1. Chapter Two

2. The Problem Definition Process
1. Recognize the problem or opportunity
2. Find out why the information is being sought
3. Understand the decision making environment
4. Use the symptoms to help clarify the problem
Can the problem become opportunity?
Any suspect motives?
Examine cultural & bureaucracy issues
Determine cause & effect relationships
Key Terms & Definitions

3. The Problem Definition Process
5. Translate management problem to marketing research problem
6. Determine whether the information already exists
7. Determine whether the question can be answered
8. State the research objectives
Management support is key
Have you researched other research?
Are the objectives clear and realistic?
Include timetable and responsible party
The professor might want to emphasize this process because many times the students do not put enough thought into formulating research objectives.
Key Terms & Definitions

4. The Decision-Making Environment
Exploratory Studies Defined
Preliminary research conducted to increase understanding of a concept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied.
Define terms
Clarify problems
Develop theories
Establish priorities
Gain general information
Examples of actual products/brands and situations help when explaining this type of research.
Purposes
Key Terms & Definitions

5. Research Hypothesis vs. Research Question
A Research Hypothesis:
A conjectural statement about a relationship between two or more variables that can be tested with empirical data. A claim, or argument about your theory of what is causing “X” that you will research to prove or disprove:
“Sales are declining because of competition.”
A Research Question:
Questioning what the researcher wants to learn without making a claim about what might be causing the issue at hand.
“We don’t know why sales are declining, so let’s research the problem to find out.”
Key Terms & Definitions

6. The Marketing Research Process
An Overview
2-6
Key Terms & Definitions

7. The Marketing Research Process
1. Problem definition and statement of objectives
2. Creation of the research design
3. Choice of research method
4. Sampling section / plan
Does it involve hypothesis or just a statement?
Exploratory, descriptive, casual, planning, implementing, controlling
Primary vs. secondary – survey, focus groups, experiments, etc.
Probability vs. non-probability, sample size
Key Terms & Definitions

8. The Marketing Research Process, Continued
5. Data collection
6. Data analysis
7. Write and present the research report
8. Follow-up
Personal, telephone, mail, Internet, etc.
Level & scope must be determined early
Determine format, font, layout, PPTs, etc.
Were recommendations followed? Is more research needed?
Key Terms & Definitions

9. 1. From a Management Problem to a Marketing Research Problem
Making the Transition
Management Decision Problem
A statement specifying the type of managerial action required to solve the problem.
A goal statement defining the specific information needed to solve the marketing research problem.
Marketing Research Problem
Marketing
Research
Problem
Marketing Research Objective
A statement specifying the type of information needed by the decision maker to help solve the management decision problem and how that information can be obtained efficiently and effectively.
Key Terms & Definitions

10. 2. Marketing Research Design
“The plan to be followed to answer the marketing research objectives.”
It is the detailed blueprint used to guide the research study towards its objectives including what and how you will conduct the research study.
Key Terms & Definitions

11. 2a. Descriptive Research Studies Marketing Research Design Continued
Descriptive Studies Defined
Descriptive research studies answer the who, what, where, when, and how questions. It is used when one wants to gain a better understanding of the specifics or details the research issue.
Confirm theories
Brand loyalty measure
Describes population
Build customer profile
Gain specific information
Secondary data
Cross-sectional surveys
Longitudinal surveys
Statistical data analysis
Actual examples from the real world of marketing research help when explaining and illustrating these types of studies.
Purpose
Key Methods
Key Terms & Definitions

12. Descriptive Research Studies Marketing Research Design Continued
Cross-Sectional Surveys:
One-time snapshots of population
Use the same survey & different sample
Longitudinal Surveys:
Identify market trends
Use the same survey & same sample
Use tracking panels & groups
Key Terms & Definitions

13. 2b. Causal Research Studies Marketing Research Design Continued
Causal Studies Defined
Research studies that examine whether the value of one variable causes or determines the value of another variable.
Surveys
Experiments
Time sequence
Secondary data
Systematic elimination
Confirm theories
Identify cause & effect
Relationships among variables
Purpose
Test markets and simulated test markets are good examples to explain causal studies.
Key Methods
Key Terms & Definitions

14. Marketing Research Design Continued
Causal Research
Marketing Research Design Continued
Dependent Variable:
A symbol or concept expected to be explained or influenced by the independent variable. One affects the dependent variable by manipulating the independent variable deemed to be associated with the dependent variable.
Independent Variable:
A symbol or concept over which the research has some control and that is hypothesized to cause or influence the dependent variable.
Key Terms & Definitions

