RESEARCH FOR MARKETING

1. Created by Jude Asongwe RESEARCH FOR MARKETING Source: Principles of Marketing by Philip kotler - 4th E. Edition.

2. Created by Jude Asongwe Marketing Research CONTENTS • The Research process What is Research Why research The research plan B) Types of Research Desk or Secondary Research Field or Primary Research Market and Marketing Research Quantitative and Qualitative Research Source: Principles of Marketing by Philip kotler - 4th E. Edition.

3. C) Sources of Information External and Internal sources Macro-statistical and Micro-statistical information Government sources External database D) Research Methods Interviews and Discussions Observation Questionnaires Test Marketing Sampling Source: Principles of Marketing by Philip kotler - 4th E. Edition.

4. Created by Jude Asongwe Contents: Marketing research E) Using External Research Agencies In-house or External? Finding, Selecting and Recruiting an Agency Briefing Controlling F) Information Systems Management Information Systems (MIS) Marketing Information Systems Content and Purpose of MKIS Source: Principles of Marketing by Philip kotler - 4th E. Edition.

5. Created by Jude Asongwe Marketing research LEARNING OBJECTIVES After reading this chapter, you should be able to: • Explain the meaning of marketing research • Explain the importance of information to the company. • Describe the marketing information system and discuss its parts • Describe the four steps in the marketing research process • Compare the advantages and disadvantages of various methods of collecting information • Discuss the main methods for estimating current market demand • Explain specific techniques that companies use to forecast future demand. • Explain the types of marketing research, the research techniques and research instruments. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

6. Created by Jude Asongwe WHAT IS RESEARCH Marketing Research is the systematic process of gathering, recording, analysing and reporting of all facts relating to the transfer and sale of goods and services from producers to consumers. It is usually based on statistical probability theory and always uses scientific methods. Research is the Gathering Analysis Storage Retrieval and Dissemination of information to aid in decision making: Steps taken in the research activity. Source: Principles of Marketing by Philip kotler - 4th E. Edition. Source: Association of business executives

7. Created by Jude Asongwe Other definitions • Marketing research is the function that links the consumer, and the public to the marketer through information that is used to identify and define marketing opportunities and problems to generate, refine and evaluate marketing action, to monitor marketing performance and to improve understanding of the marketing process.( Philip Kotler – principles of marketing 4th European Edition) • Marketing research is the systematic design, collection , analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Philip Kotler- principles of marketing - 3rd European Edition). Source: Principles of Marketing by Philip kotler - 4th E. Edition.

8. Created by Jude Asongwe WHY RESEARCH • To find out cost involved in advertising • To find out what customers want to buy • To determine which distribution methods are more efficient • To analyze what competitors are doing • To reduce risk • To help in planning and forecasting results • To aid the ‘Marketing mix decisions’: Product, price, place, promotion, people, physical evidence and processes. • To improve decision-making capabilities • To find out about the size, composition and trends in the market. Thus, research is necessary in marketing if the organization is to reduce risks and carry out its plans successfully and with minimum effect. To put it another way: research is a management tool which, in tandem with other available management techniques, can help a much more effective outcome to be achieved. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

9. Created by Jude Asongwe THE MARKETING RESEARCH PROCESS Implementing The research Plan- Collecting and Analysing the data Interpreting And reporting The findings Defining the problem And research objectives Developing The research plan for Collecting information Source: Principles of Marketing by Philip kotler - 4th E. Edition.

10. Created by Jude Asongwe INTERNATIONAL MARKETING RESEARCH AND ANALYSIS THE MARKETING RESEARCH PLAN: (WH QUESTIONS) The research plan includes objectives, strategies and programmes and above all it should be logical and structured. What are the research problems? ( outline the research problems) What are the research objectives?( Define/outline the research objectives) Determine the target to be researched : crucial to the research plan. Which research methodology are you using? Determine how the research is to be carried out: questionnaires, panels, interviews etc. How will data be collected? Who will be responsible for carrying out the research? In-house or external agency. Determine the time scales: when will the research be carried out? Determine How long the research will take. (set time limit)? time scale is important. How much budget have you set aside for the research? Set or agree the budget: Where will the research be carried out? Implement the plan: Start carrying out the research : set everything in motion. This is where the PROCESS comes into being. Gather and record the information Monitor and control: constant checking to make sure that all activities are being done and time targets, budgets, etc are still on course. Reach conclusions: Report the information and take action. Store the information to be retrieved in future. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

11. Created by Jude Asongwe CATS When carrying out research, you must think of the following: • Cost • Accuracy • Time • Security Source: Principles of Marketing by Philip kotler - 4th E. Edition.

