Principles of MARKETING RESEARCH

Winter 2013

Principles of

MARKETING RESEARCH

Overview of Today’s Topics

1. Types of Marketing Research2. Initiating the Research Process3. Homework Presentations4. Homework Assignment for Week 04

TYPES OF MARKETING RESEARCH

Definition and Examples

1


BASIC Attempts to expand the limits of knowledge, but is not directly involved in the solution to a problem.

Example: Do consumers disassociate during low involvement situations?


APPLIEDThis type of research is conducted when a Decision must be made about a specific real-life problem

Examples?


APPLIED RESEARCH EXAMPLES1. Should McDonald’s add Italian

pasta to its menu?

2. Should Proctor & Gamble add high priced home teeth bleaching kits to its product line?

2 Initiating the Research Process

Necessary to have accurate information to make the correct decisions.

Defined as the systematic gathering, analyzing, interpreting, and transforming of data into decision-making information.

Basically, the goal is to gain knowledge

What? Initiating the Research Process

The type of knowledge is what makes this process more difficult.

How do you know if Market Research is necessary?Need to ask, “Can the problem be solved based on past experience and/or managerial judgment?”

Why it might not be needed:Information is already availableInsufficient time frames Inadequate resources Costs outweigh value

Why? Determining Need

Phase 1Determine the Research Problem

Phase 2Select Appropriate Research Design

Phase 3Execute the Research Design

Phase 4Communicate the Research Results

4 Phases Research Process

The answers to these question can mean the difference between an iPod and a Zune.

Phase 1 Determine the Research Problem

Step 1Identify and Clarify information needsThis depends on what the problem is. Then you need to determine what information is needed to solve the problem

The Iceberg PrincipleAbove the water line are the obvious problems, below and unseen are the problems.

Step 2Define the Research Problem and Questions

Most important step is defining the problem

What is a problem?Any situation where a gap exists between the actual and desired state. Might not be that something is wrong, could be the desire to improve.

Problem definitions can include both existing problems orgoals to improve the current situation for the future.


Typical Problems: Poor Service, Competition, Conflicts, Lack of Sales

Step 3Specify Research Objectives and Confirm Information Value

Need to ask:Can information be collected at allWill the information tell something not already knownWill the information provide any significant insight


If any of the above questions are answered with a no, then the process ends.

Step 4Determine the research design and data sources

What type will you be using?Exploratory ResearchDescriptive ResearchCausal Research

Phase 2 Select the Research Design

Uncertainty can influences the type of research design chosen

Step 4 Determine the research design and data sourcesExploratory Research

Occurs when you are unaware of what the problem isie: “Would people be interested in a new product?”

Used to clarify and define the nature of the problem

Does not provide any conclusive evidence and subsequentresearch is expected once this type is complete

Usually collection of information is more informal and unstructured


Types include secondary data (historical data), pilot studies

Step 4 Determine the research design and data sourcesDescriptive Research

Describes characteristics of a population or phenomenonDefines understanding of the nature of the problem

Collecting information using methods that describe variables

“What kind of people are buying our product? Who buys ourcompetitors products? What features do buyers prefer in our product?”

example:Average Weight Watchers customerWoman 40+Income $50,000+Some college educationJuggling kids and job


Step 4 Determine the research design and data sourcesCausal Research (Experiments)

Conducted to identify cause and effect relationshipsDifficult to prove causal relationshipsSome evidence of causality might include:

Appropriate causal order of eventsTwo phenomenon vary togetherAbsence of any other plausible explanation


Step 4


Step 4 Determine the research design and data sourcesData Sources

Secondary Data SourcesInternet, library, internal data warehouses

Primary Data SourcesTelephone, Internet, mail, face to face interviews or observations


Step 4 Determine the research design and data sourcesData Types

Raw DataActual responses by asking questions or observing behavior

Data StructureCombining raw date into groups either qualitative or quantitative

Information/KnowledgeData that is properly interpreted to provide knowledge that is useful


Step 5 Sampling Design and Sampling Size

Identify the relevant target population.

