Marketing Research I-Marketing Research

8/2/2019 Marketing Research I-Marketing Research

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CONCEPTUAL

FRAMEWORKOF

MARKETING RESEARCH


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DEFINITION OF MARKETING

RESEARCHMarketing research is the systematic and objective

identification,

collection, analysis,

dissemination, and

use of information

for the purpose of improving decision making related to the

identification and

solution of problems and opportunities in marketing.


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ACCORDING TOAMERICAN

MARKETINGASSOCIATION

The systematic gathering, recordingand analysing of data about problemsrelating to the marketing of goods and

services


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Example :McDonalds..

n MR helped many fast food chains like McDs, Nirulasetc to identify and respond for good, healthy andnutritious food.

n Consumers more conscious about their health

n Obesity case filed against mcdonaldsn Mcdonalds offered burgers and fries having low

nutritious value

n In 2003, McDs conducted MR on 50,000 people totrack consumer behaviour & other attitudinal measuresfor all major fast food they serve

n McDs got to know change in consumers taste&preferences & their shift towards healthier &nutritious food


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n As a result, McDonalds now offeringhealthier foods like salads and othernutritious food

n

Created online nutrition education tool.n By 2005, consumption increased by 15%

n Crucial role played by MR

n

MR helped in designing &implementing successfulmarketing program


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DEFINING MARKETINGRESEARCH

Identification ofInformation

Needed

Collection of

Data

Analysis ofData

Dissemination ofInformation

Use of

Information

Identifying and SolvingMarketing Problems


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WHY MARKETING

RESEARCH EVOLVED?n Suppliers of products &services need to haveinformation about final

consumers to makecustomized products

n As market expands theMarketing manager feels

himself distant & separatedfrom the final customers


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Information needs ofmanagers

n Target market

n Products/ Services

n Price

n Distribution

n Promotion


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SCOPE OF M.R

n Increased complexity in BusinessEnvironment:

-

Technology changes- Research & development

- Product changes

- I-T changes

n Increased complexity of decision maker


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MARKETING RESEARCH

PROCESS

n A set of six steps that

defines the task to beaccomplished inconducting a marketingresearch study.


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Step 1: Defining the Problem

Step 2: Developing Market Research Plan

Step 3: Formulating the Research strategy

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing the Research Report


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EXAMPLE: DABUR

CASEn FMCG player DABUR INDIA LTD.entered into health shampoo marketwith the launch of DABUR TOTAL

PROTECTqDABUR conducted

six step process of MRbefore launching.

q

To know the preference,needs & problems facedby people in the presentshampoo they are using


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q Problem for Dabur was to know customer preference, needs

& problems faced in the present shampoo they are using

q Analysed secondary data by visiting other FMCG sites foringredients

q Survey on 5000 respondents

q Questionnaire design on 1 to 7 point scale regardingsatisfaction/dissatisfaction

q Company plans to achieve 3% market share

q Dabur Total Protect Shampoo is packed with the power of

Neem and Bhringraj that keep scalp clean & healthy.q Ingredients like Triphala and Japakusum that keeps hair

beautiful.


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OBJECTIVES OF M.R.

n To know customer preference aboutproducts/services

Example: The Boeing Company, premier

manufacturer of commercial jetliners

employs MR

To understand needs& priorities of theircustomers &customers customers


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n To know the market share and thusimplement ways to increase the share

Example: HUL during economicslowdown lost market share of upto 6%

R&D of HUL conducted MRto know reasons

Reason was that HUL did notintroduced any value offers,lower price etc.


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n It helps to plan marketing strategies and thus helps in

increasing sales and profitabilityn Example: HUL in 2008 increased share in shampoo market

from 46.9% to 49.8%

n MR employed by HUL helped to formulate strategies

n HUL realized changing income patternn Convenient, single use, affordable sachets promoted

n Differentiation in urban areas: One shampoo for each familymember & using it as a strong driver of growth

n HUL has brands at several price points:n Clinic plus is a mass market brand

n Sunsilk is in mid-price segment

n Dove falls in premium bracket


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Changing Income Pattern.


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n It helps to know/find reasons why a product isnt selling wellor is not taken up by consumers

n Example: When kelloggs introduced cereals & flakes for thefirst time

n Not taken by consumers

n MR helped to find that the products were not position well

n People in India were not in the habit of eating flakes espl inbreakfast

n Nutritious value, child growth, weight loss, family focuswere pointed out


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ROLE OF M.R.n To provide management with relevant, accurate, reliable, valid,

and current information.

n Competitive marketing environment and the ever-increasingcosts attributed to poor decision making & require marketingresearch to provide sound information.

n Sound decisions are not based on gut feeling, intuition, or evenpure judgment.

