4. Defining MR Problems

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DEFINING MARKETING

RESEARCH PROBLEMS


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What is Marketing Research?

Marketing Researchis the systematic

gathering, recording, and analysis of data

about issues relating to marketing of

products and services.

The goal of marketing research is to identify

and assess how changing elements of the

marketing miximpacts customer behavior.
http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mix


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The term is commonly interchanged with

Market Research, however, expert

practitioners may wish to draw a distinction,

in that

Market Researchis concerned

specifically with Markets,

while Marketing Research is concerned

specifically about Marketing Processes.


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Marketing Research

Marketing Research is often partitioned intotwo sets of categorical pairs, either by

Target Market:

Consumer Business to Business (B2B)

Or, alternatively, by methodological

Approach: Qualitative

Quantitative


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Role of MR

The task of Marketing Research is to

provide management with Relevant,

Accurate, Reliable, Valid, and Current

information.

Competitive marketing environment and the

ever-increasing costs attributed to poor

decision making, require that marketing

research provide sound information.

Sound decisions are not based on gut

feeling, intuition, or even pure judgment.


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"DECIDE" model

The role of marketing research in managerial

decision making is explained further using the

framework of the "DECIDE"model:

D- Define the marketing problem

E - Enumerate the controllable and uncontrollabledecision factors

C- Collect relevant information

I- Identify the best alternativeD- Develop and implement a marketing plan

E- Evaluate the decision and the decision process


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Characteristicsof Marketing Research First, Marketing Researchis Systematic.

Thus systematic planning is required at all the

stages of the marketing research process.

The procedures followed at each stage are

methodologically sound, well documented,

and, as much as possible, planned in advance.

Marketing Research uses the scientific method in

that data are collected and analyzed to test prior

notions or hypotheses.


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Characteristicsof Marketing Research Marketing research is Objective.

It attempts to provide accurate information

that reflects a true state of affairs.

It should be conducted Impartially.

While research is always influenced by the

researcher's research philosophy, it should

be free from the personal or political biases

of the researcher or the management.


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Characteristicsof Marketing ResearchResearch which is motivated by personal or

political gain involves a breach of professionalstandards.

Such research is deliberately biased so as to result

in predetermined findings.

The motto of every researcher should be, "Find itand tell it like it is."

The objective nature of marketing research

underscores the importance of ethical

considerations.


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Types of Marketing ResearchMarketing research techniques come in many

forms, including:

Ad Trackingperiodic or continuous in-marketresearch to monitor a brandsperformance usingmeasures such as brand awareness, brandpreference, and product usage. (Young, 2005)

Advertising Researchused to predict copytestingor trackthe efficacy of advertisements forany medium, measured by the ads ability to getattention, communicate the message, build thebrands image, and motivate the consumer topurchase the product or service. (Young, 2005)
http://en.wiktionary.org/wiki/brandhttp://en.wikipedia.org/wiki/Copy_testinghttp://en.wikipedia.org/wiki/Copy_testinghttp://en.wikipedia.org/wiki/Ad_Trackinghttp://en.wikipedia.org/wiki/Ad_Trackinghttp://en.wikipedia.org/wiki/Copy_testinghttp://en.wikipedia.org/wiki/Copy_testinghttp://en.wiktionary.org/wiki/brand


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Types of Marketing Research

Brand Equity research- how favorablydo consumers view the brand?

Brand Association research- what do

consumers associate with the brand? Brand Attribute research- what are the

key traits that describe the brand promise?

Brand Name Testing- what doconsumers feel about the names of the

products?


