BASICS OF MARKETING I

1. BASICS OF MARKETING I Session 5 Understanding marketing research SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

2. Learning Objective • To understand the marketing research process • To understand the tools used in marketing research SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

3. Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

4. Reasons for MR • One major reason for undertaking marketing research is to discover market opportunities • To determine current demand, companies determine total market potential, area market potential, industry sales, and market share • To determine future demand, companies survey buyers’ intentions, solicit input from sales force, gather expert opinions, engage in market testing. SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

5. The Research Process Stages of the MR process : • Problem definition • Setting research objectives • Developing a research design • Deciding on the sources of data • Data collection • Data analysis • Report and presentation SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

6. Problem Definition • Avoid ambiguity • Be specific but not too rigid • Do not confuse problems with symptoms SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

7. Research Objectives Should be • Measurable • Specific SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

8. Research Design • Exploratory : Used when a researcher does not know why and how a certain phenomenon occurs • Descriptive : Used to describe a phenomenon or market characteristic • Causative : is done to establish a cause and effect relationship SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

9. Sources of Data • Secondary data : Data previously collected for any purpose other than the one at hand • Sources : CMIE reports, NRS, NCAER reports, Marketing White book etc and THE INTERNET SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

10. Advantages of Secondary Data • Saves time and money if on target • Aids in determining direction for primary data collection • Pinpoints the kinds of people to approach • Serves as a basis of comparison for other data SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

11. Disadvantages of Secondary Data • May not be on target with the research problem • Quality and accuracy of data may pose a problem SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

12. Primary Data Primary data : Information collected for the first time. Can be used for solving the particular problem under investigation. SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

13. Advantages of Primary Data • Answers a specific research question • Data is current • Source of data is known • Secrecy can be maintained SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

14. Disadvantages of Primary Data • Expensive • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

15. Collection of Primary Data • Census: collecting data from the entire population • Sample : refers to a pie taken from the population. It has to drawn carefully so that the conclusions can be extrapolated SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

16. Primary Data Collection • Observation : This technique involves observing what the customer is buying and doing in the store • Experimentation: This involves experimenting new products, new advertising campaign etc in a controlled or uncontrolled environment • Surveys : The most common technique. Can be done in person as well as through telephone, post etc. However, data collection is expensive and may involve researcher bias • Focus groups : This is used to know about the customer’s subconscious self SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

17. Tools • Questionnaires : Structured form of data collection • Interview schedule :Unlike questionnaires, the responses can be unstructured • Association tests : Are used to understand the psychological dimension of consumer behavior e.g. describing brand as a human being SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

18. Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. Closed-Ended Question An interview question that asks the respondent to make a selection from a limited list of responses. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design Ref: Marketing by Lamb SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

19. Data Analysis and Report & Presentation • Data Analysis Data analysis involves application of statistical tools & techniques. We will deal with the same in subsequent semesters. • Report & Presentation The findings of the research should be presented in order to give answers to the research objectives identified. SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I

20. Management Uses of Marketing Research • Improve the quality of decision making • Trace problems • Focus on keeping existing problems • Understand the ever-changing marketplace SBA SEMESTER ONE SESSION 5 BASICS OF MARKETING- I