MARKETING RESEARCH



MARKETING RESEARCH

SUMMARY OF STUDY UNIT 5

1. Discuss how marketers can develop research objective.

The first step is to identify and define the nature and scope of the marketing problem also referred to as the decision-making problem or marketing opportunity. The problem or opportunity is demarcated where hypotheses are formulated and then redefined as a clearly formulated research problem. The outcome of the research problem will then result in the development of the research questions and objectives.

2. Explain what a research design entails.

Research design is the framework or plan for the research project that is used to guide data collection and analysis. The design ensures that the study addresses the relevant problem in the most cost effective manner. Research design is classifies into three fundamental objectives, namely exploratory, descriptive and causal studies.

2.1 Exploratory studies

Exploratory researches are intended to explore a relatively unknown area, it is necessary when more information is required regarding the problem, opportunity or phenomenon. The objectives of exploratory research are:

• To acquire new insight into the phenomenon

• To be a preliminary survey before a more structured study of the phenomenon.

• Explain central concept and constructs.

• Determine priorities for further research.

• To develop new hypotheses about an existing phenomenon.

The objective of exploratory study is to acquire insight and develop understanding rather than to collect accurate, replicable data. It is involve in conducting in depth interviews, analysing case studies and using sourcrses. Exploratory research gives rise to hypotheses. The following methods are used for conducting exploratory research:

• Secondary data analysis: a survey of existing relevant literature.

• Experience research: a survey among people with practical experience of the problem.

• Case studies: an analysis of examples that stimulate insight.

• Pilot studies: information collected from the actual subjects of the research project that will serve as a guide for the larger study.

2.2 Descriptive studies

When the knowledge of a particular market or the nature of the competition in a particular industry is unclear, descriptive research is necessary to be conducted. Descriptive research can describe opportunities or threats and answer the question: who, what, when, where and why. The most important methodology is to collect accurate information or data on the phenomenon under consideration. Method used are longitudinal and cross-sectional studies.

2.2.1 Longitudinal studies

• Continuous or true panels rely on the repeated measurement of the same variables.

• In discontinuous or omnibus panels the information collection collected from the members of the panel varies.

2.2.2 Cross-sectional studies

• A snapshot of the variable concerned is provided at a given point in time.

• The sample of elements is representative of the target population.

2.3 Causal studies

Causality between variables or occurrences is shown by the causal study. The research is conducted to reveal cause and effect between the dependent and independent variables. The independent variable the researcher has control, whereas the dependent variable is a concept caused by the independent variable. Causal researches are conducted by means of laboratory or field experiments:

• Laboratory experiments. Researchers create the exact conditions of the situation in an artificial environment in order to control and manipulate variables and investigate the results.

• Field experiments. Experiments are conducted in a natural setting, or real market conditions, where complete control of extraneous variables is not possible.

N: B. Study figure 4.3 on page 57 of the prescribe book for the different research designs.

3. Explain how to determine a research frame

When conducting primary research, marketers should select respondents who are representative of all customers from whom the information is needed. Depending on the problem or opportunity under investigation, marketers could either conduct the research by means of sample or by using a census.

3.1 Sampling

In sampling a group of individual, house hold or companies is identified within the population. The group is then contacted through postal surveys, telephone interviews or personally to obtain information that can be used to draw specific conclusions or make generalisation about the whole population.

The following aspects are important for successful sampling:

• Clearly defining the population

• Defining the sampling frame.

• Selecting a sampling strategy.

• Determining the sample size.

• Selecting sample elements.

3.2 Census

A census refers to those situations where data are obtained from or about every member of the population of interest. The aim of survey is to obtain information about certain characteristics of the population as a whole. If every element of the population is studied or investigated, the survey is called census survey.

