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CHAPTER II

LITERATURE REVIEW

2.1 Marketing Management

2.1.1 Marketing

Marketing is typically seen as the task of creating, promoting and delivering

goods and services to consumers and businesses. There are social and managerial

definition of marketing.

The social definition of marketing is a societal process by which individuals

and groups obtain what they need and want through creating, offering, and freely

exchanging products and services of value with others. (Philip Kotler, Marketing

Management – The Millennium Edition, 2003, Prentice-Hall, Inc, p. 435). For a

managerial definition, marketing is “the art of selling products”. But according Peter

Drucker the most important part of marketing is not selling. “. There will always, one

can assume, be need for some selling . But the aim of marketing is to make selling

superfluous. The aim of marketing is to know and understand the customer so well

that the product or service fits him and sells itself. Ideally, marketing should result in

a customer who is ready to buy. All that should be needed then is to make the product

or service available”.

Other definition has been given by The American Marketing Association :

Marketing is the process of planning and executing the conception, pricing,

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promotion and distribution of ideas, goods, and services to create exchanges that

satisfy individuals and organizational goals. Based on the various definition of

marketing, so we get the definition of marketing management as the art and science

of choosing target markets and getting, keeping and growing customers through

creating, delivering and commnicating superior customer value.

2.2 Format of Marketing Plan

The appropriate standard format, the topics nd the sequence of marketing plan

can make a difference in the quality of planning results. A marketing plan should

contain the following major sections: executive summary, situation analysis,

objectives and goals, marketing strategy, action programs, budgets and controls.

2.2.1 Executive Summary

The planning document should open with a summary of the main goals and

recommendations presented in the plan. The purpose of the executive summary is to

permit a higher management to preview the major thrust of each plan and to have he

information that is critical in evaluating the plan. To facilitate this, a table of content

should follow the executive summary.

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2.2.2 Situation Analysis

The first major section of the plan is the situation analysis, in which the

manager describes the major features of the major features of the situation facing his

or her operation. The situation analysis consists of for subsections – backgrounds,

nomal forecast, opportunities and threats, strengths and weaknesses.

The background section starts with a summary of key performance indicators

for the last few years. The background information should be followed by a forecast

of audience size under “normal conditions” – that is assuming no major changes in

the marketing environment or marketing strategies. This forecast can be obtained in a

number of ways. The assumption could be made that audience size would stay

constant, or grow at the most recent of growth, or even decline. The basis of the

forecast could be statistical cuve fitting, surveying a sample of people who attended

last year, and so on. The forecast will have to be revised if different environmental

conditions are expected or different strategies are planned. If the forecast does ot

satisfy higher management, the planner will hve to consider new strategies.

The normal forecast should be followed by a section in which the manager

identifies the main opportunities and threats facing the organizational unit. Higher

management can then review this list and question out what is or is not listed.

Next section is strength and weaknesses of the organization. The list of

strength has implication for strategy formulation, while the list of weaknesses has

implications for investments to correct those weaknesses.

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2.2.3 Objectives and Goals

The situation analysis describes where the organization stands and where it

might go. Now management must propose where that organization should go.

Specific objectives and goals have to be set. Top management typically promulgates

overall goals for the coming periodfor the organization as a whole.

2.2.4 Marketing Strategy

The marketing strategy describes the game plan by which the manager hopes

to “win”. Management should introduce criteria to identify the most attractive

markets, defined in terms of age, income, medical coverage, diagnosis, education,

employment status, or other relevant criteria. Various markets should be rated on

these criteria and markets with the greatest probable response to a unit of marketing

effort selected as targets.

2.2.5 Action Programs

The marketing strategy needs to be turned into a specific set of actions for

accomplishing th marketing goals. Each strategy element should be elaborated into

appropriated actions. The actions that appear most cost fective should then be

assigned to specific individuals with specific completion times.

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2.2.6 Budgets

The goals, strategies , and planned actions allow the manager to build a

budget that is essentially a projected profit-and-loss statement. On the revenue side, it

shows the forecasted unit sales and the expected net realized price. On the expenses\

side, it shows the cost of production, marketing, and administration. The difference is

the projected profit or loss. Management reviews the budget and either approves or

modifies it. Once approved, the budget is the basis for marketing operations, financial

planning, and personnel recruitment.