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Types of Marketing Research

Commercial eye trackingresearch- examine

advertisements, package designs, websites, etc.by analyzing visual behavior of the consumer

Concept testing- to test the acceptance of aconcept by target consumers

Cool hunting- to make observations andpredictions in changes of new or existing culturaltrends in areas such as fashion, music, films,television, youth culture and lifestyle

Buyer decision processesresearch- todetermine what motivates people to buy andwhat decision-making process they use
http://en.wikipedia.org/wiki/Commercial_eye_trackinghttp://en.wikipedia.org/wiki/Concept_testinghttp://en.wikipedia.org/wiki/Coolhuntinghttp://en.wikipedia.org/wiki/Buyer_decision_processeshttp://en.wikipedia.org/wiki/Buyer_decision_processeshttp://en.wikipedia.org/wiki/Coolhuntinghttp://en.wikipedia.org/wiki/Concept_testinghttp://en.wikipedia.org/wiki/Commercial_eye_tracking


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Types of Marketing Research Copy testingpredicts in-market performance

of an ad before it airs by analyzing audiencelevels of attention, brand linkage, motivation,entertainment, and communication, as well asbreaking down the ads flow of attentionand flowof emotion. (Young, p 213)

Customer satisfaction research- quantitativeor qualitative studies that yields anunderstanding of a customer's of satisfactionwith a transaction

Demandestimation- to determine theapproximate level of demand for the product

Distribution channelaudits- to assessdistributors and retailers attitudes toward aproduct, brand, or company
http://en.wikipedia.org/wiki/Copy_testinghttp://en.wiktionary.org/wiki/attentionhttp://en.wiktionary.org/wiki/brand_linkagehttp://en.wiktionary.org/wiki/motivationhttp://en.wiktionary.org/wiki/flow_of_attentionhttp://en.wiktionary.org/wiki/flow_of_emotionhttp://en.wiktionary.org/wiki/flow_of_emotionhttp://en.wikipedia.org/wiki/Customer_satisfaction_researchhttp://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Customer_satisfaction_researchhttp://en.wiktionary.org/wiki/flow_of_emotionhttp://en.wiktionary.org/wiki/flow_of_emotionhttp://en.wiktionary.org/wiki/flow_of_attentionhttp://en.wiktionary.org/wiki/motivationhttp://en.wiktionary.org/wiki/brand_linkagehttp://en.wiktionary.org/wiki/attentionhttp://en.wikipedia.org/wiki/Copy_testing


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Types of Marketing Research Internet strategic intelligence- searching for customer

opinions in the Internet: chats, forums, web pages,blogs... where people express freely about theirexperiences with products, becoming strong "opinionformers"

Marketing effectivenessand analytics- Building

models and measuring results to determine theeffectiveness of individual marketing activities.

Mystery Consumeror Mystery shopping- Anemployee or representative of the market research firmanonymously contacts a salesperson and indicates he or

she is shopping for a product. The shopper then recordsthe entire experience. This method is often used forquality control or for researching competitors' products.
http://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Mystery_Consumerhttp://en.wikipedia.org/wiki/Mystery_shoppinghttp://en.wikipedia.org/wiki/Mystery_shoppinghttp://en.wikipedia.org/wiki/Mystery_Consumerhttp://en.wikipedia.org/wiki/Marketing_effectiveness


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Types of Marketing Research Positioningresearch- how does the target marketsee

the brandrelative to competitors? - what does the brandstand for?

Price elasticitytesting- to determine how sensitivecustomers are to price changes

Sales forecasting- to determine the expected level ofsales given the level of demand. With respect to otherfactors like Advertising expenditure, sales promotion etc.

Segmentation research- to determine thedemographic, psychographic, and behavioural

characteristics of potential buyers Online panel- a group of individual who accepted to

respond to marketing research online
http://en.wikipedia.org/wiki/Positioning_(marketing)http://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Price_elasticity_of_demandhttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Demographicshttp://en.wikipedia.org/wiki/Psychographichttp://en.wikipedia.org/wiki/Online_panelhttp://en.wikipedia.org/wiki/Online_panelhttp://en.wikipedia.org/wiki/Psychographichttp://en.wikipedia.org/wiki/Demographicshttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Price_elasticity_of_demandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Positioning_(marketing)


