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Basit Afzal

Chapter 3

Marketing Research

The function that links the

consumer, customer, and

public to the marketer

through information. The

information is used to:

1. Identify and define

marketing opportunities

and problems.

2. Generate, refine, and

evaluate marketingactions.

3. Monitor marketing

performance.

4. Improve understanding of

marketing as a process.

Reasons for Doing MarketingResearch: The Five Cs

1. Customers: To determine

how well customer needs

are being met, investigate

new target markets, and

assess and test new

services and facilities.

2. Competition: To identifyprimary competitors and

pinpoint their strengths

and weaknesses.

3. Confidence: To reduce the

perceived risk in making

marketing decisions.

Reasons for Doing MarketingResearch: The Five Cs

4. Credibility: To increase thebelievability of promotionalmessages among

customers.5. Change: To keep updated

with changes in travelersneeds and expectations.

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Reasons for Not Doing

Marketing Research1. Timing: It will take to much time.

2. Cost: The cost of the researchis too high.

3. Reliability: There is no reliableresearch method available for

doing the research.

4. Competitive intelligence: Thereis a fear that competitors will

learn about the organizationsintentions.

5. Management decision:Management prefers to useown judgment.

Marketing Research Process

Formulate Problem: Define research problem Identify research objectives

and related questions

Select Research Design AndData Collection Method:

Collect and analyze secondaryinformation

Select research design and

primary data collection method

Marketing Research Process

Select Sample And CollectData:

Decide on sample designand collect primary data

Analyze And Interpret Data

Analyze and interpretprimary data

Prepare Research Report: Draw conclusions and

make recommendations

Communication of theResearch Results

Present results to allinterested parties

The Process of

Problem DefinitionAscertain the

decision makers

objectives

Ascertain the

decision makers

objectives

Ascertain the

decision makers

objectives

Understand

background of

the problem

Understand

background of

the problem

Understand

background of

the problem

Isolate/identify

the problem, not

the symptoms

Isolate/identify

the problem, not

the symptoms

Isolate/identify

the problem, not

the symptoms

Determine unit of

analysis

Determine unit of

analysis

Determine unit of

analysis

Determine

relevant variables

Determine

relevant variables

Determine

relevant variables

State research

questions and

objectives

State research

questions and

objectives

State research

questions and

objectives

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Statement ofmarketing

problem

Statement ofmarketing

problem

Statement ofmarketing

problem

Exploratoryresearch

(optional)

Exploratoryresearch

(optional)

Exploratoryresearch

(optional)

Statement ofmarketing

problem

Broadresearch

objectives

Broadresearch

objectives

Broadresearch

objectives

Specific

Objective 1

Specific

Objective 1

Specific

Objective 1

Specific

Objective 2

Specific

Objective 2

Specific

Objective 2

Specific

Objective 3

Specific

Objective 3

Specific

Objective 3

Research

Design

Research

Design

Research

DesignResultsResults

Results

Basic Questions -

Problem Definition What is the purpose of the

study?

How much is already known?

Is additional background

information necessary?

What is to be measured?How?

Can the data be madeavailable?

Should research be

conducted?

Can a hypothesis beformulated?

Research Design

The research design is the master planspecifying the methods andprocedures for collecting andanalyzing the needed information.

Is the Specification of Procedures for Collecting andAnalyzing the dataNecessary to help identify or react to a Problem orOpportunity such thatThe difference b/w Cost of obtaining various levels ofaccuracy & expectedvalue of info associated with each level is maximized

Types of Research Design

Three traditional categoriesof research design:

Exploratory

Descriptive

Causal

The choice of the mostappropriate design dependslargely on the objectives ofthe research and how muchis known about the problemand these objectives.

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Basic Research Objectives and Research

DesignResearch Objective Research Question

What new Product should be developed What benefits do people seek

What Product appeal will be effective in

Advertising Nature of Customer dissatisfaction

How can I service be improved

DESCRIPTIVEHow should new Product be distributed Where do people buy similar Products

What should be the target segment What kind of people now buy our products

How should our Product be changed What is our current image

CAUSALWill an increase in service staff be profitable What is relationship of service staff & Rev

Which Adv Program for Public transit should What would get people out of car and into

Be run Public transit

Should a new budget or No-Frills class of airfare Will the No-Frills airfare generate

Be introduced sufficient new Passengers to offset loss of

revenue from existing

EXPLORATORY

Research Design: Exploratory Research

Exploratory research is most commonlyunstructured, informal research that isundertaken to gain backgroundinformation about the general nature ofthe research problem.

Exploratory research is usually conductedwhen the researcher does not know muchabout the problem and needs additionalinformation or desires new or more recentinformation.

Research Design: Exploratory Research

Exploratory research is used in a number ofsituations:

To gain background information To define terms

To clarify problems and hypotheses

To establish research priorities

Research Design: Exploratory Research

A variety of methods are available toto conduct exploratory research

:

Secondary Data Analysis

Experience Surveys Case Analysis

Focus Groups

Projective Techniques

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Research Design: Descriptive Research

Descriptive research is undertaken to provideanswers to questions of who, what, where, when,and how but not why.

