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KT session

Insights,
The
Marketing
Research Cell
Definition of Marketing Research

Marketing research is the function that links the consumer, customer, and public
to the marketer through information – information used to identify and define
marketing
opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing
as a process. Marketing research specifies the information required to address
these issues, designs the method for collecting information, manages and implements
the data collection process, analyzes the results, and communicates the findings
and their implications

-American Marketing Association


Classification of Marketing Research

Identification of problems Research undertaken to


that are not apparent but help solve specific
exist or are likely to exist marketing problems
in the future
Case study: Kellogg’s

In the late 2000s Kellogg’s (www.kelloggs.com) experienced a slump in the market for breakfast-cereal sales.
Through problem-identification research, Kellogg’s was able to identify the problem and, through problem solving
research, develop several solutions to increase cereal sales

Kellogg’s performed several tasks to identify the problem. Researchers spoke to


decision-makers within the company, interviewed industry experts, conducted an
analysis of available data, performed some qualitative research, and surveyed
consumers about their perceptions and preferences for cereals.

Issues identified: current products are marketed to children, cereal alternatives were
becoming more famous, prices were too high, adults preferred quick, minimum
preparation breakfast food.

Problem solution: After defining the problem, Kellogg’s went to work on solutions. It
developed and tested several new flavours of cereals based upon the results of survey
interviews with adult consumers. Based on these results, Kellogg’s introduced new
flavours that were more suited to the adult palate but were not the tasteless varieties
of the past.
Marketing Research Process

Step 1 Step 2 Step 3 Step 4

Problem definition Research design developed Data collection Data integrity and analysis

Identify and clarify Compare the basic research Develop the sampling Analyse data
information need designs: exploratory, causal design & size Interpret data to create
Define the research & descriptive. Examine measurement knowledge
questions Selection of research design issues and scales
Specify research Implementation of research Design and pre-test
objectives and confirm design. the questionnaire
the information value

Step 5

Communicating research findings

Prepare and present final report


Research Design
A research design is a framework or plan for conducting the marketing research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure or solve marketing research problems.

Research design from the decision-maker's point of view

The decision-maker will be looking for information


from the researcher that is accurate, current,
relevant, sufficient & available

Research design from the participant's point of view

The research design should take into consideration


the nature of the issue being investigated, the
environment & the participant.
Research Design Classification
Exploratory vs. Conclusive

Exploratory Conclusive

To provide insights and understanding To test specific hypotheses and examine


Objective of the nature of marketing phenomena relationships
To understand To measure

Information needed may be loosely Information needed is clearly defined &


defined, the research process is flexible, the research process is formal and
unstructured and may evolve structured
Characteristics
Data analysis can be qualitative or Data analysis is quantitative
quantitative

Expert surveys Surveys


Pilot surveys Secondary data
Methods Secondary data Databases
Qualitative interviews Structured observations
Experiments
Descriptive and Causal research

Descriptive research: A type of conclusive research that has as its major objective the description of something,
usually market characteristics or functions. A major difference between exploratory and descriptive research is
that descriptive research is characterised by the prior formulation of specific research questions and
hypotheses. Thus, the information needed is clearly defined

Consumer Media
Market share
Pricing studies buying consumption
studies
behaviour studies

Causal research: A type of conclusive research where the major objective is to obtain evidence regarding cause-
and-effect (causal) relationships. Marketing managers continually make decisions based on assumed causal
relationships. These assumptions may not be justifiable, and the validity of the causal relationships should be
examined via formal research.
Case Study Time!
A couple of friends intended to start a Mexican restaurant in Lincoln, Nebraska.

However, after a demographic analysis of that market, however, they decided that Lincoln did not match their target
demographics as well as they initially thought it would.

After researching the demographic and competitive profile of several markets, they decided Dallas, Texas, would be the best
place to start their business. In examining the markets, they were looking for a town that would best fit their target market of
singles and families in the age range of 18 to 50. The population was 5.5 million of which about 50 percent were between the
ages of 25 and 60. This indicated there were a lot of individuals in their target market in the Dallas area. They also found that
about 55 percent of the population earns between $35,000 and $75,000 a year, which indicated the market would have enough
income to eat out regularly. Finally, 56 percent of the population was married, and many of them had children at home, which
was consistent with their target market.

