Marketing Research Notes PDF

Preview

Summary

Detailed lecture notes that will be super helpful to study for any midterms....

Description

CHAPTER 1 What is Marketing Research?  Helps marketers make decisions  Process of designing, gathering, analyzing and reporting information that may be used to solve a specific marketing problem  Many different disciplines: market intelligence, survey research, competitive intelligence, data mining, knowledge management, business analytics Primary Research: Research that you conduct yourself to fill in information gaps left after secondary research has been conducted Secondary Research: research to find answers from information that someone else has already collected. Applications of marketing research: 1. Identify market opportunities and problems o SWOT’s, Market demand determination studies, competitive analysis 2. Generate, refine and evaluate potential marketing actions o Studies deal with one or more of the marketing mix variables o Concept tests, advertising pretesting, pricing tests 3. Monitor marketing performance o Control studies, evaluate how companies already existing marketing mix is performing o Image analysis, customer satisfaction surveys, website evaluation 4. Improve marketing as a process o Attempts to define classify marketing phenomena and develop theories that describe explain and predict marketing phenomena o Often conducted by institutes like universities Why is it used:    

Need to minimize risk Competition is fierce Consumers are demanding Changing consumer preferences

 

Media and consumer fragmentation Increased pressure to generate more profit

How is it used:         

Environmental Scan Market Feasibility – after enviro scan Needs Assessment – what has changed in your customers Planning New Product Development – unmet needs? Setting the right price Advertising Testing and Tracking – impact of the campaign Satisfaction Studies Policy Development

When is it used:  

Start-Up Phase The Expansion Phase

MRIA- Marketing Research and Intelligence Association Marketing Information System- structure consisting of people, equipment, and procedures to gather sort analyze evaluate and distribute needed timely accurate information to the marketing decision makers Information Literacy 1. Articulate an info need > generate key terms 2. Locate relevant info sources > construct a search strategy; advanced search 3. Evaluate the quality of those sources > who, what, when, how, how consistent? 4. Communicate results of the search Triangulation: find 2 sources to compare a source to to determine credibility Major Search Engines: (Google, bing, Yahoo!, Ask.com) Meta Search Engines: searches many search engines (ie: dogpile, sputtr, mamma, Clusty) CHAPTER 2 The Marketing Research Process (11 Steps): 1. Establish the need for marketing research  Only research if benefit > cost 2. Define the problem  Problems stem from 2 primary sources: 1. Gaps between supposed to happen and what did happen 2. Gaps between what did happen and what could be happening 3. Establish research objectives  State what the researcher must do to carry out the research and solve the manager’s problem 4. Determine research design  3 widely known designs: exploratory, descriptive and casual 5. Identify information types and sources  Secondary research first because cheaper, see what you have  If secondary data inadequate/ information unavailable then use primary 6. Determine methods of accessing data  Primary data collection methods include focus groups, monitoring online forums and blogs 7. Design data collection forms  Researchers communicate with respondents (asking questions)- questionnaire  If they observe respondents- observation form  Discussion Guide (focus group/interview)- qualitative data from few respondents 8. Determine sample plan and size  Sample Plan: Probability vs non. How representative the sample is?  Sample Size: How many? How accurate the sample is? 9. Collect data 10.Analyze data 11.Prepare and present the final research report When is Marketing Research not needed? - Information already available - The timing is wrong when conducting research The Research Problem (SEE PAGE 57) - Most important step in the process

-

Funds are not available Costs outweigh the value

-

Types: failure to meet an objective, can be specific or general More specific easier task for marketer researcher More vague (general) harder to define problem

Difficulties in defining problem: 1. Failure to communicate for problem definition situations o Managers do not want to recognize the change needed o Takes time for researchers, in depth communications between managers and mktg researchers 2. Differences between managers and researchers o See the world different Symptoms: changes in the level of some key monitor that measures the achievement of the objective, alert mgmt that there is a problem Research Design 1. Exploratory: insights into issue 2. Descriptive: snapshot of market environment 3. Causal (experiments): cause and effect of business actions Exploratory Unaware of Problem  Gain background info  Define terms  Clarify problem  Establish research priorities Focus groups, in-depth interviews, observation

Descriptive Aware of Problem  Describe and measure marketing phenomena at a point in time

Causal Problem Clearly Defined  Determine causality  Make “if-then” statements

Who, What, When, Where, Why?