DECIDE MODEL

n D - Define the marketing problem

n E - Enumerate controllable &uncontrollable decision factors

n C - Collect relevant informationn I - Identify the best alternative

n D - Develop and implement a marketing plan

n E - Evaluate the decision and the decision process

IMPORTANCE OF


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IMPORTANCE OFM.R.

n Research, as a general concept, is the process of gathering

information to learn about something that is not fullyknown.

n Everyone engages in some form of research.

n Highly trained geologist investigating newly discoveredearthquake faults, to the author of best selling spy novels.

n For marketers, research is not only used for the purpose oflearning, it is a critical component for making gooddecisions.

n Gives marketers a picture of what is occurring (or likely to

occur) and, when done well, offers alternative choices thatcan be made.

n For instance, good research may suggest multiple optionsfor introducing new products or entering new markets.


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n Using an analogy of a house foundation, marketingresearch can be viewed as the foundation of marketing.

nJust as a well-built house requires a strong foundationto remain sturdy, marketing decisions need the supportof research in order to be viewed favourably bycustomers and to stand up to competition and otherexternal pressures.

n Research is key to marketing decision making, it doesnot always need to be elaborate to be effective.

n Small efforts, such as doing a quick search on theInternet, will provide the needed information.

n Example: JOHNSON & JOHNSONn Launched Baby Asprin-incorrect decision


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TYPES OF M.R.

v Customer Satisfaction Researchv quantitative or qualitative studies that yields

an understanding of a customer's of satisfactionwith a transaction

v Example: Punjab National Bank conductedcustomer satisfaction research

v PNB is No.1 in customer satisfaction


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v Demand Estimation Research

v

determine the approximate level ofdemand for the product

v Example: Maruti Suzuki , leading carmanufacturer in India conducts demand

estimation researchv To know the level of demand

v To avoid unnecessary accumulation ofstock

v To reduce costs


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v Internet Strategic Intelligence Researchv Searching for customer opinions in the

Internet

v Chats, forums, web pages, blogs... wherepeople express freely about their experienceswith products

v Becoming strong "opinion formers"v Example: Harley Davidson

v Blog created as Harley Owners Group

v People express their experiences with its bikes

v

Changes expected


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v Sales Forecasting Research

v To determine the expected level of salesgiven the level of demand.

v With respect to other factors likeAdvertising expenditure, sales

promotion etc.v Example: Hero Honda estimates their

level of sales for given level of demand

v Advertising and promotion expenditure

as a % of their sales


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Test Marketing Research

n Small-scale product launch used to determine thelikely acceptance of the product when it isintroduced into a wider market

n Example : Nokia while launching N-Gage

n Launched this N-series in a small scale

n After acceptance launched in wider market


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v Store Audit Researchv To measure the sales of a product or

product line at a statistically selectedstore sample in order to determinemarket share

v To determine whether a retail storeprovides adequate service

v Example: Future Group where sales oftheir products measured by selectingthe sample of the store


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v Price Elasticity Researchv How sensitive customers are to price

changes

v Example: LG conducted price elasticityresearch

v

Price matters lot while purchasingelectronics

v Reduced price

v Introduced discount offers

v LG leading company in terms of customerbase and reduced price.


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v Advertising Researchv Used to predict copy testing or trackthe efficacy

of advertisements for any mediumm

v Measured by the ads ability to get attention,communicate the message, build the brandsimage

v Motivate the consumer to purchase the productor service.

v Example: Airtel prefers advertising Research

v Spends lot on advertising

v

Communicates Messagev Changed Tagline thrice

v Continuously works to refine ads
http://en.wikipedia.org/wiki/Copy_testinghttp://en.wikipedia.org/wiki/Ad_Trackinghttp://en.wikipedia.org/wiki/Ad_Trackinghttp://en.wikipedia.org/wiki/Copy_testing


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CHARACTERISTIC

Sn Systematicn Objective

nDissemination of Information

n Complicated

n Time Taking Task

nHigh Cost


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CONCLUSIONn Research is a step by step process

n Difficult for any researcher to master thesesteps

n Every organization, large or small faces lot ofproblems in absence of adequate knowledge offacts about sales

n M.R. is the search for knowledge

n Requires systematic and scientific instruments

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Marketing Research I-Marketing Research

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