Marketing Research

Def. - Formal communication link with the environment to provide accurate and useful information for better decision making.

Systematic process of specifying, collecting, analyzing, and interpreting.

Useful for planning, problem-solving, and controlling (see Exhibits 1.2 & 1.3)

Science or Art? Objectivity of Investigator

Unbiased Procedural integrity Accurate reporting

Accuracy of Measurement Valid and Reliable Meaningful and useful Appropriate design (sample, execution)

Open-minded to Findings Willing to refute expectations Acknowledge limitations

Managing the Research Process Good research management

motivates decision makers to use research information Determinants of whether

research data were usedconformity to prior

expectationsclarity of presentationresearch qualitypolitical acceptability within

the firmlack of challenge to the status

quo

Difficulties of Achieving “Scientific Studies” in Marketing

Investigator is deeply involved in the use of the results.

Imprecise measuring devices Very complex and interrelated subject matter Difficulty using experiments Influence of the measurement process on results Time pressure for results

(1)Identifying the

Research Problem/Opportunit

y

(2)Determine the

Research Design

(3)Determine Data

Collection Method

(4)Design Data

Collection Forms

(5)Design Sample

and Collect Data

(6)Analyzing the

Data

(7)Preparing and Presenting the

Report

(8)Follow-up

The Marketing Research Process

Step 1: Identifying and Formulating the Research Problem/Opportunity

Process begins with the recognition of a marketing problem or opportunity: Marketing Problem: Set of circumstances in a market

and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance.

Market Opportunity: Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy.

Step 1: Identifying and Formulating the Research Problem/Opportunity...

Marketing Research Problem: a statement of the specific information needed by a decision maker to help solve a management decision problem (information). Involves determining what information is needed How will the information be obtained?

Marketing Research Objective: the specific information needed to solve a marketing research problem (insight).

Management decision problem: the managerial action required to solve a marketing research problem (action).

Step 2: Determine the Research Design

Research Design: the plan to be followed to answer the marketing research objectives; the structure or framework to solve a specific problem.

Exploratory, Descriptive, Causal

Trade-offs

Step 3: Determine Data Collection Method

Secondary vs. Primary Survey research Observation research Experiments

Step 4: Design Data Collection Forms

What observation form or questionnaire will be best suit the needs of the project?

Anonymous? Confidential? Structured vs. open-ended What types of rating scales? What is the layout going to look like?

Step 5: Design Sample and Collect Data

Sample: a subset from a larger population Probability vs. nonprobability sample Number of respondents Method of contact Management of non-response Detailed field instructions Handling of data

Purpose of the analysis is to interpret and draw conclusions from the mass of collected data

Step 6: Analyzing the Data

What is the purpose of writing the report? Communicate the results to the decision makers Convince the manager that the results are credible

and justified by the data collected Evaluating research is likely to be of greater

importance in a marketing job than other aspects of marketing research. Evaluation of the research quality should be based

upon the research proposal.

Step 7: Preparing and Writing the Report

Step 8: Follow Up

Implementation and measurement of research findings

Interfunctional coordination facilitates the implementation of findings.

Research Request

A document that describes a potential research project, its benefits to the organization, and estimated costs.

A disciplined approach to identifying and communicating research problems to obtain the funding to solve them.

Explains: why the research is needed what questions it will ask to whom at what cost in time and money how the collected data will be used what action will be taken on the results

What Decision Makers Want From Marketing Research

1 Maintains client confidentiality

2 Is honest

3 Is punctual

4 Is flexible

5 Delivers according to project specifications

6 Provides high quality output

7 Is responsive to the client’s needs

8 Has high quality-control standards

9 Is customer oriented in interactions with client

10 Keeps the client informed throughout the project