1. Marketing Research

2. Definition
The systematic gathering, recording and analyzing of data about problems relating to the Marketing of goods and services.
-American Marketing Association
Systematic problem analysis, model-building and fact-finding for the purpose of improved decision-making and control in the marketing of goods and services‘.
-Kotler

3. The function which links the consumer, the
customer, and public to the marketer
through INFORMATION

4. Redefining Marketing Research
Used to identify and define market opportunities and problems
Information
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding of marketing as a process

5. Classification of Marketing Research
Problem Identification Research
Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
Problem Solving Research
Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

6. A Classification of Marketing Research
Problem
Identification Research
Problem Solving Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research

7. Problem Solving Research
Determine the basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets
Create lifestyle profiles: demography, media, and product image characteristics
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests
PRODUCT RESEARCH

8. Problem Solving Research
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
0.00%
APR
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE

9. Problem Solving Research
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets

10. Basic research
Basic research is also called fundamental or pure research. As the name itself refers, Basic Research is of basic nature which is not carried out in response to a problem. It is more educative, towards understanding the fundamentals and aim at expanding the knowledge base of an individual or organization. It does not have any commercial potential.

11. Applied research
Applied Research on the other hand is carried out to seek alternate solutions for a problem at hand. Applied research is done to solve specific, practical questions; its primary aim is not to gain knowledge. It specifies possible outcomes of each of the alternatives and its commercial implications.
Applied research can be carried out by academic or industrial institutions. Often, an academic institution such as a university will have a specific applied research program funded by an industrial partner interested in that program. Electronics, informatics, computer science, process engineering and drug design are some of the common areas of applied research.

12. Applied research can further be divided into:
Problem-solving research: It involves research oriented towards a crucial problem facing the organization which may be issue specific.
Ex: How do we improve the communication skills of our employees?
Problem-oriented research: The research is oriented towards a crucial problem facing the organization. It is undertaken inside the organization or by an external consultant on its behalf. This research is conceptual in nature and newer innovative techniques of problem-solving are applied.

13. Scope of Marketing Research
Marketing research can be used in:
Product Management: One of the major scope of marketing research is to manage the current products and new products. In product management Marketing Research is helpful in
Competitive Intelligence – To understand the competitive product strategy.
Pre-launch strategy for new products
Test Marketing – To monitor the performance of the brand by launching in a select area and then taking it across the country. In other words it is a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market.
Concept testing - to test the acceptance of a concept by target consumers.

14. Sales analysis: Marketing research is used to study the sales trend and make suitable strategies when required. It is used to
Assess market potential
Estimation of demand for a product
Market share estimation
Study seasonal variation for a product
Market segmentation studies
Estimate size of the market
Need analysis to find out where the product fits in
Corporate Research: Marketing Research is used to analyze the corporate effectiveness. Some examples are:

15. Assessing the image of the company
Knowledge of the company activities
Advertising Research: Advertising is an arena in which Marketing Research is extensively used. Some scope are:
Readership feedbacks – Mainly carried out for newspapers and magazines
Advertising Recall – To assess the recall of television or other advertising and thereby assess its effectiveness.
Syndicated Research: This is compiled by agencies on a regular basis and sold to organizations on subscription basis.

16. The Marketing Research Process

17. The Marketing Research Process: 11 Steps
Step One: Establishing the Need for Marketing Research
Step Two: Defining the Problem
Step Three: Establishing Research Objectives
Step Four: Determining Research Design
Step Five: Identifying Information Types and Sources
Step Six: Determining Methods of Accessing Data

18. Step Seven: Designing Data Collection Forms
Step Eight: Determining Sample Plan and Size
Step Nine: Collecting Data
Step Ten: Analyzing Data
Step Eleven: Preparing and Presenting the Final Research Report

19. Step One: Establish the Need for Marketing Research
Marketing Research is not needed when the:
required information is already available
decisions need to be made now
organization can’t afford the research
costs outweigh the value of the research

20. Step Two: Define the Problem
The most important step in the marketing research process is defining the problem.

21. Step Three: Establish Research Objectives
What information is needed in order to solve the problem?

22. Step Four: Determine Research Design
Exploratory Research: collecting information in an unstructured and informal manner
Descriptive Research: refers to a set of methods and procedures describing marketing variables
Causal Research (experiments and other approaches): allows isolation of causes and effects

23. Step Five: Identify Information Types and Sources
Secondary Data: information that has been collected for some purpose other than the research at hand
Primary Data: information that has been gathered specifically for the research objectives at hand

24. The Marketing Research Process
Step Six: Determine Methods of Accessing Data
Secondary Data: accessing data through sources such as the Internet and library
Primary Data: collecting data from participants through methods such as telephone, mail, online, and face-to-face (quantitative), and observation studies and focus groups (qualitative)

