MM-II, Term 3, FMG-23

Session 1-2

Introduction to Marketing
Research
Dr. Asif Zameer

Course administration
The MM-II Marketing Course will be administered
through the software Claroline.
All the students of Sec A need to enroll
themselves at claroline.fsm.ac.in in the
MM2AZ1415 course. The study material and
various other announcements will be routed
through this software only.
Registration window is open only for a limited
time.
Assignments / cases will be loaded on this site
only.

Evaluation Scheme

Quiz
: 10%
Class Participation and case analysis
: 10%
Marketing Plan
: 20%
Mid Term exam
: 20%
End Term exam
: 40%
________
Total 100 Marks
--------------

Agenda

Overview and Review of Marketing

concepts

Definition of Marketing Research

A Classification of Marketing Research

Marketing Research Process

The Role of Marketing Research in

Marketing Decision Making

Fundamentals of Marketing Research

Quotes on Marketing
Peter Drucker
Business has only two functions
marketing and innovation
David Packard
Marketing is too important to be left
to the marketing department

Management Definition Of
Marketing
It is the process of planning and

executing the conception, pricing,

promotion and distribution of
ideas, goods and services to create
exchanges that satisfy individual
and organizational goals.
AMA

Contd
Marketing is a social and
managerial process by which
individuals and groups obtain what
they want and need through
creating, offering and exchanging
products of value with others
-Kotler 1991
7

What is Marketing?
Simply put: Marketing is the delivery
of customer satisfaction at a profit.

Core Marketing Concepts

Needs, wants,
and demands

Markets

Exchange,
transactions,
and relationships

Products
and services

Value,
satisfaction,
and quality
9

Is Marketing Research
Needed?

Redefining Marketing
Research
The American Marketing Association
(AMA) redefined Marketing Research
as:
The function that links the consumer, the
customer, and public to the marketer
through INFORMATION

Definition of Marketing
Research
Marketing 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

Marketing Research
Specifies the information necessary to
address these issues
Manages and implements the data
collection process
Analyzes the results
Communicates the findings and their
implications
Helps managers use this information to
make decisions

The Role of Marketing

Research
Customer Groups
Consumers
Employees
Shareholders
Suppliers

Controllable
Marketing
Variables

Marketing
Research

Product
Pricing
Promotion
Distribution

Assessing
Information
Needs

Providing
Information

Uncontrollable
Environmental
Factors
Economy
Technology

Marketing
Decision
Making

Marketing Managers
Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control

Laws &
Regulations
Social & Cultural
Factors
Political Factors

Classification of Marketing
Research
Problem-Identification Research
Research undertaken to help identify problems
which are not necessarily apparent on the surface
and yet exist or are likely to arise in the future.
Examples: market potential, market share, image,
market characteristics, sales analysis, forecasting,
and trends research.
Problem-Solving Research
Research undertaken to help solve specific
marketing problems. Examples: segmentation,
product, pricing, promotion, and distribution
research.

A Classification of Marketing
Research
Marketing Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics
Research
Sales Analysis Research
Forecasting Research
Business Trends Research

Problem-Solving
Research

Segmentation
Research
Product Research
Pricing Research
Promotion Research
Distribution Research

Problem-Solving Research
SEGMENTATION RESEARCH

Determine the basis of

segmentation

PRODUCT
RESEARCH

Test concept

Establish market
potential and
responsiveness for
various
segments

Determine optimal
product design

Select target markets

Brand positioning and

repositioning

Package tests
Product modification

Create lifestyle profiles:

demography, media, and Test marketing

Problem-Solving Research
PROMOTIONAL
RESEARCH
Optimal promotional
budget
PRICING RESEARCH
Pricing policies

Sales promotion
relationship

Importance of price in brand selection Optimal promotional mix

Copy decisions
Product line pricing
Price elasticity of demand

Media decisions

Initiating and responding to price

changes

Creative advertising
testing
Evaluation of advertising
effectiveness

Problem-Solving Research
DISTRIBUTION RESEARCH

Determine
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale
coverage
Channel margins
Location of retail and wholesale
outlets

