1. MARKETING RESEARCH

2. Marketing
“ The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.”
McDaniel & Gates

3. What is Research?
Investigation or experimentation aimed at the discovery and interpretation of facts

4. What is Marketing Research?
“The planning, collection, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management”
McDaniel and Gates

5. What functions should be performed to successfully market this product?
What are all the potential research activities needed to support each of these marketing functions?

6. Why Should Organizations Spend Money on Market Research?

7. “TO GUESS IS CHEAP, TO GUESS WRONGLY IS EXPENSIVE”
Chinese proverb
Marketing research is an investment that produces a return on investment by reducing the possibility of failure and enhancing the success of marketing strategies and decision-making. In a word it reduces risk.

8. How does research achieve reduction in risk?
Why should research be hypothesis driven?
Indigo books has noticed that many customers abandon the shopping process part way through.
What might be the reasons for this?

9. What sort of decisions does management face that require information (i.e. Marketing research)
Product
Price
Promotion
Place

10. What Qualities of the data will be relevant to marketing decision making?
ccurate
elevant
imely

11. What are the Two main types of information?
Qualitative
“How do people feel about the your product?”
Not predictive of market behavior
Qualify needs, wants, preferences
Focus Groups, In-depth interviews
Ethnography, observational studies
Quantitative
“How many people like your product?”
Predictive if done correctly
Surveys: Telephone, Mail, Intercept, Internet

12. What are Two main sources of information?
Secondary Research
Existing studies, census data, articles
Internet, library, trade journals
Non-specific and often dated
Primary Research
data originated specifically for the study at hand
Create your own questions and find your own answers by asking people what they think, feel, know, etc.
Common methods include:
Focus groups, surveys

13. What are the Major Sources of Information?
Marketing Research
Customer Databases
Internal Reporting Systems/ Scanner Data
The Internet / On-line Sources

14. Types Of Research
Exploratory
Descriptive
Causal

15. Exploratory Research
Initial research conducted to clarify and define the nature of a problem
Does not provide conclusive evidence
Helps develop hypotheses but does not test them
Subsequent research expected
Published sources, depth interviews, focus groups
characterized by its flexibility

16. Descriptive Research
Describes characteristics of a population or phenomenon (who, what, where, when, why, and how)
Some understanding of the nature of the problem
Tends to be more quantitative than qualitative
Tests hypotheses and provides conclusive information
more rigid than exploratory research

17. Causal Research
Conducted to identify cause and effect relationships, especially to see how actions now will affect a business in the future
accomplishes goal through laboratory and field experiments
For example, if Kellogg’s wants to know what impact on sales a change in package design would have.
Stores are matched in terms of demographics, location etc. with only the packaging changed.
Following the research, marketing managers will be able to decide whether changing the package design would be profitable.

18. (Problem Clearly Defined)
Uncertainty Influences The Type Of Research
CAUSAL OR
DESCRIPTIVE
EXPLORATORY
ABSOLUTE AMBIGUITY
COMPLETELY CERTAIN
Exploratory Research
(Unaware of Problem)
“Our sales are declining and we don’t know why.”
“Would people be interested in our new product idea?”
Descriptive Research
(Aware of Problem)
“What kind of people are buying our product?
Who buys our competitor’s product?”
“What features do buyers prefer in our product?”
Causal Research
(Problem Clearly Defined)
“Will buyers purchase more of
our products in a new package?
“Which of two advertising campaigns is more effective?”

19. Determining When to Conduct Marketing Research
Do we really need research?
Expensive. Valuable?
Benefits versus costs
Nature of the decision
Vital?
When should we NOT conduct research:
No time or money
Insufficient payback
Information already available
Information too hard to get

20. The Bank of Montreal has been trying to sell its services online but finds that new web users are not signing up for services. Management wonders whether or not they should invest in a guided tour.
Should they conduct market research to help them decide?
A guided tour involves a considerable financial risk. There are also concerns about brand image. So they decide to proceed with the research. What do they need to know?
What are some hypotheses as to why users are not signing up?
How might they discover which, if any, of these possible reasons is correct?
Assume they discover that the reason was a poor portrayal of the value proposition, I.e.people did not understand why they should use the service. What would be the next step?

