Chapter 20 Marketing Research - PBP Flashcards
Introduction
• Mktg research: done under conditions of uncertainty + provide info about factors + possible outcomes = ↓ risk.
Reasons for Maketing Research
- Mktg research: Objective gathering, recording and analysing of all facts about problems relating to the transfer and sales of goods and services from producer to consumer or user. - Chartered Institute of Marketing
- Points to note:
(1) Mktg research should continually provide info with time for better decision making.
(2) Mktg research is concerned with all type of consumer & user + not just household.
(3) Mktg research: provide info - enable managers to make better decisions about mktg mix, + 4Ps.
(4) Info should be purposeful.
(5) Competitive edge: provide competitors info.
Types of Marketing Research
(a) Product Research : • Customer acceptance • comparative studies • packaging and design • forecasting new uses • development of product line.
(b) Market Research: • potential • Demand • Trend • Forecasting sales • Characteristics • share.
(C) Price Research: • Elasticity of demand. • Cost + margins. • effect of ∆ in credit policy. • customer`s view of price & quality.
(d) Sales Promotion Research: • motivation • effectiveness of advertising on sales demand • effectiveness of medium • salesman effectiveness • define territories • effectiveness of other sales promotion methods.
( e) Distribution Research: • Location + design + transportation + warehousing + shelving • Dealer supply + advertising reqt.
Product Research
• Product research is all about the product and consumers reaction to it.
• An idea about a product must be screeened to have following attributes:
♠ Profitable market potential ♠ conform co.'s objectives ♠ acceptable cost + risk ♠ produced + distributed within resources.
• For Product research: Examine products form + attributes satisfy consumer`s needs + taste. • Examine competitive products + existing products under review for : ♠ new product line ♠ new segments for existing products ♠Finding new uses of existing products. (e.g. virtual relaity goggles for 3d modelling and virtual teaching).
Market Research
Market Research: Marketing research is expensive and must therefor be cost effective and accurate at providing relevant info + confirming an info already known is pointless. Marketing research has following stages:
Step 1 Define problem Managers Step 2 Design to solve Researchers Step 3 Collection of data Step 4 Analysis of data Step 5 Presentation of report Management Decision
Marketing Research: Primary Data
- Market research info = primary data + secondary data.
- Primary data is data specifically collected for marketing research.
- The collection of primary data = field research. It involves: ( IQ PACE SPOT )
- Experimentation = changing a variable to see the effect of it on the performance of an object or system. E.g. car crash test.
- Observation involves fieldworkers and machines, simply recording behaviour. E.g. effect of loud music on ear.
Sampling
- Testing total population, easy for small numbers, difficult for large population. + expensive and time consuming.
- Sampling: sample be representative of the population + size must be sufficient + every item = equal chance of selection.
- Sampling a population with certain characteristics = biased + not representative. Sampling can be used to identify consumer behaviour and attitudes + potential segments of market. E.g. tax return software. Filers vs software users.
• Techniques : Random vs Non Random sampling..
♠ Random: random numbers generator, eliminates conscious + unconscious bias. ♠ Non-random: systematic (every Nth) , stratified (categories) , multistage ( sampling within a sample) , quota ( age/ gender) and cluster (specific characteristics).
• Potential Faults: ♠ Bias (being choosy) ♠ Insufficient data (size) ♠ Unrepresentative sample ♠ Ommission of an important factor ♠ Carelesness (at gathering data) ♠ Confusion b/w cause and correlation (e.g. swimwear and icecream) ♠ Misinterpretation of data.
Questionnaires
- Administered by personal interviews, email and posts. Postal response: low + for hish response –> specially directed.
- Questionnaire design: questions - > generate valid and reliable info + understandable + biasness avoided.
- Guidelines for questionnaires: ♠ Leading questions avoided. ♠ understandable. ♠ logical sense. ♠Use working language. ♠ Funnelling: questions directed to research objectives. ♠ Personal questions : exceptional circumstances.
• Pilot testing: essential to design + methods of analysis is given a trial run. • Classification questions usually asked at end.
• Methods of conducting questionnaires:
♠ Telephone interviews: speedy response + short + geographical coverage + no visual methods.
♠ Personal interviews: detailed + slow + expensive. ♠ Email replies: low response + may be unrepresentative.
♠ Self completion: question understandibility + questions should be short.
Consumer Panels
Consumer panels: representative cross-section of consumers willing to give info about their attitudes and buying habits. Info collected: long and short term. Home audit panels / post / computer = diary panels.
Trade audit / Retail Audits
Trade audits / Retails Audits: A research firm sends auditors to selcted outlets for stock counts for estimate of throughput to be made. + market share / brand share. + discounts info + customer base of different outlets + customer preferneces.
Pre-testing and Post-testing
Pre-testing and Post-testing : • MR done beforen during and after marketing decisions are implemented. • Effect of campaign is hard to isolate + other influences may impact. + measurement of communication effect is more reliable than sales effect. Focus: Target audience response.
Pre-testing:
- Motivational research: done before launch of marketing activity. E.g. film shown to critics. / consumer awareness programs.
- Laboratory test: resording physiological reactions. E.g. beauty cream tests for fairness / lifebuoy - RSPH london certified.
- Rating tests: Ads shown + asked about: Attention drawing, emotional appeal, clarity and stimulus to buy. Re. 1 donation.
- Test Marketing: a representative market is selected where product is launched to observe sonsumer reaction. + flaws identified + enables co. to test the water before fully launch the product. + develops sales forecasts.
- Stimulated store technique: Ads shown then consumers are paid to go shopping and then the reactions are checked towards competitive products.
- Controlled test marketing: Panel of stores carry new product for a length of time + differently advertised. Then all stores are monitored for the consumer repsonse to different ads. Also known as mini marketing.
Post Testing
Post-testing: concentrates on the communication effect of advertisement.
• Recall test: ask to recall ads about a product. E.g. ufone. • Recognition test: hint given, recognize product. E.g. dawlance.
EPOS
EPOS : • Electronic point of sales - widespread use + measures effect of multiple factors on sales.
• Major superstores: measure performance of different competitve products on shelves.
Internet + DSS + Recording data attitudes + Evaluating data + Interpretaion of results
♦ Internet : major tool for primary research.
♦ Decision support system: Track sales + obtain raw data from EPOS and then analyse it to produce meaningful information.
♦ Recording about data attitudes: Attitudes are measured by means of attitudes scale.
• Likert scale: Comments or product qualities are stated and respondents are asked to rate the agreement to statement.
• Semantic differential scale: consist of opposite adjectives (good-bad, strong-weak, etc). Respondents are asked to place products or rate on scale.
♦ Evaluating data: using statistical techniques. • Multiple regression analysis: Effect of other variables on sales.
• Discriminate analysis: used to know consumer traits ( socio economic groupings, sex, age, gender).
• Test of statistical significance - chi square / standard deviations.
♦ Interpretation of results: requires care. Conclusion may be based on research. However actual causes of trends are difficult to isolate. For this reason, best conclusions are made in conjunction with the management having awareness of other factors operating within the market.