2.2.7 Controls

The last section of the plan describes the controls that will applied to monitor

the plan’s progress. Normally the goals and budgets are spelled out for each month,

quarter, or appropriate time period. This means that higher management can review

the result each period and spot managers who are not attaining their goals.

2.3 Marketing Strategy Planning

Many of the writer use marketing strategy concept with a broad meaning.

Chang and Champo (1980) define marketing strategy as a central and crucial issue in

marketing function. Guiltiman and Paul (1985) see marketing strategy as the grand

design to achieve an objective. McCarthy and friends (1998, p.41) define marketing

strategy as the spesification of target market and related marketing mix. Rao and

Steckel (1995, p.3) find that most of managers define marketing strategy as the way

you go about accomplishing objectives. And the last more specific definition by

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Zikmund and D’Amico (1989, p.669): “Marketing Strategy includes the identification

and evaluation of opportunities, analysis of market segments, selection of a target

market, and planning an appropriate marketing mix”

From several marketing strategy definition by several writers above, can be

concluded that marketing strategy basically steps of efforts done to get a spesific

goal. In order to develop a marketing strategy we will be based on the marketing

strategy definition by William Zikmund and Michael D’Amico.

According to McCarthy (1998) every step taken to formulize marketing

strategy must considering customer satisfaction. Customer satisfaction is the primary

key of marketing concept and marketing strategy. So every marketing strategy final

result is always be the successful result of customer satisfaction

Boone and Kurt (1987) say that a profitable marketing strategy starts from the

identification of attractive opportunities, then defines the target market where

company will give all their marketing activity. Similar statement also stated by

Zikmud nd D’Amico (1989), stated that there are three main ways in developing

marketing strategy:

! Identifying and evaluating opportunities

! Analysing market segments and selecting target markets

! Planning a marketing mix strategy that will satisfy customer’s needs and meet the

objectives and goals of the organisation

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It can be drawn as below :

Market opportunities identification and

evaluation

Market segment analysis and choose the target

market

Market opportunities identification and

evaluation

Product Mix Price Mix Distribution Mix Promotion Mix

Consumer

Figure 2.1 Three main steps in developing marketing strategy

2.3.1 Market Opportunity Identification and Evaluation

Living in change pressure is a must faced condition to organization. Change

happened because the advance in all life aspect, make needs and demand of human

being also change. Every organization live under the cultural advance of surrounded

community and other external factors (like economic, politics, believes also value and

norms) control. The external factors, some can be controlled by the organization, but

some others, almost likely can’t be controlled.

Because not all factors are controllable, than it has no guarantee about the

effectiveness of the marketing of a company. Usually, the marketer must have the

ability to “read” the situation that happened outside with all the changes that happen

with it. After analyzing the situation, the marketer must be able “interpreting”

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situation and the changes that happen into marketing opportunities. “Marketing

Opportunity Analysis (MOA) is the diagnostic activity of interpreting environmental

attributes and change” (Zikmund and D’Amico 1987, p.5). According to Zikmund nd

D’Amico, MOA will help the managers :

As a warning system to alert managers to the risk of potentil problem and on

the other side, MOA can be function as an appraisal system to make managers aware

of the benefits associated with certain opportunities.

Boone dan Kurtz (1987) also stated same thing, that marketing opportunity

analysis very useful as a foundation to marketing strategy planning. The managers

need to evaluate environment situation, where they do their marketing activities, and

estimated the environmental effect that may happen in the future to the customers. To

consider future community trend will give new idea and new strategy, that will make

the company acts as pioneer than just react to the changes that already happen.

Environment and the changes wave must be monitored thoroughly and must be

carefully examined, opportunity and problem that may rise must be identificated,

before the organization develop marketing strategy.