21. Anecdotal evidence suggests that although customers like the performance and comfort of the Ford Crown Victoria, they are not overly enthusiastic about it’s design which has changed little since the last major design change in Ford has decided to hire an external market research company (i.e. you) to find out how the public are likely to feel about a new design. What steps would you take to provide this information?
1992
2009

22. The Marketing Research Process
Problem identification
specifying what information is required – define research objectives (hypothesis driven)
designing the method for collecting information (, exploratory, survey, observation, secondary, experiment)
Select sample
managing and implementing the collection of data
Preparing, analyzing and interpreting the data
communicating the findings and their implications.

23. 1. Define the problem or opportunity
What is the purpose of the study?
What is the relevant background information?
Problem definition involves discussion with the decision makers, analysis of secondary data, perhaps, some exploratory research
Once the problem has been precisely defined, the research can be designed and conducted properly
A decline in sales is a problem, but its underlying cause is what must be corrected
To define the problem, list every factor that may have influenced it, then eliminate any that cannot be measured

24. 2. specifying what information is required
Ascertain the decision maker’s objectives
Determine unit of analysis
Understand background of the problem
Determine relevant variables
Isolate/identify the problem, not the symptoms
State research questions and objectives

25. 3. Determine Research Design
Exploratory:
Initial, unstructured, informal
When you don’t know much
Focus groups, lit review, case study, pilot study, secondary data, experience survey
Descriptive:
Answers who, what, why and how
Surveys, observation
Causal:
Relationships between variables
Experiments

26. 4. Select Sample Subjects Identify target population
Census = all
Sample = portion
Identify target population
Cost vs. generalizability
Identify unit of analysis
Individual, household, community
How will you select subjects?
Probability vs. nonprobability

27. 5. Collect Data Determine data gathering methods Properly prepare
Secondary data:
Internal records, reports for purchase, library, web
Primary data:
Telephone, web, in person, mail, observation (in person, electronic)
Properly prepare
Pretest, pilot test, main study

28. 6. Analyze Data Edit data Code data Select appropriate analysis method
Use to summarize findings
Use to interpret results
Will the findings hold for the general population?

29. 7. Prepare Report SUMMARY: What was done and what was found
Goal: clear, unbiased conclusions
Write for your audience

30. The Marketing Research Process
Problem Discovery
Selection of Sample Design
Exploratory Research
Collection of the Data
Selection of the Basic Research Method

31. The Research Process (cont.)
Editing and Coding
Report
Data Processing
Interpretation of the Findings

32. Would you talk only to men?
Would you talk only to current owners?
Would you talk to only 10 people?
Would it matter if you asked them about the Cadillac Escalade?
Would it matter if you did a multiple regression analysis?

33. Marketing research works because, by talking to a relatively small number of people, it is possible to find out about a far larger number.
But…..
it only works if you talk to the right number of people
it only works if you talk to the right type of people
it only works if you ask the right questions and
it only works if you analyze the data in the right way.

34. Research Ethics No harm Full disclosure No coercion
The moral principals and values that govern actions and decisions. They are guidelines on how to act when faced with moral dilemmas.
No harm
Confidential or Anonymous?
Full disclosure
Before and after (debriefing)
No deception (passive or active)
No coercion
Right of refusal
Identity protection
Anonymity or confidentiality

35. “The formulation of the problem is often more essential than its solution”
Albert Einstein

36. The Management Problem versus the Marketing Research Problem
A distinction must be made between the management problem and the marketing research problem.
Marketing Research
Problems
Management Problem
Focus on symptoms
Action oriented
Focus on causes
Data oriented