The new restaurant concept was based upon the freshest ingredients, complemented by a festive atmosphere, friendly service,
and cutting-edge advertising and marketing strategies. The key would be to prepare and serve the freshest “made-from-scratch”
Mexican foods possible.

The atmosphere would be open, brightly lit, and bustling with activity. Their target market would be mostly families with
children, between the ages of 18 and 49. Their marketing programs would be memorable, with the advertising designed to
provide an appealing, slightly offbeat positioning in the market.
Case Study Time!
The Santa Fe Grill was not successful as quickly as the owners had anticipated. To improve the restaurant operations, the
owners needed to understand what aspects of the restaurant drive customer satisfaction and loyalty, and where they were
falling short in serving their customers.

Based on your understanding –

1. What kind of research should be conducted?

2. What kind of information about products, services, and customers should the owners of the restaurant consider collecting?
Qualitative & Quantitative research techniques

Qualitative Quantitative
Direct (non-disguised): Purpose of the research
is revealed

Focus group In-depth interviews

Direct (non-disguised): Purpose of the research


is not revealed

Sentence
Word association Role playing
completion
Qualitative vs Quantitative research techniques

Criteria Qualitative Research Quantitative Research

Role Exploration, in-depth understanding Preparatory

Relationship between:
Theory/concepts and research Emergent Confirmation
Researcher and participant Close Distant
Researcher’s stance to subject Insider Outsider

Research strategy Un-structured Structured

Nature of data Rich, deep Hard, reliable

Generalizability No/limited Yes – better with larger samples


Types of questions in a Questionnaire.

Open Ended Questions Rating Scale Questions Likert Scale Questions


Open-ended survey questions In rating scale questions Likert scale questions are the
require respondents to type (sometimes referred to as “do you agree or disagree”
their answer into a comment ordinal questions), the question questions you often see in
box and don’t provide specific displays a scale of answer surveys, and are used to gauge
pre-set answer options. options. respondents’ opinions and
feelings.
When it comes to analyzing The respondent selects the
data, open-ended questions number that most accurately They work well to understand
aren’t the best option. represents their response. specific feedback.

EXAMPLE EXAMPLE EXAMPLE

What are you eating for On a scale of 1-5, how much How satisfied are you
dinner tonight? did you like today’s dinner? with today’s dinner?
Types of questions in a Questionnaire.

Multi Choice Questions Picture Questions Matrix Questions

Close-ended survey questions, Allows respondents to use images It is a closed-ended question that
were every questions will be as answer options. asks respondents to evaluate one
given a set options to chose or more row items using the same
from. These questions are mostly This works great when you want set of column choices
used to quantify respondents respondents to evaluate the visual
choice. qualities of something and also A series of Likert scale questions
provides a breath of fresh air for or rating scale questions will work
It forcefully limits responses to a respondents, as it gives them a as a matrix question.
predetermined options. break from reading.

EXAMPLE EXAMPLE EXAMPLE

In which sauce would you Which dish of chicken looks more How satisfied or dissatisfied
like your chicken? appetising to you? were you with the following?
To-Do in Questionnaire Design!

Close-ended: Keep your Questions Close No double barelled questions: It Causes


ended and take your interviewee on a inaccuracies, as the respondent can answer
journey only one of the two questions

Maintain the right flow: Its really Easy to understand words: Ensure the
important that you frame your questions vocabulary used is understandable by your
in a meaningful flow. target audience.

Local Language: You can always use


localized language to give the data
collection process a personalized touch.
To-Do in Questionnaire Design!

No personal contact details: The


Short questionnaire: No one likes to
respondent has to feel safe to transmit and
answer a long questionnaire!
share his/her data.

Pilot test your questionnaire: Testing Open ended question at the end of
your questionnaire before will save you questionnaire: Open ended questions
the frustration of getting off-target usually should come at the end of the
answers. questionnaire.

DON’T write leading questions: “Leading” questions contain wording that may sway, or lead, respondents to
one side of an argument. “Do you think people should adopt an animal-friendly vegan diet?” By using the phrase
“animal-friendly,” you are leading respondents to equate a vegan diet with caring about animals.
Sampling design

The collection of elements or


objects that possess the
information sought by the
researcher and about which A representation of the elements
inferences are to be made. of the target population that
consists of a list or set of directions
for identifying the target
population. Eg, telephone directory
Sampling: A process used in Marketing Research were a predetermined number of observations are taken from
a larger population for the sake for measurement.

