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MARKETING
RESEARCHMETHODS
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Types of Research
Quantitative research
Qualitative research
Managing Marketing information/Marketing Research - 4
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Quantitative research
Statistical basis
Gathers statistically valid, numerically
measurable data Usually related to data on the market-size,
growth and market shares
Sampling plays a key role Data obtained through surveys
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Qualitative Research
Subjective and personal
Concerned with finding out soft
information Main purpose is to understand consumer
behavior, attitudes and perceptions
Obtained by methods designed to getdetailed responses e.g. interviews
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Marketing Research Process
Define the problem
Define the research objectives
Choose data sources
Choose research methods
Construct sample
Set budget and deadlines
Undertake research
Analysis and evaluation
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Methods of collecting data
Desk research in which secondary data is
collected. Secondary data is defined as the re-
using of data that already exists
Field research collecting original data i.e.Primary data
Data collection is only one stage in the process
Data has to be analyzed & evaluated Conclusions & recommendations have to be
drawn
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Internal
- Sales figures
- Customer reports
- Trend data- Sales reports
- Cost data
- Company reports
- MIS data
External
- Competitor information
- Government publications
- Commercial publications- Trade association data
- Retail audits
- Directories
Secondary data sources
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Field research to collect primary
data
Experiments
Observations
Surveys Interviews
Focus groups
Panels
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Experiments
Method of obtaining primary research data Aim is to measure & evaluate customer
reactions to the changes in marketing mix
Can be done in the field or under controlledconditions
Examples: test markets, simulated test markets,blind test
Pilot trials of new products are a common use ofexperiments it provides a chances to see howthings work out before a large scale roll out.
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Observation
Information collected without asking questions
Involves watching people, noting & analyzing
their reactions
It is useful to find out how people buy products,Where they shop? What appeals them?
Can be carried out under controlled (laboratory)
as well as uncontrolled conditions (field) Examples: Traffic audits, Radio & TV panels,
Retail store audits
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M i M k i i f i /M k i R h 4
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Observation
STRENGTHS- What people do rather
than say?
- Carried out without
informing the customer- Doesnt rely on the
memory or honesty of the
respondents
- Potential bias is reduced- Counters the refusal rate
associated with most
methods of MR
WEAKNESSES- Time consuming and
costly
- Doesnt reasonify
- Chances ofmisinterpretation of
behavior
- Only gives partial
information
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M i M k ti i f ti /M k ti R h 4
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Surveys
Key research method for large samples
Wide range of uses: to ascertain facts,
beliefs, opinions, attitudes
Examples: Interviews (one-one, over
telephone, online), by postal mail, email
etc.
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Postal Surveys
STRENGTHS
- Wide coverage
- Low cost
- No interviewer bias- Respondents
convenience
- Lack ofembarrassment
- Avoids travelingcosts
WEAKNESSES
- Low response rate
- Lack of control of
respondent- Limited scope for
open ended questions
- Limited to short
questionnaires- Long response time
- Biased response
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Telephone Surveys
STRENGTHS
- Saves time
- Higher response rate
- Greater control over
respondents than with
postal surveys
- Sample less likely to be
biased
- Cost limited to time spent
on phone
- Saves cost of traveling
- Allows probing
WEAKNESSES
- Questions maybe
more limited than with
postal surveys
- Data may not be
available
- Respondent has little
time to consider
questions
- Intrusion into privacy
- Can be time
consuming
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Comparison of survey methods
HighFastLowModerateElectronic
ModerateFastModerateModeratePhone
HighSlowLowLowPostal
LowSlowHighHighFace-face
Non-response
bias
TimeCostResponserate
Method
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One-one interviews
STRENGTHS- Interviewer can prompt the
respondent
- Can see respondents
reaction
- Respondents have more timeto think
- Detailed responses
- Can get opinions
- Respondents get fullattention
- Flexible
- Allows probing
WEAKNESSES High cost
Time consuming
Risk of bias
Requires interviewingskills
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Focus groups
Used for qualitative information gathering
Usually consists of 8-10 respondents & amoderator
Moderator introduces topics & guidesconversation
The aim is to seek opinions and find out
attitudes Composition of the group should reflect
target audience
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Focus groups
STRENGTHS
- Quick
- Range of attitudes
- Detailed qualitative
information obtained
- Flow of discussion
encourages ideas &participation
WEAKNESSES
- Need to build rapport
- Discussions must stay
focused- Needs good control by
the moderator
- Some members may be
inhibited- Expensive
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Panels
Continuous rather than ad hoc
Useful in assessing shifts of attitude and
opinion over time
A consumer panel consists of a
representative sample of people
Panel members are usually induced to be
permanently available by means of smallpayments or free samples
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Panels
STRENGTHS- A good trend indicator
- Useful for analyzing
changes
- More probing
WEAKNESSES- Expensive
- Biased sample of people
- Panels have to replaced
periodically
- When novelty wears off
members become less
cooperative
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Electronic online surveys
STRENGTHS
- Economical
- Devoid of boundary
limitations- Versatile and quick
WEAKNESSES
- Incomplete directory of
names
- Unrepresentativesample
- Brevity of email
responses can be a
problem- Little control over
sample
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Limitations of marketing research
Problems relating to surey and sampling
Sampling errors
Non response errors Data collection errors
Analytical and reporting errors
Marketing research information canquickly become dated
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