Stages of marketing research
Procedure of marketing research:
Stage 1 – setting the problem of marketing research:
– defining the problem,
– defining the object and subject of research,
– defining the purpose and objectives of the research,
– choosing the research method and method of collecting information.
Stage 2 – development of a research program:
– formation of a research plan,
– design of a sample,
– development of working documents,
– formation of a research budget.
Stage 3 – research implementation:
– training of personnel,
– collection of information and control of personnel work.
Stage 4 – information processing and analysis:
– data editing and coding,
– information processing and analysis,
– report preparation.
Determining the purpose (s) of research means answering the questions: “How will the information be used?”, “What is it intended for?”, “What result will the research lead to?” For example, answer the question: “What are the causal relationships between the drop in sales and changes in the packaging of the goods?” or, for example, to find out the essence of the research object – to describe a set of characteristic features of the target consumer.
Research objectives can be exploratory (exploratory), descriptive, causal.
Exploratory (exploratory) studies provide for the collection of information for a preliminary assessment of the problem and its structuring, help to form a knowledge base on the problem and develop a working hypothesis. As a rule, the need for exploratory research arises when the old knowledge about the object is inconsistent, when it is impossible to explain the discovered phenomena by means of existing concepts.
Exploratory research is advisable to generate an idea for a new product – this is, for example, a situation when the existing ways of satisfying the needs of the consumer cease to be effective either from the point of view of the consumers themselves (expressed in a drop in demand), or from the point of view of the manufacturer (expressed in the disadvantage of production).
It happens that a firm cannot clearly formulate its problems, but only notes that the current situation does not suit it. In this case, exploratory research is also undertaken, the main task of which is to find and identify problems.
In general, exploratory research is used for any or all of the following purposes:
- formulating a problem for more precise research;
- putting forward hypotheses;
- setting priorities for future research;
- collection of information on practical issues of research in specific areas;
- increasing the analyst’s awareness of the problem.
Exploratory research is generally very flexible in terms of the methods used. It can be carried out in different ways, but practice shows that work with literature, expert polls, focus groups, analysis of selected cases are especially productive. These methods will be presented in the following chapters.
In the course of descriptive studies, the state of the selected objects and the corresponding influencing factors is most fully displayed. As a rule, the need for descriptive research arises when it is necessary to find out the size of an object (for example, a market or a segment), the current state of its main characteristics, and options for the distribution of object properties between elements. For example, in the course of a descriptive study of the target segment, the characteristics of consumers (segment profile), the motivation for purchasing a product, procedures for assessing the quality of a product by buyers, a mechanism for making decisions about purchasing a product, and the frequency of purchasing a product are determined.
In a standard market research, a description is given of its capacity and market conditions, the dynamics of these parameters for a certain period, the structure of supply and demand, as well as the conditions of work in this market (regulatory and legal framework, barriers, positions of competitors in terms of market shares and strategies used, etc.) …
Descriptive research usually requires answering the questions of who, what, where, when, and how. Example. Enterprise managers want to know how people usually become regular visitors to a new outlet? Who can be considered a regular visitor? What to take as a unit? What characteristics should be measured? When will we be doing surveys? Where will we conduct the survey? Why would we question them? (an incentive strategy is planned, then an emphasis on measuring how people got information; another point is planned, then an emphasis on determining what is related to the internal organization of the store) How should we study visitors? Questionnaire or observation, etc. How will the survey be conducted? By phone, in person, by mail?
Cross-sectional study – involves the study of a sample of elements from a population of interest, which is measured at a single point in time. Most of the characteristics of these elements are measured once. These characteristics include gender, age, education.
A sample survey is a cross-sectional study in which the sample is determined to be representative of the target population and emphasizes the generation of summary statistics such as averages and percentages. Disadvantages: the average inaccurately characterizes the aggregate, a large expenditure of time and money, high technical professionalism.
The study of a time series involves the study of a constant sample of elements, the measurements of which are repeated over time. Items can be stores, dealers, end users, and other entities. The list or sample itself remains relatively constant over time, although items may be added to replace those dropped.
Classification of descriptive studies:
- Trajectories (time series):
– genuine list – a fixed sample of respondents, in which measurements for the same variables are repeated over time.
– a comprehensive list – a fixed sample of respondents who undergo repeated measurements over time, but with respect to variables that change from dimension to dimension.
- Cross-sections:
– sample survey.
