Professional Documents
Culture Documents
MARKETING RESEARCH
CASE 4: SONY: PLAYSTATION
12/20/10
Sony has been selling Playstation
Game player all around the world.
It is also selling the Game player
in India for last 2/3 years.
Now it is planning to go full-
fledged and enter aggressively.
You are appointed as a Marketing
Research Consultant for
understanding business prospects
of players and game CD’s in India.
The future investment decisions
will depend upon the Research
report submitted by you.
2
How will you carry out the Market
Research?
THE MARKETING
Co RESEARCH SYST
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nfu Di
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12/20/10
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What ad? st t h W
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3
a e or N n g
S To b
THE MARKETING RESEARCH SYSTEM
12/20/10
Marketing research is defined as the systematic
design, collection, analysis and reporting of
data and findings relevant to a specific
marketing situation facing the company
4
THE MARKETING RESEARCH SYSTEM
12/20/10
Companies normally budget marketing
research at 1 to 2 percent of company
sales
Most of the work is outsourced to
outside firms
5
THE MARKETING RESEARCH SYSTEM
12/20/10
Companies outsource marketing research
services from outside firms:
Syndicated –service research firms
These firms gather consumer and trade information which
they sell for a fee
NCAER (National Council for Applied Economic Research)
ACNielsen-ORG-MARG
IMRB International
Customer marketing research firms
They design and carry out research studies for various
clients based on specific briefs
Specialty-line marketing research firms
These firms provide specialized research services such as
Developing a research brief
12/20/10
Develop the research plan
7
Make the decision
THE MARKETING RESEARCH PROCESS
12/20/10
Step 1: Define the Problem and the Research
Objectives
Problem should not be defined either too broadly
or too narrowly
Broad or vague definition leads to excessive
wastage of resources
Too narrow a definition leads to inadequate data or
information
Clarity on following is required
What is to be researched (the content, the scope)
Why is it to be researched (the decisions that are to be
made)
Working 8
backward from the decisions can be a
good way of defining problems
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for
gathering the needed information
This involves decision on
1. Data sources
2. Research approaches
3. Research Instruments
4. Sampling plan
5. Contact methods
9
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
1. Data Sources
I. Secondary Data: Are data that were collected for
another purpose and already exist somewhere
II. Primary Data: Are data freshly gathered for a
specific purpose or for a specific research
Initially secondary data is used to analysis
If secondary data does not exist or is dated or
inaccurate or incomplete or unreliable then
primary data will have to be collected
10
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering
the needed
2. Research approaches
Primary data can be collected in five ways
1. Observational Research
2. Focus Group Research
3. Survey Research
4. Behavioral Data
5. Experimental Research
11
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering
the needed
2. Research approaches
Primary data can be collected in five ways
1. Observational Research:
Fresh
data to be collected by observing relevant actors
and settings
12
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering the
needed
2. Research approaches
Primary data can be collected in five ways
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering
the needed
2. Research approaches
Primary data can be collected in five ways
3. Survey Research
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering
the needed
2. Research approaches
Primary data can be collected in five ways
4. Behavioral Data
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering
the needed
2. Research approaches
Primary data can be collected in five ways
5. Experimental Research
1. Cause and Effect relationships by eliminating competing
explanations of observed findings
16
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for
gathering the needed
3. Research instruments
a) Questionnaires
b) Qualitative measures
c) Mechanical Devices
17
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for
gathering the needed
3. Research instruments
a) Questionnaires:
Questionnaires should be carefully develop,
response
Closed-end questions provide all the possible
answers
Open-end questions especially used for
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exploratory research
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering the needed
3. Research instruments
b) Qualitative measures
Shadowing: Observing people using products, shopping etc
Behavior mapping: Photographing people within a space
19
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for gathering the
needed
3. Research instruments
a) Mechanical Devices:
Galvanometer: To measure the interest or emotions aroused
by the exposure t as specific ad
Eye cameras: To Study eye movement of the respondents
Skin sensors:
Brainwave scanners
Body scanners
Audiometers: Attached to TV sets to track the TRPS
GPS: To know how many billboards a person walk by on drive
20
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for
gathering the needed
4. Sampling Plan
Sampling unit: Who is to be surveyed?
