Research Methodology

An Introduction

A Marketing Manager of FMCG brand is faced with a situation where the sales figure for his most popular brand is declining in Hubli Region when compared to others. He wants to do a study to assess the sitution

Is this a Problem or an Opportunity?

Problem or an Opprotunity

Marketing and Marketing Research are two faces of the same coin

Marketing is about identifying and meeting the social needs and Marketing Research aids this function of the marketing

It helps in the most important phase of marketing in the decision making or strategizing process

Marketing and Marketing Research

Definition – “Search for Knowledge” Business Research is defined

as the systematic and objective process of gathering, recording and analyzing data for aid in making business definitions

Marketing Research Defined

The scope of Business Research limited by ones definition of “Business”

Business Research covers wide range of phenomena A Broader definition includes problems or

opportunities related to For Profit and Not for Profit Organizations

Intuition without Research can lead to disappointment

Business Research questions require information about how the environment, employees, customer or the economy will respond to Executives decisions

Scope of Marketing Research

Basic Research attempts to expand the limits of knowledge

Basic Research is conducted to verify the acceptability of a given theory or to discover more about a certain concept

Applied Research – Research undertaken to answer questions about specific problems

Basic & Applied Research

For managers research reduces uncertainty by providing information that improves the decision making process

Research reduces managerial uncertainty in taking decisions

Four interrelated stages a. Identifying problems or opportunities b. Diagnosing and assessing problems or

opportunities c. Selecting and implementing a course of action d. Evaluating the course of action

Managerial Value of Business Research

Research is the backbone of Strategy development

Research in an organization helps managers to identify problems or opportunities

Research can be used as a scanning activity to know what is happening in the organization

Research provides alternatives for taking decisions on intuition or experience

Identifying Problems or Opportunities

Managers gain insights in to underlying problem

If a problem exists then what happened and why?

If an opportunity exists then explore, clarify, and refine the nature of an opportunity

If multiple opportunities exist research may be conducted to set priorities

Diagnosing and Assessing Problems or Opportunities

Evaluation of alternatives and in selecting the best course of action

Opportunities may be evaluated through the use of various performance criteria

A fax machine manufacturer must decide to build a factor in South Korea or Japan

Selecting and Implementing a Course of action

The formal objective measurement and appraisal of the extent to which a given activity, project or program has achieved its objectives

Provides feedback for evaluation and control of strategies and tactics

Evaluating the course of action

a. Time Constraints

b. Availability of Data

c. Nature of the Decision

d. Benefits versus Cost

When is Business Research Needed

Scientific - Scientific research refers to a body of techniques for investigating phenomena, acquiring new knowledge or correcting and integrating previous knowledge consist of collection of data through observation and experimentation and formulation and testing of hypothesis

Methods

Non Scientific - Non scientific research is investigating about human society and of individual relationships in and to society. It consist of data through observation and presume relations among natural phenomena

Methods continued

Descriptive Vs Analytical

Applied Vs Fundamental

Quantitative Vs Qualitative

Conceptual Vs Empirical

Types of Research

1. Good Research is systematic

2. Good Research is logical

3. Good Research is Empirical

4. Good Research is Replicable

Criteria for Good Research

What are Research Ethics? Importance of Ethics in Research Ethical Treatment of Participants a. Explain study benefits b. Explain participant rights and protection c. Obtain informed consent Deception an ethical thorn

Research Ethics

A narrow conception of the Project

Uneven caliber of Researchers

Poor Framing of the problem

Late and occasionally erroneous findings

Personality and Presentational Differences

Do’s and Don’ts in Research

Marketing Manager

Research Manager – The backbone of Research Process

Research Firm

Investigators

Respondents

Players in the Marketing Research Scenario

A firm that cannot conduct an entire marketing research project in-house must select an external supplier for one or more phases of the project

Trade Publications, Professional Directories and word of mouth

When developing a criteria for selecting an outside supplier, a firm should keep some basics in mind as follows

Selecting a Research Supplier

What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier have? Has

the firm had experience with projects similar to this one? Do the supplier's personnel have both technical and non-technical

expertise? Can they communicate well with the client?

Competitive bids should be obtained and compared on the basis of quality as well as price.

The internet is very efficient for identifying marketing research

firms that supply specific services

Selecting a Research Supplier

The entry level position in a business firm would be Junior Research Analyst (for BBA) or Research Analyst for (MBA)

The entry level employees learn about a particular industry and receive training from a senior staff member, usually the Marketing Research Manager

Careers in Marketing Research

Skills Required at Different Levels

Careers continued Career opportunities are available with marketing research firms

(e.g., AC Nielsen, Burke, Inc., M/A/R/C) Careers in business and non-business firms and agencies with in-

house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau)

Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam)

Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.