12. Created by Jude Asongwe The research Activities The process of research describes the steps taken in the research activity: Gathering Analysis Storage Retrieval Dissemination Source: Principles of Marketing by Philip kotler - 4th E. Edition. Source: Association of business executives

13. Created by Jude Asongwe RESEARCH PROPOSAL • The research proposal defines what the marketing research promises to do for its client, and how much it will cost. • Like the research brief, the proposal should be written to avoid misunderstandings. A client should expect the following to be included. • A statement of objectives: to demonstrate an understanding of the client’s marketing and research problems • What will be done: an unambiguous description of the research design including the survey method, the type of sample, the sample size, and how the fieldwork will be controlled. • Timetable: if and when a report will be produced. • Costs: how much the research will cost and what specifically is/is not being included in those costs. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

14. Created by Jude Asongwe TYPES OF RESEARCH Primary (field) research: Research which is carried out using techniques such as questionnaires, visits, surveys, discussions, test marketing, hall testing, interviews etc. It deals with new information( first hand information) or original information. Secondary (desk) research: This is research carried out by using information which has already been published by another party. The information can be obtained from internal or external sources. The information may be out of date, irrelevant, inaccurate and may be based on different statistical basis. Exploratory research: Marketing research to gather preliminary information that will help to better define problems and suggest hypothesis. Casual research: Marketing research to test hypothesis about cause-and-effect relationships: Market research: This is focused on the size, composition, trends, structure of the market, competitors and the environmental factors affecting the market. Marketing research: Research which is focused on the marketing mix elements: Product, price, place, promotion, people, physical evidence and process. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

15. 7. Experimental research: The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses 8. Quantitative research:Quantitative comes from quantity – meaning numbers. Results can be in the form of numbers or percentages. This type of research is used to assess trends, potential and actual growth or decline of a market or product consumption. It is research which involves data collection by mail or personal interviews from a sufficient volume of customers to allow statistical analysis. 9. Qualitative research: Its about ideas and opinions, likes and dislikes: Likert scale or semantic differential scale is normally used in qualitative research, which allows responses to be quantified. Qualitative research is exploratory research used to uncover consumers motivations, attitudes and behaviour. Focus-group interviewing, elicitation interviews and repertory grid techniques are typical methods used in this type of research. 10. Observational research: The gathering of primary data by observing relevant people, actions and situations. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

16. Created by Jude Asongwe Types of research 11. Survey research: The gathering of primary data by asking people questions about their knowledge, attitudes, preferences and buying behaviour: Postal survey, telephone survey, through observations. 12. Descriptive research : Survey research may be undertaken to describe customers’ beliefs, attitudes, preferences, behaviour, etc. For example, a survey into advertising effectiveness might measure awareness of the brand, recall of the advertisement, and knowledge about its content. Descriptive research is marketing research to better describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers Source: Principles of Marketing by Philip kotler - 4th E. Edition.

17. Conclusive research: • Research aimed at coming into a conclusion about what is affecting for instance buying behaviour of customers. • Example; a business may want to carry out research to draw a conclusion about what is affecting consumer behaviour: There are several factors affecting consumer behaviour such as price, product, place, promotion, people, physical evidence, process, psychological, personal etc. • This kind of research aims at drawing a conclusion about what factor or factors actually affect their customers buying behaviour. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

18. Created by Jude Asongwe RESEARCH METHODS Primary method • Interviews and discussions • Observations • Questionnaires • Test marketing • Sampling Research instrument and source of primary data Secondary method Internet Library Government statistics Magazines, newspapers etc Research instrument and source of secondary data Source: Principles of Marketing by Philip kotler - 4th E. Edition.

19. Created by Jude Asongwe SOURCES OF INFORMATION • External Sources: • Government departments • Employers’ federations • Trade associations • Private firms • Professional institutes • Public and private research agencies • Newspapers • Magazines • TV and Radio • Banks; embassies • Chambers of Commerce. • Suppliers • Competitors Source: Principles of Marketing by Philip kotler - 4th E. Edition.

20. Created by Jude Asongwe SOURCES OF INFORMATION 2. Internal Sources • Past history of customer buying • Sales results • Return on investment • Money spent on promotional campaigns • Details of enquiries received from unserved markets • Production capabilities • Personnel details, etc. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

21. Created by Jude Asongwe Macro-statistical Information • This is data produced by external organisations which relate to a country or a market as a whole. All governments produce this type of information, as well as many other public authorities and organisations covering whole industrial sectors ( such as employer federations, professional bodies, etc) Source: Principles of Marketing by Philip kotler - 4th E. Edition.