12/20/10
Simple random sample
Every member of sample has an equal chance of selection
Stratified random sample
The population is divided into mutually exclusive groups (such as
age groups) and random samples are drawn from each group
Cluster (area) sample
The population is divided into mutually exclusive groups (such as
city blocks) and the researcher draws a sample of the groups to
interview
Non-probability sample
Convenience sample
The researcher selects the most accessible population members
Judgment sample
The researcher selects population members who are good prospects
for accurate information
Quota sample
The researcher finds and interviews a prescribed number of people
22
in each of several categories
THE MARKETING RESEARCH PROCESS
12/20/10
Step 2: Develop the Research Plan
Developing the most efficient plan for
gathering the needed
5. Contact Methods:
Mail Questionnaire
Telephone Interviews
Personal Interviews
Online interviews
23
THE MARKETING RESEARCH
PROCESS
12/20/10
Step 3: Collect the Information
o Most expensive and most error
prone
o Respondents could not be
contacted
o Respondents refuse to cooperate
o Biased or dishonest answers
24
THE MARKETING RESEARCH
PROCESS
12/20/10
Step 4: Analyze the Information
o Extract findings from the collected data
o Tabulate the data and develop frequency
distributions
o Averages
25
THE MARKETING RESEARCH
PROCESS
12/20/10
Step 5: Present the Findings
o Relevance to decision making
26
THE MARKETING RESEARCH PROCESS
12/20/10
Step 6: Make the decision
Final decision on the findings
27
QUESTIONNAIRE DO’S AND DON'TS
12/20/10
1. Ensure that questions are without bias
2. Make the questions as simple as possible
3. Make the questions specific
4. Avoid jargons or shorthand
5. Steer clear of sophisticated or uncommon words
6. Avoid ambiguous words
7. Avoid questions with a negative in them
8. Avoid hypothetical questions
9. Do not use words that could be misheard
10.Desensitize questions by using response bands
11.Ensure that fixed responses do not overlap
12.Allow for “other” in fixed response questions 28
TYPES OF QUESTIONS
12/20/10
A Closed ended questions
Dichotomous
A Closed ended
Multiple choice questions
Likert scale Dichotomous
Semantic differential
Importance scale
A question with two
Rating scale possible answers
Intention to buy scale Will you consider
Open ended Questions buying this product
Completely unstructured
Word association
Sentence completion Yes
Story completion No
Picture
Thematic Apperception
Test (TAT)
29
TYPES OF QUESTIONS
12/20/10
A Closed ended questions A Closed ended questions
Dichotomous
Multiple choice
Multiple choice
Likert scale A question with three
12/20/10
A Closed ended questions A Closed ended questions
o Dichotomous
Likert scale
o Multiple choice
o Likert scale A statement with which the
12/20/10
A Closed ended questions A Closed ended questions
o Dichotomous
Semantic differential
o Multiple choice
o Likert scale A scale connecting two bipolar
o Semantic differential words. The respondent selects the
o Importance scale point that represents his or her
o Rating scale opinion
o Intention to buy scale
Our showroom staff was
Open ended Questions
o Completely unstructured
o Word association
o Sentence completion
Experienced |---------------------------------|Inexperienced
o Story completion
o Picture
o Thematic Apperception Friendly |---------------------------------| Unfriendly
Test (TAT)
32
TYPES OF QUESTIONS
12/20/10
A Closed ended questions A Closed ended questions
Dichotomous
Importance scale
Multiple choice
Likert scale A scale that rates the
Semantic differential importance of some
Importance scale attribute
Rating scale
Intention to buy scale
Open ended Questions 24 hours service
Completely unstructured availability is
Word association Extremely important