Cross-sectional studies are limited in this regard, as first and only time respondents are rarely willing to engage in long and time-consuming conversations. The interviewees usually receive some kind of compensation for their participation, so interviews with them may be longer and more grueling, or they may be interviewed several times. In addition, the subsidizing firm can afford to spend more time and more effort to provide accurate classified information, since this information can be used in a variety of studies.
There is also no doubt that list data is more accurate than cross-sectional data because it tends to be more free of errors associated with past behavior logging. Errors in registering past behavior are associated with forgetfulness inherent in people, sometimes explained by prescription, but sometimes by other reasons. Research, in particular, shows that events and experiences are more likely to be forgotten if they are not consistent with attitudes and beliefs that are important to the individual or that threaten his self-esteem. If, for example, subjects are asked how often they brush their teeth, they may overestimate the true amount of brushing, either because they don’t really remember, or because they’re afraid the interviewer might think they’re brushing too rarely.
The main disadvantage of lists is that they can be unrepresentative. Participation agreements entail certain obligations for respondents, and many refuse to accept them. They don’t want to bother with testing products, evaluating ad copy, or filling out consumer diaries. Since this kind of activity requires a lot of time, families in which both husband and wife work may be less represented than those in which only one of the spouses works and the other spends time at home. Consumer panels that require members to maintain records of household purchases typically have a 60% engagement rate when there is face-to-face contact between members, but engagement rates decrease if contact is initially made by telephone or mail.
The best of those who continue to work with the lists select promising participants in a purely systematic way. They try to generate and maintain lists that are representative of the population of interest in terms of age, occupation, education, etc.
Despite the benefits of time series analysis, in real life, the best known and most important descriptive projects are cross-section research projects. Cross-sectional research has two features. First, this study provides a kind of snapshot of the variables of interest at one point in time, which is fundamentally different from the longitudinal study, which gives a sequence of pictures that, when combined together, give a kind of motion picture of a time-changing situation. Second, in a cross-sectional study, the sample of items is usually defined to be representative of some known world. Therefore, the main emphasis is on the selection of samples, usually according to a specific design. This explains why this technique is often referred to as a sample survey.
Although sampling is widely used, it has several disadvantages. These include the superficiality of the analysis of the phenomenon, the high costs and the technical difficulties associated with conducting the survey.
Causal research involves testing the hypothesis that there is some causal relationship. In this case, it is not enough to simply establish the existence of a relationship between characteristics (this is often found out in the course of descriptive research). When conducting causal research, it is important to establish the nature of the relationship. For example, how a 10% increase in its budget will affect the effectiveness of an advertising campaign. Or how a 5% price increase will affect the change in the volume of product sales.
Causal research is carried out on the basis of the method of economic and mathematical modeling or experiments.
Should be considered:
– the differences between the three types of research are not clear;
– the efficiency of using any of them depends on their competent use;
– types of research can be considered as three stages of one process.
Based on the last statement, the study can be multipurpose. Multipurpose marketing research may be due to the need to conduct research:
- goals of different types;
- implying the study of various objects.
The formulation of research objectives is the definition of the structure of the information necessary to solve the problem and the requirements for it. At this stage, we formalize the need for additional information in the form of specific parameters or indicators that must be measured during the study.
For example, to study the behavior of buyers in a particular store, a number of tasks can be set: to determine the share of buyers among the number of store visitors, to reveal the attitude towards the store in general, to identify differences in the degree of satisfaction with the store’s services of visitors and buyers. To study the degree of consumer awareness of the store, the task is to find out how well the store is known, as well as to whom and what it is known. To do this, you need to get answers to the following questions:
- What percentage of potential buyers know about the existence of the store?
- What percentage of those who know are already buyers?
- What do those who are already customers think of the store?
- What is the impression of those who are not customers, but know the store from advertising or have heard about it from others?
When formulating research objectives, it is necessary to distinguish between an objective and a subjectively perceived need for information. Based on the existing theoretical models of analysis and decision-making, taking into account the problem and objectives of the study, it is possible to determine the structure of the required information. This is an objective need. Taking into account the experience, preferences and qualifications of the specialist who makes decisions on the problem under study, the structure of the required information may change. This expresses a subjective need for information. However, the manager will be able to make a decision only if the information received corresponds to his ideas. Perhaps this is the reason for the fact that not all firms use the information obtained in the course of custom research. Therefore, at this stage it is important to agree on the opinions of the researcher and the user of the information.
