1. Introduction to Marketing Research
CHAPTER 1 & CHAPTER 2
Idil Yaveroglu Lecture Notes

2. MR - - Why do we need it?

4. “Everywhere you look, the quantity of information in the world is soaring. According to one estimate, mankind created 150 exabytes (billion gigabytes) of data in This year, it will create 1,200 exabytes. Merely keeping up with this flood, and storing the bits that might be useful, is difficult enough. Analysing it, to spot patterns and extract useful information, is harder still. Even so, the data deluge is already starting to transform business, government, science and everyday life. It has great potential for good—as long as consumers, companies and governments make the right choices about when to restrict the flow of data, and when to encourage it” (Economist Feb 2010)

5. Marketing Research Marketing research is the systematic and objective
identification,
collection,
analysis,
dissemination, and
use of information
for the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing

6. Definition of Marketing Research
Identifying and Solving Marketing Problems
Identification of Information Needed
Collection of Data
Analysis of Data
Dissemination of Results
Use of Information in Decision Making

7. Marketing Research
Specifies the information necessary to address these issues
Manages and implements the data collection process
Analyzes the results
Communicates the findings and their implications

8. Classification of Marketing Research
Problem Identification Research
Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
Problem Solving Research
Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

9. Example
Penn
Barbie

10. Problem- Identification Research
Marketing Research
Problem- Identification Research
Problem-
Solving
Research
Market Potential Research
Market Share Research
Image Research
Market Characteristics Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research

11. Steps in Marketing Research
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report

12. The Role of Marketing Research in Marketing
Uncontrollable Environmental Factors
Economy
Technology
Competition
Laws and Regulation
Social and Cultural Factors
Political Factors
Assessing Information Needs
Customer Groups
Consumers
Employees
Channel Members
Suppliers
Marketing
Research
Marketing Managers
Market Segmentation • Marketing Programs
Target Market Selection • Performance and Control
Controllable Marketing Variables
Product
Pricing
Promotion
Distribution
Marketing Decision Making
Providing Information

13. Do Not Conduct Marketing Research
Does the management have a positive attitude towards research?
Do Not Conduct Marketing Research No
Yes
Are enough resources available to collect additional information and implement the findings? No
Yes
Is additional information needed to make the decision? No
Yes
Is the decision of strategic or tactical importance? No
Yes
Does the value of additional information exceed the cost of research? No
Yes
Conduct Marketing Research

14. When should you do Research?
When the costs of doing research is lower than the costs of making a bad decision.
Marketing Research
Benefits of
Costs of Marketing Research
The Role of Marketing Research

15. Defining the Problem
Problem definition involves the defining the management decision problem (what should management do), and the marketing research problem (what information is needed).
Management Decision Problem: What could we do to increase market share?
Marketing Research Problem: Asses the effectiveness of different approaches to communication strategies.

16. The Problem Definition and Approach Development Process
Tasks Involved
Discussions with Decision Makers
Interviews with Experts
Secondary Data Analysis
Qualitative Research
Environmental Context of the Problem
Step 1: Problem Definition
Management Decision Problem
Marketing Research Problem
Step 2: Approach to the Problem
Analytical Framework and Models
Research Questions and Hypotheses
Specification of Information Needed
Step 3: Research Design

17. Factors to be Considered in the Environment Context of the Problem
Past Information and Forecasts
Resources and Constraints
Objectives of the Decision Maker
Buyer Behavior
Legal Environment
Economic Environment
Marketing and Technological Skills

18. The Problem Audit
The problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.
The events that led to the decision that action is needed; the history of the problem.
The alternative courses of action available to the DM.
The criteria that will be used to evaluate the alternative courses of action.
The potential actions that are likely to be suggested based on the research findings.
The information that is needed to answer the DM's questions.
The manner in which the DM will use each item of information in making the decision.
The corporate culture as it relates to decision making.

19. Discussion between Researcher and DM
Focus of the DM
Loss of Market Share
Focus of the Researcher
Superior Promotion by Competition
Inadequate Distribution of Company’s Products
Lower Product Quality
Price Undercutting by a Major Competitor
Symptoms
Underlying Causes

20. New Coke

21. Problem Definition Based on Symptoms Can Be Misleading
Firm
Symptoms
Based on Symptoms
Underlying Causes
Manufacturer of orange soft drinks
Consumers say the sugar content is too high
Determine consumer preferences for alternative levels of sugar content
Color. The color of the drink is a dark shade of orange giving the perception that the product is too “sugary.”
Manufacturer of machine tools
Customers complain prices are too high
Determine the price elasticity of demand
Channel management. Distributors do not have adequate product knowledge to communicate product benefits to customers.

22. Management Decision Problem Versus the Marketing Research Problem
Asks what the decision maker needs to do
Asks what information is needed and how it should be obtained
Action oriented
Focuses on symptoms
Information oriented
Focuses on the underlying causes

23. Table 2.3 Management-Decision Problem and Marketing Research Problem
Should a new product be introduced?
To determine consumer preferences and purchase intentions for the proposed new product.
Should the advertising campaign be changed?
To determine the effectiveness of the current advertising campaign.
Should the price of the brand be increased?
To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.
What can Subaru do to expand its automobile market?
To determine the various needs of the automobile users and the extent to which those needs were being satisfied by the current product offering

24. Errors in Defining the Market Research Problem
Problem Definition is too Broad
Does Not Provide Guidelines for Subsequent Steps
e.g., Improving the Company’s Image
Common Errors
Problem Definition is too Narrow
May Miss Some Important Components of the Problem
e.g. Changing Prices in Response to a Competitor’s Price Change

25. Example
Symptom
Management Decision Problem
Research Problems
(Models, RQs, Hypotheses)
Approach to the Problem
Research Design
Needs of buyers of various cars can be operationalized in terms of the attributes or features desired.
-Evaluation
of passenger
cars on the desired attributes
What needs do buyers of passenger cars, station wagons, and sports utility vehicles seek to satisfy?
How well do existing automobile product offerings meet these needs?
Is there a segment of the automobile market whose needs are not being adequately met?
VW lost market share
“What can VW do to expand its share of the automobile market?”

26. Components of an Approach
Analytical Framework and Model
Research Questions and Hypotheses
Specification of the Information Needed

27. Research Questions and Hypotheses
Research questions (RQs) are refined statements of the specific components of the problem.
A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

28. RQ : What is the overlap between the features sought by station wagon buyers and buyers of sports utility vehicles (SUVs)?
H1 : The buyers of station wagons rate certain features of SUVs as important.
H2 : The buyers of SUVs rate certain features of station wagons as important.

29. Specification of Information Needed
By focusing on each component of the problem and the analytical framework and models, research questions, and hypotheses, the researcher can determine what information should be obtained.

30. Colgate Palmolive Marketing Challenges:
Penetration Opportunity: 25% of households in Turkey are not purchasing toothpaste
How can we recruit non-users into the category? There is no habitual development.
Consumption Opportunity: Those who purchase toothpaste brush their teeth only once a week on average
How can we motivate users to brush their teeth regularly twice a day?