Marketing Research Process

Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem

Should a new product be

To determine consumer preferences
introduced? and purchase intentions for the
proposed new product

Should the advertising

To determine the effectiveness
campaign be changed?
of the current advertising
campaign

Should the price of the

To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels
of price changes

The Problem Definition

Process
Tasks Involved

Discussion
with
Decision Maker(s)

Interviews
with
Experts

Secondary
Data
Analysis

Qualitative
Research

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem
Marketing Research Problem

Step II: Approach to the Problem

Objective/
Theoretical
Foundations

Analytical Model:
Verbal, Graphical,
Mathematical

Research
Questions

Step III: Research Design

Hypotheses

Specification
of
Information
Needed

Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components

Components of an
Approach

Objective/Theoretical Foundations

Analytical Model

Research Questions

Hypotheses

Specification of the Information

Needed

Models
An analytical model is a set of
variables and their
interrelationships designed to
represent, in whole or in part,
some real system or process.

Graphical Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
Awareness

Understanding: Evaluation

Preference

Patronage

Mathematical Models
Mathematical models explicitly specify

the relationships among variables,

usually in equation form.

a x

i 1

Where
y = degree of preference

a= ,amodel parameters to be
0

estimated
statistically

Development of Research
Questions and Hypotheses
Components of the
Marketing Research Problem
Objective/
Theoretic
al
Framewor
k
Analytic
al
Model

Research Questions

Hypotheses

Research Questions and

Hypotheses
Research questions (RQs) are

refined statements of the specific

components of the problem.

A hypothesis (H) is an unproven

statement or proposition about a
factor or phenomenon that is of
interest to the researcher. Often,
a hypothesis is a possible answer
to the research question.

Retail Store Project

RQ: Do the customers of Big Bazaar
exhibit store loyalty?
H1: Customers who are store-loyal
are less knowledgeable about the
shopping environment.
H2: Store-loyal customers are more
risk-averse than are non-loyal
customers.

Retail Store Project

Specification of Information Needed
Component 1
The researcher identified the following factors as
part of the choice criteria: quality of merchandise,
variety and assortment of merchandise, returns
and adjustment policy, service of store personnel,
prices, convenience of location, layout of store,
credit and billing policies.

Component 2
The researcher identified three stores as
competitors to BB based on discussions with
management. The respondents should be asked
to evaluate BB and its three competitors on the
eight choice criteria factors.

Retail Store Project

Component 3

Sixteen different product categories

were selected, including women's
dresses, women's sportswear, food
items, junior merchandise, men's
apparel, cosmetics, jewelry, shoes,
sheets and towels, furniture and
bedding, and draperies. The
respondents should be asked whether
they shop at each of the four stores
for each of the 16 product categories.

Retail Store Project

Component 4

Information should be obtained on

the standard demographic
characteristics and the
psychographic characteristics of
store loyalty, credit use,
appearance consciousness, and
combining shopping with eating.

Scale
Nominal

Ordinal

Interval

Primary Scales of
Measurement
Numbers
Assigned
to Runners

Seconds

Rank Order
of Winners

Performance
Rating on a
0 to 10 Scale

Ratio

Finish

Time to Finish
in

Finish
Third
place

Second
place

First
place

8.2

9.1

9.6

15.2

14.1

13.4

Primary Scales of
Measurement
Nominal
Scale
The numbers serve only as labels or tags for identifying
and classifying objects.

When used for identification, there is a strict one-to-one

correspondence between the numbers and the objects.
The numbers do not reflect the amount of the
characteristic possessed by the objects.
The only permissible operation on the numbers in a
nominal scale is counting.
Only a limited number of statistics, all of which are
based on frequency counts, are permissible, e.g.,
percentages, and mode.

