Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-1 The Marketing Research Process Chapter Two

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-2 Learning Objectives  Describe the major environmental factors that directly influence marketing research and explain their impact on the research process  Describe the principal marketing research steps involved in the research process  Explain the differences between data and information

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-3 Learning Objectives  Identify the most critical marketing research step in the research process and explain why it is so important  Distinguish among exploratory, descriptive and causal research designs  Identify and explain the major components of a solid research proposal

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-4 Learning Objectives  Discuss how prices for marketing projects are determined  Identify and explain the characteristics used to evaluate a supplier of marketing research  Discuss ethics in the marketing research industry

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-5 The Need for Marketing Research  A decision problem:  A situation in which a manager has to decide which course of action to take so as to help accomplish a specific objective  Refers to an independent variable that needs managerial attention  A marketing mix element, environmental condition or situational factor  A weakness or threat  A strength or opportunity

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-6 The Need for Marketing Research  Recognition of the decision problem:  This is the primary responsibility of the decision maker, because:  They are more involved in the business and have more insight  They have a greater stake in the business outcome  May be in the form of a symptom of the true problem  Should be followed by determination of the need for marketing research

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-7 Transforming Data into Information  To provide decision makers with useable information Information The set of facts derived from data structures Information The set of facts derived from data structures Data structures interpreted Interpretations turned into narrative expressions Data is analysed

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-8 An Overview of the Marketing Research Process  The process is divided into 4 distinct, interrelated processes  Exhibit 2.1 The four phases of the marketing research process

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-9 Exhibit 2.2 Phases and marketing research steps in the marketing research process

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-10 Marketing Research Determine the problem Step 1: Phase I: Establish the Research Parameters PHASE I: Establish the research parameters  Definition of the decision problem  Determine if problem is a symptom or a true problem, then precisely specify the decision problem  Specification of the research question  The most critical step in the marketing research process  Reformulate in scientific terms and restate the initial variables (how, what, where, when or why )  Definition of the research objective  Provide the guidelines for determining which other marketing research steps must be undertaken  Evaluate the information benefits  Assess the expected benefits to be derived Step 1:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-11 Marketing Research Assess the data needs Phase I: Establish the Research Parameters PHASE I: Establish the research parameters  Determine the data needs  Determine the data needed to execute the research  Assess what types of information sources would be most appropriate  Determine whether the data can be collected at all  Evaluate data availability and quality  Can the specific research question be addressed with existing data?  Does the question require new, firsthand data? Step 2:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-12 Marketing Research Select the research design Phase II: Design the Research PHASE II: Design the research  Consider the research objectives and specific data requirements  Exploratory research designs include:  Focus group interviews, experience surveys and pilot studies, to classify problems or opportunities  Descriptive research designs include:  Surveys such as image assessment and customer satisfaction, to create data structures that describe the existing characteristics of a defined target population  Causal research designs include:  Experimental designs, to model cause and effect relationships between variables Step 3:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-13 Marketing Research Determine the sampling plan Phase II: Design the Research PHASE II: Design the research  Examine the population the data represents (See Exhibit 2.4, page 38)  If secondary data is relevant, no sampling is necessary  If primary data is sought, consideration must be given to:  The defined target population, a subset of the population selected for investigation, using either:  A census—includes every element  A sample—a randomly selected sub-group of elements  If a sample is used, then the researcher must consider:  Probability sampling—a known, non-zero chance of selection  Non-probability sampling—no known sampling error Step 4:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-14 Marketing Research Determine the measurement issues Phase II: Design the Research PHASE II: Design the research  Determine the dimensions of the factors being investigated and measure the variables  The second most important step in the research process  Questions include:  What level of information is needed from a variable?  How valid does the information need to be?  How reliable does the information need to be?  How can the scales be made valid and reliable?  What dimensions underlie the factors being investigated?  Should single or multiple measures be used? Step 5:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-15 Marketing Research Design the data collection forms Phase II: Design the Research PHASE II: Design the research  Determine whether to use questioning or observation techniques (See Exhibit 2.5, page 39)  Questioning allows the researcher to collect a wider array of data  Pertains to current behaviour and state of mind  Questionnaires are the preferred collection method  Observation  Pertains to observable or measurable actions  Professional observers or mechanical devices are used Step 6:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-16 Marketing Research Prepare the data Phase III: Execute the Research PHASE III: Execute the research  Perform procedural activities that occur before data analysis:  Code the data  Enter the data  Inspect and cleanse the data Step 7:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-17 Marketing Research Analyse the data Phase III: Execute the Research PHASE III: Execute the research  Turn data into data structures  Select the data analysis technique most suited to the task  Differing procedures allow the researcher to:  Statistically test for significant differences and relationships between variables  Test hypothesised relationships  Evaluate data quality  Test cause–effect relationships Step 8:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-18 Marketing Research Transform the analysis results into information Phase IV: Communicate the Research Results PHASE IV: Communicate the research results  Create and communicate information  Transform the results and findings into a narrative interpretation  A research report and presentation:  Integrates several pieces of the results into an understandable report  The decision maker can then create an actionable plan to address the initial decision problem  The report might include:  Executive summary  Introduction  Problem definition and objectives  Methodology, results and findings  Limitations of the study Step 9:

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-19 Development of a Marketing Research Proposal  The research proposal:  A written contract between the decision maker and the researcher  Based on an understanding of the research phases  Components  See Exhibit 2.6, page 42

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-20 Procedural Considerations  Pricing the research project  Objectivity  Confidentiality  Data accuracy  Data validation

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-21 Assessing the Quality of the Research Firm  Technical competency  Marketing knowledge  Reliability of service  Conformance to standards  Researcher’s reputation

Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau 2-22 Ethics in Marketing Research Practices  Ethical dilemmas  Unethical activities  By the researcher  Within the research design  By the client  By the respondent  Code of ethics