22. Created by Jude Asongwe Micro statistical Information • This is data which is specific to the organisation. This type of data is compiled by monitoring the activities of the business itself, e.g. production; sales; labour supply; return on investment. In effect it is the result of the internal records system of the company. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

23. Created by Jude Asongwe GOVERNMENT SOURCES • In Britain, most government statistics are available on subscription from Her Majesty’s Stationery Office (HMSO) and include: • Business Monitors • Census of population • Employment Gazette • Economic trends • Monthly Digest of Statistics. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

24. Created by Jude Asongwe EXTERNAL DATABASE • Kompass Register • Key British Enterprises • Times 1000 • Who Owns Whom • Extel Cards • Research Index • Marketing Surveys Index. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

25. Created by Jude Asongwe RESEARCH METHODS Primary Method: • Interviews and Discussions • Observation---- Hall tests, laboratory test • Questionnaires---- Postal surveys, Telephone Surveys • Test Marketing • Sampling Source: Principles of Marketing by Philip kotler - 4th E. Edition.

26. Created by Jude Asongwe SAMPLING All the methods of gathering information are based on some form of sampling. There are several types of samples: • Random: any one item/person can be included. • Purposive: Based on the choice of selector (18-25 year olds) • Systematic: define system used (e.g. every 10th house in street). • Stratified: Sample divided into groups (age, etc) and then random selection • Quota: interviewer given basis of selection (50% male/50% female) • Cluster/area: Breaking area into sub-divisions and then random sampling • Multi-stage: e.g. country, then county, then town, district, street. • Panels: groups who are interviewed at regular intervals on various topics. • Sampling frames: • Quasi-random sampling: e.g. systematic, stratified and multistage sampling. • Non-random sampling: This is used when a sampling frame cannot be determined or established. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

27. Created by Jude Asongwe USING EXTERNAL RESEARCH AGENCIES • An organisation can decide to carry out an In-house or External research. Either research have their advantages and disadvantages. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

28. Created by Jude Asongwe In-house Research Advantages Disadvantages • Knowledge of personnel Time away from normal duties • Tighter security Possible ‘biased’ views • Instant access to information Lack of research skills. • Can be less expensive AGENCY • Research skills Possible lack of control • Access to target sector(s) Lack of knowledge of product • Brings objective viewpoint Agency dynamics may cause bias • May be quicker Cost Source: Principles of Marketing by Philip kotler - 4th E. Edition.

29. Created by Jude Asongwe INTERNATIONAL MARKETING RESEARCH AND ANALYSIS SOURCES OF INFORMATION Main sources of information Internal Sources External Sources Source: Principles of Marketing by Philip kotler - 4th E. Edition.

30. Created by Jude Asongwe DATA COLLECTION/SOURCES OF INFORMATION INTERNATIONAL MARKETING RESEARCH AND ANALYSIS PRIMARY DATA: Interview, questionnaires, surveys, test marketing, hall testing, etc Original data . Data from the ‘horses mouth’. It takes time and it is expensive SECONDARY DATA: library, government, media, publications etc Existing data Takes less time It is not expensive There is a possibility of getting obsolete/outdated data Source: Principles of Marketing by Philip kotler - 4th E. Edition.

31. Created by Jude Asongwe Finding, Selecting and Recruiting an Agency: Before selecting an agency, the organisation has to do the following: • Define the organisational needs • Carry out desk research about the available agencies. • Compile a short list of possible agencies that meet you requirements. • Select the best agency/agencies. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

32. Created by Jude Asongwe Briefing This is basically the means by which the client tells the agency what they want. The process is logical but managers need to be quite clear on exactly what needs to take place: The client brief the agency on so many issues regarding the research process and plan. The brief can be considered as being the foundation of an agreement: it must contain precise and clear information on exactly what is required as part of that agreement. A typical example would contain: • Names of the client/agency • A brief background of the client company/product, etc. • The reasons for the research being undertaken, e.g. finding new markets in an overseas territory/identifying how many buyers are likely to take up a new product. • Details of the target population (audiences to be researched) • The agreed methods and techniques to be used. • The time scales involved, with start and finish dates. • The manner in which information is to be reported • The timing of reports • The member of staff (client) who is to receive the reports. • The financial details such as cost and penalty payments. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