In identificating and evaluating opportunities, there are two main thing that

must be examined, which are:

1. Strenghtness and Weaknesses

2. The matching between opportunity and the organization capability

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MOA strenghtness and weaknesses, will also be able providing valuable

competitor information and the new entrants, with the relative comparison

strenghtness and weaknesses between them and our organization.

Stanton and friends (1994) found that a number of the companies try to

develop questions to lead them in doing marketing opportunity analysis. The

questions are :

! What is our competitive advantage that will help us entering the market or

opportunity? (for example. Expriences in selling or strong distribution network)

! Do we have special skills that will help entering the market?(eg. Technical skill or

other skill)

! Do we have weaknesses that will slow the operation when entering the market?

(eg. Financial resources or management experience in that industry)

! Is the market opportunity match with the company expectations? (a number of

companies wants a specified return on investment or just want to operate at

specified line of businesses)

! Is the opportunity match with the long term company plan? (such as: extending

market to entering global market)

2.3.2 Analyzing and Choosing the Market Segmentation

A market is a number of individual as consumen for the product we sell. The

consumer can be seen from age, gender, social status, and life stylethat must be

different from one to another. With the heterogeneous condition, the producer needs

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to segment the consumer based on consumer behavioural characteristics (Staunton

1997).

There are four market segmentation concept: segmenting, market segment,

market segmentation, and disaggregating. Below are the definition of each concept

given by McCarthy (1998):

1. Market segmentation is a stepwise process which identifies broad product

markets and then breaks them up into smaller groups before selecting target

markets and developing suitable marketing mix (p.114).

2. Disaggregating is a practical step aimed at narrowing the marketing focus

down to product-market areas in which the company is more likely to have a

competitive advantage or even to discover breakthrough opportunities (p.115).

3. Segmenting [is] an aggregating (or building up) process which involves

clustering together people with similar needs into a market segment (p.115).

4. Market segment ia a (relatively) homogeneous group of customers who are

likely to respond to a marketing mix in a similar fashion (p.115).

According to Zikmund and D’Amico (1989) market segmentation make the

heterogeneous market to become smaller part that has similar characteristics or

homogenous. If the company segmented its market, it will be easier get connected

with small part of consumer rather than with big and variety part of consumer. “It is

imposible to be all things to all people and so will strive to focus their strategies to

well defined segments of the wider market “ (McCarthy 1998, p.114) defines how

important for the company doing market segmentation. Segmentation also helps tailor

products and services to customer (Kennedy and Kiel 1999). So by doing

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segmentation in the end will increase profit, because by doing segmentation helps

company to determine the product design, the price, what promotion will be suitable,

what distribution channel that suitable. Below we can see the example of market

segmentation

Figure 2.2 Market Segmentation

Picture above give some ilustration about market segmentation condition. In

case A, there are no market segmentation, in case B there is a fully segmented

market, in case C there are two segments, the first one is female market segment and

the second one is male market segment. In case D ilustrated segmentation based on

age and income, one segment has high income and young age; the other segment has

low income and old age; the third segment has low income and young age and the last

segment has low income and old age.

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Bases for segmenting consumer market

There are several variables used to segment consumer market, which will explain

below.

1. Geographic Segmentation

Geographic segmentation calls for dividing the market into different

geographical units such as nations, states, regions, counties, cities, or neighborhoods.

The company can operate in one or a few geographic areas, or operate in all but pay

attention to local variations.

2. Demographic Segmentation

In demographic segmentation, the market is divided into groups on the basis

of variables such as age, family size, family life cycle, gender, income, occupation,

education, religion, race, generation, nationality, and social groups. Demographic

variables are the most popular bases for distinguishing customer groups. One reason

is that customer wants, preferences, and usage rates are often associated with

demographic variables. Another is that demographic variables are easier to measure.

The simple example is family with six children in general will buy a lot more car than

family with a child.

3. Psychographic Segmentation

In Psychographic segmentation, buyers are divided into different groups on

the basis of lifestyle or personality or values. People within the same demographic

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groups can exhibit very different psychgraphic profiles. Lifestyle can be reflected in

every opinion, wants. Psychographic represent all that lies in customer mind. So

psychographic can not be separated from demographic variable by identified the

customer pattern.

