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Chapter 4: Marketing Research - Coggle Diagram
Chapter 4: Marketing Research
Marketing Research Process
Marketing Research definition
process of gathering needed information to help you make marketing decisions
information helps company to gain better consumer insights for improved decision making for businesses and marketing
Consumer Insights
process of discovering customers' needs and wants
can be obtained from marketing research
is the systematic and objective identification, collection, analysis, dissemination and use of information
to improve management decision-making in marketing
Defining the Problem and Research Objectives
Developing the Research Plan for Collecting Data
Implementing the Research Plan - Collecting and Analysing data
Interpreting and Reporting the Findings
Defining the Problem & Research Objectives
marketing managers and researchers must work together to define the problem and agree on research objectives
marketing manager best understands the decisions where information is needed
researchers best understands what information is needed & how to obtain the information
management uses information to make decision to solve problem
eg. increase sales, introducing a new product
Research Plan
outlines sources of existing data, spells out specific research approaches, contact methods & instruments to obtain new data
Step 1: Marketing Problem
Step 2: What info do we need?
Step 3: How will it be obtained?
Step 4: What is the budget?
Constraints
restrictions placed on potential solutions to a problem
eg. time and money
Cost of obtaining, processing, storing and delivering information
Time-constraints
good marketing research balances users' information desires against what they need and what is feasible to offer
Developing the Research Plan for Collecting Data
Types of Data
Primary Data
Definition
facts and figures collected specifically for a project at hand
Types of Research Design
Exploratory
provides ideas about a relatively vague problem
preliminary information also helps suggest hypotheses
eg. company wants to find out why consumers are not using their products
Data-collection methods
in-depth interviews
focus group discussions
Descriptive
describe things, markets, market potential for a product, demographics, consumers' attitudes, environment and competition
company can have face-to-face surveys
will discover and gain insights
eg. demographics of people not looking at products are young people
Data-collection methods
observations
personal-administered surveys
telephone surveys
online surveys
Causal
tries to determine the extent to which the change in one factor changes another one
test hypotheses about cause-and-effect relationships
eg. effect of number of people willing to look at the product based on different locations
Data-collection method: experiment
Seldom used
external factors difficult to control or limit in the marketing environment
Planning Primary Data Collection
Step 1: Data Collection Methods
Experimental Research
includes selecting matched group of subjects and giving them different treatments, controlling unrelated factors, checking for differences in group responses
best suited for gathering causal information
Questionnaire/survey Research
gathering data by asking people about their knowledge, attitudes, preferences & buying behaviour
includes asking people interviews and focus group interviewing
produces quantitative data
Downside
requires large sample
needs careful survey design
Observation Research
gathering data by observing relevant people, actions and situations
may include mechanical or personal observations
eg. watching people, social listening
Step 2: Contact Methods
Mail
flexible method that produces a lot of data
response rate is very low
Telephone
flexible method
response rate reduced due to telemarketing abuse and PDPA
Face-to-face interviews (individual)
flexible
interviewer guides and explains difficult questions to the respondent
Focus group interviews
has a moderator to encourage free-and-easy discussions
flexible method that produces high quality data
more costly than other methods
Online research
collection of data through
Internet surveys
online focus group
web-based experience
tracking consumers' online behaviour
Advantages
costs less than research conducted by traditional means
able to collect qualitative or quantitative data
easier to gain data from hard to reach groups
Online Marketing Research
Benefits of online marketing compared to traditional marketing research
provides more spontaneous and passion of unsolicited customer opinions than traditional marketing
traditional marking provides more logical consumer responses to structured and intrusive research questions
Web Analytics
use behavioural targeting to advertise certain advertisements to certain customers
behavioural targeting to social targeting
Internet is an important tool for conducting research and developing customer insights
online behavioural and social tracking and targeting
Step 3: Sampling Plan
Definition
a segment of the population selected to represent the population as a whole
3 Considerable Factors
Sample unit
how many people should be surveyed?
Sample size
how should the people be chosen?
Sampling procedures
who is to be surveyed?