Primary Scales of
Measurement
Ordinal Scale

A ranking scale in which numbers are assigned to

objects to indicate the relative extent to which the
objects possess some characteristic.
Can determine whether an object has more or less of a
characteristic than some other object, but not how much
more or less.
Any series of numbers can be assigned that preserves
the ordered relationships between the objects.
In addition to the counting operation allowable for
nominal scale data, ordinal scales permit the use of
statistics based on centiles, e.g., percentile, quartile,
median.

Primary Scales of
Measurement
Interval
Scale
Numerically equal
distances on
the scale represent equal
values in the characteristic being measured.

It permits comparison of the differences between objects.

The location of the zero point is not fixed. Both the zero
point and the units of measurement are arbitrary.
Any positive linear transformation of the form y = a + bx
will preserve the properties of the scale.
It is not meaningful to take ratios of scale values.
Statistical techniques that may be used include all of
those that can be applied to nominal and ordinal data, and
in addition the arithmetic mean, standard deviation, and
other statistics commonly used in marketing research.

Primary Scales of
Measurement
Ratio Scale
Possesses all the properties of the nominal,
ordinal, and interval scales.
It has an absolute zero point.
It is meaningful to compute ratios of scale values.
Only proportionate transformations of the form y
= bx, where b is a positive constant, are allowed.
All statistical techniques can be applied to ratio
data.

Primary Scales of
Measurement

Comparative Scaling
Techniques
Paired Comparison Scaling

A respondent is presented with two objects and

asked to select one according to some criterion.
The data obtained are ordinal in nature.
Paired comparison scaling is the most widely used
comparative scaling technique.
With n brands, [n(n - 1) /2] paired comparisons
are required.
Under the assumption of transitivity, it is possible
to convert paired comparison data to a rank order.

Comparative Scaling
Techniques
Rank Order Scaling

Respondents are presented with several

objects simultaneously and asked to order
or rank them according to some criterion.
It is possible that the respondent may
dislike the brand ranked 1 in an absolute
sense.
Furthermore, rank order scaling also
results in ordinal data.
Only (n - 1) scaling decisions need be
made in rank order scaling.

Itemized Rating Scales

The respondents are provided with a scale that
has a number or brief description associated with
each category.
The categories are ordered in terms of scale
position, and the respondents are required to
select the specified category that best describes
the object being rated.
The commonly used itemized rating scales are the
Likert, semantic differential, and Stapel scales.

Semantic Differential Scale

The semantic differential is a seven-point rating scale

with end
points associated with bipolar labels that have semantic
meaning.
SEARS IS:
Powerful --:--:--:--:-X-:--:--: Weak
Unreliable
Modern

--:--:--:--:--:-X-:--: Reliable

--:--:--:--:--:--:-X-: Old-fashioned

The negative adjective or phrase sometimes appears at

the left side of the scale and sometimes at the right.

This controls the tendency of some respondents,

particularly those with very positive or very negative
attitudes, to mark the right- or left-hand sides without
reading the labels.

A Semantic Differential Scale for

Measuring Self- Concepts, Person
Concepts, and Product Concepts

1) Rugged

:---:---:---:---:---:---:---: Delicate

2) Excitable

:---:---:---:---:---:---:---: Calm

3) Uncomfortable

:---:---:---:---:---:---:---: Comfortable

4) Dominating

:---:---:---:---:---:---:---: Submissive

5) Thrifty

:---:---:---:---:---:---:---: Indulgent

6) Pleasant

:---:---:---:---:---:---:---: Unpleasant

7) Contemporary

:---:---:---:---:---:---:---: Obsolete

8) Organized

:---:---:---:---:---:---:---: Unorganized

9) Rational

:---:---:---:---:---:---:---: Emotional

10) Youthful

:---:---:---:---:---:---:---: Mature

11) Formal

:---:---:---:---:---:---:---: Informal

12) Orthodox

:---:---:---:---:---:---:---: Liberal

13) Complex

:---:---:---:---:---:---:---: Simple