Sentence completion Very important
Story completion
Somewhat important
Picture
Not very important
Thematic Apperception
Test (TAT) Not at all important
33
TYPES OF QUESTIONS
12/20/10
A Closed ended questions A
Dichotomous Closed ended questions
Multiple choice Rating scale
Likert scale
Semantic differential A scale that rates some
Importance scale attribute from ‘poor’ to
Rating scale
‘excellent’
Intention to buy scale
Open ended Questions
Completely unstructured Godrej After sales service is
Word association Excellent
Sentence completion
Very good
Story completion
Good
Picture
Thematic Apperception Fair
12/20/10
A Closed ended questions A Closed ended questions
Dichotomous
Multiple choice Intention to buy scale
Likert scale A scale that describes the
Semantic differential
respondent’s intention to
Importance scale
buy
Rating scale
Intention to buy scale
Open ended Questions Your intention to buy
Completely unstructured insurance in next six
Word association
months
Sentence completion
Definitely buy
Story completion
Probably buy
Picture
Thematic Apperception Test Not sure
12/20/10
A Closed ended questions Open ended Questions
Dichotomous
Multiple choice
Completely unstructured
A question that respondents
Likert scale
Semantic differential
can answer in an almost
unlimited number of ways
Importance scale
Rating scale
Intention to buy scale
What is your opinion of
Samsung products?
Open ended Questions __________________________
Completely unstructured
__________________________
Word association __________________________
Sentence completion __________________________
Story completion __________________________
Picture __________________________
Thematic Apperception __________________________
Test (TAT) __________________________
36
TYPES OF QUESTIONS
12/20/10
A Closed ended questions
Dichotomous
Open ended Questions
Multiple choice
Word association
Likert scale Words are presented, one at a
Semantic differential time and respondents mention
Importance scale
the first word that comes to
mind
Rating scale
What is the first word that
Intention to buy scale
comes to your mind when you
Open ended Questions hear
Completely unstructured
Word association
Sentence completion
Toothpaste: ______________
Story completion
Picture
Toothbrush: ______________
Thematic Apperception
Test (TAT)
37
TYPES OF QUESTIONS
A Closed ended questions
12/20/10
Dichotomous Open ended Questions
Multiple choice Sentence completion
Likert scale An incomplete sentence is presented
Semantic differential and respondents complete the
Importance scale sentence
Rating scale
Intention to buy scale Videocon washing machine is
Open ended Questions
Completely unstructured ___________________________
Word association ___________________________
Sentence completion ___________________________
Story completion ___________________________
Picture ___________________________
Thematic Apperception Test
(TAT)
38
TYPES OF QUESTIONS
A Closed ended questions
12/20/10
Dichotomous Open ended Questions
Multiple choice Story completion
Likert scale An incomplete story is presented
Semantic differential and respondents are asked to
Importance scale complete it
Rating scale
Intention to buy scale Last time when I visited Big
Open ended Questions Bazaar I went to the mall and
Completely unstructured ___________
Word association ____________________________
Sentence completion ____________________________
Story completion ____________________________
Picture ____________________________
Thematic Apperception Test ____________________________
(TAT) ____________________________
____________________________ 39
TYPES OF QUESTIONS
A Closed ended questions Open ended Questions
12/20/10
Dichotomous
Picture
Multiple choice
A picture of two characters is presented
Likert scale
with one making a statement.
