CHAPTER two The Marketing Research Process and the Management of Copyright © 2000 South-Western College Publishing Co.

Learning Objectives 1. To learn the steps involved in the marketing research process. 2. To understand the components of the research request. 3. To learn the advantages and disadvantages of survey, observation, and experimental research techniques. 4. To become familiar with the nature of research management.

Step One: Identifying and Formulating the Research Problem/Opportunity To learn the steps involved in the marketing research process. THE RESEARCH PROCESS Step One: Identifying and Formulating the Research Problem/Opportunity The marketing research problem: information The marketing research objective: insight The management decision problem: action Find Out Why Information is Being Sought Determine Whether the Information Already Exists

The Marketing Research Process Figure 2.1 The Marketing Research Process (8) Follow-up (2) Creating of the Research Design (7) Writing and Presenting the Report (1) Identifying the Research Problem/Opportunity (6) Analyzing the Data (3) Choosing the Method of Research (5) Collecting the Data (4) Selecting the Sampling Procedure

Determine Whether the Question Can Really Be Answered. To learn the steps involved in the marketing research process. THE RESEARCH PROCESS Determine Whether the Question Can Really Be Answered. Using Exploratory Research to Define the Problem/Opportunity. Definition of Research Objectives. Research Objectives Must Avoid the “Nice to Know” Syndrome. Management Decisions and Research Objectives

Research Objectives Stated As Hypotheses. To learn the steps involved in the marketing research process. THE RESEARCH PROCESS Research Objectives Stated As Hypotheses. Step Two: Creating the Research Design a plan to answer the research hypothesis Descriptive Studies: who, what, where, when, and how Causal Studies: whether one variable determines the value of another variable temporal sequence concomitant variation spurious association

Step Three: Choosing a Basic Method of Research To learn the steps involved in the marketing research process. THE RESEARCH PROCESS Step Three: Choosing a Basic Method of Research Survey: an interviewer and questionnaire Observation: to monitor respondents’ actions without direct interaction Experiments: to measure causality Step Four: Selecting the Sampling Procedure Probability versus Nonprobability Samples

Step Five: Collecting the Data To learn the steps involved in the marketing research process. THE RESEARCH PROCESS Step Five: Collecting the Data Marketing research field service interviewing Step Six: Analyzing the Data To interpret and draw conclusions Step Seven: Preparing and Writing the Report Communicating the conclusions and recommendations to management

Step Eight: Following Up To understand the components of the research request. THE RESEARCH PROCESS Step Eight: Following Up Using the findings without conflict among departments The Research Request Clearly state why the desired information is critical to the organization 1. Action 2. Origin 3. Information 4. Use

5. Targets and subgroups 6. Logistics 7. Comments To learn the steps involved in the marketing research process. THE RESEARCH PROCESS 5. Targets and subgroups 6. Logistics 7. Comments

What Decision Makers Want From Marketing Research To learn the advantages and disadvantages of survey, observation . . . MANAGING MARKETING RESEARCH What Decision Makers Want From Marketing Research 1. maintains client confidentiality 2. is honest 3. is punctual 4. is flexible 5. delivers against project specifications

What Decision Makers Want From Marketing Research To learn the advantages and disadvantages of survey, observation . . . MANAGING MARKETING RESEARCH What Decision Makers Want From Marketing Research 6. provides high-quality output 7. is responsive to the client’s needs 8. has high quality-control standards 9. is customer-oriented 10. keeps the client informed

Good Communication Is a Necessity To learn the advantages and disadvantages of survey, observation . . . MANAGING MARKETING RESEARCH Good Communication Is a Necessity Managers spend at least 80 percent of every working day communicating with others. The Nature of the Decision-Making Information Depends on the Type of Research Conducted Segmentation opportunities? Profiles of the various segments? Do some segments appear to be more likely candidates? New product opportunities? Marketing program options?

Minimize sources of error. To learn the advantages and disadvantages of survey, observation . . . MANAGING THE RESEARCH PROCESS Data Quality Minimize sources of error. Managing Costs systems to capture costs daily reporting of costs policies and practices to communicate the budget picture to clients identify over budget situations

If over budget due to client error. . . To learn the advantages and disadvantages of survey, observation . . . MANAGING THE RESEARCH PROCESS If over budget due to client error. . . offer options early regarding higher costs smaller sample size shorter interviews Time Management Keeping the project on schedule Can anything be done to speed up the process

The determinants of whether a manager used research data: To become familiar with the nature of research management. MANAGING THE RESEARCH PROCESS Good Research Management Motivates Decision-Makers To Use Research Information The determinants of whether a manager used research data: (1) conformity to prior expectations (2) clarity of presentation (3) research quality (4) political acceptability (5) lack of challenge to the status quo

The End Copyright © 2000 South-Western College Publishing Co.