Lect-01 Muhammad Akram Naseem Atta Ul Haq

TEXT BOOK

4/24/2013

Muhammad Akram Naseem(Lect-1)

Course Objective
This course will enable the students to

1.Sharpen the analytical (logical, argument)

skills about marketing Research 2.Develop understanding of the research concerns 3.Conduct research by applying whole steps

Assessment Details

Attendance + Class participation Assignments Quiz Presentation Mid term Final term

(10%) (10%) (10%) (10%) (30%) (30%)

Course Regulations & Requirements

1.Plagiarism and cheating will not be tolerated 2.Ask permission
3. Late assignments
4.Please turn off your cell phones 5.Please come to class before teacher
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Market

A regular gathering of people for the purchase and sale provisions, livestock, and other commodities A public place where buyers and sellers make transactions, directly or via intermediaries.

Type of Markets

Marketing?
A way of thinking to satisfy the needs and wants of the customers

Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) Source: American Marketing Association

Marketing
One line definition of Marketing Satisfaction of the Customer

Types of Marketing
Internet Marketing Offline Marketing Outbound Marketing Search Marketing Direct Marketing Niche Marketing Drip marketing Social Media Marketing Referral Marketing Guerrilla Marketing Direct Mail Marketing Promotional Marketing Affiliate Marketing Viral Marketing

Inbound Marketing
Newsletter Marketing Article Marketing Trade Show Marketing Database Marketing Personalized marketing

B2B Marketing
B2C Marketing Mobile Marketing Reverse Marketing Telemarketing

Marketing Plan
It is basically the tactics / strategies through which we perform all the activities

Marketing Mix
Four Ps of marketing mix are 1-Product 2-Price 3-Promotion 4-Place( Distribution)

Product
Attributes of the product Benefits How it is different from competitors How packaging designed Warranty ,after sale service( Non Price Services)

Price
Elasticity of Demand Price of the competitors Segment of population Purchasing power of the customers Constant or Variable

Promotion
Marketing Communication (How information about product distributed) Product life cycle Advertisement Publicity

Place / Distribution
Channel of distribution Wholesaler------Retailer--------consumer Producer---------Retailer---------Consumer Agents Exclusive (only one) Intensive (very much) Selective (few)

Consumer Behavior

Knowledge about customer

Who are our customers, What are their Preference

Frequency of buying , influence of advertisement

Where do they buy(Outlet Types)- Maslow theory of five needs

Research
Research is one of the ways to find answers to your questions. OR Simply the process of finding solutions to a problem after through study and analysis of the situational factors

 Marketing Research is the function that links the consumers, customer and public to the marketing through informationInformation 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,design the method of collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications
Source: American Marketing Association Official Definition

Why Study Research?

Research provides you with the knowledge and skills needed for the fast-paced decisionmaking environment

Assignment-1
Make a list of national and international journals of marketing along with their web sites Make a list of national and international marketing magazine along with their web sites Make a list of National and international Marketing Research Companies along with their web sites Download a research paper from one of the marketing journal and present that paper in 24th September,2012

"The secret of success is to know something nobody else knows. "

Aristotle Onassis

HAVE A NICE TIME

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 Lect-02 Muhammad Akram Naseem

Why Marketing Research(MR) is important for Marketing?

Who can conduct MR Internal Department

Marketing Research Company

How to finalize the MR company?

Advertise Get Proposal Evaluate 1-Reputation 2-Past History about Projects 3-Time Lines 4-Quality of Project 5- Human Resource 6- Cost

Successful Marketing Research(SMR)

Relevant (not to satisfy curiosity) Efficient (Output>input, Cost benefit Analysis) Timely (Deadline) Accurate(Data must be accurate)

 Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behaviour
1-http://www.iep.utm.edu/ethics/

Ethics varies with respect to age, Religion, profession,gender,geographically etc.

 Ethics towards Client

(Loyalty)

Ethics towards Respondent (Confidentiality) Ethics towards Profession (Honesty)

Determining When to Conduct Marketing Research

Availability of Data Time Constraints
Is sufficient time available before a managerial decision must be made?
Yes

Benefits Nature of the Decision vs. Costs

Is the decision Yes of considerable strategic or tactical importance? Does the value of the research Yes information exceed the cost of conducting research?

Is the information already Yes on hand inadequate for making the decision?