A classification of sampling techniques

Sampling techniques

Population
Non-probability Probability
sampling techniques sampling techniques

Convenience Sampling Simple Random Sampling

Judgemental Sampling Systematic Sampling

Quota Sampling Stratified Sampling

Snowball Sampling Cluster Sampling

Other Sampling Techniques


Sample
Non - Probability Sampling Techniques: A sampling procedure which relies on the personal judgement of the researcher rather
than on chance to select sample elements.

Convinience sampling Judgemental sampling This type of sampling involves


The selection of sampling the researcher using their
A B C D E units is left primarily to A B C D E expertise to select a sample
0 1 0 6 1 1 1 6 2 1 the interviewer. In this 0 1 0 6 1 1 1 6 2 1 that is most useful to the
0 2 0 7 1 2 1 7 2 2 case, maybe D category 0 2 0 7 1 2 1 7 2 2 purposes of the research. In
0 3 0 8 1 3 1 8 2 3 people are the most 0 3 0 8 1 3 1 8 2 3 this case, we selected two
0 4 0 9 1 4 1 9 2 4 accessible to the 0 4 0 9 1 4 1 9 2 4 people from each group A, B,
0 5 1 0 1 5 2 0 2 5 researcher 0 5 1 0 1 5 2 0 2 5 C&D

Quota sampling It is a two-stage judgemental Snowball sampling


sampling. In first stage you It starts by selecting a
A B C D E assign quotas to the A B C D E respondent based on
0 1 0 6 1 1 1 6 2 1 population and in second you 0 1 0 6 1 1 1 6 2 1 judgement or convenience and
select sample elements after data collection the
0 2 0 7 1 2 1 7 2 2 0 2 0 7 1 2 1 7 2 2
according to judgement from respondent will be given
0 3 0 8 1 3 1 8 2 3 0 3 0 8 1 3 1 8 2 3
these quotas. Through quota chance to refer anyone from
0 4 0 9 1 4 1 9 2 4 0 4 0 9 1 4 1 9 2 4
sampling we have selected 3, his circle who, he think, would
0 5 1 0 1 5 2 0 2 5 0 5 1 0 1 5 2 0 2 5
9, 12, 19 & 21 be relevant for the research.
Probability Sampling Techniques: A sampling procedure in which each element of the population has a fixed probabilistic chance
of being selected for the sample

Simple random sampling Systematic Sampling


Select a person randomly
Select five random and from their on we create
A B C D E A B C D E
numbers from 1 to 25. a system of selecting every
0 1 0 6 1 1 1 6 2 1 0 1 0 6 1 1 1 6 2 1
The resulting sample 3rd person. The resulting
0 2 0 7 1 2 1 7 2 2 0 2 0 7 1 2 1 7 2 2
consists of population sample consists of
0 3 0 8 1 3 1 8 2 3 0 3 0 8 1 3 1 8 2 3
elements 3, 7, 9, 16 and population elements 2, 5, 8,
0 4 0 9 1 4 1 9 2 4 0 4 0 9 1 4 1 9 2 4
24. 11, 14, 17, 20 & 24.
0 5 1 0 1 5 2 0 2 5 0 5 1 0 1 5 2 0 2 5

Stratified Sampling Cluster Sampling

A B C D E Randomly select a A B C D E Randomly select a cluster


0 1 0 6 1 1 1 6 2 1 number from each 0 1 0 6 1 1 1 6 2 1 from A, B, C D & E. Every
0 2 0 7 1 2 1 7 2 2 stratum, Blue, Violet 0 2 0 7 1 2 1 7 2 2 person in that selected
0 3 0 8 1 3 1 8 2 3 and Green. The 0 3 0 8 1 3 1 8 2 3 cluster would be the sample.
0 4 0 9 1 4 1 9 2 4 resulting Sample would 0 4 0 9 1 4 1 9 2 4 The resulting Sample would
0 5 1 0 1 5 2 0 2 5 be 2, 6, 17, 9, 18, 5 & 20. 0 5 1 0 1 5 2 0 2 5 be 6, 7, 8, 9 & 10.
THANKS FAM!

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