1. Fundamentals of Market Research
Prof. Neha Yadav

2. What is Market Research?
It is a systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.

3. Role of Marketing Research
Information for marketing decisions
Marketing strategy
Segmentation
Targeting
Positioning
Marketing plan
4 Ps of Marketing
Product
Price
Place
Promotion
LEVEL 1 (Strategic)
LEVEL 2 (Tactical)

4. Ethical Considerations in Market Research
Any information collected for the purpose of marketing research from a respondent should not be misused for any other purpose.
Badgering or forcing respondents to answer a questionnaire or certain questions is not a good professional practice. A better approach is to explain the necessity of asking a question and let the respondent decide further.
Confidentiality of the responses in good faith must be ensured.
Questions of personal nature which could embarrass the respondent, must be given an opportunity to think about it and refuse to participate.
Marketing researcher’s foremost responsibility is to accurately reflect the respondent’s replies in report. The report must not be based on preconceived ideas of the researcher.

5. Classification of Market research
Marketing Research
Problem Identification
- Market potential research
- Market Share research
- Sales Analysis
- Forecasting research
Problem Solving Research
- Segmentation research
- Product research
- Pricing research
- Promotion research

6. Market Research Process
Step 1: Problem Identification
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation

7. Problem Identification & Developing an Approach
Tasks Involved
Discussion with Decision Makers
Interviews with Experts
Secondary Data Analysis
Qualitative Research
Problem Definition
Management Decision Problem
Marketing Research Problem
Approach to the Problem
Objective/ Theoretical Foundation
Analytical Models
Research Questions
Hypotheses

8. Management Decision Problem
Marketing Research Problem
Asks what the Decision maker needs to do
Asks what information is needed and how it should be obtained
Action Oriented
Information Oriented
Focuses on Symptoms
Focuses on underlying causes

9. Chain Restaurant Study
One day I received a phone call from a research analyst who introduced himself as one of our alumni.
He was working for a restaurant chain in town and wanted help analyzing the data he had collected while conducting a marketing research study.

10. Chain Restaurant Study
When we met, he presented me with a copy of the questionnaire and asked how he should analyze the data. My first question to him was,
What is the problem being addressed?

11. Chain Restaurant Study
When he looked perplexed, I explained that data analysis is not an independent exercise.
Rather, the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE PROBLEM COMPONENTS.

12. Chain Restaurant Study
I was surprised to learn that he did not have a clear understanding of the marketing research problem and that a written definition did not exist. So before going any further, I had to define the marketing research problem.
Once that was done, I found that much of the data collected was not relevant to the problem. In this sense, the whole study was a waste of resources. A new study had to be designed and implemented to address the problem defined.

13. MANAGEMENT DECISION PROBLEM
Should a new product be introduced?
Should the advertising campaign be changed?
Should the price of the brand be increased?
MARKETING RESEARCH PROBLEM
To determine the preference and purchase intentions for the proposed new product
To determine the effectiveness of the current advertising campaign
To determine the price elasticity of demand and impact on sales and profits of various levels of price changes

14. Components of Approach
Objective/Theoretical Framework
Research should be based on objective evidence and supported by theory.
Theory is conceptual scheme based on foundational statements called axioms.
Objective evidence is gathered by compiling relevant findings from secondary sources (supported by empirical findings)
In other words, it is called the literature review based on which the framework of research can be based.

15. Analytical Models:
Verbal Model, Graphical Model, Mathematical Model
Research Questions:
RQs are refined statements of the specific components of the problem.
Each problem component can be again broken down into sub components.
Ex: To measure customer satisfaction towards fast food industry
Ambience, Quality of food, Staff, Cleanliness and Hygiene, Price
Questions on each component can be asked from the respondent.

16. Hypotheses:
It is an unproven statement about a phenomenon that interests a researcher.
It is the possible answer to the research questions.
COMFORT FOOD REAL RESEARCH
Ex: RQ1: What foods are considered to be comfort foods?
H1: Potato Chips are considered to be comfort foods.
H2: Ice creams/Chocolates/ Soups are considered to be comfort foods.
RQ2: When do people eat comfort foods?
H3: People eat comfort foods when they are in good mood.
H4: People eat comfort foods when they are in bad mood.

