Marketing Research: Lecture 1

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Marketing Research Lecture 1

• Background and the Research Process

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The Nature of Marketing Research

• Marketing research is one of the principal tools
  for answering questions because it
• Links the consumer, customer, and public to the
  market through information used to identify and
  define marketing
• Generates, refines, and evaluates marketing
  actions
• Monitors marketing performance
• Underlines the understanding of marketing as a
  process

3
Marketing Research Defined

• The systematic and objective process of
  generating information for aid in making
  marketing decisions

4
The Marketing Research Process

• This process includes
• specifying what information is required
• designing the method for collecting information
• managing and implementing the collection of data
• analyzing the results and
• communicating the findings and their implications.

5
Scientific Method

• The analysis and interpretation of empirical
  evidence (facts from observation or
  experimentation) to confirm or disprove prior
  conceptions

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Basic Research

• Attempts to expand the limits of knowledge
• Not directly involved in the solution to a
  pragmatic problem
• Applied Research
• Conducted when a decision must be made about a
  specific real-life problem

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Determining When to Conduct Marketing Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Is sufficient time available?
Information already on hand inadequate?
Is the decision of strategic or tactical
importance?
Does the information value exceed the research
cost?
Conduct Marketing Research
Yes
Yes
Yes
Yes
No
No
No
No
Do Not Conduct Marketing Research
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Potential Value of a Marketing Research Effort
Should Exceed Its Estimated Costs
Costs
Value

• Research expenditures
• Delay of marketing decision and possible
  disclosure of information to rivals
• Possible erroneous research results

• Decreased certainty
• Increased likelihood of a correct decision
• Improved marketing performance and resulting
  higher profits

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Data versus Information

• Datathe raw factsrecord measures of certain
  phenomena which are necessary to provide
• Informationfacts in a form suitable for managers
  to base decisions on.

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Characteristics of Valuable Information

• Relevance
• Quality
• Timeliness
• Completeness

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Decision Support System

• A computer-based system that helps decision
  makers confront problems through direct
  interaction with databases and analytical
  software programs.
• The purpose of a decision support system is to
  store data and transform them into organized
  information that is easily accessible to
  marketing managers.

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Four Major Sources Of Input For A Decision
Support System

• Internal records
• Proprietary marketing research
• Marketing intelligence
• Outside vendors and external distributors

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Types Of Research

• Exploratory
• Descriptive
• Causal

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Uncertainty Influences The Type Of Research
CAUSAL OR DESCRIPTIVE
EXPLORATORY
COMPLETELY CERTAIN
ABSOLUTE AMBIGUITY
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Degree of Problem Definition
Exploratory Research Descriptive
Research Causal Research (Unaware of
Problem) (Aware of Problem) (Problem Clearly
Defined) Our sales are declining and What
kind of people are buying Will buyers purchase
more of we dont know why. our product? Who
buys our our products in a new package? competi
tors product? Would people be interested
Which of two advertising in our new
product idea? What features do buyers
prefer campaigns is more effective? in our
product?
possible situation
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Identifying Causality

• A causal relationship is impossible to prove.
• Evidence of causality
• 1. The appropriate causal order of events
• 2. Concomitant variation--two phenomena vary
  together
• 3. An absence of alternative plausible
  explanations

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Stages In The Research Process

• Problem Discovery and Problem Definition
• Research Design
• Sampling
• Data Gathering
• Data Processing and Analysis
• Conclusions And Report

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Problem Discovery And Definition

• First step
• Problem, opportunity, or monitor operations
• Discovery before definition
• Problem means management problem

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Research Design

• Master Plan
• Framework For Action
• Specifies Methods And Procedures

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Sampling

• Subset of population
• Who is to be sampled
• How large a sample
• How will sample units be selected

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Data Gathering Stage
Fieldwork Interviews, Survey, Observation,
Experiments..
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Data Processing and Analysis

• Coding of Data (Data Entry or Transcription)
• Statistical Analysis of quantitative data (SPSS)
• Extracting Themes from qualitative data

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Conclusions And Report Writing

• Interpreting Findings
• Making Tables and Charts
• Writing conclusions from the data

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Selection of exploratory research technique
Problem discovery
Problem Discovery and Definition
Sampling
Selection of exploratory research technique
Probability
Nonprobability
Secondary (historical) data
Experience survey
Pilot study
Case study
Collection of data (fieldwork)
Data Gathering
Data Processing and Analysis
Editing and coding data
Problem definition (statement of research
objectives)
Data processing
Selection of basic research method
Research Design
Conclusions and Report
Interpretation of findings
Experiment
Survey
Observation
Secondary Data Study
Report
Laboratory
Field
Interview
Questionnaire
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Backwards Marketing Research

• Determine how the research results will be
  implemented (which helps to define the problem)
• To ensure the implementation of results,
  determine what the final report should contain
  and how it should look
• Specify the analyses necessary to fill in the
  blanks in the research report.

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Backwards Marketing Research (continued)

• 4. Determine the kind of data that must be
  assembled to carry out these analyses
• 5. Scan the available secondary sources and/or
  syndicated services to see whether the specified
  data from others (While you are at it, observe
  how others have tried to meet data needs like
  your own).

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Backwards Marketing Research (continued)

• If no such easy way out presents itself, design
  instruments and a sampling plan that will yield
  the data to fit the analyses you have to
  undertake.
• Carry out the field work, continually check to
  see whether the data will meet your needs.
• Do the analysis, write the report, and watch it
  have its intended effect.