A Sample of Marketing Research Jobs

Vice-President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department.

Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects.

Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.

(Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.

Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.

Selected Marketing Research Career Descriptions

Vice President of Marketing Research

• Part of company’s top

management team

• Directs company’s entire market

research operation

• Sets the goals & objectives of the

marketing research department

Research Director

•Also part of senior

management

•Heads the development

and execution of all

research projects

Assistant Director of Research

•Administrative assistant to director

•Supervises research staff members

Senior Project Manager•Responsible for design, implementation, & research projects

Analyst• Handles details in execution of

project• Designs & pretests questionnaires• Conducts preliminary analysis of

data

Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of data

Fieldwork Director•Handles selection, training, supervision, and evaluation of interviewers and field workers

Senior Analyst• Participates in the development of projects• Carries out execution of assigned projects• Coordinates the efforts of analyst, junior analyst, & other personnel in the

development of research design and data collection• Prepares final report

Statistician/Data Processing• Serves as expert on theory and

application on statistical techniques• Oversees experimental design, data

processing, and analysis

Selected Marketing Research Career Descriptions

Marketing Research Suppliers & Services Internal suppliers External suppliers

◦ Full-service suppliers Syndicated services Standardized services Customized services Internet services

◦ Limited-service suppliers Field services Coding and data entry services Analytical services Data analysis services Branded marketing research products

The Role of Marketing Research

ControllableMarketing

•Product•Pricing•Promotion•Distribution

Variables

Marketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

• Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

•Economy•Technology•Laws & Regulations•Social & Cultural Factors•Political Factors

Customer Groups

• Employees• Shareholders

Suppliers•

• Consumers

Fig 1.2

The Importance of InformationThe Importance of Information

WhyInformation

IsNeeded

MarketingEnvironment

StrategicPlanning

Customer Needs

Competition

MIS is defined as a formalized set of procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis

OR Marketing Information System (MIS) is a set of procedures

for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis

Marketing Information System Consists of people, equipment, and procedures to gather, sort,

analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

.

Marketing Information System

MIS focuses on each decision makers responsibilities, styles and information needs

Information gathered from various sources, such as invoices and marketing intelligence, including marketing research is combined and presented in a format that can be readily used in decision making

MIS helps to identify ,select and resolve marketing problems or opportunities

Characteristics of MIS

Three distinct types of information are generally supplied to marketing managers through the MIS – Recurrent, Monitoring and Requested

Recurrent Information is information that is provided on a periodic basis. Market share by region, customer awareness of the firms advertising, Customers satisfaction etc is the information provided on a Weekly, Monthly, Quarterly or Annual Basis

Recurrent information is particularly useful for indicating problems and opportunities

Types of Information in an MIS

Monitoring Information is information derived from the regular scanning of certain sources

Monitoring Information comes primarily from external sources. Government reports, patents, Articles, Annual Reports of competitors and public activities of competitors are common sources that are monitored

Article Summaries are prepared and distributed any time a relevant article appears

Monitoring Information is particularly useful for alerting firms to potential problems such as new competitors or new marketing activites

Requested information is developed in response to a specific request by a marketing manager. Without such a request the information would not flow to the manager and might not exist in the system

Example – Request on the size of the market not currently served by the firm and assessment of rivalry in the market

Specialized MIS – Firms typically evolve smaller, specialized systems designed to meet the needs of a subset of mangers such as Sales Managers or Brand Managers or systems are developed for specific types of information such as data

DSS are integrated systems including hardware, communication network, database, model base, software base, and the DSS user that collect and interpret information for Decision Making

DSS

Management Information Systems vs.Decision Support Systems

Unstructured Problems

Use of Models

User Friendly Interaction

Adaptability

Can Improve Decision

Making by Using “What if”

Analysis

DSSMIS

Structured Problems

Use of Reports

Rigid Structure

Information Displaying

Restricted

Can Improve Decision Making

by Clarifying Data

Marketing Information Systems and Marketing Research

Developing Information

Four Main Sources and Types

1. Internal records information2. Marketing intelligence3. Marketing research4. Information analysis

Developing InformationDeveloping Information

Obtains Needed Information for Marketing Managers From the Following Sources

Obtains Needed Information for Marketing Managers From the Following Sources

Internal DataCollection of Information from Data Sources Within the Company

Internal DataCollection of Information from Data Sources Within the Company

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation

Developing information.