4. Behavioral segmentation

In behavioral segmentation, buyers are divided into groups on the basis of

their knowledge of, attitude toward, use of, or response to a product. A number of

consumer wants to buy clothes at specified store only, the other only want to buy

clothes at department store. Variables that can be used to do behavioral segmentation

are occasions (when they develop a need, purchase a product, or use product),

benefits (benefits the customer seek from the same product), user status (nonusers,ex-

users, potential users, first time users, and regular users of a product), usage rate

(light, medium, and heavy product users), loyalty status (loyalty to specific

brands,stores and companies), buyer-readiness stage (unaware, aware, informed,

interested, desire the product , and intend to buy the product), attitude (enthusiastic,

positive, indifferent, negative, and hostile).

2.3.3 Planning and Developing Marketing Strategy

To build a marketing mix is the third step in developing marketing strategy.

Before getting into plan and develop marketing mix, first will be given the concept of

marketing mix.

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Marketing Mix

Marketing Mix is the set of marketing tools the firm uses to pursue its marketing

objectives in the target market (Philip Kotler, Marketing Management – The

Millennium Edition, 2003, Prentice-Hall, Inc, p.15) The marketing mix concept is

consist of 4P which are : Product, Price, Promotion and Place. So Product, Price,

Promotion and Place set so it will give optimum benefit to consumer.

Tabel 2.1 Marketing Mix Concept

4 P 4 C

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication

Winning companies will be those that can meet customer needs economically

and conviniently and with effective communication.

Marketing Strategy for Services Company

Up until now, services company are behind the manufacturing company in marketing.

Even a small services company doesn’t use marketing technique. Also many

professional services company like lawyer office, public accountant consider

marketing is not very important.

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Generally 4P concept can run well in company who develop product, but in services

company, there are more 3P needed which are : People, Physical Evidence and

Process (Philip Kotler, Marketing Management – The Millennium Edition, 2003,

Prentice-Hall, Inc, p. 435). Below are the explanation for those 3P :

People

Because almost every services is given by the employee work in the services

company, the selection, training and motivation of the employee become

very important to give value added in order to meet customer satisfaction.

The company should give its best employee in competency, attitude, respon

and inititive to help customer.

Physical Evidence

Services company needs to prove its service quality by physical evidence or

presentation considering that services are intangible product.

Process

This related with how the company delivered the services. The services

company can choose to give different ways in serving the customer to give

different experience to the customer.

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Steps in Selling Process

There are seven steps that must be through if someone wants to sell a product or

services, they are :

Prospect and qualify

The first step is to find future buyers who have the big chance to buy the

product or services.

Preapproach

Before calling the first future buyer, a seller must do more research like

learning which product or services the future buyer already use now, their

satisfaction to the product, and many more.

Approach

This is the chance to do some contact, give the first impresión, build

credibility. Use this time to listen as good as possible to decide what product

or services needed by the customer.

Make presentation

This is the time to do some demonstration or doing some presentation about

the advantages and use of the product or services

Answer objections

Sometimes the future buyer ask about the facts, picture or other informations.

The seller must se this opportunity to make sure the future buyer is well

informed so they will hve te commitment to buy the product or services.

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Close sales

The seller must ask the future buyer if they agree to buy our product or

services, make sure what product or services they have choosen, when to

deliver and other things.

Follow up

The process is noto ver yet until the product or services is given and running

well. This buyer-seller relationship will continue so that buyer will have the

chance to offer new product or services to customer. Selling also related with

keeping good relationship with customer.

2.4 SWOT Analysis

SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) come from

internal anlysis and external analysis of a company. External analysis consist of

evaluation of external variables like competitor, market and environment. Internal

analysis consist of evaluation of internal variables like company performance and

other strategic factors.

Next diagram can explain steps in strategic analysis (Aaker, David A.,

Strategic Market Management, 2001, John Wiley & Sons, Inc, p.19).

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Strategic Analysis

External Analysis Customer Analysis :

Segment, motivation, needs Competitor Analysis

Identity, group, strategy, performance, imge, culture, strength, and weakness.