Qualitative Research:  Broadly defined research objective  Informal research design  Non-probability sample  Small sample size  Unstructured questionnaire  Qualitative data analysis (words)  CanNOT project results to total pop.

Survey:  Well defined research objectives  Formal research design  Probability sample (representative)  Large sample size  Structured questionnaire  Controlled data collection  Quantitative data analysis (#s)  Calculate margin of error  Can project results to whole target pop. ie: You want to ensure the best customer satisfaction and retention.

Measuring cause and effect of marketing strategies and tactics Experiments:  Manipulate independent variables  Measure effects on dependent variable  Control effects of extraneous variables  Pre-test and post-test

ie: Your company’s sales are declining and you don’t know why.

CHAPTER 3: THREE TYPES OF RESEARCH DESIGN: 1. Exploratory Research 2. Descriptive Research 3. Casual Research

ie: You are considering a price change to your product line.

EXPLORATORY RESEARCH – Unstructured and informal research that is undertaken to gain background information about the general nature of the research problem  Unstructured because it does not have a formalized set of objectives, sample plan, or questionnaire.  Research has lack of knowledge about the problem, and needs additional information or desires new or more recent information. USES  Gain background information  Define terms

 Clarify problems and Hypotheses  Establish research priorities

METHODS  Secondary data analysis  Experience surveys  Case analysis

 Focus Groups  Depth interviews

DESCRIPTIVE RESEARCH – Used to describe answers to questions of who, what, where, when, and how. Descriptive Research Cross – Sectional One sample per study Sample surveys Tracking Studies

Longitudinal studies Same sample studied over time

Advertising Creative Testing

Panels

Market-

Consumer or Specialist

Continuous Same panel asked same questions over time

Discontinuous (Omnibus) Same panel asked different questions over time

SAMPLE SURVEYS – Cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population PANELS – Sample units who have agreed to answer questions at periodic intervals BRAND SWITCHING STUDIES – Use continuous panels to collect data in order to show how panel members switched brands from one time period to another MARKET TRACKING – Those that measure some variable(s) of interest – that is, market share or unit sales over time CASUAL RESEARCH – To determine causality, to make “if, then” statements. Using these “if, then” statements become a way of manipulating variables of interest EXPERMIMENTS – Defined as the manipulation of an independent variable to see how it affects a dependent variable, while the effects of additional extraneous variable are also controlled. Independent Variables  Variables that the researcher has control over and wishes to manipulate Dependent Variables

 Variables over which there is little or no direct control, yet in which the researcher has a strong interest Extraneous Variables  Have some effect on a dependent variable but that are not independent variables CHAPTER 4 Secondary Research: research to find answers from information that someone else has already collected. Uses of Secondary Data  Range from predicting broad changes in a cultures way of life to very specific application like selecting a street address for a new business.  Helps marketers forecast size of potential market  Market analysis  Competitive intelligence  Consumer trends  Segmentation o Geo-demographics: demo and psychographic data within small geographic areas  Census, PRIZM, SimplyMap Sources of Secondary Data  The census of the population, considered the “granddaddy” of all market information  North American Industry Classification (NAICS) o 20 broad sectors and a six-digit classification code o Mexico Canada and US share standard system using the first 5 digits Advantages  Obtained quickly  Inexpensive relative to primary data  Usually available  Enhance primary data  May achieve the research objective

Disadvantages  Incompatible reporting units, such as country, city, province, metro area. Reporting units must match the researchers need  Measurements units do not match, example- household income might be reported when the researcher needs per capita income  Class definitions are not usable, example- need to know the % of households over $80000, but source only shows $50000 and over  Data is outdated

Classification of Secondary Research INTERNAL Internal Secondary Data: Data collected within the firm, includes:  Sales records  Purchase requisitions  Invoices Internal Databases: Databases consisting of information gathered by a company during the normal course of Business transactions. - Ex. CRM databases