Semantic differential Respondents are asked to identify with the
Importance scale other and fill in the empty ballon
Rating scale
Intention to buy scale
Open ended Questions
Completely unstructured
Word association
Sentence completion
Story completion
Picture
Thematic Apperception Test
(TAT)
40
TYPES OF QUESTIONS
A Closed ended questions Open ended Questions
12/20/10
Dichotomous Thematic Apperception
Multiple choice
Likert scale
Test (TAT)
A picture is presented and respondents
Semantic differential are asked to make up a story about
Importance scale what they think is happening or may
Rating scale happen in the picture
Intention to buy scale
Open ended Questions
Completely unstructured
Word association
Sentence completion
Story completion
Picture
Thematic Apperception Test
(TAT)
41
THE SEVEN CHARACTERISTICS
OF GOOD MARKETING RESEARCH
12/20/10
Scientific method
Research creativity
Multiple methods
Healthy skepticism
Ethical marketing
42
BARRIERS TO USE OF
MARKETING RESEARCH
12/20/10
A narrow conception of the research
Uneven caliber of researchers
43
MEASURING MARKETING
PRODUCTIVITY
12/20/10
Marketing metrics
Marketing metrics is the set of measures
that helps firms to qualify, compare and
interpret their marketing performance
Customer level concerns:
Attitudes
Behavior
Profitability
44
MEASURING MARKETING
PRODUCTIVITY
12/20/10
Sample customer performance scorecard
Customer performance scorecard:
How well the company is doing year after year on customer based measures
% of new customers to avg no of customers
% of customers who say that the company’s product is the most preferred in
its category
% of customers who correctly identify the brand’s intended positioning and
differentiation
Avg perception of company’s product quality relative to chief competitor
45
MEASURING MARKETING
PRODUCTIVITY
12/20/10
Stakeholder-performance scorecard
Employees
Suppliers
Banks
Distributors
Retailers
Stockholders
46
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Sales Analysis
Sales-variance analysis
Contribution of different factors to a gap in sales-performance
47
Plan Qty Actual Qty Difference Plan Price
4000 3000 1000 1 1000
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Sales Analysis
Microsales analysis
Looks at specific products, territoris and so forth that
failed to produce expected sales
Western Region: State wise
48
MEASURING MARKETING PLAN
PERFORMANCE
Plan Actual
12/20/10
Sales Analysis
Microsales analysis 14” 300 100
Western region-
Maharashtra 21” 300 100
Product wise
36” 400 500
52” LCD 500 700
Total 1500 1400
49
MEASURING MARKETING PLAN
PERFORMANCE
Plan Actual
Dass 400 600
12/20/10
Sales Analysis Memorex 300 350
Microsales analysis
Western region-
Maharashtra 200 250
Maharashtra- Retailer Electronics
(Dealer) wise Damodar 100 60
R5 100 40
R6 100 0
R7 100 0
R8 100 50
R9 50 25
R10 50 25
Total 1500 1400 50
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Sales Analysis Plan Actual
Microsales analysis Mumbai 700 700
Maharashtra Pune 300 500
Citywise (Branch Nagpur 100 60
wise) Nasik 100 40
Kolhapur 100 30
Solapur 100 30
Ratnagiri 50 10
Sangli 50 30
Total 1500 1400
51
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Market share analysis
Overall Market share
Is the company’s sales expressed as a % of total market sales
Served Market share
Is its sales expressed as a % of the total sales to its served market
Relative market share
Market share in relation to its largest competitor
Some facts
The assumption that outside forces affect all companies in the same
way is often not true
The assumption that a company’s performance should be judged
against the average performance of all companies is not always
valid
If a new firm enters the industry, then every existing firm's market
share might fall.
Sometimes a market share decline is deliberately engineered to
improve profits
Market share can fluctuate for many minor reasons 52
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Market expense to sales analysis:
In one company it is 30% and for the other it could be 22%
The details could be further divided as
Sales force expenses to Sales (15%)
Advertising expenses to Sales (5%)
Sales promotion expenses to Sales (6%)
Marketing research expenses to Sales (1%)
Sales admin expenses to Sales (3%)
TOTAL (30%)
The tracking can be done on a control chart
53
MEASURING MARKETING PLAN
PERFORMANCE
12/20/10
Upper limit
Expenses/ Sales ration
Desired level
Lower limit
Time period 54
12/20/10
Financial analysis
Rate of return of net worth
Return of assets
Financial leverage
Composition of assets, accounts receivable,
inventory, plant and equipment
Profit margins
Asset turnover
12/20/10
Measure profitability of their,
Products
Territories
Customer groups
Segments
Trade channels
It helps in deciding future plans
Most of the companies has 20% to 40% products are
unprofitable
Around 60% accounts generates losses.