The MIS develops the required information from: internal records, marketing intelligence activities and marketing research.

1)Internal Records This is the most basic system used by most marketing executives to monitor reports of orders, sales, inventories and debts. The internal accounting system can be used to provide information quickly, since most organisations produce monthly or weekly records of sales, and so on, to help the financial management of the organisation.

Marketing Information Systems and Marketing Research

Internal RecordsInformation from sources within the organization used to evaluate marketing performance and to identify marketing problems and opportunities

g Customer history information and information trendsg Customer information management (e.g., guest/customer

registration and comment cards, mystery shoppers)g Corporate customer and marketing intermediary

information (e.g., customer and prospective customer databases)

Marketing Information Systems and Marketing Research

Marketing IntelligenceInformation from internal and external sources

about developments in the marketing environment that helps managers to prepare and

adjust marketing plans and short-run tactics.

g Internal sources of marketing intelligenceg External sources of marketing intelligenceg Sources of competitive informationg Commercial sources of marketing information

Marketing Intelligence

Marketing intelligence is the information that is collected, often informally, by reading books, newspapers, trade journals, talking to customers, sales staff and suppliers. Well run organisations have some way - usually weekly or monthly meetings - where marketing intelligence information collected from the marketplace or the general environment is discussed by the members of the marketing team.

Marketing Information Systems and Marketing Research

Marketing ResearchA process used to identify and define marketing

opportunities and problems, to monitor and evaluate marketing actions and performance, and

to communicate research findings to management.

Steps in the Marketing Research Process:1. Defining the problem and research objectives2. Developing the research plan to collect information3. Implementing the research plan4. Interpreting and reporting the findings

Marketing Information Systems and Marketing Research

Marketing Research Process1. Defining the Problem and Research Objectives Research projects can have one of three types of

objectives:a. Exploratory: to collect preliminary information that will help

define the problem or hypotheses.b. Descriptive: to describe the size and characteristics of the

market.c. Causal: to test hypotheses about cause-and-effect

relationships.

Marketing Information Systems and Marketing Research

2. Developing the Research Plan & Design

a. Determine specific information needs

b. Decision on data

c. Research approaches – Observational, Focus group , Survey , Behavioral & Experimental

d. Questionnaire & Sampling

Marketing Information Systems and Marketing Research

3. Planning Primary Data Collection. Contact methods: mail questionnaires,

telephone interviewing, personal interviewing, Internet surveying, focus group interviewing

Marketing Information Systems and Marketing Research

4. Implementing the Research Plan

a. Gather the research data.b. “Enter the data” or process information.c. Analyze the data.

Marketing Information Systems and Marketing Research

5. Interpreting and Reporting the Findings

a. Interpret the findingsb. Draw conclusionsc. Acknowledge any research limitationsd. Report findings and conclusions

Marketing Information Systems and Marketing Research

Information Analysis

Information gathered can often benefit from additional analysis that may help to answer questions such as “what if?” and “what is best?”

Marketing Information Systems and Marketing Research

Information Analysis

This involves further and more detailed analysis of marketing intelligence and marketing research

data (sometimes this is called “secondary analysis” of primary data) through:

1. Advanced statistical analysis2. Mathematical models

International Marketing Research USA accounts for only about 40 percent of the

marketing research expenditures

About 40% of all marketing research is conducted in Europe and 10% in Japan

In Europe UK, Germany, France, Italy and Spain

Japan leads in Asia Specific region followed by Australia, China, Korea and Taiwan

Brazil and Mexico lead in Central and South American markets

International Marketing Research

Foreign Research

Multinational Research

Research Design A Research Design provides the framework

to be used as a guide in collecting and analyzing data

Research Design Exploratory – This is generally used to

clarify opinions and thoughts about the research problem or the respondent population or to provide insights on how to conduct more conclusive research

One major application of exploratory research, therefore, is to generate hypotheses for further studies

Descriptive Research – Most marketing research of this type

Descriptive Studies are either Longitudinal or Cross Sectional

Longitudinal Studies generally takes the form of a sample of respondents who are studied over a period of time – from a few months to a few years

Cross Sectional Design – This is most commonly used in marketing research. This is a one shot research study at a given point of time, and consists of a sample (cross section) of the population of interest

Cross sectional design gives a good overall picture of the position at a given time

Causal Research Design – Causal design seeks to establish causation as far as possible, by employing controls and conditions under which we can state with reasonable confidence whether or not Y is affected by X

Case Snippet Study about a English daily in 1980s in

Bangalore a Comparative Analysis was performed

Thank You Any Questions?