17. Research Design
Framework or Blueprint for conducting the Market Research
It details the procedures necessary for obtaining the information needed to structure or solve the problems.
Foundation for conducting the project.
Components or tasks involved:
Design exploratory, descriptive and or causal phases
Define information needed
Specify measurement and scaling procedures
Construct and pretest questionnaire
Specify sampling process and sample size
Develop a plan of data analysis

18. Research Design Formulation
Exploratory Research Design
Conclusive Research Design
Descriptive Research
Causal Research
Contd…..

19. Cross-Sectional Design Single cross sectional design
Descriptive Research
Cross-Sectional Design
Single cross sectional design
Multiple cross sectional design
Longitudinal Design

20. Exploratory & Conclusive Research Differences
Objective:
Character-istics:
Findings/ Results:
Outcome:
To provide insights and understanding
Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non-representative. Analysis of primary data is qualitative
Tentative
Generally followed by further exploratory or conclusive research
To test specific hypotheses and examine relationships
Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative
Conclusive
Findings used as input into decision making
Exploratory
Table 3.1

21. Comparison between the research designs
Exploratory
Descriptive
Causal
Objective
Discover Ideas and Insights
Describe market characteristics or functions
Determine cause and effect
Characteristics
Flexible, Versatile, Often the front end of total research design
Marked by the prior formulation of specific hypotheses, pre planned and structured design
Manipulation of one or more independent variables
Methods
Expert surveys, pilot surveys, Secondary data (analyzed qualitatively), qualitative research
Secondary data analyzed quantitatively, Surveys, panels etc
Experiments

22. Exploratory Design-Qualitative
Direct
Focus group Interviews
In Depth Interviews
2. Indirect
Projective Techniques a) Association Techniques
b) Completion Techniques
c) Construction Techniques
d) Expressive Techniques
Exploratory Design- Secondary Data

23. Uses of Exploratory Research
Formulate a problem or define a problem more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further examination
Gain insights for developing an approach to the problem
Establish priorities for further research

24. Methods of Exploratory Research
Survey of experts (discussed in Chapter 2)
Pilot surveys (discussed in Chapter 2)
Secondary data analyzed in a qualitative way (discussed in Chapter 4)
Qualitative research (discussed in Chapter 5)

25. Use of Descriptive Research
To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas
To estimate the percentage of units in a specified population exhibiting a certain behavior
To determine the perceptions of product characteristics
To determine the degree to which marketing variables are associated
To make specific predictions

26. Methods of Descriptive Research
Secondary data analyzed in a quantitative, as opposed to a qualitative, manner (discussed in Chapter 4)
Surveys (Chapter 6)
Panels (Chapters 4 and 6)
Observational and other data (Chapter 6)

27. Cross-Sectional Designs
Involve the collection of information from any given sample of population elements only once
In single cross-sectional designs, there is only one sample of respondents and information is obtained from this sample only once.
In multiple cross-sectional designs, there are two or more samples of respondents, and information from each sample is obtained only once. Often, information from different samples is obtained at different times.
Cohort analysis consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis. A cohort is a group of respondents who experience the same event within the same time interval.

28. Longitudinal Designs
A fixed sample (or samples) of population elements is measured repeatedly on the same variables
A longitudinal design differs from a cross-sectional design in that the sample or samples remain the same over time

29. Cross-Sectional vs. Longitudinal
Figure 3.6 Cross Sectional vs. Longitudinal Designs
Sample Surveyed at T1
Same Sample also Surveyed at T2 T1 T2
Cross- Sectional Design
Longitudinal Design
Time

30. Cross-Sectional Design Longitudinal Design
Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs
Evaluation Criteria
Cross-Sectional Design
Longitudinal Design
Detecting Change
Large amount of data collection
Accuracy
Representative Sampling
Response bias - +
Note: A “+” indicates a relative advantage over the other design, whereas a “-” indicates a relative disadvantage.
Table 3.4

31. Uses of Causal Research
To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon
To determine the nature of the relationship between the causal variables and the effect to be predicted
METHOD: Experiments

32. Types of Errors Total error Random Sampling Error Non Sampling Error
Response Error
Non Response error

33. Measurement Error - Questioning Error - Unwillingness Error
Response Error
Researcher error
Interview Errors
Respondent Errors
Surrogate Information error - Respondent Selection Error - Inability Error
Measurement Error Questioning Error Unwillingness Error
Population Definition Error - Recording Error
Sampling Frame Error Cheating Error
Data Analysis error

34. -End of Session- (Reading: Chapters 1 to 5, Marketing Research by Naresh Malhotra, 5th Edition, Pearson Publication)