Probability Sample
Simple Random Sample
Every member of the population has a known and equal chance of selection
eg. using a computer system to assign
Stratified Random Sample
The population is divided into mutually exclusive groups and random samples are drawn from each group
eg. different age group
Cluster (area) Sample
The population is divided into mutually exclusive groups and researcher draws a sample of the groups to interview
eg. different blocks of flats
Non-probability Sample
Convenience Sample
Researcher selects the easiest population members from which to obtain information
Judgement Sample
Researcher uses their judgement to select population members
Quota Sample
Researcher finds and interviews a prescribed number of people in each of several categories
Step 4: Research Instruments
Mechanical Instruments
includes check-out scanners, people meters and neuromarketing methods
Example
some supermarket have smart shelves that trap consumer demographics and purchases
current technology can also record and interpret human facial expressions to know how we feel
Questionnaires
most common type of research instrument
can be administered in person, by phone or online
Types of Questions
Close-ended Questions or Multiple Choice Questions
require respondents to select one or more response options from a set of pre-determined choices
answers easy to interpret and tabulate
good to add choice "others" if answers are non-exhaustive
Open-ended Questions
allow respondents to express opinions, ideas or behaviours in their own words without being forced to choose among alternatives predetermined by a marketing researcher
answers are not as easy to tabulate
Dichotomous Questions
Fixed alternative question that allows only two possible response
Examples
3 more items...
Semantic Differential Questions
contain a scale in which the opposite ends have adjectives with opposite meanings
eg. How likely are you to purchase this item. 1 representing Very Likely and 5 representing Very Unlikely
Likert Scale Questions
To what extend do you agree or disagree with a statement
Two conditions to satisfy
2 more items...
Demographics
to get details about personal or household characteristics
eg. age, gender ethnicity, income level, education background, occupation, marital status
Errors in Questionnaires
Leading button
consumer is led to make a statement favouring a particular brand/product/service
eg. Why do you like Coke better than Pepsi?
Ambiguous Question
eg. Do you drink soda regularly?
1 more item...
Unanswerable Question
eg. what was the occasion for drinking your first cup of soda?
1 more item...
Two-questions in one
eg. do you drink soda and eat chips?
1 more item...
Non-exhaustive Question
eg. Where do you live? 1. Home 2. In Dormitory
1 more item...
Non-mutually Exclusive Question
eg. What is your age? 1. under 20, 2. 20-40, 3. 40 and over
1 more item...
Secondary Data
Definiton
facts and figures that have been recorded before the project at hand for another purpose
Advantages
Time saving
Inexpensive
Disadvantages
out-of-date
definition/categories not right
not specific enough
Internal Secondary Data
Inputs
eg. budgets and expenses, sales call reports, customer data
Outputs
eg. actual sales,/customer orders, customer communication
External Secondary Data
Census reports
Trade associations
Business periodicals
Internet-based reports
Rule
use secondary data first then collect primary data
secondary data is less expensive and time-consuming
greater level of detail available
eg. government statistical department data
Implementing the Research Plan
Definition
involves collecting, processing and analysing the information
Disadvantages
sometimes involve fieldwork
increase cost of research
Importance of processing & analysing data
isolate important information and insights
need to check for data accuracy and completeness for correct analysis
Common questions asked
what factors contribute to the sales trends?
which age group of people are the biggest spender for the product and how frequently is it purchased?
how did the company do as compared to its competitors this year?
Intepreting and Reporting the Findings
drawing conclusions and report to management
researchers shouldn't overwhelm managers with numbers
results should be tabulated and graphically represented
allow managers to make sense of data
Ways information can be presented
pie charts
line graphs
bar charts
histograms
frequency polygon
Social Listening
Definition
process of continuously collecting conversations relating to your company, products, competitors, customers and potential customers
Types of Listening
Historical Data
marketers track past conversations based on a certain period of time
Real-time data
marketers monitor real-time conversation starting from the set date
Applications of Social Listening
Historical Data
track social media strategy/campaign effectiveness or performance
competitive benchmarking
for product development
gain competitive insights
to look out for your key influencers; influencers management
Real-time data
brand reputation
crisis detection & management
Tools for Social Listening
Social Media Platforms
track brand's presence and related keywords on major social media platforms
eg. Facebook, Youtube, Twitter, etc
Considering questions
How will you access your own social standing and see what's trending?
How about your competitors?
Boolean Search
Search method to command google Search engine to crawl for the exact content you are looking for
"Boolean logic"
combining certain concepts and exclude certain concepts when searching databases
type of search that allows users to combine keywords and phrases with operators to further produce relevant results
Most Basic commands for Marketers
Or
And
Not
Quotation marks
Bracket
Third-party Social Listening Tools
advanced tools to specifically listen to social media, keywords and trends to deliver precise results
usually paid
eg. Brandwatch, Meltwater, Synthesio, Sysomos, Radian6, Youscan