Conducting Marketing Research

No

No

No

No

Do Not Conduct Marketing Research

Research Process
1.Establish Need for MR 2.Define Research Problem 3.Objective 4.Research Designs 5.Types and Sources of Data 6.Sample Size (Sampling) 7.Design Data Collection Instrument 8.Data Collection 9.Data Analysis 10.Prepare and Present Research Results

1-Need for Marketing Research

Start from Dilemma
A situation in which a difficult choice has to be made between two or more alternatives, esp. equally undesirable ones.

Meeting with Marketing Manager Cost Benefit Analysis

2.Define Problem
The most important step Symptoms and problem should be determined Problem identification is half the solution Decaling the sale of a certain product is a symptom not a problem, identify the problems

3-Formulation of objective
Objectives are the goals you set out to attain in your study. What you want to achieve through study. Irrespective of the type of research, the objective should be expressed in such a way that the wordings clearly, completely, and specifically communicate to your readers your intention.

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Establish Research Objective

Research Objectives derived from problem definition Objective: Determine the level of satisfaction of our product/service Research Question: What is the satisfaction level of our customer

Management Problem--------Research Problem Packaging which type of packaging

Research Designs

Research design is a plan or blueprint for conducting the marketing research project. It specifies the details of the methods and procedures necessary for collecting and analysing data for the project. It is a set of advance decisions that make up the master plan for collection and analysis of the data.
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Descriptive Research
To describe the characteristics of population, It determines the answers to ,WHO,WHAT ,WHEN,WHERE, and HOW Questions

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Exploratory Research
Exploring the problem Very little knowledge available 1.Gain Background Information 2. Precision and Clarity in the Problem 3. Develop Hypotheses 4. Establish Research Priorities 5. Define Terms
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Conclusive Research Design

Exploratory research is generally followed by the conclusive research. Conclusive research is typically more formal than exploratory research. It is based on large representative samples and data gathered are quantitatively analyzed

Differences between Exploratory and Conclusive Research

Exploratory Conclusive
To generate test and specific hypothesis Analysis of data is quantitative Formal and structured process Information clearly defined Representative and large sample Final-conclusion

Objective
Characteristics

To bring insight and understanding

Analysis of primary data are qualitative Flexible, unstructured and informal process Information obtained are loosely defined

Representative Sample small and non representative Conclusions Outcome

Tentative Followed by conclusive or further exploratory research

Findings used as input in decision

making

Causal Research
To know about the effect of some independent variable on dependent variable. e.g: dependent variable: Sale Independent variable: Cost of Adv

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Difference between Managers and Researchers

Manager-line, decision making, make profit, want answer to questions, emotional, political, want the symptoms disappear, Practical-pragmatic. Researcher-staff, generate info, want to ask questions, scholarly, detached, unemotional, nonpolitical,want to find the truth.

Management/Research Problem
Management Problem It is a decision making situation confronting the marketing manager emerging from problems (low performance of the product) opportunities (new trends) or symptoms (market share declining).

Management/Research Problem
Research Problem Marketing research is defined as providing relevant, accurate, unbiased information that managers can use to solve their marketing management problem. Research problem is defined on the basis of management problem, it is critical that management problem be defined accurately and fully.

Example of Relationship between Decision and Research Problem

Decision problems

Research problems

Evaluate effectiveness of alternative Develop packaging for a new packaging designs product Increase market penetration Evaluate prospective locations through the opening of new stores
Increase store traffic
Allocate advertising geographically
Introduce new product

Measure current image of the store

budget Determine current level of market

penetration in respective areas

Design test market and do market testing to check the acceptance of the new product

Constructs and Operational Definitions

Construct
Brand awareness

Operational definition
Percentage of respondents having heard of the brand Number of people who remember seeing an ad What they can tell about the product How they evaluate its performance

Recall of ad
Knowledge of product Satisfaction

Brand loyalty

How many times they bought the brand in the last six months

Process of Defining the Research Problem

Discussion with manager Interview with experts Secondary data analysis Preliminary research

Environmental Context of the Problem Definition

Management Decision Problem

Research Questions

Marketing Research Problem

Information needs

Examples of Marketing Management and Marketing Research Problems

Example I Marketing Management Problem Alpha company has a long history of successful marketing of business planning products such as calendars, appointment books, diaries etc for business people. In the last few years their sales has shown decline despite booming economy and business expansion. Management believes this fall in sales can be attributed to the competitive strategy particularly xyz group. It may also be due to electronic scheduling books or softwares that are available now. Thus Alpha must determine the causes of decline and suggest suitable marketing actins to counter the decline.

