Chapter 20 Marketing Research - PBP Flashcards
Introduction - Mktg Research
• 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: 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
Questionnaires Design: subsequent analysis to be kept in mind.
• 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 Audits / 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
Internet : major tool for primary research.
DSS
Decision support system: Track sales + obtain raw data from EPOS and then analyse it to produce meaningful information.