Two basic classifications:

Cross-sectional studies

Longitudinal studies

Research Design: Descriptive Research

Cross-sectional Studies

Cross-sectional studiesmeasure units from asample of the population at only one point intime.

Sample surveys are cross-sectional studieswhose samples are drawn in such a way as to berepresentative of a specific population.

On-line survey research is being used to collectdata for cross-sectional surveys at a faster rate ofspeed.

Research Design: Descriptive ResearchLongitudinal Studies

Longitudinal studies repeatedly draw sampleunits of a population over time.

One method is to draw different units from the

same sampling frame.

A second method is to use a panel where thesame people are asked to respond periodically.

On-line survey research firms recruit panelmembers to respond to online queries.

Research Design: Descriptive ResearchLongitudinal Studies

Two types of panels:

Continuous panelsask panel members thesame questions on each panel measurement.

Discontinuous (Omnibus) panelsvaryquestions from one time to the next.

Longitudinal data used for:

Market tracking

Brand-switching

Attitude and image checks

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Types of Experiments

Two broad classes:

Laboratory experiments: those in which theindependent variable is manipulated andmeasures of the dependent variable are takenin a contrived, artificial setting for the purposeof controlling the many possible extraneousvariables that may affect the dependentvariable

Field experiments: those in which theindependent variables are manipulated andmeasurements of the dependent variable aremade on test units in their natural setting

Research Design: Causal Research

Causality may be thought of asunderstanding a phenomenon in termsof conditional statements of the form Ifx, then y.

Causal relationships are typicallydetermined by the use of experiments,but other methods are also used.

PRO

BLEM

ExploratoryExploratoryExploratoryExploratory

ResearchResearchResearchResearch

Possible

Causes

Of the

Problem

Probable

Causes

DescriptiveDescriptiveDescriptiveDescriptive

ResearchResearchResearchResearch

Causal ResearchCausal ResearchCausal ResearchCausal Research

DETECTIVE FUNNEL

Primary Research Methods & Techniques

Surveys

Personalinterview

(intercepts)

Mail

In-house, self-

administered

Telephone,

fax, e-mail, Web

Surveys

Personalinterview

(intercepts)

Mail

In-house, self-

administered

Telephone,

fax, e-mail, Web

Quantitative Data

Primary

Research

Experiments

Mechanical

observation

Simulation

Qualitative Data

Case studies

Human

observation

Individual depthinterviews

Focus groups

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Translating Marketing Decision Problemsto Research Questions (I)

Decision Problems

1. Develop package for a newproduct

2. Introduce new product

3. Increase market penetrationthrough opening new stores

Research Questions

1. Evaluate effectivenessof alternative packagedesigns

2. Design a test market

3. Evaluate prospectivestore locations

Translating Marketing DecisionProblems to Research Questions (II)

Decision Problems

4. Should the Ad campaign

be changed?

5. Should the price of the productbe changed?

6. What can Ford do to expandits share of the automobilemarket?

Research Questions

4. Assess consumers awareness ofthe current Ad

5. The impact of price change onsales

6. Find unsatisfied needs ofautomobile users

Marketing Decision Problems Vs.Marketing Research Questions

Marketing decision problems

Action oriented

Want answers

Marketing research questions

Information oriented

Ask questions

A marketing decision problem can often lead to a set ofmarketing research questions

Uncertainty Influences theResearch Design

Increasing Uncertainty

Exploratory

Research

Descriptive

Research

Causal

Research

Will buyers purchase

more of our product in

a new package?

What kinds of people

are buying our products?

Who buys our competitors

products?

Our sales

are declining

and we do not

know why.

(Ambiguous Problem) (Aware of Problem) (Problem Clearly Defined)

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Qualitative Vs.

Quantitative Approach

Qualitative approach

focuses on collecting informationwithout relying extensively onnumbers

less objective means of research

typically provides deep meaning

Quantitative approach focuses primarily on collecting

numbers

fairly objective means of research

typically provides preciseinformation

The Marketing Research Design

(1)Identifying the

Problem and Statethe Marketing

ResearchObjectives

(2)Creating of the

Research Design

(2)Creating of the

Research Design

(2)Creating of the

Research Design

(3)Choosing the

Method of

Research

(3)Choosing the

Method of

Research

(3)Choosing the

Method of

Research

(4)Selecting the

SamplingProcedure

(4)Selecting the

SamplingProcedure

(4)Selecting the

SamplingProcedure

(5)Collecting the

Data

(5)Collecting the

Data

(5)Collecting the

Data

(6)Analyzing the

Data

(7)Writing and

Presenting theReport

(7)Writing and

Presenting theReport

(7)Writing and

Presenting theReport

(8)Follow-up

(8)Follow-up

(8)Follow-up

Problem

discovery

Problem definition

(statement ofresearch objectives)

Secondary

(historical)data

Experience

survey

Pilot

study

Case

study

Selection of

exploratory researchtechnique

Selection of

basic researchmethod

Experiment Survey

ObservationSecondaryData Study

Laboratory

Field InterviewQuestionnair

e

Selection ofexploratory research

technique

Sampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcoding

data

Dataprocessing

Interpretation

offindings

Report

Data

Gathering

DataProcessing

andAnalysis

Conclusionsand Report

Research Design

Problem Discovery

and Definition