Develop a probability or non-probability sampling plan.

Determine the sample size.


Step 7 Design and Pretest Questionnaire

Decide issues such as:Question TypeSequence and FormatPretest

This is critical because bad questionnaires produce inaccurate data.


Step 8 Collect and Prepare Data

Step 9 Analyze Data

Data Cleaning: checked for inaccurate entry, etc.Data Analysis: Run statistical test to determine relationships

UnivariateBivariateMultivariate

Phase 3 Execute the Research Design

Step 9 Analyze Data

Be aware of OutliersAn observation or response that is substantially different

from the others

Example:INDIVIDUAL NET WORTHBill Gates 56.0 BillionJeff Bezos 4.4 BillionCraig McCaw 2.1 Billion

Number of Households in Medina, Washington: 1206Average net worth (1206 Households): $52, 048,652Average net worth (minus Bill Gates): $5,618,817Average net worth (minus top three): $235,521

Phase 3 Execute the Research Design

Step 11 Prepare and Prepare final report

Executive SummaryIntroductionProblem Definition & ObjectivesMethodologyResults, Findings, Limitations of Study

This last step is one of the most important because it communicatesresults directly to the client.

Phase 4 Communicate Research Results

3 HomeworkWeek 03/04

IN CLASS ASSIGNMENTYou will be conducting a survey on one of the following topics:

Gun ControlImmigrationAbortionFiscal CliffIntelligent Design

Once you’ve chosen your topic, come up with the following:Target DemographicExpected Outcomes

Take that information and go to the street—ASK THEM!Once you’ve questioned at least 20 people in your target. Collate the information and provide the following for homework week 2.

In Class Assignment / Homework Week 03

STREET ANALYSISFor week 2 I would like you to provide a written analysis of the information you collected. Provide your original field notes, an informational graph that gives a visual representation of your outcomes and an analysis of the information and your conclusions.

Initially I would recommend providing some background on your topic and the target demographic and expected outcomes you originally assumed. Make sure to note if they were correct and did the information back you up or not. Explain why you believe it did or didn’t.

Your analysis should be typewritten, MLA format and make sure to SPELL CHECK. I will collect them at the beginning of next week’s class.

Homework Week 03

» Specs

The final project is the culminating academic endeavor of the class’s research over the quarter.

It will provide you with the opportunity to explore a problem or issue of particular personal or professional interest and to address it in a thorough focused study and applied research.

This project should demonstrate your ability to synthesize and apply the knowledge and skills acquired through the class, and it should not only exemplify your ability to think critically, but should utilize the variety of research methods introduced to come to a cohesive and logical conclusion.

FINAL PROJECT

» Sections

Executive SummaryIndustry AnalysisMarketing ResearchSWOTT AnalysisHypothesis/Problem Statement/PurposeResearch ObjectivesLimitationsMethodologySample QuestionnaireData AnalysisConclusions

FINAL PROJECT

» Requirements

You will be required to provide all of your questionnaires in the final document along with your tabulation of the data provided by those forms. In addition, you will include the secondary research sources in print form along with a full bibliography of the sources utilized.

A final oral presentation will be given in class utilizing presentation software that will detail your process and findings.

After the final presentations you will provide the instructor with the following in an envelope or folder:

Written paperPrint out of Oral PresentationDVD/CD with written and oral presentation

FINAL PROJECT

» Requirements

Develop an initial proposal for your final project. Include information about the Problem Statement (question you want answered), background about the industry and why you believe this will work for this project.

Provide a one page written summary and be prepared to discuss in detail during class next week.

Make sure to check the website at:ddemooy.weebly.com

For this week’s slide lecture and other helpful resources.

HOMEWORK WEEK 04

Principles of MARKETING RESEARCH

Documents

Transcript of Principles of MARKETING RESEARCH