More than half customer relationships are not
profitable, 30% to 40% are marginally profitable
Only 10% to 15% relationships generates the main
56
profit
30% of banks branches could be unprofitable
PROFITABILITY ANALYSIS
12/20/10
Marketing profitability analysis
Steps in marketing profitability analysis
1. Identify functional expenses
2. Assigning functional expenses to Marketing
entities
3. Preparing P&L statement for each marketing
entity
57
PROFITABILITY ANALYSIS
12/20/10
Marketing profitability analysis
Steps in marketing profitability analysis
Identify functional expenses
P& L Statement (simple)
Sales Rs.60000
Cost of goods sold Rs.39000
-------------
Rs.21000
Expenses
Salaries 9300
Rent 3000
Supplies 3500
--------------------
Rs.15800 58
-------------
Net profit Rs.5200
PROFITABILITY ANALYSIS
12/20/10
Marketing profitability analysis
Steps in marketing profitability analysis
1. Identify functional expenses
Natural TOTAL Selling Advertising Packing and Billing and
P& L Statement (simple) Accounts Delivery collection
ales Rs.60000
ost of goods sold Rs.39000 Salaries 9300 5100 1200 1400 1600
-------------
xpenses
Rs.21000
Rent 3000 0 400 2000 600
alaries 9300
ent
upplies
3000
3500
Supplies 3500 400 1500 1400 200
--------------------
Rs.15800 15800 5500 3100 4800
-------------
et profit Rs.5200
Supplies: Promotional material, packing material, fuel purchases for delivery, office statio
59
PROFITABILITY ANALYSIS
Marketing profitability analysis
Steps in marketing profitability analysis
Assigning functional expenses to Marketing entities
12/20/10
Natural Ac TOTAL Selling Advertising Packing and Deli Billing and collection
Channel type Selling Advertising Packing and Deli Billing and collection
Hardware 200 50 50 50
Garden supply 65 20 21 21
Dep store 10 30 9 9
275 100 80 80
Functional exp 5500 3100 4800 2400
60
/ No of units 275 calls 100 ads 80 packaging 80 bills
Equal 20 31 60 30
PROFITABILITY ANALYSIS
Marketing profitability analysis
Steps in marketing profitability analysis
Preparing P&L statement for each marketing entity
12/20/10
Channel type Hardware Garden supply Dept store Whole co (Total)
12/20/10
62
PROFITABILITY ANALYSIS
Marketing profitability analysis
Direct versus full costing
Basis should be
12/20/10
No of sales call or
No of hours spent on call
Three types of costs
Direct costs: Sales commission, Advertising exp,
Sales force salaries
Traceable costs: Rent
Non traceable costs: Corporate image expenses,
Top management salaries, interests and overheads
Will company become more profitable if it
shelves of Garden supply channel?
Will rent come down?
Will non traceable costs reduce? 63
FORECASTING AND DEMAND
MEASUREMENT
Sales forecasts are used by
12/20/10
Finance department to: Raise the needed cash for
investment
Operations department to: establish capacity and
output levels
Purchase department to: acquire the right amt of
supplies
HR department to: to hire needed labour
Marketing is responsible for preparing forecast
64
FORECASTING AND DEMAND
MEASUREMENT
The measures of Market Demand for preparing
12/20/10
forecast
Potential Market
Available Market
Target Market
Penetrated Market
65
FORECASTING AND DEMAND
MEASUREMENT
Vocabulary for Demand Measurement
12/20/10
Market Demand
Market Forecast
Market Potential
Company Demand
Company Sales Forecast
Company Sales Potential
66
FORECASTING AND DEMAND
MEASUREMENT
Estimating current demand
12/20/10
Total Market Potential
Area Market Potential
Industry Sales and Market Shares
Estimating future demand
Survey of buyers’ intentions
Composite of Sales foce opinions
Expert opinion
Past sales analysis
Market test method
67