2.

Capturing Marketing Insights

1. Collecting information and Forecasting Demand

2. Conducting Marketing Research
 5

Conducting
Marketing Research and
 Questions
• What is the scope of marketing research?
• What steps are involved in conducting good marketing
research?
• What are the best metrics for measuring marketing
productivity?
What is Marketing Research?
Marketing research is the systematic design,
collection, analysis, and reporting of data and
findings relevant to a specific marketing situation
facing the company.
 What is Marketing Research?
(American Marketing Association)
Marketing research is the function that links the
consumer, customer, and public to the marketer
through information- information used to
identify and define marketing opportunities and
problems; generate, refine, and evaluate
marketing actions; monitor marketing
performance; and improve understanding of
marketing as a process.
What is Marketing Research?
(American Marketing Association)
Marketing research specifies the information
required to address these issues, designs the
method for collecting information, manages
and implement the data collection process,
analyzes the results, and communicates the
findings and their implications.
The Role of Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product
Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision •Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
 Marketing Research Suppliers &
Services

RESEARCH
INTERNAL EXTERNAL
SUPPLIERS

FULL SERVICE LIMITED SERVICE

Field Branded
Syndicate Internet Products
Services
Services Services and Services
Custom
Coding and Data
Standardized ized
Data Entry Analysi
Services Service
Services Analytical s
s
Services Service
s
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.
A Classification of Marketing Research
Marketing Research

Problem Problem
Identification Research Solving Research

Market Potential Research

Segmentation Research
Market Share Research
Market Characteristics Research Product Research
Sales Analysis Research Promotion Research
Forecasting Research Distribution Research
Business Trends Research
 Problem Solving Research
SEGMENTATION RESEARCH PRODUCT RESEARCH

 Determine the basis of segmentation  Test concept

 Establish market potential and  Determine optimal product design
 Package tests
responsiveness for various
segments  Product modification
 Select target markets  Brand positioning and
 Create lifestyle profiles: repositioning
demography, media, and  Test marketing
product image characteristics
 Control score tests
 Problem Solving Research
PROMOTIONAL RESEARCH
PRICING RESEARCH
 Optimal promotional budget
 Pricing policies
 Sales promotion relationship
 Importance of price in brand selection
 Optimal promotional mix
 Product line pricing
 Copy decisions
 Price elasticity of demand
 Media decisions
 Initiating and responding to price
changes  Creative advertising testing
 Evaluation of advertising
effectiveness
 Claim substantiation
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
The Marketing Research Process
Define the problem

Develop research plan

Collect information Make

decision
Analyze information

Present findings
Step 1: Define the Problem, the Decision
Alternatives, Research Objectives

• What is to be researched (the content, the scope)?

• Why is it to be researched (the decisions that are to

be made)?
The Problem Definition Process
Tasks Involved

Discussion Interviews Secondary Qualitative

with with Data Research
Decision Maker(s) Experts Analysis

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Analytical Specification
Objective/ Model: Verbal, Research Of Information
Theoretical Hypotheses
Graphical, Questions Needed
Foundations
Mathematical

Step III: Research Design

Factors to be Considered in the
Environmental Context of the Problem
PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS
Proper Definition of the Research
Problem

Marketing Research Problem

Broad Statement

Specific Components
Development of Research Questions
and Hypotheses
Components of the
Marketing Research Problem
Objective/
Theoretical
Framework Research Questions
Analytical
Model
Hypotheses
 Management Decision Problem Vs.
Marketing Research Problem
Management Decision Problem Marketing Research Problem
 
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product.
 
Should the advertising To determine the effectiveness
campaign be changed? of the current advertising campaign.
 
Should the price of the To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels of price changes.
Step 2: Develop the Research Plan

Data Research
Sources Design

Research Sampling
Approach Plan

Research Contact
Instruments Methods
Research Design: Definition
• A research design is a framework or blueprint
for conducting the marketing research project.
It details the procedures necessary for obtaining
the information needed to structure or solve
marketing research problems.
Data Sources
Secondary Data: Data that was collected for
another purpose, and already exists somewhere

Primary Data: Freshly gathered data for a

specific purpose
A Classification of Marketing Research
Designs
Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal Research

Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
Research Design

•Gathers preliminary information

Exploratory
that will help define the problem
Research
and suggest hypotheses.

•Describes things as market

Descriptive potential for a product or the
Research demographics and consumers’
attitudes.

Causal •Test hypotheses about cause-

Research and-effect relationships.
 Exploratory & Conclusive Research
Differences
Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding. examine relationships.
Character- Information needed is defined Information needed is clearly
istics: only loosely. Research process defined. Research process is
is flexible and unstructured. formal and structured. Sample is
Sample is small and non- large and representative. Data
representative. Analysis of analysis is quantitative.
primary data is qualitative.

