CLASSIFICATION OF MARKETING RESEARCH Marketing research can be
CLASSIFICATION OF MARKETING RESEARCH Marketing research can be broadly divided into two streams: a) Problem identification research b) Problem solving research a) Problem identification research Examples include the following: Market share research Market potential research Sales analysis research Forecasting and trends research Branding and image research 6/7/2021 owinojoseph@gmail. com 1
CLASSIFICATION OF MARKETING RESEARCH (Cont’d) b) Problem solving research Studies that fall under this category include the following: Market segmentation research Product research Pricing research Promotion research Distribution and logistics research 6/7/2021 owinojoseph@gmail. com 2
MARKETING RESEARCH PROCESS Marketing research follows a scientific process involving sequentially interlinked and overlapping stages as demonstrated in the following diagram. Problem definition Research design selection Report preparation & presentation 6/7/2021 owinojoseph@gmail. com Data collection Data analysis 3
Marketing Research Process (Cont’d) Research studies evolve through a series of steps, each representing the answer to a key question 1. Why should we do research? This establishes the research purpose as seen by the management team that will be using the results. This step requires understanding the decisions to be made and the problems or opportunities to be diagnosed 2. What research should be done? At this stage the management purpose is translated into objectives that tell managers exactly what questions need to be answered by the research study or project 6/7/2021 owinojoseph@gmail. com 4
Marketing Research Process (Cont’d) 3. Is the research worth doing? The value of information that will be generated by the study should be compared with the cost of undertaking the study. The value of the study need to be over and above the cost 4. How should the research be designed to achieve the research objectives? Design issues include choice of research approach 5. What will we do with the research? This explains how data will be analyzed and interpreted 6/7/2021 owinojoseph@gmail. com 5
Step 1: Research Problem and Purpose Research problems are more likely to be poorly defined, only partially understood, and missing possible decision alternatives that should be analyzed Defining problems accurately is a combination of data and judgement that demands real thought and effort A problem is a gap between what was supposed to happen and what actually happened Once a problem is defined, it is easier to approach the cause and solution to the gaps in accordance with the level of detail in the analysis It is in the best interest of both the researcher and the managers paying for the research to be sure that the research purpose is fully understood 6/7/2021 owinojoseph@gmail. com 6
Step 1: Research Problem and Purpose (Cont’d) q. The research purpose comprises a shared understanding between the manager and the researcher of: a) Problems or opportunities to be studied b) Decision alternatives to be evaluated c) Users of the research results 6/7/2021 owinojoseph@gmail. com 7
Step 2: Developing the Research Plan ü Designing a research plan calls for decisions on the data sources, research approaches, research instruments, sampling plan and contact methods. ü Data sources – the research plan call for gathering secondary data, primary data, or both. ü Secondary data: are data that were collected for another purpose and already exist. It provides a starting point for research and offer the advantages of low cost and ready availability ü Primary data: are data gathered for a specific purpose or for a specific research project. Collected when the needed data do not exist, out-dated, inaccurate, 6/7/2021 owinojoseph@gmail. com 8 incomplete, or unreliable.
ü A marketing database is an organized collection of comprehensive data about individual customers, prospects, or suspects that is current, accessible and actionable for marketing purposes such as lead generation, lead qualification, sale of a product or service, maintenance, etc. ü Sources of Secondary data: § § 6/7/2021 Internal sources Government publications Periodical and books Commercial data owinojoseph@gmail. com 9
ü Collection of Primary data: (a) Research Approaches § Observational research § Focus-group research § Survey research (b) Research Instruments § Questionnaires § Observation forms § Mechanical instruments 6/7/2021 owinojoseph@gmail. com 10
(c) Sampling Plan § Sampling unit (who is to be surveyed) § Sample size (how many people should be surveyed) § Sampling procedure (how should the respondents be chosen) (d) Contact Methods § Mail § Telephone § Personal/face to face 6/7/2021 owinojoseph@gmail. com 11
Step 3: Collect the Data • This is the most expensive stage and most prone to error. • Incase of surveys, four major problems arise: üThose not-at-home. üThose who refuse to co-operate üThose who give biased or dishonest answers üInterviewers who are biased or dishonest 6/7/2021 owinojoseph@gmail. com 12
q. Data collection methods are rapidly improving because of the modern computers and telecommunications Step 4: Analyze the Data ü Extraction of findings from the collected data. ü Data is tabulated. ü Frequency distributions are developed. ü Averages and measures of dispersion are computed for the major variables. ü Advanced statistical techniques and decision models are also applied. 6/7/2021 owinojoseph@gmail. com 13
Step 5: Present the Findings ü Researcher presents his or her findings to the relevant parties. ü Present major findings that are pertinent to the marketing decisions facing management. 6/7/2021 owinojoseph@gmail. com 14
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