Market Analysis :Size, projected growth, profitability, entry barriers, distribusi, trend, key success factor.

Environemt Analysis : Technology, government,economy, cultura, demography,needs of information

Internal Analysis Performance Analysis :

Profit, sales, stokeholder, customer satisfaction, product quality, brand associations, relative price, new product, capability and employee performance, product portfolio analysis.

Strategic factorsOld and recent strategies, strategic problem, capability,limited financial, limited organization, strength andweaknesses.

Opportunity, threat, trend andStrategic uncertainty.

Strength, weaknesses, and strategic problem, limited and uncertainty.

Strategy Identification and development Identification of strategy alternatives Choose the right strategy Implement the operation plan Strategy Evaluation

Figure 2.3 Strategic Analysis Steps

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2.5 The Marketing Research Process

Marketing Research is use to provide the information needed to make

effective decisions about the company’s current and future activities. The chances of

making a succesful decision improve when the right information is provided at the

right time in the decisions making process. To achieve this goal, marketing researcher

often follow the six-step process shown in figure 2.5 (Boone & Kurtz, 1999, p.202)

Defining the problem

Perceived InformationNeed

Conducting ExploratoryResearch

Formulating a Hypothesis

Creating a ResearchDesign

Feedback on Research and Marketing Decision

Effectiveness

Collecting Data a. Primary datab. Secondary Data

Interpreting and Presenting the Research

Information

Marketing Decision Based on Information Collected

Figure 2.4 The Marketing Research Process (Boone & Kurtz, 1999, p.203)

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2.5.1 Defining The Problem

A well-defined problem permits the researcher to focus on securing the exact

information needed for the solution. Defining the question clearly that research needs

to answer increases the speed and accuracy of the research process (Boone 7 Kurtz,

1999, p. 202)

Reseacher must carefully avoid confusing symptoms of a problem with the

problem itself. A symptom merely alerts marketers that they have a problem. For

example, suppose that XYZ Hospital sales were move very slowly and remind stable

in 10 months. The stability of company sales is a symptom of the problem the

company must solve. To define the problem, the company must look for the

underlying causes of its stability.

2.5.2 Conducting Exploratory

After defining the questions, the researcher can begin exploratory research.

Exploratory reseach seek to discover the cause of a specific problem by discussing

the problem with informed sources both within and outsid the company, and by

examining data from other information sources.

Exploratory research usually includes evaluation of company records, such as

sales and profit analysis, and data about the sales and profits of competitors’

products. Marketing researchers often refer to internal data collection as situation

analysis. They may use the term informal investigation for exploratory interviews

with informed persons outside their company (Boone & Kurtz, 1999, p.204),

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Marketers can find valuable data in their company’s own internal records.

Three commonly available sources of valuable internal data are sales records,

financial statements, and marketing cost analysis. Marketers analyze sales

performance records to gain an overall view of the company efficiency and to find

clues to potential problems. Easily prepared from company invoices or a computer

database system, this sales analysis can give quite revealling results for the marketing

executive. The study typically compares actual and expected sales based on a detailed

sales forecast by territory, product, customer, and salesperson. Once the sales quota

(the level of expected sales to which actual results are compared) has been

established, it is a simple process to compare actual results with expected

performance (Boone & Kurtz, 1999, p.204). Sales analysis is one of the least

expensive and most important sources of marketing information available to a

company.

Accounting data, as summarized in the company’s financial statements, can

be another good tool for identifying financial issues that influences marketing.

Financial statements, which report non-detailed accounts, contribute mainly by

helping analysis to raise more specific questions. Using ratio analysis, researcher can

compare performance in current and previous years againts industry benchmarks

(Boone & Kurtz, 1999, p. 204)

A third source of internal information is marketing cost analysis (evaluation

of expenses for task like selling, warehousing, advertising, and delivery) in order to

determine the profitability of partiular customers, territories, or product lines.

Companies most commonly examine the allocation of costs to products, customers,

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and territories or districts. Marketing decision marketers then evaluate the

profitability of particular customers and districts on the basis of the sales produced

and the cost incurred in generating those sales (Boone & Kurtz, 1999, p.204).

