Marketing Research
Definition of Marketing Research
Marketing Research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services The American Marketing Association
Gather
Record Analyze
Data/ Information
Solve marketing issues
History of MR
Before 1915 19151940
Unscientific surveys executed. No research agencies.
Marketing Research agencies established. E.g. In 1923, Arthur Nielsen founded the AC Nielsen Company.
19411980 19811995 Rapid advancements in Marketing Research. 1995to-date Introduction of Computer applications, Statistical packages, etc. Developments in On-line research, e-mail based research, CATI/CAPIs etc.
The first book of Marketing Research was published in 1921.
Market Research
Marketing Research
Sanjeewa Thilakarathna
Market Research and Marketing Research
There are 4 Ps (Tools or Mix) in Marketing: Product
Market Research Research on Customers / Consumers
Price Place Promotion
Marketing Research
Types of Marketing Research
1.
2.
3. 4. 5. 6.
Market Research (Customer/Consumer) Product Research Price Research Sales Promotion and Advertising research Distribution Research Competitor Research
Data Categorization (Based on Source)
Primary Data
Secondary Data
Data which is gathered newly for a particular purpose.
Data which is already available in sources such as directories, journals, reports, databases, etc.
Primary Data
Following 4 methods could be used to gather primary data
Surveys
Experiments
Observational
Depth Research
Advantages / Disadvantages of Primary Data
Advantages
Relevance Accuracy Sufficiency
Disadvantages
Expensive Time consuming Expertise may be required (in Data collecting, analysis, etc.)
Secondary Data
Information collected from data sources such as publications, web-sites (www.gov.lk), journals, annual reports, etc. desk research needed to be carried out to gather secondary data. Data Sources: Internal to Firm Accounting reports Profit & Loss A/C External to Firm Government publications Directories
Budgets
Previous reports
Data bases
Journals
Advantages / Disadvantages of Secondary Data
Advantages
Inexpensive Quick to obtain Less bias
Disadvantages
Sometimes obsolete May be invalid Methodology unknown Unreliable Sometimes inaccurate
The Research Process
Step 1 Defining the Research Problem
Step 2 Designing the Research Plan
Step 3 Data Collection
Step 4 Data Analysis & Interpretation
Step 5 Presentation of Findings
Step 1 Defining the Research Problem
Research problem should be problem precisely so that specific objectives could be made.
If the problem defined too narrow If the problem defined too broadly
Insufficient information collection Excess information collection
Research Brief:
- Background - Objectives of the study - Information Areas Needed
- Budget
- Time constraints - Other specific information
Step 2 Developing the Research Plan
This involves the following important activities: - Decide whether you need to gather Primary or Secondary data - Decide on your research method (Survey, Observational, Behavioural, FGD, Experimental) - Decide on the best contact method (face-to-face, telephone, e-mails, etc.) - Sampling method - Develop and/or select the Research instrument (e.g. Questionnaires)
If outsourced to a third party (e.g. Research Agency), the third party will produce a document called the Research Proposal which normally includes all the above details.
Development of the questionnaire
Few important points to consider when developing a questionnaire: Objective oriented Should be short but long enough to cover the research objectives Use relevant questions only Logical sequence should be maintained Easy to understand
Use the correct language
Avoid bias / leading questions.
E.g. What do you think about the romantic Valentines day?
Type of questions:
1. Open ended 2. Close ended (Dichotomous, Multiple)
Sampling
Probability Sampling
Non-probability Sampling
Simple Random Sampling Stratified Sampling Cluster Sampling Multi-stage Sampling Systematic Sampling
Convenience Sampling Judgment Sampling Quota Sampling Snowball Sampling
Simple Random Sampling
Simple Random Sampling: Each member in the population gets an equal chance of being chosen.
Sample Population
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A sample of respondents will be randomly selected from a population. The sample frame is important to obtain the sample. E.g. 150 customers are selected from a total customer database of 2000 for a customer satisfaction study Population = 2000 Sample = 150
. .
Sample Frame list of all items/elements of the population
Stratified Sampling
The population is divided into stratas and simple random samples are drawn from each starta.
Population
The sample frame of each strata is important to draw up random samples.
Cluster Sampling
The sample is selected from a population which is naturally grouping will be selected.
Population
E.g. Selecting 30 families of a village to conduct a product testing. Family is a collection of people (father, mother, children, etc.). So, it is a natural cluster. After selecting 30 families, each member of the family is considered as respondents.
Types of Marketing Research (another categorization)
Types of Marketing Research
Quantitative
Qualitative
Multi-stage Sampling
The sample is selected at different stages from a population.
E.g. 2 stage sampling: A bank is operating with 12 branches island-wide. Each
branch offers 5 banking products. It is required to select 5 branches and 3 products at random for a study. 20 customers to be interviewed from each product at each branch. Stage 1 Selecting 5 branches
Stage 2 Selecting 3 products
Total Sample= 20 x 3 x 5 = 300 customers
Population
Non-probability Sampling
Convenience Sampling: Sample is decided based on the convenience of the researcher. E.g. Selecting 10 marketers for a group discussion
Judgment Sampling: Sample is selected based on the judgment.
E.g. Selecting 30 young males for a study on FM Channel for youth. Quota Sampling: Sample is selected by defining quotas. Example: Male Female TOTAL
Urban
Rural TOTAL
50
30 80
40
20 60
90
50
140
The Typical Research Procedure
Step 1 Defining the Research Problem
Step 2 Developing the Research Plan
Step 3 Data Collection
Step 4 Data Analysis
Step 5 Presentation of Findings
Step 3 Data Collection
Data could be gathered by using internal resources (if time and expertise is available) or by outsourcing to an external party (third party- e.g. Research Agency).
Factors such as confidentiality, reliability, cost, expertise, time constraints, etc. have to be considered in this context.
Step 4 Analyze of Data
Various analytical tools are utilized in analysis. Special packages such as SPSS, SAS, Excel, Minitab, etc. could be used.
Step 5 Presentation of Findings
The information is presented in the form of a report.
The report should be: Simple and reader-friendly With graphical representations (if possible) Summary of Findings
Contain an Executive Summary
Explain the methodology adopted Highlight the limitation in research
The End
Good Luck!