4. Discuss the marketing research process

The marketing research process is an orderly and systematic procedure that provides reliable information for decision making. It is the logical sequence of steps followed to collect the data required for decision making which comprises of 11 steps which are identified as follows: (N:B page 31 of the prescribed book)

Define the problem

The first stage of a problem is a vague feeling that something is wrong. The marking manager must then communicate this feeling to the researcher, who in turn begins by investigating the actual market situation using the SWOT analysis, and formulate hypotheses in the process. Information can differ base on the hypotheses that are proposed. After investigating the actual situation and demarcating the marketing problem or opportunity, the problem is reformulated as a clearly defined research problem or opportunity. A problem well defined is half solved, and this is the core of the marketing research process.

Identify the research objectives.

If a marker has identified the problem and would want to solve it, this is refer as the research objectives. Three basic aspects should be considered by the marketers:

• Research question. This are refined statement of the components of the research problem. Research problems typically begins with “what is or was?; what happened?, why? What are the causes of? How many? To what degree.

• Development of hypotheses. This is a provisionally accepted statement of the formulated marketing problem or opportunity, which defines the area of research and indicates the direction of the research.

• Research scope. These involve a wide coverage regarding what the researcher wants to cover in terms of the problem.

Develop a research design

The research design is the plan of how the research investigation will be conducted. The data required and the procedures for collecting, processing and analysing the data are specified. So the researcher must establish in advance the type of data needed, where to find it, what collection methods and techniques to use, the target market and how the collection data will be analysed.

Conduct secondary research

Researchers will start with secondary data when a marketing problem or opportunity arises. Secondary data is historic data that has been gathered either by the enterprise or outsiders for a purpose other than the study in question. Secondary data can either be internal (company records) or external data sources (libraries). The researcher must analyse the secondary data in terms of relevance, accuracy, reliability and then depending on the research problem and objective, decide whether to undertake a formal marketing research investigation. If with the information at hand it is clear that the problem can be solve, there will be no need for further marketing research.

Select a primary research method.

Primary data is information which is collected for the first time for the purpose of solving the problem or to utilise for an opportunity. Primary data can be obtained from internal sources such as staff. External sources can be consumers or customers, retailers, wholesalers and competitors. Primary data can be collected by observation, experimentation or surveys, each utilising different techniques like by telephone, mail, fax, internet or personal interviews.

Design the questionnaire

The two most important research instruments for collecting primary data are questionnaire and mechanical or electronic equipment. These instruments are used during observation, experimental and survey. Questionnaires are most common instrument used for collecting primary data. Mechanical or electronic equipment can be used to collect primary data; instruments used are galvanometers, tachistoscopes, cameras, electronic and mechanical meters.

Design the sample plan

The researcher identifies the individuals or respondents who should be participating in the research. A scientific sample of the population must be taken if the survey population is too large for a comprehensive survey.

Conduct the investigation (fieldwork)

This step is the physically implementation of the research plan. Once the researcher knows who will be involve in the investigation, the data collection methods and instrument are used. The investigation or fieldwork therefore entails the actual collection of the primary data from the sample elements. Given the chance that errors can be made during the process, the interviewers (fieldworkers) must be trained and supervised.

Prepare and process the primary data

Collected data must be prepared and processed, edited, coded and tabulated to facilitate processing and analysis. Large surveys that require computer processing, questionnaires are coded in advance for speedy data entry into the computer.

Analyse the primary data.

The researcher’s task is to study the processed data and convert it into relevant information for decision makers. There are various data analysis methods, from very simple to highly refined methods such as multivariate analysis techniques. Multivariate (many variables) analysis is when relations among three or more variables are analysed simultaneously. It employs techniques such as multiple regression, cluster analysis, factor analysis and conjoint analysis.

Interpret the results and compile the research report

The success of the marketing research process is determined by the interpretation of the results and the conclusions drawn. The information and conclusion must then be communicated to the marketing manager of the decision makers concerned in the form of a research report. The report must be comprehensible, relevant, clear, pithy and well structured so that meaningful decision can be made about the marketing problem or opportunity. The results must be explained than just providing a summary of the findings. A verbal report must also be done by the researcher, together with a written report. Once this report communicated, the researcher’s task is done. Guided by the report, the marketing manager implement the decision regarding the original marketing problem or opportunity.

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