33. Created by Jude Asongwe Controlling: • Assuming that an agency accepts a brief and is engaged for the project, the work should begin in the time scales agreed, with relevant personnel carrying out their duties as and when required. • However, it is the client who holds the responsibility for seeing that everything is going according to plan. • There should be monitoring and measuring of the whole research process. • Any client who is lax enough to allow agencies to work without regular reporting or supervision deserves to have something go wrong. • If the brief has been done correctly there will be clear parameters for the agency to work within and it is simply a matter of the client allocating responsibility to someone in their organisation to keep an eye on things. Control can be achieved by: • Making sure that contracts are issued and understood. • Insisting on regular reports • Setting clear objectives and parameters • Checking that agreed schedules are being met • Checking that budgets are being adhered to • Checking that required results are being achieved. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

34. Created by Jude Asongwe DATA COLLECTION Source: Principles and practice of marketing 2nd Edition by David Jobber Primary source – primary data( questionnaires, interviews, test Marketing, observations etc Secondary sources – secondary data( government, suppliers, Media, internet, library, internal records etc) Source: Principles of Marketing by Philip kotler - 4th E. Edition.

35. Created by Jude Asongwe SURVEY RESEARCH THE SURVEY METHOD • Face-to-face interviews • Telephone interviews • Mail surveys • Postal survey Source: Principles of Marketing by Philip kotler - 4th E. Edition.

36. Created by Jude Asongwe QUESTIONNAIRE DESIGN When using questionnaires the following must be considered: PLANNING STAGE DESIGN STAGE • Ordering of topics : it should have a logical flow • Types of questions: Closed end questions and open end questions. • Wording and instructions • Layout • Scaling • Probes and prompts • Coding Source: Principles of Marketing by Philip kotler - 4th E. Edition.

37. Created by Jude Asongwe QUESTIONNAIRE • Open end: allows the respondent to give his/her personal opinion and analysis of a particular situation. • Closed end: respondent is restricted in the response to questions: you are allowed in most cases to answer yes or not , good or bad, agree or disagree to questions. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

38. Created by Jude Asongwe DATA ANALYSIS AND INTERPRETATION Data collected needs to be analysed and interpreted. If data is poorly analysed and interpreted the consequences may be very high. It can lead to the wrong decisions being taken by management In order to make sure the right decisions are taken by management, the data collected needs to be correctly analysed and interpreted. Source: Principles and practice of marketing 2nd Edition by David Jobber Source: Principles of Marketing by Philip kotler - 4th E. Edition.

39. Created by Jude Asongwe REPORT WRITING AND PRESENTATION After conducting the research, findings needs to be put in a report form. This is vital for future retrieval and also to be read by the concerned stakeholders. The information also needs to be presented to the management to help them to make important decisions. Source: Principles and practice of marketing 2nd Edition by David Jobber Source: Principles of Marketing by Philip kotler - 4th E. Edition.

40. Created by Jude Asongwe INFORMATION SYSTEMS Source: Principles of Marketing by Philip kotler - 4th E. Edition.

41. Created by Jude Asongwe INFORMATION SYSTEMS • Information is vital for management to help them make important decisions. • Information is needed about customers, competitors, suppliers, distributors, businesses, government, media, banks, etc. • The information collected is being stored in the information system. The system is responsible for the processing and storage of this information for future use and reference. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

42. Created by Jude Asongwe MARKETING INFORMATION SYSTEM(MIS) MIS is made up of people, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

43. MARKETING INFORMATION SYSTEM: Source: Principles of Marketing by Philip kotler - 4th E. Edition.

44. Created by Jude Asongwe THE MARKETING INFORMATION SYSTEM: • This is a place where information needed by management is being stored. • Information is vital for decision making. • The system helps in the collection/ gathering, recording, storage, retrieval and dissemination of the information needed by management in order to take decisions. • The marketing information system stores information about the market, customers, demographic statistics of customers, size, composition and trends in the market and also about consumer behaviour. Source: Principles of Marketing by Philip kotler - 4th E. Edition.

45. Created by Jude Asongwe INFORMATION SYSTEM • There are different types of information system which may be available in an organisation • Marketing/Customer Information system • Supplier Information system • Management Information system • Production Information system • Human Resource Information system Source: Principles of Marketing by Philip kotler - 4th E. Edition.

46. Created by Jude Asongwe MARKETING INFORMATION SYSTEM • The information needed by marketing managers comes from internal company records, marketing intelligence, and marketing research. The information analysis system then processes this information to make it more useful for managers. Source: Principles of Marketing by Philip kotler - 4th E. Edition.