Conducting Marketing

Research & Forecasting

Demand

Chapter 4

Course Structure

Defining

Marketing

Strategic

Planning

Marketing

Research Segmentation

Marketing

Communications

Product

Strategies

Distribution

Channels

Pricing

Positioning

NPD Targeting

Marketing Strategic Planning and

the Marketing Information System

An open system is a system which continuously interacts with its environment. The interaction can take the form of information, energy, or material transfers into or out of the system boundary.

MIS is an open system that consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute information that is needed in timely and accurate manner to decision makers

The Marketing Information

System (MIS)

Internal

records

Marketing

Intelligence

Marketing

Decision

Support system

Marketing

Research

Marketing

Managers

Analyze

Plan

Implement

Control

Marketing

Environment

Target markets

Distribution

channels

Competitors

Public

Macro-

environmental

forces

Assessing

Information

Needs

Distributing

Information

The Components of a Modern

Marketing Information System

Developing Marketing

Information

A Marketing Intelligence System

– This is the systematic collection and analysis of publicly available information about competitors and development in the marketing environment

– The goal of marketing intelligence is to improve strategic decision making, assess and track competitors’ actions and provide early warning for opportunities and threats.

Marketing Research is the systematic design, collection, analysis and reporting of Data and findings relevant to a specific marketing situation facing the company.

Types of research firms:

– Syndicated-service research firms

– Custom marketing research firms

– Specialty-line marketing research firms

Developing Marketing

Information

The Marketing Research Process

Defining the Research Objectives

In the year 2001, Sekem company conducted a research on soymilk as a part of assessing the acceptance level of that new product before making the decision to introduce it.

In that process they developed three product concepts to serve as a base for that research, namely:

– Healthy non-animal protein source due to its low cholesterol level.

– Helps in weight loss due to its very low fat content

– Acts as a rich protein source for muscle building

Research Objectives

– What are the segments that may show interest in that

new product? And if so, which of them would show a

higher level of interest?

– What feedback may these segments have regarding the

taste?

– What flavors would be mostly preferred, if any?

– What kind of packaging would these segments prefer?

Defining the Research Objectives

Developing the Research Plan

1. Decide what type of data to collect:

Secondary data is information that already exists somewhere having been collected for another purpose. It provides the starting point at low cost and ready availability

Primary data when the needed data do not exist, dated, inaccurate, incomplete, or unreliable the company has to collect information for the specific purpose at hand

Developing the Research Plan

2. Decide on how to gather primary data

– Research Type: Descriptive Research seeks to ascertain magnitudes such as the market size, market growth rate, or market potential.

• Research Approach: Survey Research involves gathering primary data by asking people questions about their knowledge, attitudes, preference, and buying behaviors.

– Research Tool: Questionnaires, which involves two types of questionnaires:

• Close-ended questions measure how many people think in a certain way

• Open-ended questions provide insight on how people think

See text for complete table

1_____ 2 _____ 3_____ 4_____ 5_____

Small airlines generally give better service than large ones.

Strongly Disagree Neither agree Agree Strongly

disagree nor disagree agree

A statement with which the respondent

shows the amount of agreement/

disagreement.

Likert scale

An organized tour group Spouse and

children

Business associates/friends/relatives Spouse

Children only No one

With whom are you traveling on this flight?

A question with three or more

answers.

Multiple

Choice

In arranging this trip, did you personally phone American?

Yes No

A question with two

possible answers.

Dichotomous

Example Description Name

A. Closed-end Questions

Developing the Research Plan

Developing the Research Plan

2. Decide on how to

gather primary data

– Research Type:

Descriptive Research

• Research Approaches:

Behavioral Data

Collection where

customers leave traces

of their purchasing

behind. Much can be

learned by analyzing

these data.

Developing the Research Plan

2. Decide on how to gather primary data

– Research Type: Causal Research, which tests

hypotheses about cause-and-effect

relationships.

• Research Approach: Experimental Research,

which is the gathering of primary data by

selecting selective group of subjects, giving them

different treatments, controlling related factors,

and checking for differences in group responses

Developing the Research Plan

2. Decide on how to gather primary data – Research Type: Exploratory

• Research Approach: Observational Research involves gathering primary data by observing relevant people, actions, and situations.

– Research Instruments:

• Shadowing is observing people in their daily routine.

• Behavior mapping is photographing people with in a space to monitor their behavior.

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Developing the Research Plan

2. Decide on how to gather primary data

– Research Type: Exploratory Research gathers preliminary information that sheds light on the nature of the problem and suggests possible solutions.

• Research Approach: Focus Group Research

– Research Instrument: Discussion Guide

3. Prepare the Sampling Plan

Sampling Unit designates who is to be

surveyed.

Sample Size designates how many people

should be surveyed.

Sampling Procedure designates how should

the respondents be chosen.

• Probability sample:

• Non-probability sample:

Developing the Research Plan

Developing the Research Plan

3. Prepare the Sampling Plan

– Probability (random) sample:

• Random sampling refers to taking a number of independent

observations (subjects) from the same probability distribution,

without involving any real population.

• The sample usually is not a representative of the population of

people from which it was drawn— this random variation in the

results is termed as sampling error.

• In the case of random samples, mathematical theory is available

to assess the sampling error. Thus, estimates obtained from

random samples can be accompanied by measures of the

uncertainty associated with the estimate, confidence limits of

sampling error may be calculated

Developing the Research Plan

3. Prepare the Sampling Plan

– Types of probability (random) sample:

• A simple random sample is selected so that all samples of

the same size have an equal chance of being selected from

the entire population.

• Stratified sampling The population is divided into

mutually exclusive groups (such as age groups), and

random samples are drawn from each group

• Cluster sampling The population is divided into mutually

exclusive groups (such as city blocks), and the researcher

draws a sample of the groups to interview

Developing the Research Plan

3. Prepare the Sampling Plan

– Non-probability sample:

• Non-probability sampling techniques cannot be used to

infer from the sample to the general population.

• Performing non-probability sampling is considerably less

expensive than doing probability sampling, but the results

are of limited value.

• Should be used when the cost and time involved in

probability sample is too high

Developing the Research Plan

3. Prepare the Sampling Plan

– Types of non-probability sample:

• Convenience sampling. members of the population are chosen

based on their relative ease of access. To sample friends, co-

workers, or shoppers at a single mall, are all examples.

• Judgmental sampling The researcher chooses the sample based

on who they think would be appropriate for the study. This is

used primarily when there is a limited number of people that have

expertise in the area being researched.

• Case study - The research is limited to one group, often with a

similar characteristic or of small size.

• Snowball sampling - The first respondent refers a friend. The

friend also refers a friend, etc.

Contact Methods

– Mail questionnaire

• Response rate is low and/or

slow

• Respondents tend to give

more honest responses to

personal questions

• No interviewers involved to

bias the respondent’s answer

– Telephone interviewing

• Higher and quicker response

rate.

• Inconvenient to some people

• Unavailability of

respondents

Collecting Data

Contact Methods

– Personal interviewing

• Intercept interviews

• Arranged interviews

– Online Marketing

Research

• Surveys

• Online focus groups

Collecting Data

The Marketing Research Process

SPSS

GIDS

The Marketing Research Process

Research process

Set objectives

Design plan

Collect data

Analyze data

Secondary Primary

Descriptive research

Survey

Behavioral data collection

Qualitative

Focus group

Observational

Causal

Experimental

Mail Telephone

Personal interview Online

SPSS