25. Step Seven: Design Data Collection Forms
The design of the data collection form that is used to ask or observe and record information in marketing research projects is critical to the success of the project.
It is easy to write a set of questions but very difficult to construct a questionnaire.
General types of “instruments” (forms)
Questionnaires
Observation Study forms (protocols)

26. The Marketing Research Process
Step Eight: Determine Sample Plan and Size
Sample plan: refers to the process used to select units from the population to be included in the sample
Sample size: refers to determining how many elements (units) of the population should be included in the sample

27. Sampling errors may occur based purely on chance
The Marketing Research Process
Step Nine: Collect Data
Sound data collection is very important because, regardless of the data analysis methods used, data analysis cannot “fix” bad data.
Nonsampling errors may occur during data collection. These are related to poor design and/or execution of the data gathering.
Sampling errors may occur based purely on chance

28. The Marketing Research Process
Step Ten: Analyze Data
Data analysis: involves entering data into computer files, inspecting data for errors (data cleaning), running tabulations (frequencies), and conducting various statistical tests

29. The Marketing Research Process
Step Eleven: Prepare and Present the Final Research Report
Findings are presented, often by research objective, in a clear and concise way.
The need for a good report cannot be overstated. It is the report, and/or its presentation, that properly communicates the results to the client.

30. What is a Marketing Information System (MIS)?
A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

31. Objectives Understand the importance of information to the company.
Know the definition of a marketing information system and be able to discuss its subparts.
Learn the steps in the marketing research process.

32. Objectives
Learn how companies analyze and distribute marketing information.
Realize the special issues some marketing researchers face, including public policy and ethical issues.

33. Characteristics of Marketing Information System
Information- Accurate, continuous flow to all
Scientific base with the help of OR techniques
Future Oriented
Ongoing Process
It provides pertinent information, collected from sources both internal and external to the company, for use as the basis of marketing decision making.

34. Need for Marketing Information System
Complexity of Marketing
Competitor Analysis
Demand Forecasting
Better understanding of the consumer
New Innovation
Economic Indicators
Planning of resources

35. Components of marketing Information System

36. Kotler Model of MKIS Marketing Information System
Assessing
Information
Needs
Developing Information
Internal
Records
Marketing
Intelligence
Marketing Managers
Implementation, Control
Analysis, Planning,
Competitors, Publics, Macro-environment Forces
Target Markets, Marketing Channels, Suppliers,
Marketing Environment
Distributing
Information
Decision Support
Marketing
Research
Marketing Decisions and Communications

37. Internal Marketing System
Detailed reports on Orders, Sales, Prices, Inventory Levels, Payables and so on
Marketing Intelligence System
Marketing research is focused, Market intelligence is not
Unfocused Scanning -The manager, by virtue of what he/she reads, hears and watches exposes him/herself to information that may prove useful. Whilst the behavior is unfocused and the manager has no specific purpose in mind, it is not unintentional
Semi-Focused Scanning -Again, the manager is not in search of particular pieces of information that he/she is actively searching but does narrow the range of media that is scanned. For instance, the manager may focus more on economic and business publications, broadcasts etc. and pay less attention to political, scientific or technological media.

38. Informal Search -This describes the situation where a fairly limited and unstructured attempt is made to obtain information for a specific purpose. For example, the marketing manager of a firm considering entering the business of importing frozen fish from a neighboring country may make informal inquiries as to prices and demand levels of frozen and fresh fish.
Formal Search -This is a purposeful search after information in some systematic way. The information will be required to address a specific issue. Whilst this sort of activity may seem to share the characteristics of marketing research it is carried out by the manager him/herself rather than a professional researcher.

39. Marketing Decision Support System
.. a coordinated collection of data, systems, tools and techniques with
supporting software and hardware
by which an organization
gathers and interprets relevant information from business and environment and
turns it into a basis for marketing action.
-Kotler

40. Marketing Decision Support System
... a set of statistical tools and decision models with supporting hardware and software available to marketing managers to assist them in analyzing data and making better marketing decisions.
-Dyer and Forman

41. Characteristics of DSS
DSS offer users flexibility, adaptability, and a quick response
DSS allow users to initiate and control the input and output
DSS operate with little or no assistance from professional programmers
DSS provide support for decisions and problems whose solutions cannot be specified in advance
DSS use sophisticated analysis and modeling tools

42. Identifying DSS Problem
Problems should be identified by users
There must be a body of data to work with and analyze
The problem must be one for which no simple formula provides a solution
There must be some systematic way of thinking about the problem that a DSS can automate or assist
The problem must be important enough to engage the time and energy of management groups ranging from first line supervisors to senior management

