can probe more

Can be boring

Focussed

Relatively costly

Easier to arrange

Very time.consuming Lots of data to analyse

Notes: Hidden-info we don’t know.Kind of difficult to get to it. Secret-When people start to share things. Conflict groups- groups in which u pick people to be against each other. Observation work-stareing on and seeing what’s going on Mystery shopping-Cuando te pagan para ir a comprar algo, pro en vdd solo vas a ver si los shop assistants te tratan bn. Standard groups-vamos a enseñaros dos tipos de posibles anuncios y un mes después vuelve a quedar y les enseñan el anuncio definitivo. Longitudinal groups-Ven como les ha ido antes y después de navidades Extended creative group-very expensive.Les dejo hablar y que hagas cosas creativas. Altered state groups: You give them the theme before they get to the conclusion so they know what they’re talking about. On-line barriers:

UNIT 5

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Definition 3, research design: Is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.

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Exploratory market design: Designed to provide insights into and comprehension of the problem or issue confronting the researcher. It’s process is flexible and unstructured,adapting to new information if required.The sample if often small and nonrepresentative. Conclusive research design: Is designed to assist the decision maker in determining,evaluating and selecting the most appropriate course of action in given situation.Usually tests specific hypotheses and or examiners.The info required from the study is clearly and the process is formal and structured. It uses a large representative sample,employing quantitative data analysis techniques. ○ Descriptive research: Designed to describe mket characteristics or function.It’s market by the prior formulation of specific hypotheses.It uses planned and structured design. ■ Is all about describing people who take part in the study. ■

Ex:Jane goodall el que se paso la vida observando a chimpancés para ver cómo se comportaban ●

Cross sectional research:Involving the one time collection of information from any given sample of population events.(Cross-sectional studies make comparisons at a single point in time)Sometimes called a sample survey. ○

Both the cros...