Marketing cost analysis is most useful when it provides information linked to

other forms of marketing research. A well designed computer database system can

accomplish these linkages as in the course of moving information between the

company’s units (Boone & Kurtz, 1999, p.204).

2.5.3 Formulating a Hypothesis

A hypothesis is a statement about the relationship among variables carrier

clear implications for testing this relationship (Boone & Kurtz, 1999, p.204). It sets

the stage for more in-depth research by further clarifying what researchers need to the

best promotional outlets, they could increase sales of the brand.

Not all marketing research studies test specific hypothesis. However, a

carefully designed study can be benefit from the rigor introduced by developing

hypothesis before beginning data collection and analysis.

2.5.4 Creating a Research Design

Research design is a series of decisions that tke together, comprise a master

plan or model for conducting marketing research (Boone & Kurtz, 1999, p. 205).

In designing a research project, marketers must be sure that the study will

measure what they intend to measure. A second important consideration is the

selection of respondents

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2.5.5 Collecting Data

There are two kinds of data, primary data and seondary data. Secondary data

is data from previously published or complied sources. Primary data refers to data

collected for the first time spesifically for a marketing research study.

2.5.5.1 Secondary Data Collection

Secondary data consist of two types : internal and external data. Internal data

includes sales records, product performance reviews, sales force activity reports, and

marketing cost reports. External data comes from a varieaty of sources, including

government records, syndicated research services, and industry publications.

2.5.5.2 Primary Data Collection

Primary data refers to data collected for the first time spesifically for a

marketing research study.

2.5.5.2.1 Sampling Techniques

To gather the primary data, marketer use primry research methods. Before the

marketers conducted the pimary research methods,they must first identify which

participants to include the study.

Sampling is the process of selecting survey respondents or research

participants. It is one of the most important aspects of marketing research design,

because if a study fails to involve customers who accurately reflect the target market,

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the research will likely yield misleading conclusions (Boone & Kurtz, 1999, p.209-

210)

The total group of people that researcher wnts to stdy is called the population

(or universe). Researchers rarely gather information from study’s total population. If

they do, the results are known as census (Boone & Kurtz, 1999, p. 210). Samples can

be classified into two, there are :

1. Probability Sample

A probablity sample is one that gives every member of the population a

known chnce of being selected. Types of probability sample are :

a. Simple random sample

Every member of the relevant population has an equal opportunity of

selection.

b. Systematic Samples

Begin with a random start of an element in the range of 1 to k. The kth

element is determined by dividing the samples size into population

size to obtain the skip pattern applied to the sampling frame (Cooper

& Pamela, 2003, p.192).

c. Stratified Samples

Randomly selected sb-samples of different groups are represented in

the total sample. Stratified sample provide efficient, representative

groups for such studies as opinion polls, in which groups of

individuals share various divergent viewpoints.

d. Cluster samples

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Researchers select ares from which they drw respondents. This cost-

efficeiency type of probability sample may be the best option where

the population cannot be listed or enumerated.

2. Nonprobability Sample

A nonprobability sample is an arbitrary grouping that does not permit the use

of standard statistical tests. Types of nonprobability sample are :

a. Convenience sample

A nonprobability sample selected from among readily avilable

respondents.

b. Quota Sample

A nonprobability sample is divided to maintain representation for

different segments or groups.

2.5.5.2.2 Primary Research Methods

There are three methods to conduct the primary research methods, there are

(Boone & Kurtz, 1999, p.211-218) :

1. Observation Method

Researchers actually view the overt actions of the objects. This method is a

useful technique when marketers are trying to understand how customers

actually behve in certain situations.

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2. Survey Method

The researchers make interview or questionnaire to get information from the

participants. This observation purposes to get the participants attitudes,

motives, and opinion, or to get exact demographic information such as income

levels.

