Experiments in Marketing Research

Experiments are a type of research based on the following logic. If you identify two or more groups that are equivalent, expose those groups to different treatments, and subsequently observe differences between the groups on some dimension of interest, then you can reasonably conclude that those differences must be caused by the treatments. The following are characteristics of true experiments: (1) at least one treatment group and one comparison group, (2) at least one outcome measure, and (3) random assignment of subjects to treatments. Experiments can be used to test the effects of different prices, ad appeals, sales promotions, product changes, or any other marketing actions being considered on consumer attitudes and, most important, behavior. True experiments with random assignment to treatments are sometimes impossible or impractical.

 

Qualitative marketing research, its types and goals

Qualitative marketing research is a set of research techniques in which data is obtained from a relatively small group of respondents. The goal is to gain a qualitative understanding of the underlying reasons and motivations. Qualitative research procedures can be direct (focus groups and in-depth interviews) and indirect (projective techniques). Projective techniques - unstructured and indirect questioning in order to learn motives and attitudes, habits and behavior of respondents: Associations (verbal, non-verbal), Completion techniques (sentence completion, story completion), Expressive tests (role playing, third-person technique)

 

Quantitative marketing research. Comparative analysis of surveys methods

As a social research method, it typically involves the construction of questionnaires and scales. People who respond (respondents) are asked to complete the survey. Marketers use the information so obtained to understand the needs of individuals in the marketplace, and to create strategies and marketing plans.

Phone Surveys

Best for mostly close-end questioning,

10-12 average interview length is maximum target

Response rate is critical

Low relative cost

Generally, fast implementation

Personal Interviews

Used where a face-to-face environment is desired.

Used for complicated or sensitive issues, B2B market research environments, or where extensive physical or visual display requirements exist along with need for specialized interviewing skills

High cost.

Online Surveys (Web Surveys)

Can employ true random probability sampling

Complicated survey questionnaire formats can be used.

Easy to display visual information

Low relative cost

Generally, fast implementation

Sampling control is critical.

Hybrid Surveys

Hybrid methods combine two or more techniques to optimize response or measurement validity.

Higher cost

More time required for implementation.

Enhances quality through higher response rates, and better response quality or validity.

 

The sequence and content of Marketing Planning Stages

Analysis stage
Current marketing situation analysis:
the marketing audit
the environmental analysis
SWOT analysis
Planning stage
Defining the requirements of the plan:
objectives setting
strategic outline
Strategy is based on the idea of a game plan, as in chess, or in military strategy. Thus, marketing strategy sets down the game plan by which the objectives are to be achieved. Strategic options should be carefully evaluated for each objective and the best possible course(s) of action selected in each case.
Implementation stage
Putting plans into operation:
designing action programmes
assigning responsibility for their execution
costing the programmes
"What needs to be done?" (defining appropriate action)
"When will it be done?" (scheduling and timing)
"Who will do it?" (designating clear areas of responsibility)
"How much will it cost?" (budget planning)
Monitoring stage
Controlling the plan:
establishing required performance targets
monitoring performance against targets
designing corrective courses of action where required
contingency planning

 

The technique of SWOT analysis, its implementation

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. SWOT analysis must first start with defining a desired end state or objective.

· S trengths: attributes of the person or company that are helpful to achieving the objective(s).

· W eaknesses: attributes of the person or company that are harmful to achieving the objective(s).

· O pportunities: external conditions that are helpful to achieving the objective(s).

· T hreats: external conditions which could do damage to the objective(s).

Marketing budget and control in marketing planning

A marketing budget is an estimate of projected costs to market your products or services. A typical marketing budget will take into account all marketing costs e.g. marketing communications, salaries for marketing managers, cost of office space etc. The costs in a marketing budget will be allocated according to the campaign and the media to be utilized. Some prior research will be necessary for the cost estimates to be as realistic as possible. This is called advertising or marketing communications research.

There are several allocation methods:

· Percentage of Sales method - an advertiser takes a percentage of either past or anticipated sales and allocates that percentage of the overall budget to advertising.

· Objective and Task method - a business needs to first establish concrete marketing objectives, often articulated in the "selling proposal," and then develop complementary advertising objectives articulated in the "positioning statement." After these objectives have been established, the advertiser determines how much it will cost to meet them.

· Competitive Parity method - if a business is aware of how much its competitors are spending to advertise their products and services, the business may wish to budget a similar amount on its own advertising by way of staying competitive.

· Market Share method - a business equates its market share with its advertising expenditures.

· Unit Sales method - method takes the cost of advertising an individual item and multiplies it by the number of units the business wishes to sell.

· All Available Funds method - involves the allocation of all available profits to advertising purposes.

It is important to notice that most of these methods are often combined in any number of ways, depending on the situation.

Budgetary control and responsibility centres. These enable managers to monitor organisational functions. A responsibility centre can be defined as any functional unit headed by a manager who is responsible for the activities of that unit. There are four types of responsibility centres: a) Revenue centres b) Expense centres c) Profit centres d) Investment centres

 

The surveys in marketing research. Types and Use

Survey is a method of primary data collection in which information is gathered by communicating with a representative sample of people.

Types: consumer survey and merchandize survey (intermediary).

Methods:

o Telephone interviews: cellphone, computer-aided

o Personal interviews: door-to-door, mail, executive.

o Mail/Postal surveys,

o Electronic and web-based surveys: administered by interviewer or self-administered.

The choice of method depends on a great number of requirements/factors, such as: speed, geographic flexibility, respondent co-operation and anonymity, versatility and length of questionnaire, cost.