Presentation on theme: "Marketing Research & Information System"— Presentation transcript:
1 Marketing Research & Information System Marketing Research (MR)DefinitionScope of MRMR ProcessEthical Issues in MRMarketing Information SystemMKIS & MRBasic MKISCommercial DatabasesDatabase MarketingMIS in ActionMarketing DecisionSupport SystemAdditional Reading:Bearden, Chp 3)
2 Marketing Research (M R) Definition & ConceptBy AMA:The Process that links the customer, consumer and thepublic through information. This information is used to:Identify & define the marketing opportunitiesGenerate, refine and evaluate the marketing actionsmonitor the marketing performanceimprove the understanding of marketing as a processBy Evans:The systematic gathering, recording and analysing ofinformation about specific issues ( related to the marketing ofgoods, services, organisations, people, places and ideas).
3 Marketing Research (MR) (Cont.....) MR TasksSpecifies the information required to address the issues;Designs the methods for collecting information;Manages and implements the data collection process;Analyses the results;Communicates the findings and implications .From the definition & concepts as wells as the tasks, we could say that the emphasise of MR is the GENERATION of INFORMATION that assists in MANAGERIAL DECISION MAKING
4 MR: The Roles Professional Roles Managerial Roles Role of Consultant; Designer; Analyst; Information CommunicationManagerial RolesIn Planning - Guidance in DM and to allocate the use of resources more effectively;Problem Solving;Control.
5 Managerial Roles of MR Problem Solving: Planning: Product - Which of various product designs is likely to be the most successful? What kind of packaging should we use?Price - What price should we charge for our products? As production costs decline, should we lower our prices or try to develop higher quality products?Place - Where & By whom, should our product be sold? What kinds of incentives should we offer the trade to push our products?Promotion - How much should we spend on promotion? How should it be allocated to products and to geographic areas? What combination of media should we use?Planning:What Kinds of People buy our products, where do they live? How much do they earn? How many of them are there?Are the markets for our products increasing or decreasing? Are there promising markets that we have not yet reached?Are the channels of distribution for our products changing? Are new types of marketing institutions likely to evolve?
6 Managerial Roles of MR (Cont.....) Control:What is our market share overall? In each geographicarea? By each customer type?Are customers satisfied with our products? How is our record for service? Are there many returns?How does the public perceive our company? What is our reputation with the trade?
7 Marketing Research: The Scope Industry & Market Characteristics & and Trends - Customer satisfaction studies, advance technology & single source data collection are among the growing trends.;Market-Share Analysis;Demand Analysis;Concept Development and Testing;Product Satisfaction;Advertising Effectiveness;Competitive-Pricing Analysis.
8 MR: Process Data Issues & Research Collection Problems Design DefinitionResearchDesignDataCollectionDataAnalysis&InterpretationDevelopmentsof DataCollectionFormsImplementation
9 Issues & Problems Definition Problems of businessResearch problems need to be understand clearly by both, the managerial people as well as the researcherDifferences between the way things should be and the way things areFocusing the real problems not the symptoms, by anticipating how the information will be used.A good problems definition directs the research process toward collecting and analysing appropriate information for the purpose of decision making.
10 Issues & Problems Definition (Cont.....) Precise Research Topic (Conclusive)Why is turnover of sales personnel so high?Do adults recall an advertisement the day after it appears?Will a 10 % price reduction have a significant impact on sales?Vague Research Topic (exploratory)Why are sales decliningIs advertising effective?Will a reduction in price increase sales volume?If uncertain, then useexploratory!!!!
11 Research DesignThe strategies and plan of actions for addressing the research problems and the data collection and data analysis processProblem definition normally suggests the approaches for determining the research design to use.Research generally has three purposes:Exploratory, Descriptive and causal.
12 Research Design (cont.....) Exploratory DesignsFor better understanding, to develop preliminary background and suggest issues for a more detailed follow-up studiesLiterature Reviews, Case Analysis, Interviews with knowledgeable persons, in-depth interview, focus groups.E.g: Evaluation of new-product concepts, environmental trend analysis, identification of product attribute importanceDescriptive DesignsA formal research questions or hypothesisCross-sectional surveys, panel studies, product movement surveys, store audits, telephone, mail, personal interviews.E.g. Market potential, image studies, competitive positioning analysis, market characteristic examinations
13 Research Design (cont...) Causal DesignTo identify the cause & effect relationshipsExperimental designs (lab & Field Studies)Market testsE.g. Evaluation of alternative marketing mix combination, (varying price levels, changing promotional appeals, reallocations of saleforce efforts).
14 Data Collection Primary Data Vs Secondary Data Data Collection methods PD: Collected for specific purposesSD: Already collected for some other purposesData Collection methodsPrimary DataSurvey (Mail, Telephone)Interviews (Mall Intercepts, Personal InterviewsFocus GroupObservation (personal & mechanical)Secondary Data Internal Data (company Records, MDSS Data)External Data (Proprietary -Custom research, syndicated services) (non-proprietary - Published report, census data, periodicals)
15 Data Collection (Cont....) Data Collection InstrumentsSurvey or QuestionnairePre-test or Pilot test (on representative sample), revise accordingly.Unambiguous, concise, unbiased questionsStructured & Unstructured, semi-structuredQuestions:Scale (likert agree - disagree, semantic differential e.g. important - unimportant)Multichotomous (multiple choice)CategoricalOpen-ended
16 Developments of Data Collection Forms Sampling: Decisions & Data collection IssuesBasicResearchQuestionsProbabilityVersusNon-probabilitysamplingSpecificationofSamplingFrameSampleSizeDataCollection:Sampling,Follow-up& VerificationTime, Cost&Precision Constraints
17 Developments of Data Collection Forms (cont.) Sampling: Requires analysis of selected people or objects in the designated population, rather than all of them.Approaches:Probability (random, stratified, clustering)Non-Probability. (non-probability for limited cost & time)- Based on judgement & convenience.Sizes: large more accurate but costly, based on judgement: large enough to give the user confidence in the results.Frame: The outline of working description of the population used in sample selection.
18 Developments of Data Collection Forms (cont.) Field WorkThe process of contacting respondents, conducting interviews and completing surveys.
19 Data Analysis & Interpretation Techniques: Varies & determined at the design stage.Appropriate to the data collection method. Focus on the original problems and objectives of the research.Complex - multivariate statistical tests;Straight forward frequency distributions, means and percentages.Statistical differences typically look at group differences or strength of association between marketing variables (e.g. ads. & sales, prices & sales).Most frequently used :Mean differences ( t-tests, analysis of variance)Correlation tests (Chi-Square cross classification tests, Pearson correlation, regressions)
20 Evaluating the Research Design Provide enough and accurate information?How well the problems were addressed?Information justify the research cost?Validity & generalisability of the result?Ethically sounds?Incomplete reporting of results, misleading reporting and nonobjective researchSubsequent use of data, confidentiality of informationConsistent with relationship perspective (not for other parties).Covering all the research aspects?
21 ImplementationResearcher communicate and present the research findings for the decision making,Planning, control and problem solvingThe findings / information should be presented in a simple and understandable form.Report should focus on the original problems and objective of the research.The result is presented to the appropriate parties for further actions.
22 International Considerations Eight common errors in conducting international research projects.Global Vs Domestic (experience is important)Rigidity standardising methods across countries e.g. postal problems, communication systems)Interviewing in EnglishInappropriate sampling techniquesCommunication with local research companies (working culture)Considerations in language (especially in interpretation)Misinterpreting data across countriesEffectiveness in conducting the qualitative research (training in psychology - for focus group in Europe), In asia, mixed-sex group do not yield useful information