Data mining - analyze data for patterns and trends (software programs) Text mining - data mining that includes text from internal and external data sources. EXTERNAL External Secondary Data: Data obtained outside of the firm, three types: 1. Published o Prepared for distribution and are normally found in libraries or provided by a variety of other entities such as trade associations o Can be found online and in print 2. Syndicated Services Data 3. Databases Examples of External Secondary Data:  Government resources  Market/industry databases  Syndicated sources  Association/trade resources  Company filings  Articles

Database Name StatsCan IndustryCan

PRIZM via SimplyMap PMB Passport Business Source Complete

Data Provided Demographics and spending patterns Companies and industry sectors

Lifestyle segmentation Demographics and spending Business, industry, and trade analysis Articles on businesses

Where? Across Canada, down to Postal Code Classification down to 6digit NAICS and specific coorporations Down to Postal Code Province and city Country level only

Search Strategies:  Boolean Logic – allows the establishment of relationships between words and terms in most databases, using AND, OR, and NOT  Field Searching – searching using one or more fields  Proximity Operators – how close and in which order two or more words are in the record  Truncation – allows searching a root word. Ex. “Fore” would return “Forecast”, “Forecasting”, etc.  Nesting – indicates order of search  Limiting – limited searches to specific details and databases Evaluating secondary sources, ask:  What was the purpose of the study?  Who collected the information? o Cannot have bias, credible organizations are well known, examine the report itself  What information was collected?  How was the information obtained?

Most reputable organizations that provide secondary data will disclose how they collected it How consistent is the information with other information? o



The CRAAP Test • Currency: timeliness of info • Relevance: fit of data for your needs • Authority: source of info  Validity: measuring what they say • Accuracy: reliable, truthful, correct info  Reliability: can you reproduce the results? • Purpose: reason why info exists CHAPTER 5 QUALITITATIVE RESEARCH – Involves collecting, analyzing, and interpreting data by observing and listening to what people do and say PURPOSE: To explore the full range of opinions and language of a given topic MAIN    

QUALITATIVE METHODOLOGIES – In-depth Interviews Observation Social Media Research Focus Group

IN-DEPTH INTERVIEWS – One-on-one interviews conducted by a trained interviewer to gain detailed insights to the topic  Face-to-face is preferred, by skype or phone are options  Audio-recorded if possible  Unstructured, using open ended questions  Interviewers are chosen based on their knowledge about the research topic OBSERVATION METHODS – The researcher relies on observation rather than on communication in order to obtain information Pros:  Subjects are observed in their natural environment  In disguised format the subjects are unaware that they are being observed  Some information can be gathered more cost effectively with observation than by other research methods

Cons:  Few subjects are observed, can’t project the findings to the whole population  Interpretation of observed behaviour is subjective  Can’t ask about motives, attitudes or intentions

FOUR TYPES OF OBSERVATION STUDIES 1. Direct vs. Indirect 2. Disguised vs. Undisguised 3. Structured vs. Unstructured 4. Human vs. Mechanical DIRECT – Observing behaviour as it occurs INDIRECT – The researcher studies the effect or results of the behaviour rather than the behaviour itself  Archives – Secondary sources, such as historical records  Physical Traces – Tangible evidence of some event

