MODULE : MNM3702
,MNM3702 Exam Study Pack
Contains:
• Comprehensive Notes & Summaries
• Exam Question Solutions 2016-2017
,CHAPTER 1
3 key roles of marketing research
• Descriptive research, which depicts a current situation. The focus is on providing the
particular company with historical and current data about the consumer, industry, and
environment and the impact or relevance of this data to the company in question.
• Diagnostic research, which diagnoses the effects of a certain event in a given situation.
This could be the cause and effect of introducing a new strategy; or something as small
as how a slight price change will affect a product's sales.
• Predictive research, which is used to predict or forecast the outcomes of new strategies
being developed. The focus is on looking towards the future and identifying new
opportunities to be taken advantage of.
Basic research versus applied research
• Basic marketing research is more general and simply aims to obtain and generate
information about aspects of the marketing system.
• Applied research is aimed at helping management make better decisions about a
specific aspect. The research is conducted to solve a particular problem and is more
specific to the organisation.
3 differences between the scientific and non-scientific methods influence fundamentally
the validity and the reliability of marketing research:
• Objectivity of the researcher - Scientific research is based on facts and not on
intuition or preconceived notions.
• Accuracy of measurement - Measuring must be as accurate as possible.
• Continuous and comprehensive research - , all aspects that can influence the results
of the research are taken into consideration. It is not enough merely to guard against
overlooking certain aspects; the search for more information must be undertaken
more aggressively.
Characteristics of good research:
• Clearly defined research problem, which is stated in terms that leave no room for
ambiguity.
• Detailed description of the research methodology, so that anyone is able to
replicate the study.
• Properly planned procedural design of the research, to ensure that the results of
the research are as objective as possible.
• Honest researchers who identify any shortcomings in the research design, and
clearly point out the potential impact of these shortcomings on the findings.
• Data analysis methods that are able to reveal the significance of the collected data
and are appropriate for the type of study undertaken.
• Research conclusions that are limited to the findings identified in the data analysis.
, When is Marketing Research necessary?
• Time limits - · Research can therefore only be undertaken if enough time is available
before the information is needed.
• Availability of data - if the information is insufficient for the decision in question,
research will have to be undertaken.
• Nature of the decision - Decisions that will have a fundamental effect on the running
of the organisation will receive more attention than less important decisions.
• Advantages versus cost - Research should only be conducted if:
o The return on investment in the research project justifies the expenditure.
o The increased quality of the marketing decision justifies the expenditure.
o The cost of the research represents the best use of the funds.
• Resources - Important to consider the resources available, not only to conduct the
research ~ but also to implement the findings of the research. Sufficient financial and
human resources should be available to carry out the research project properly and
to obtain accurate and reliable results.
THE VALUE OF MARKETING INFORMATION
For a marketing information system to be of any use, Information must be of high quality
and add value to the decision-making process therefore very important to ensure that
information meets the following criteria.
• Relevant (meaningful): Management must be able to use the information to make
decisions about target markets, products, prices, distribution and marketing
communication. Must be suitable for solving the problem on hand.
• Useful: It must be made available in a form that the user can understand and apply.
• Timeous: Must be available on a continuous basis (whenever decision must be
made) and up to date.
• Accurate: Must reflect the realities of the situation in which the organisation is
operating, and the problems being experienced.
• Adequate: Sufficient qualitative and quantitative information.
• Available: Should be in a form that is easy to access.
Five objectives of a marketing information
-Identifying shortcomings in product sales and improving the sales performance pf products
-motivating sales staff in the field by means of fair and just allocation of sales areas
-determine prices in order to remain competitive in a changing market environment
-distributing marketing activities more effectively among products and brands
-identifying need for new products and providing information about the possible
development and marketing products.
,MNM3702 Exam Study Pack
Contains:
• Comprehensive Notes & Summaries
• Exam Question Solutions 2016-2017
,CHAPTER 1
3 key roles of marketing research
• Descriptive research, which depicts a current situation. The focus is on providing the
particular company with historical and current data about the consumer, industry, and
environment and the impact or relevance of this data to the company in question.
• Diagnostic research, which diagnoses the effects of a certain event in a given situation.
This could be the cause and effect of introducing a new strategy; or something as small
as how a slight price change will affect a product's sales.
• Predictive research, which is used to predict or forecast the outcomes of new strategies
being developed. The focus is on looking towards the future and identifying new
opportunities to be taken advantage of.
Basic research versus applied research
• Basic marketing research is more general and simply aims to obtain and generate
information about aspects of the marketing system.
• Applied research is aimed at helping management make better decisions about a
specific aspect. The research is conducted to solve a particular problem and is more
specific to the organisation.
3 differences between the scientific and non-scientific methods influence fundamentally
the validity and the reliability of marketing research:
• Objectivity of the researcher - Scientific research is based on facts and not on
intuition or preconceived notions.
• Accuracy of measurement - Measuring must be as accurate as possible.
• Continuous and comprehensive research - , all aspects that can influence the results
of the research are taken into consideration. It is not enough merely to guard against
overlooking certain aspects; the search for more information must be undertaken
more aggressively.
Characteristics of good research:
• Clearly defined research problem, which is stated in terms that leave no room for
ambiguity.
• Detailed description of the research methodology, so that anyone is able to
replicate the study.
• Properly planned procedural design of the research, to ensure that the results of
the research are as objective as possible.
• Honest researchers who identify any shortcomings in the research design, and
clearly point out the potential impact of these shortcomings on the findings.
• Data analysis methods that are able to reveal the significance of the collected data
and are appropriate for the type of study undertaken.
• Research conclusions that are limited to the findings identified in the data analysis.
, When is Marketing Research necessary?
• Time limits - · Research can therefore only be undertaken if enough time is available
before the information is needed.
• Availability of data - if the information is insufficient for the decision in question,
research will have to be undertaken.
• Nature of the decision - Decisions that will have a fundamental effect on the running
of the organisation will receive more attention than less important decisions.
• Advantages versus cost - Research should only be conducted if:
o The return on investment in the research project justifies the expenditure.
o The increased quality of the marketing decision justifies the expenditure.
o The cost of the research represents the best use of the funds.
• Resources - Important to consider the resources available, not only to conduct the
research ~ but also to implement the findings of the research. Sufficient financial and
human resources should be available to carry out the research project properly and
to obtain accurate and reliable results.
THE VALUE OF MARKETING INFORMATION
For a marketing information system to be of any use, Information must be of high quality
and add value to the decision-making process therefore very important to ensure that
information meets the following criteria.
• Relevant (meaningful): Management must be able to use the information to make
decisions about target markets, products, prices, distribution and marketing
communication. Must be suitable for solving the problem on hand.
• Useful: It must be made available in a form that the user can understand and apply.
• Timeous: Must be available on a continuous basis (whenever decision must be
made) and up to date.
• Accurate: Must reflect the realities of the situation in which the organisation is
operating, and the problems being experienced.
• Adequate: Sufficient qualitative and quantitative information.
• Available: Should be in a form that is easy to access.
Five objectives of a marketing information
-Identifying shortcomings in product sales and improving the sales performance pf products
-motivating sales staff in the field by means of fair and just allocation of sales areas
-determine prices in order to remain competitive in a changing market environment
-distributing marketing activities more effectively among products and brands
-identifying need for new products and providing information about the possible
development and marketing products.