There are some survey methods the researcher can be use :

a. Telephone Interviews

A telepone interview provides an inexpensive and quick method of

obtaining a small quantity of relatively impersonal information. This

method does have some limitations. Only simple, clearly worded

questions draw appropriate responses. Respondents cannot view pitres to

illustrate those questions. Also, it is difficult to obtain respondents’

personal chrcteristics by telephone. So, the results of the survey may be

biased by the ommission of household without phones or with unlisted

numbers.

b. Personal Interviews

This method is the best means of obtaining detailed information. The

interviewer cn establish rapport with respondents and explain confusing or

vague questions. Although careful wording, and often pre-testing, helps to

eliminate potential misunderstandings from mail questionnaires, the forms

still cannot answer unanticipated qestions. Although this method slow and

expensive to conduct, it offer flexibility and a return of detailed

information that often offsets these limitations.

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c. Focus Groups

A focus group brings together 8 to 12 individuals in one location to

discuss a subject of interest. It is usually encorage a general discussion of

a predetermined topic. It can provide quick and relatively inexpensive

insight into customer attitudes and motivations. Focus group makes a

particularly valuable tool for exploratory research, developing new

products ideas, and preliminary testing of alternative marketing strategies.

The focus grops leader, called a moderator, typically explains th purpose

of meeting and suggests an opening topic. The moderator’s main purpose

is to stimulate interaction among group members in order to encourage

their discussion of numerous points.

d. Mail Surveys

Although personal interviews can sometimes provide very detailed

information, cost considerations usually prevent using personal interviews

in a national study. A mail survey can be a cost-effective alterntive. It is

also provide anonimity that may encourage respondents to give outspoken

answers, and demographic data on customers to support effective market

segmentation. However, mail questionnaires do have several limitations.

First, response rates are typically much lower for mail survey rather than

personal interviews. Also, because researchers must wait for respondents

to complete and return questionnaires, mail surveys usually take a long

time to conduct. Another limitation, questionnaires cannot answer

unanticipated questions that occur to respondents as they complete the

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forms. Complex questions may not be suitable for a mail questionnaire.

Finally, unless they gather additional information from non respondents,

researcher must worry about bias in the results of mil surveys, since

important differences my distinghuish respondents from non respondents.

e. Fax Surveys

The low response rate and long follow up times associated with mail

surveys have spurred interest in the alternative of faxing survey

documents. In some cases, faxing provisions may not supplement mail

surveys. In others, it may be the primary method for contacting

respondents and obtaining their answer.

f. Online Survey

Online research can help to speed the survey process and to reduce costs

of other, more traditional survey techniques. Some researcher s have also

suggested that respondents might give more frank and truthful responses

to online survey than to other tpes of questionnaires. Others point ot that

the novelty and ease of answering a survey online might encourage high

response rates. However, researchers should remember some draw backs

to online surveys. It may be difficult, if not impossible, to ensure drawing

an adequate probability sample. Internet users do not fully represent a

cross-section of the real-world population.

3. Experimental Method

The least-used method of collecting primary data is the controlled

experiment. A marketing research experiment is a scientific investigation in

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which a researcher controls or manipulates a test group or group that did not

receive the experimental controls or manipulations. Although researcher can

conduct such experimental in the field or in laboratory settings, most have

been performed in the field.

The most common use of this method by marketers has been in test

marketing, that is, introducing a new product or marketing strategy in an area

and then observing its degree of success. Marketers usually pick geographic

areas that reflect the markets they envision for their products.

The major problem with controlled experiments comes from failure to

take into account all the variables in a real-life situation. Experimentation may

become more common as company develop sophisticated competitive models.

2.5.6 Interpreting and Presenting Research Information

After all the questions are fully have the answer, its time to interpret

the findings and present the research information to decision makers in a

format that allows them to make effective judgements.

In interpreting the results, there is possibility of differences

interpretations due to differing backgrounds, level of knowledge, and

experience. Marketing researchers must target at the areas of mutual

understanding to assist decision making.

30

Research Users’ Knowledge and

Experience Areas of MutualUnderstanding

Marketing Researcher’s Knowledge and

Experience

Figure 2.5 Linking the Study and Research User (Boone & Kurtz, 1999, p. 206)