Marketing Research Lecture 3

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3 When Might Marketing Research Not Be Needed? Marketing Research Might Not Be Worth Pursuing When: You already have the information you need. Time isn’t on your side. You lack the necessary resources to pull it off. The cost of the information outweighs the benefits.

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5 Some “Rules Of Thumb” To Apply Before Undertaking The Research Process Marketing Research is worth doing if: The information helps clear up the problem or identifies changes in the market that can directly impact the company. The information helps the company develop a meaningful competitive advantage within the landscape of the market.

Marketing Research Lecture 3 6 cont…. The information flows into marketing actions that result in achieving marketing objectives. The information provides a “window” into the future of the market in terms of trends & opportunities. The value of information is bigger than the costs of obtaining it.

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8 Research Purpose 1.Problems or Opportunities To Be Studied Which problems or opportunities are anticipated? What is the scope of the problems & the possible reasons? 2.Decision Alternatives to be Evaluated What are the alternatives being studied? What are the criteria for choosing among the alternative? What is the timing or importance of the decision? 3.Users of the Research Results –Who are the decision makers? –Are there any covert purposes?

Marketing Research Lecture 3 9 Research Objective Components of Research Objectives: Research Question Development of Hypotheses Scope or Boundaries of Research

Marketing Research Lecture 3 10 Other Subjective Criteria for a “NO-GO” Decision Marketing Research should not be given a “green Light” if: Doing the research would give valuable information to your competitors. The outcomes can’t or won’t be implemented. The research design doesn’t match up with reality.

Marketing Research Lecture 3 11 cont … The outcomes are going to be used as legal fodder. The key variables can’t be designed or measured due to circumstances beyond your control or quirks in the market. The research is motivated by a political agenda.

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Marketing Research Lecture 3 13 Describing an Apparent Problem Problem: A decline in sales. Objectives of Research: A number of factors responsible for a decline in sales….. decline in demand, increased competition, loss of distribution, high prices, problem with product quality, ineffective promotions etc… Needed Information: A well specified list of information is difficult to make. Gather whatever information is necessary. Data collection Project: A series of unstructured investigations needed.

Marketing Research Lecture 3 14 Identifying A Potential Opportunity Problem: Identify new product ideas or develop more effective advertisements. Research Objectives: Can’t be specific… identify new ideas of product usage, product features, packaging and communicating about the product. Needed Information: Specified in general terms only. Consumers attitudes, behavior, likes dislikes… Data Collection Project: Unstructured research… exploratory in design.

Marketing Research Lecture 3 15 Developing A Marketing Plan Problem: Develop a marketing plan for a new product or re-evaluate for an existing one. Research Objectives: Consumer attitudes & opinions. Awareness, trial, repurchase patterns Needed Information: fig 3-1 Data collection Project: Formal & structured large-scale descriptive studies.

Marketing Research Lecture 3 16 Selecting Between Specific Alternatives Problem: Select between two or more alternatives under consideration Research Objectives: Identify the best alternatives Needed Information: Depends what is being measured. E.g. (i) for testing two or more advertisements, collect information on brand awareness & attitudes Data Collection Project: Experimentation/ casual design used.