Examples of Marketing Management and Marketing Research Problems

Research should be conducted to identify what competitors actions have adversely affected Alphas sales. It should also be determined if customers of the traditional day planners are switching over to electronic day planners and software scheduling systems

Examples of Marketing Management and Marketing Research Problems

Specific Research Objectives 1. Trace market share of the competitors of the traditional day planners over the past five years. 2. Determine changes of the competitors marketing strategy (i.e. 4Ps) for the same period. 3. Evaluate the customers potential for the adoption of electronic scheduling books and integrated software schedulers programs.

Methods of Data Collections

Experiment

Survey

Experiment
A research investigation in which conditions are controlled One independent variable is manipulated (sometimes more than one) Its effect on a dependent variable is measured To test a hypothesis

 The experimenter has some degree of control over the independent variable. The variable is independent because its value can be manipulated by the experimenter to whatever he or she wishes it to be.

Variables in Experiments
Independent variables Dependent variables

Advantages of an Experiment?
Researchers ability to manipulate the independent variable Contamination from extraneous variables can be controlled more efficiently Convenience Cost Replication

Disadvantages of Experiments
Artificiality of the laboratory Generalization from nonprobability samples Larger budgets needed Restricted to problems of the present or immediate future Ethical limits to manipulation of people

Experimentation Process
Select relevant variables Specify the treatment levels Control the experimental environment Choose the experimental design Select and assign the participants Pilot-test, revise, and test Analyze the data

Data Collection
The data can collect by two sources Primary Source

The first hand data is called primary data or the data which is collected by the researcher by
observation, Interviewing questionnaire, mail (surface-mail) or telephone

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Secondary data:
The data on which at least one statistical tool is applied is called the secondary data, or The data which is collected by someone and we use that data. Sources of secondary data are
News papers/ magazine/ digest/ research journals/ Government publications

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Comparison of Secondary and Primary Data

Items
Purpose Process

Secondary
other project quick and easy

Primary
this project
time taking

Cost
Time

relatively low
short

high
Low

Advantages and disadvantages of secondary data

Advantages
Easily accessible
Disadvantages

Data fit problem

May be outdated
Relevance is doubtful May not be accurate

Relatively inexpensive
Rapidly obtained

Sources of Secondary Data (internal)

1. Sales data (by product, period, territory) 2. Cost data 3. Accounting data 4. Shipping data 5. Budgets 6. Sales calls data 7. Record of advertising and promotion 8. Manufacturing reports 9. Quality check report 10. Sales return reports 11. Customer complaint reports 12. R & D reports.

Sources of Secondary Data (External)

Published Sources Databases Computerized Databases

Observation,

Is one way to collect primary data. Observation is purposeful, systematic and selective way of watching and listening to an interaction to an interaction or phenomenon as it takes place

Observation is most apropriate ???

When you are more interested in behavior than in the perceptions of individuals

Advantages of the Observational Method

Collect the original data at the time it occurs Secure information that participants would ignore because its so common it is not seen as relevant Only method available to collect certain types of data

Advantages of the Observational Method

(cont.)

Capture the whole event as it occurs in its natural environment Participants seem to accept an observational intrusion better than they respond to questioning

Limitations of the Observational Method

Observer or recording equipment must be at the scene of the event when it takes place Slow process Expensive process Most reliable results are restricted to information that can be learned by overt action or surface indicators

Limitations of the Observational Method

(cont.)

Research environment is more likely suited to subjective assessment and recording of data than to quantification of events Limited as a way to learn about the past Cannot observe rationale for actions, only actions themselves

Types of Observations
Participant To know about public re-actions The group / individual has no knowledge that they are being observed Non-Participant Watching & Listening of activities

Problems with using observation as method of Data collection

1. Hawthorne effect

2. Observer biasdness

3. Misinterpretation

4. Incomplete observation

The recording of observation

Narrative

Scales
A study of the nature of interaction in a group Positive Participation
5 4 3 2 1

Neutral
0 1

Negative
2 3 4 5

Confidence

Aggressiveness

Friendliness

Supportive

The recording of observation

Problems: errors of central tendency

Elevation effect
Halo effect

Categorical recording

Mechanical devices

Interview
Any person to person interaction between two or more individuals with a specific purpose in mind is called an interview.

Types of Interviews
Unstructured Interview Structured Interview

Flexible interview structure

Flexible contents
Flexibility in questions

Predetermined: set of questions, wording, order and language as specified in schedule.

