Marketing research-Exploratory Research:primary research experimentation

In this session we focus on the experimentation. Experimental or causal research can help provide answers to managers because its objective is to uncover cause and effect relationships.


Where can experiments take place?


Experiments can take place in a lab setting or in a field setting.


Lab setting
The lab setting enables the researcher to control all variables that might affect the dependent variable and thus more confidently infer that the change in the dependent variable was caused by the independent variable.


Field settings
Field experiments are viewed as being more realistic in respect of the marketplace, but the researcher is unable to control all the factors that may impact on the dependent variable.


Test Marketing
Test marketing is used for a variety of reasons:
1.Tests a new product or existing marketing strategy
2.Involves the use of experimental procedures




Use and objectives of test marketing
Pre-testing is important to ensure that research funds are spent wisely and the product is properly targeted so that the financial target will be reached and the product will be a success.
(1)Test marketing can help the company to have a focused view from the
outset and has a number of required objectives:
(2)Evaluate proposed national programmes, estimate market share and volume
(3)Study the effect on other items that the company markets:
cannibalisation rate
(4)Collect data about potential customers
(5)Analyse reaction and behaviour of customers.


Test marketing involves both direct and indirect costs. Direct costs include distribution of coupons, media time and space, the purchase of a database with relevant names and addresses.
Indirect costs include-the possibility of the product failing and that impact on the sales of existing products, a large percentage of management time is given to the promotion of the test product.


There are a number of steps involved in test marketing. These include:
(a) Define the objectives
(b) Select a basic approach
(c) Develop detailed procedures for the test
(d) Select the market for the test
(e) Execute the plan
(f) Analyse the results