DISGUISED – The subject is unaware that he or she is being observed UNDISGUISED – When the respondent knows that he or she is being observed STRUCTURED – The researcher identifies beforehand which behaviours are to be observed and recorded UNSTRUCTURED – Places no restriction on what the observer will record, all behaviour is recorded HUMAN – Where a real person observes a situation (can be costly and prone to error) MECHANICAL – Involves replacing a live person with some form of device to observe behaviour SOCIAL MEDIA RESEARCH – Using online social communities to share their views and experiences, products, and services, companies are realizing the value of mining these data that are so readily available  Readily available in real time  Relatively inexpensive data collection  Growing field for understanding consumers  Engine tools to search, monitor and analyze what is being said about your brand FOCUS GROUPS – Well planned, focused discussions led by a trained, experienced moderator  Discussions are open ended and flexible  Participants are chosen for their insights  Discussions are recorded  Provide information that is difficult to gather any other way  Explore complex ideas and concepts  Allows for client observation WHY USE THEM – Need to understand why people think and/or act in the way they do  Need for in-depth probing of language, motivations, values and emotions FOCUS GROUP PROCESS – 1. Identify locations and book facilities 2. Determine focus group composition 3. Develop recruiting guide & quota sheet 4. Recruit participants 5. Develop the discussion guide 6. Moderate the groups 7. Conduct a content analysis of the audio or video recordings 8. Write the report CHAPTER 6 QUANTITATIVE RESEARCH – Allows you to measure and describe with statistics which qualititative research cannot do  Results can be projected to the larger population (if using a probability sample)  Companies can base their business decisions and projections on ‘hard’ numbers TOOLS – 1. Data mining 2. Surveys DATA COLLECTION METHODS – 1. Have a person ask the questions, either face-to-face or on the telephone (no comp. assistance)

2. Have a computer assist or direct the questioning in a face-to-face, voice-to-voice, or other survey 3. Allow respondents to fill out the questionnaire themselves, without computer assistance 4. Use some combination of two or more of the above three modes

THE 3 Vs OF BIG DATA 1. Volume 2. Velocity 3. Variety BIG DATA VOLUME – The amount of data from all types of different sources  Determine the relevance of the data to the organization’s goals  How to use analytics to create value from relevant data BIG DATA VELOCITY – The speed at which data is being received  Reacting fast enough to deal with data velocity is a challenge for most organisations BIG DATA VARIETY – Data today comes in a variety of formats  Structure usually from databases fed by business applications and transactional data  Unstructured such as from social media, text, email, pictures, videos, etc.  The problem is how to manage all of it “OTHER Vs” – 1. Veracity: Data in doubt, trustworthiness and accuracy of Big Data 2. Value: Deliver dollars capture business value for Big Data DATA MINING – The process of analyzing data from different perspectives and summarizing it into useful information  Look for (mine) pattern and relationships between variables  Data can reside in many different places You need:  A system for collecting the data  A database to store the data  Easy data entry process  Once the database is ‘populated’ with data, you can mine (analyze) the data RFM ANAYSIS – Recency, Frequency, Monetary LIFE TIME VALUE (LTV) – Measures the discounted profits over the lifetime of the customer = Total Customer Revenue – Total Customer Costs CROSSTAB – Measures 2 non-metric variables simultaneously CORRELATION ANALYSIS – Measures the strength between of relationship between two metric variables REGRESSION ANALYSIS – Predictive analytics to model effects and predict responses to marketing efforts INCIDENCE RATE – The percentage of the population that possesses some characteristic necessary to be included in the survey

ONLINE PANEL SAMPLING – Refers to respondent panels that are set up by marketing research companies for the explicit purpose of conducting online surveys with representative samples CHAPTER 7 CATEGORICAL RESPONSE FORMAT – provides answer options RESPONSE PROBE – to get more information beyond the initial & possibly superficial first comments QUESTION-RESPONSE FORMAT OPTIONS: UNPROBED, OPEN-ENDED – “What was your reaction to the most recent blu-ray player advertisement you saw on TV?” Pros: Cons:  Allows respondent to use own words  Difficult to code & interpret  Respondent may not give complete answer PROBED, OPEN-ENDED – “Did you have any other thoughts or reactions to the advertisement?” Pros: Cons:  Elicits complete answers  Difficult to code & interpret CATEGORICAL MULTIPLE-CHOICE – “If you were to buy a blu-ray player tomorrow which brand would you most likely purchase?... A,B,C,D” Pros: Cons:  Allows for broad range of possible  May alter respondents to response options responses they were unaware  Simple to administer & code  Must distinguish “pick one” from “pick all that apply” METRIC NATURAL SCALE – “about how many times per week do you use your blu-ray?” Cons: Pros:  Respondents may not be able to give exact  Respondents can relate to the scale answers using scale  Simple to administer & code METRIC SYNTHETIC SCALE – “Do you disagree strongly, disagree, agree, or agree strongly with the statement ____________?” Pros: Cons:  Allows for d...