Findings
Tentative. Conclusive.
/Results:

Outcome:
Generally followed by further Findings used as input into
exploratory or conclusive decision making.
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
Methods of Exploratory Research
• Survey of experts Pilot surveys
• Secondary data analyzed in a qualitative way
• Qualitative research
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
Methods of Descriptive Research
• Secondary data analyzed in a quantitative as
opposed to a qualitative manner
• Surveys Panels
• Observational and other data
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.
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
Uses of Casual 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
Research Approaches
Observation
Observation

Ethnographic
Ethnographic

Focus
Focus Group
Group

Survey
Survey

Behavioral
Behavioral Data
Data

Experimentation
Experimentation
Research Instruments

Questionnaires
Qualitative Measures
Technological Devices
 Questionnaire Do’s and Don’ts
• Ensure questions are free of • Avoid negatives
bias • Avoid hypotheticals
• Make questions simple • Avoid words that could be
• Make questions specific misheard
• Avoid jargon • Use response bands
• Avoid sophisticated words • Use mutually exclusive
• Avoid ambiguous words categories
• Allow for “other” in fixed
response questions
Question Types—Dichotomous
In arranging this trip, did you contact American
Airlines?
 Yes  No
Question Types—Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
Question Types—Likert Scale

Indicate your level of agreement with the following

statement: Small airlines generally give better service
than large ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
Question Types—Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
Question Types—Importance Scale

Airline food service is _____ to me.

 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
Question Types—Rating Scale

American Airlines’ food service is _____.

 Excellent
 Very good
 Good
 Fair
 Poor
Question Types—
Intention to Buy Scale
How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
Question Types—Completely
Unstructured
What is your opinion of Indian Airlines?
Qualitative Measures

Word
Word Association
Association

Projective
Projective Techniques
Techniques

Visualization
Visualization

Brand
Brand Personification
Personification

Laddering
Laddering
Question Types—Word Association

What is the first word that comes to your mind when

you hear the following?
Airline ________________________
American _____________________
Travel ________________________
Question Types—
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.
Question Types—Story Completion

“I flew American a few days ago. I noticed that the

exterior and interior of the plane had very bright
colors. This aroused in me the following thoughts and
feelings.” Now complete the story.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Question Types—Picture
(Empty Balloons)
Question Types—Thematic
Apperception Test

Make up a story that reflects what you think is

happening in this picture.
Technological Devices
Galvanometers

Tachistoscope

Eye cameras

Audiometers

GPS
Sampling Plan

• Sampling unit: Who is to be surveyed?

• Sample size: How many people should be surveyed?
• Sampling procedure: How should the respondents be
chosen?
 Types of Samples
Probability Samples Nonprobability Samples
• Simple random • Convenience
• Stratified random • Judgment
• Cluster • Quota
Contact Methods
Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview
 Pros and Cons of Online Research
Advantages Disadvantages
• Inexpensive • Small samples
• Fast • Skewed samples
• Accuracy of data, even for • Technological problems
sensitive questions • Inconsistencies
• Versatility
Measuring Marketing Productivity
• 1. Marketing Metrics: to assess marketing effects.
• 2. Marketing-Mix Modeling: to estimate causal
relationships and measure how marketing activity
affects outcomes.
What is Marketing Metrics?
Marketing metrics is the set of measures that
helps marketers quantify, compare, and
interpret marketing performance.
Marketing Metrics
External Internal
• Awareness • Awareness of goals
• Market share • Commitment to goals
• Relative price • Active support
• Number of complaints • Resource adequacy
• Customer satisfaction • Staffing levels
• Distribution • Desire to learn
• Total number of customers • Willingness to change
• Loyalty • Freedom to fail
• Autonomy
What is Marketing-Mix Modeling?
Marketing-mix models analyze data from a
variety of sources, such as retailer scanner data,
company shipment data, pricing, media, and
promotion spending data, to understand more
precisely the effects of specific marketing
activities.
Marketing Dashboards
• A customer-performance scorecard records how
well the company is doing year after year on
customer-based measures.

• A stakeholder-performance scorecard tracks the

satisfaction of various constituencies who have a
critical interest in and impact on the company’s
performance including employees, suppliers,
banks, distributors, retailers, and stockholders.
Sample Customer-Performance
Scorecard Measures
• % of new customers to average #
• % of lost customers to average #
• % of win-back customers to average #
• % of customers in various levels of satisfaction
• % of customers who would repurchase
• % of target market members with brand recall
• % of customers who say brand is most preferred
Common Measurement Paths

Customer Metrics Pathway

Unit Metrics Pathway

Cash-flow Metrics Pathway

Brand Metrics Pathway

Marketing Measurement Pathways
Example of a
Marketing Dashboard