43. Components of DSS DSS Software System User Interface Internal Records
Database
Internal Records
Marketing Intelligence
Marketing Research
DSS Software System
Decision Models
OLAP Tools
Data Mining Tools
User
Interface
Interactive
Quick response
(Adapted from Laudon and Laudon)

44. Levels of DSS Data Management Level 1
Data acquisition, storage and retrieval
Level 1
Data Analysis
Finding and analyzing relationships between variables
Level 2
Decision Analysis
Prioritization and choice among decision alternatives
Level 3

45. DSS Level 1 – Data Management
Tools
Database
Database management system (DBMS)
Query facilities
Report writers
Document and image management system

46. DSS Level 1-Data Management
The difficulties
The amount of data increases exponentially
Data are scattered through out organizations and are collected by many individuals using several methods and devices
Only small portions of an organization’s data are relevant for specific decisions
An ever-increasing amount of external data needs to be considered in making decisions

47. DSS Level 2 – Data Analysis
Basic data analysis tools
Spreadsheet
What-if analysis
Goal seeking analysis
Sensitivity analysis
Graphical tools
Statistical tools

48. DSS Level 2-Data Analysis
OLAP (online analytical processing) tools
Access very large amounts of data
Analyze the relationships between many types of business elements
Involve aggregated data
Compare aggregated data over time periods
Present data in different perspectives
Involve complex calculations between data elements

49. DSS Level 3 -Decision Analysis
Nature of Marketing criteria
Quantitative criteria
Monetary e.g. $ sales value, costs, contribution
Non-monetary e.g. sales growth rate, market share
Qualitative criteria e.g. image, satisfaction

50. DSS Level 3 -Decision Analysis
Difficulties in decision making
Human cognitive limitations
Short term memory (7+2)
Scaling technique
Need to combine different scales
No scales for qualitative factors

51. Measurement
The assignment of numbers to characteristics of objects, persons, states, or events, according to rules

52. Scales of Measurement Interval Nominal Ratio Ordinal
What you can or cannot say about the object
Which statistical analyses you may use
Interval
Performance rating on a 0 to 10 scale
Nominal
Ratio 3
Numbers assigned to runners
Time to finish 7 6
Ordinal 2 1 3
Rank order of winners

53. Components of Measurement
True Characteristic: Direct reflection of the characteristic of interest
Short term characteristic of Respondent: hunger, fatigue or anger
Situational characteristic : reflection of the surroundings in which the measurement is taken
Characteristic of the measurement process: reflection of the interviewer, interviewing method and the like
Characteristics of the measuring instrument : reflection of ambiguous or misleading questions
Characteristics of the response process: reflection of mistaken replies caused by checking wrong response and the like
Characteristics of the analysis: reflection of mistakes in coding, tabulating and the like

54. Mapping Rules
Classification
Order
Distance
Origin

55. Difficulty of Measurement
Dangerfield Syndrome
Less Training
Delegation
Response is Inaccurate
Irrelevant Data

56. Secondary Data
Problems Encountered with Secondary Data
Availability
Relevance
Accuracy
Sufficiency
Internal sources of Secondary data
Accounting Records
Sales Force Reports
Miscellaneous Reports
Internal Experts

57. External Sources Of Secondary data
Computerized databases
Bibliographic databases
Numeric databases
Database Systems
Associations
Government agencies
Data on Population, Income, and Housing
Data on Industrial and Commercial Product sales, Agricultural producers, wholesalers, retailers and Service Organizations
Data on Financial and other Characteristics of Firms
Data on Employment
Miscellaneous reports

58. International secondary data
Syndicated services
Directories
Other Published Sources
External Experts
International secondary data
Nature of International secondary data
Internal Sources of International Secondary data
External Sources of Secondary data
Databases
Foreign Government Sources
U.S. Govt.
International Political Organizations

59. Attitude
A predisposition or a tendency to respond positively or negatively towards a certain idea, object, person, or situation. Attitude influences an individual's choice of action and responses to challenges, incentives, and rewards (together called stimuli).

60. Procedure In Attitude Scaling
Collection of data
Processing of the data
Formation of Scale

61. Components of Attitude
Cognitive Component
Affective Component
Behavioral Component

62. Advanced Scaling Techniques
Single Item Scales
Itemized Category Scales
Rank Order Scales
Comparative Scales
Paired Comparison Scales
Constant Sum Scales
Pictorial Scales
Q-Sort Scale
Considerations for Developing Single Item Scales
Number of Scale category
Types of Poles used in the scale
Balance of Scale
Strength of Anchor
Labeling of Categories

63. Continuous Scales
Multi Item Scales
Profile Analysis
Thurstone type of Scale
Likert Scales
Semantic differential
Stapel Scales