15. Marketing Research Design Continued
Causal Research
Marketing Research Design Continued
Key Requirements to Demonstrate Causation
Concomitant Variation:
The degree to which a presumed cause and a presumed effect occur or vary together.
Temporal Sequence:
An appropriate causal order of events.
Spurious Association:
A relationship between a presumed cause and a presumed effect that occurs as a result of an unexamined variable or set of variables.
Examples of mistakes made in marketing research projects help explain the difficulties of doing causal research projects.
Key Terms & Definitions

16. 3. Choosing a Research Method
Observation Research:
Typically descriptive research that monitors respondents’ actions without direct interaction.
Experiments:
Research to measure causality, in which the researcher changes one or more independent variables and observes the effect of the changes on the dependent.
Survey Research:
Research in which surveys (personal, telephone, mail or Internet) are used to obtain facts, opinions, and attitudes from respondents.
The professor might point out that each of these methods has time and money constraints. The client’s budget (time, money, and personnel) will impact the choice of methods, also.
Other Qualitative Research:
Research such as focus groups, secondary data analyses, and case studies.
Key Terms & Definitions

17. Two Basic Types and Size
4. Sampling Procedure
Two Basic Types and Size
Probability Sampling:
A subset of the population that can be assumed to be a representative cross section of the population because every element in the population has a known non-zero chance of being selected.
Nonprobability Sampling:
A subset of the population in which the chances of selection for the various elements in the population are not precisely known.
The client’s budget (time and money) may have a significant impact on the sample procedure decisions. The professor can give examples of this for each sample type to illustrate the impact.
Sample Size:
How many are needed to interview or observe?
Key Terms & Definitions

18. Key Terms & Definitions
5. Collecting the Data
Survey
Interviewer
In-person
Telephone
No interviewer
Mail
Internet
Observation
Machine
Experiments
Key Terms & Definitions

19. Key Terms & Definitions
6. Analysis of the Data
Data Analysis:
Use a variety of quantitative and qualitative analytical techniques.
Interpret and draw conclusions from the mass of collected data.
Key Terms & Definitions

20. 7. Writing and Presenting the Report
Judging the quality of a report.
Using the Internet to disseminate reports.
Prepare a written and oral presentation to include the research objectives, methodology, key findings, limitations, acknowledgements, conclusion, and recommendations.
The professor might point out that the oral report may be more important than the written because it can motivate the clients to read the report or not. Also, stress to the students that they need to prepare, prepare, and prepare some more for the oral report.
Key Terms & Definitions

21. Key Terms & Definitions
8. Follow Up
Will the findings be used?
Why will they be used or why not?
It is best to minimize any conflict between the marketing department and other departments in the organization.
This stage is also used for the marketing research firm to identify areas in which they can improve the research techniques they used for the specific project. The professor might want to give examples of follow-up techniques.
Key Terms & Definitions

22. Key Terms & Definitions
The Research Request
An internal document used by large organizations that describes a potential research project, its benefits to the organization, and estimated costs. It must be formally approved before a research project can begin.
It Includes:
Action – Decision-makers determine what action will result from the research
Origin - Clarify/state the origin of the problem that necessitated the research
Information – Decision-maker should detail questions to be answered
Use - How each piece of the research will be used should be detailed
Targeting - Determine which groups will be targeted for the research
Logistics - Determine how the research will be done--time & budget are key
Comments - Additional information that is relevant to the project
Key Terms & Definitions

23. The Request for Proposal (RFP)
A solicitation sent to marketing research suppliers inviting them to submit a formal proposal including a bid.
It Includes:
The background of the research problem or issue
The goals and objectives of the hiring firm
The methodology the firm wants you to follow--sometimes with your input
The scope and timetable of the work to be performed
The total project cost
Instructions like the report format, whether they want you to present it, etc.
Key Terms & Definitions

24. Marketing Research Proposal
Includes the following:
Title Page
Statement of the Research Objectives
Study Design
Areas of Questioning
Data Analysis
Personnel Involved
Specifications and Assumptions
Services
Cost
Timing
An example of an actual marketing research proposal from a real marketing research supplier would help the class to understand the importance of this document and its implications for the research process.
Key Terms & Definitions

25. The Benefits of a Research Proposal
Key Terms & Definitions
2-25

26. Key Terms & Definitions
Casual Studies
Dependent Variable
Independent Variable
Temporal Sequence
Concomitant Variation
Spurious Association
Survey Research
Observation Research
Experiments
Probability Sample
Nonprobability Sample
Research Request
Request for Proposal
Research Proposal
Opportunity Identification
Situation Analysis
Exploratory Research
Experience Surveys
Case Analysis
Marketing Research Problem
Marketing Research Objective
Management Decision Problem
Hypothesis
The Marketing Research Process
Research Design
Descriptive Studies
Cross-Section vs. Longitudinal
Links and button are active when in “Slide Show Mode”
Key Terms & Definitions
2-26