Mid Term Review

The Knowledge Age Huge volumes of information now available Managers need to be selective and systematic As data is drawn from multiple sources, needs to be combined and analysed for it to be of value

Decision levels in organisations Business direction Market decisions Investment decisions New product development Positioning Strategic Operational Marketing mix decisions Customer service levels Competitive responses Campaigns Tactical 3

Typical applications for marketing research Market analysis New product/service development Selection of brand names and packaging Pricing decisions Advertising and promotion decisions Sales decisions Service support and complaint handling decisions 4

Summary analysis for Marketing Decisions Four types of decision area:: Marketing Research generates data and analysis for Marketing Decisions Four types of decision area:: - Market Research - Product Policy Research - Pricing Research - Communications Research

Summary Primary objective of researcher is to provide: Timely Accurate Relevant Data and analysis to Marketing Management Key word is ‘Robust”

Research and the Research Process

Types of Marketing Research Exploratory Research Descriptive Research Causal Research …relates to Uncertainty

Exploratory Research Initial research to clarify a problem or opportunity Basis for further research

Descriptive Research Describes the nature and characteristics of a market or situation e.g. much of Market Research is descriptive

Causal Research Describes the nature off variables and cause and effect relationships e.g. Market Modelling

Logical Process

Secondary Data Sources

Generating Data + / - Data is generated in 2 basic ways: Secondary data: Data already existing – may have been collected for other purposes Primary data: Original data – collected for a specific purpose + / -

Secondary Data Secondary data is information that has been previously gathered for some purpose other than the current research project

Benefits of secondary data Faster Less expensive to collect Internet can be used, increasing speed further

Limitations of secondary data Availability Applicability Accuracy Comparability

Internal Secondary Research Sources Sales figures Operational data – stock levels, etc Customer satisfaction results Advertising spend Customer complaints records Effectiveness data from promotional campaigns Marketing research reports from past studies

External Secondary Research Sources Internet – single search engines, and multiple search engines Directories Country information Published marketing research reports News sources Newsgroups and discussion lists

The marketing information system (MkIS) “People, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers” (Kotler et al)

"A qualitative observation identifies the presence or absence of something, in contrast to quantitative observation, which involves the degree to which something is present " (MARKETECK, 2009)

Classification of Observation Qualitative research Observation techniques Classification of Observation Structured vs unstructured Structured >predetermine what to observe Unstructured>monitor all behavior Human vs Mechanical Human>observation done by human beings Mechanical>observation by machine Direct vs indirect: Direct > observing behavior as it occurs Indirect > observing the effects of behavior Disguised vs nondisguised Nondisguised >Direct Disguised > Indirect

Observation: Advantages and Limitations Greater data accuracy than direct questioning, in natural settings people behave naturally, Problems of refusal, not at home, false response, non- cooperation etc. are absent, No recall error, In some situations, only way Number of customers visiting a store Studying children’s behavior Limitations Time consuming, too many things to observe, may not be representative, difficulty in determining root cause of the behavior.

Focus Group An interview conducted by a trained moderator in a non-structured and natural manner with a small group of respondents. Group size 8 -12 Group composition Homogenous, respondents prescreened Physical setting Relaxed, informal setting Time duration 1 - 3 hours Recording Use of audio and video cassettes Moderator Observational, interpersonal, good communication skills needed. 27

Focus Groups Objectives: - Generate new product or service ideas Understand consumer vocabulary Useful for ad campaigns Reveal consumer needs, motives, perceptions and attitudes, Generating future research objectives Facilitate understanding of the quantitative studies 28

Other Qualitative Techniques Depth Interview: An unstructured interview that seeks opinions of respondents on a one-to-one basis. Useful for sensitive issues, politics etc. Protocol Analysis: Involves placing a person in a decision making situation and asking him/her to state everything he/she considers in making a decision. Useful in 1. Purchasing involving a long time frame (car, house) and 2. Where the decision process is too short (greeting card). Projective technique: Involve situations in which participants are placed in simulated activities hoping that they will divulge information about themselves that are unlikely to be revealed under direct questioning. 29

SUMMARY Qualitative research can be used alone or as part of mixed research Main advantage is that is capable generating rich data on WHY? Useful when looking at NEW things Rich data may be difficult to analyse