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Types of Marketing Research Store audit- to measure the sales of a product or

product line at a statistically selected store sample inorder to determine market share, or to determinewhether a retail store provides adequate service

Test marketing- a small-scale product launch used todetermine the likely acceptance of the product when it is

introduced into a wider market Viral Marketing Research- refers to marketing

research designed to estimate the probability thatspecific communications will be transmitted throughoutan individuals Social Network. Estimates of SocialNetworking Potential(SNP) are combined withestimates of selling effectiveness to estimate ROI onspecific combinations of messages and media
http://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Test_markethttp://en.wikipedia.org/wiki/Viral_Marketing_Researchhttp://en.wikipedia.org/wiki/Social_Networkhttp://en.wikipedia.org/wiki/Social_Networking_Potentialhttp://en.wikipedia.org/wiki/Social_Networking_Potentialhttp://en.wikipedia.org/wiki/Social_Networking_Potentialhttp://en.wikipedia.org/wiki/Social_Networking_Potentialhttp://en.wikipedia.org/wiki/Social_Networkhttp://en.wikipedia.org/wiki/Viral_Marketing_Researchhttp://en.wikipedia.org/wiki/Test_markethttp://en.wikipedia.org/wiki/Market_share


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All of these forms of marketing research

can be classified as either

problem- identification researchor as

problem- solving research.


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Marketing Research MethodsBased on questioning:

Qualitative marketing research- generally used forexploratory purposes - small number of respondents -not generalizable to the whole population - statisticalsignificance and confidence not calculated - examplesinclude focus groups, , and projective techniques

Quantitative marketing research- generally used todraw conclusions - tests a specific hypothesis- usesrandom samplingtechniques so as to infer from thesample to the population - involves a large number of

respondents - examples include surveysandquestionnaires. Techniques include choice modelling,maximum difference preference scaling, and
http://en.wikipedia.org/wiki/Qualitative_marketing_researchhttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/Projective_techniqueshttp://en.wikipedia.org/wiki/Quantitative_marketing_researchhttp://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Sampling_(statistics)http://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Questionnaire_constructionhttp://en.wikipedia.org/wiki/Choice_modellinghttp://en.wikipedia.org/wiki/MaxDiffhttp://en.wikipedia.org/wiki/MaxDiffhttp://en.wikipedia.org/wiki/Choice_modellinghttp://en.wikipedia.org/wiki/Questionnaire_constructionhttp://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Sampling_(statistics)http://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Quantitative_marketing_researchhttp://en.wikipedia.org/wiki/Projective_techniqueshttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/Qualitative_marketing_research


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Marketing Research Methods

Based on Observations

Ethnographic Studies- by nature qualitative, theresearcher observes social phenomena in their naturalsetting - observations can occur cross-sectionally(observations made at one time) or longitudinally(observations occur over several time-periods) -

examples include product-use analysis and computercookie traces. See also Ethnographyand Observationaltechniques.

Experimental techniques-, by nature quantitative, the

researcher creates a quasi-artificial environment to try tocontrol spurious factors, then manipulates at least one ofthe variables - examples include purchase laboratoriesand test markets
http://en.wikipedia.org/wiki/Ethnographyhttp://en.wikipedia.org/wiki/Observational_techniqueshttp://en.wikipedia.org/wiki/Observational_techniqueshttp://en.wikipedia.org/wiki/Experimental_techniqueshttp://en.wikipedia.org/wiki/Experimental_techniqueshttp://en.wikipedia.org/wiki/Observational_techniqueshttp://en.wikipedia.org/wiki/Observational_techniqueshttp://en.wikipedia.org/wiki/Ethnography


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Business to Business Market Research

There are four key factors that make B2B market

research special and different to consumermarkets

The decision making unit is far more complex inB2B markets than in consumer markets

B2B products and their applications are morecomplex than consumer products

B2B marketers address a much smaller numberof customers who are very much larger in their

consumption of products than is the case inconsumer markets

Personal relationships are of critical importancein B2B markets

4. Defining MR Problems

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