Types of Un-structured Interview

In-depth Interviews
Focus group Narratives Oral histories

The Questionnaire

A written list of questions, the answers to which are recorded by respondents.

Difference between interview schedule and a questionnaire The only difference between an interview schedule and a questionnaire is that in the former it is the interviewer who asks the questions (and if necessary, explains them) and records the respondents replies on an interview schedule and in the latter replies are recorded by the respondents themselves.

Points to take care while making questionnaire

Questions are clear and easy to understand

Easy to read and pleasant to the eye

Sequence of questions should be easy to follow

Questionnaire should be interactive style

Sensitive questions should be prefaced by an interactive statement explaining the relevance of the question

Choice between an interview schedule and a questionnaire The choice depends on the following criteria:

1. The nature of Investigation:

2. The geographical distribution of the study population

3. The type of study population

Ways of administering a questionnaire

The mailed questionnaire

Collective administration
Administration in a public place

The Contents of covering letter

Introduce you and the institution you are representing; Describe in two or three sentences the main objectives of the study Explain the relevance of the study Convey the general instructions Indicate that participation in the study is voluntary if recipients do not want to respond to the questionnaire, they have the right not to;

contd---

The Contents of covering letter

Assure respondents of the anonymity of the information provided by them;
Provide a contact number in case they have any questions

Give a return address for the questionnaire and a deadline for its return;
Thank them for their participation in the study;

Questionnaire
Advantages It is less expansive Disadvantages Application is limited

It offers greater anonymity

Response rate is low

There is a self selection bias Opportunity to clarify issues is lacking Spontaneous responses are not allowed The response to a question may be influenced by the response to other question It is possible to consult others

Interview
Advantages
More appropriate for complex situations
Useful for collecting in-depth information

Disadvantages
Interviewing is time-consuming and expensive
The quality of data depends upon the quality of the interaction

Information can be supplemented

Questions can be explained Has a wider application

The quality of data depends upon the quality of the interviewer

The quality of data vary when many interviewers are used The researcher may introduce his/her bias The interviewer may be biased

Forms of questions
Open ended Close ended

The possible responses are not given

The possible answers are set out in the questionnaire or scheduled and the respondent or the investigator ticks the category that best describe the respondents answer

Examples of Close ended questions

A. Please indicate your age by placing a tick in the appropriate category Under 15
15-19 year 20-24 years

B. How would you describe your current marital status? Married Single Divorced Seperated

Examples of Close ended questions

C. What is your average annual income? under 10,000 10,000-19,999 20,000-29,999 30,000-39,999 40,000+ C (a) . What is your average annual income? above average average below average

Examples of Close ended questions

D: What, in your opinion, are the qualities of a good administrator

Able to make decisions Fast decision maker Able to listen Impartial Skilled in interpersonal communication Others, please specify: ________________________________________

Examples of Open ended questions

A.What is your current age? ---------- years B. How would you describe your current marital status?--------C.What is your average annual income?-------------------rupees D. What, in your opinion, are the qualities of a good administrator? 1.------------2.-------------3.-------------4.-------------5.--------------

Open-ended Questions
Advantages
In depth information* Respondent feel comfortable about expressing their opinion Opportunity to express themselves freely, resulting in a greater variety of information. Eliminate the possibility of investigator bias
* if used in interview by an experienced interviewer

Disadvantages
Analysis is more difficult Some respondents may not be able to express themselves, and so information can be lost

Close-ended Questions
Advantages
Help to ensure that the information needed by the researcher is obtained Easy to analyse

Disadvantages
Lack in depth and variety Possibility of investigator bias Answers provided may not truly reflect respondents opinion Tick a category or categories without thinking through the issue

Considerations in formulating questions

Always use simple and everyday language. Do not use ambiguous questions Are you satisfied with your canteen? Do not ask double-barreled questions How often and how much time do you spend on each visit? Do not ask leading questions Unemployment is increasing, isnt it? Smoking is bad, isnt it Do not ask questions that are based on presumptions How many cigarettes do you smoke in a day? Order of questions Logical or random

Construction of research instrument

Step I: if you have not already done so, clearly define and lit all the specific objectives or hypothesis, if any to be tested Step II: For each objective, or hypothesis, list all the associated questions that you want to answer through your study Step III: Take each research question identified in step II and list the information required to answer it Step IV: Formulate question(s) to obtain this information

Prerequisites for data collection

Motivation to share the required information Clear understanding of the questions Possession of the required information