Session 5 MG 220 Marketing Management MBA 2010 * Also contains rest of parts of Assignment 1

1. Part 2: Capturing Market Insights > The Marketing Research System > The Marketing Research Process > QUIZ for Part 1 (Session 1 – 3) Class Presentation | Session 5 | 30 Aug 2010

2. The Marketing Research SystemConcept Marketing Research: the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company Marketing Research firms: Syndicated-service research firmsGather information/data and sell it as research reports Custom marketing research firmsEngaged to carry-out specific projects. They design the study and then report the findings Specialty-line marketing research firmsSpecialized services within Marketing research e.g. online survey execution/management, field interviews etc. MG 220 Marketing Management 2

3. The Marketing Research ProcessSchematic MG 220 Marketing Management 3

4. The Marketing Research ProcessStep 1: Define the Problem and Research objectives Marketing Management defines the problem Not too broad What features should be in our new blackberry model Not too narrow Should the internet connectivity be through 3G if we increase plan price by 45% Balanced, well-thought and result-oriented What should be enhancements in camera, internet and messenger services compared to existing blackberry MG 220 Marketing Management 4

5. The Marketing Research ProcessStep 2: Develop the Research plan Most efficient plan for gathering information Decisions for: Data sources Research Approaches Research Instruments Sampling Plan Contact Methods MG 220 Marketing Management 5

6. The Marketing Research ProcessStep 2: Develop the Research plan (…contd.) Decisions for: Data sources Secondary data – collected for another purpose Readily available | Good starting point | Low cost Research from past models | competitor analysis Primary data – specifically for this project Focus of Main research | critical information Needs to be designed completely based on given problem MG 220 Marketing Management 6

7. The Marketing Research ProcessStep 2: Develop the Research plan (…contd.) Decisions for: Research Approaches Observational Research Unobtrusive observing of customers(video/voice recorder at service desk selling Blackberry) Focus Group Research Gathering of consumers for discussing the problem. Carefully selected and observed (existing customers of blackberry services can be invited) Survey Research Learning more about consumers. Mass activity(A survey among existing blackberry users) Behavioral data Purchasing behavior data or usage data or preference data(Data from datacenters showing what is usage of different functions) Experimental Research A small activity emulating real product/service and getting feedback(Few prototypes given to selected consumers and their behavior/feedback is observed) MG 220 Marketing Management 7

8. The Marketing Research ProcessStep 2: Develop the Research plan (…contd.) Decisions for: Research Instruments Questionnaires A set of questions | carefully developed and tested before circulation Closed-end questions: MCQs | Open-ended questions: descriptive(A questionnaire developed for users) Qualitative measures Qualitative analysis of consumers’ behaviors, activities and interpretation. May involve psychological tests related to product and their reactions. Possible only for very small group (observe consumers using phones) Mechanical devices Devices (galvanometers, eye cameras) to observe user’s reaction on exposed to product(view user’s experience on seeing a prototype) MG 220 Marketing Management 8

9. The Marketing Research ProcessStep 2: Develop the Research plan (…contd.) Decisions for: Sampling Plan Sampling Unit Who is to be surveyed Based on product, problem etc. decision about who is going to form sample(High-end users, corporate clients, access to data networks) Sample size How many people to be surveyed Again based on requirements, budget etc. General rule: Larger sample => better results(e.g. Total Blackberry user base in Pakistan: 100,000, Sample: 1,000) Sampling Procedure How respondents shall be chosen Probability sampling (simple random, stratified random, cluster sample) Non-probability sampling (Convenience, judgment, quota)(convenience and judgment sampling for blackberry users) MG 220 Marketing Management 9

10. The Marketing Research ProcessStep 2: Develop the Research plan (…contd.) Decisions for: Contact Methods Mail Questionnaire Access to people who cannot or do not want to be interviewed Simple questionnaire is to be used Very low response rate(send a questionnaire to existing user with monthly invoice) Telephonic interview Quick and convenient. Questions might be clarified easily Response rate is good | but cannot be too long or personalized(e.g. make a call to 500 of Blackberry users and take 1-2minutes interview) Personal interview Most versatile and elaborate method Most expensive and requires lot of administrative work Arranged (meeting) | Intercept (in malls etc)(Interviewing at service centers when use r is there for some other purpose) Online interview Efficient and highly used inexpensive | faster | More ‘honesty’ | Versatile using technology Small and skewed sample | technological problems(Use online advertising or even website to request a survey) MG 220 Marketing Management 10

11. The Marketing Research ProcessStep 3: Collect the information This is the execution of Step 2 Most expensive and most prone to error Errors can be: Respondents not available. Need to re-engage (typical for high-end clients) Respondents refuse to cooperate (typical for high-end clients) Give dishonest or biased answers (biased because of very recent experience) Interviewers can be biased or dishonest (just filling false information) Still: Getting the right respondents is critical MG 220 Marketing Management 11

12. The Marketing Research ProcessStep 4: Analyze the information Data tabulation Frequency distributions Statistical analysis Discover! MG 220 Marketing Management 12

13. The Marketing Research ProcessStep 5: Present the Findings Researchers’ findings Related to management’s defined problem Irrelevant information not required (Give a finding of what features are wanted by what kind of customers-users, new users, age-wise etc.) MG 220 Marketing Management 13

14. The Marketing Research ProcessStep 6: Make the Decision Management’s task Based on what researcher has provided (Marketing and Product Development team takes the final decision based on available results and information) MG 220 Marketing Management 14

15. The Marketing Research ProcessOvercoming barriers to use of Marketing Research Narrow conception of research Uneven (or even low) caliber of researchers Poor farming of the problem Late and occasionally erroneous findings Personality and presentational differences MG 220 Marketing Management 15

16. QUIZ # 1 | 30 Aug 2010 Related to Part 1 (Chapter 1 & 2) Time: 20 Mins MG 220 Marketing Management 16

17. AssignmentPart 2 & 3 of 4 Part 2: SWOT Analysis: From existing data available through different sources what do you think are S, W, O & Ts for your brand. Your own analysis is required. Part 3: Assessing Growth Opportunities: Assume you are tasked with finding out different ways to improve profitability of your brand (or even its parent organization). Which of the approaches would you consider and how would you carry out your planned activity? Why would you choose the ones you selected? ALTERNATE: You may analyze the above as might have been carried out by the organization in the past. What they did? What particular options it represented referring to your text? Max. one-page length for each part, typed Due: Thu, Sep 2, 2010 MG 220 Marketing Management 17

18. AssignmentPart 4 of 4 Part 4: Market Research for your brand: You are supposed to launch a product extension or new feature related to your brand. You intend to undertake marketing research yourself. Please state your research objective (step 1 of market research process) and create a complete research plan (step 2 of market research process). Give rationalities for your selections in plan. Follow guidelines/template for the market research process as given in text. Max. one-page length, typed Due: Mon, Sep 6, 2010 MG 220 Marketing Management 18

19. Part 2: Capturing Market Insights > Measuring Marketing Productivity > Forecasting and Demand Measurement Class Presentation | Session 6 | 2 Sep 2010