Marketing Research
By
Prof. J. Ndlovu
Defining marketing research
Marketing research Process of collecting and using information for
marketing decision making.
• Research is central to understanding effective customer satisfaction and
customer relationship programs.
Marketing research process
• Define the problem - Well-defined problems are half-solved.
• Avoid confusing symptoms with problem itself-loss of market share is a
symptom;
• Evaluate firm’s marketing mix and possible changes to the marketing
environment.
Research designs
• Qualitative: used to study highly complex and contingent
phenomena where linkages and variables are mostly unknown
(e.g., what is the next new product)
• Exploratory research design
• Causal research design (experiments)
• Quantitative: used to study “natural” phenomena where
linkages and variables are mostly known (e.g., what is the
impact of advertising on sales)
• Mixed method: Employing both qualitative and quantitative
data collection methods
Quantitative methods
• Deductive approach where theories/ideas are tested
• Data and analysis focused, larger sample sizes (psychology, science, engineering,
economics)
• Descriptive research design
Data reduction (simplify)
• Factor analysis (find common factors in data, group variables)
• Cluster analysis, latent class (find common segments in data, group people)
Link variables to outcomes (identify cause)
• Experiment (link treatment to outcome, strong causality)
• Multiple regression (link many predictors to continuous outcome)
• Choice models (link predictors to an individual’s discrete choice)
Qualitative
• Semi-structured interview
• Relatively small in number.
• Non-probability methods.
• Not representative of the wider population of interest.
• Unstructured or semi-structured data collection, through
personal interviews, focus groups, or observation.
Data Collection
• Secondary data - Previously published information.
• Primary data - Information collected specifically for the
investigation at hand.
• Non-numerical - Subjective interpretation
• Numerical - Objective statistical analysis.
Sampling techniques
• Sampling - Process of selecting survey respondents or research participants.
• Probability sample - Sample that gives every member of the population a
chance of being selected.
• Simple random sample, stratified sample, or cluster sample.
• Nonprobability sample - Sample that involves personal judgment
somewhere in the process.
Data collection methods
Primary research methods
• Experimental research is best for gathering causal information
cause-and-effect relationships
• Observation method - researchers view the overt actions of subjects being
studied.
• Interpretive research -developed by social anthropologists in which
customers are observed in their natural setting and their behavior is
interpreted based on an understanding of social and cultural characteristics;
also known as ethnography, or “going native.”
Survey methods
• Telephone interviews - inexpensive way of getting a small
quantity of relatively impersonal information.
• Personal interviews - allow researchers to obtain detailed information
and ask follow-up questions.
Focus group - Simultaneous personal interview of a small group of
individuals, which relies on group discussion about a certain topic.
Survey methods cont….
• Mail surveys - cost-effective means that allows respondents anonymity.
• Fax surveys - difficult to get good household sample, and federal junk fax
law limits its use commercially.
• Online surveys and other Internet-based methods - allow researchers to
speed the survey process, increase sample sizes, ignore geographic
boundaries, and dramatically reduce costs.
• Experimental method - controlled experiment, for example; least used
method.
Forecasting techniques
• Test markets—gauging consumer responses to a new product
under actual marketplace conditions.
• Trend analysis—developing forecasts for future sales by
analyzing the historical relationship between sales and time.
• Exponential smoothing—weighing each year’s sales data,
giving greater weight to results from the most recent years.
Survey instruments
• Closed-end questions include all possible answers, and
subjects make choices among them
• Open-end questions allow respondents to answer in their
own words
• Case Studies
• Checklists
• Interviews
• Observation Sometimes,
• Surveys or Questionnaires.
Marketing research process
1. Identify and define the problem.
2. Develop the approach.
3.Research design.
4.Collect the data.
5.Analyze the Data.
6.Report, Present, Take Action
