Market Research Final

Market Research
• The function that links the consumer the customer and public to the marketer THROUGH INFORMATION
• Systematic and objective
• Identification – specifies the information necessary to address these issues
• Collection – manages and implements data collection
• Analysis – results
• Dissemination – communicates findings and implications
• Use of information – to help make decisions
What is market research used for?
• Used to identify and define market opportunities and problems
• Generate, refine and evaluate marketing performance/strategies
• Monitor marketing performance and make adjustments
• Improve understanding of marketing as a process
• Understand customers
Theme for the term on marketing research:
• Marketing research is FUNDAMENTAL to making business and marketing decisions, without it you are operating on intuition assumptions and best guesses
Applied vs. Basic Research
• Applied – to better understand the market
• Basic – to expand the frontiers of knowledge
• Methods and techniques can be used in both types of research
Methods of Research
• Experimentation
• Secondary data
• Online
• Surveys
• Interviews/focus groups
• Observation
Technical Skills Market Research
• Research design
• Measurements and scales
• Questionnaire design
• Sampling
• Statistical data analysis
Market Research Tools
• Internet
• Library
• Qualtrics
THE PROCESS of Market Research
1. Problem definition
2. Development of an approach to the problem
3. Research design formulation
4. Fieldwork or data collection
5. Data preparation and analysis
6. Report preparation and presentation
Careers on Market Research
• In housing marketing research
• Ad agencies
• Marketing research firms
(Media, Opinion pools, Food, Broad research firms, Consumer research)
What is important for market research?
• Marketing courses
• Psychology and consumer behavior
• Quantitative and qualitative skills
• Effective written/verbal communication
• Creativity/common sense
Step 1: Problem definition
• Most critical step in a market research project
• Problem need to be clearly defined so research can be designed and conducted properly
• Effort, time, money could be wasted if problem isn’t defined well
• Incorrect problem definition = incorrect/irrelevant findings
• HAVE to UNDERSTAND the nature of the problem and the management decision
Tasks involved in problem definition
• Discussion with decision makers – attempt to understand origin and nature of the problem
• Prior history – what have they tried before
• How will the decision be made? By who?
• What info is needed to answer the question
• How will the info be used?
• What is the corporate culture as it relates to decision making?
• Interview with experts
• Secondary data analysis
• Qualitative research
Environmental Context w/Problem Definition
• Past info/forecasts – CONTEXT
• Resources/constraints – SCOPE
• Ex: budget, amount of time given
• Objectives – EXACT DESIRES
• Goals of organization
• Buyer Behavior – RESPONSE TO MARKETING
• Consumer behavior – demographics, media consumption, geography, etc
• Legal Environment
• Economic Environment
• Purchasing power, risk, recession etc
• Marketing/Technology Skills
Management Problem
Need to figure out possible actions that should be taken – how the problem should be addresses ACTION ORIENTED
• Symptoms
• Broad and general
• Example: Should the market be segmented differently?
• Example: Should a new product be introduced?
Marketing Research Problem
What information do you need INFORMATION ORIENTED
• Causes
• Narrow and specific
• Example: Should the market be segmented differently?
• Example: Should a new product be introduced?
Example of Management and Market Research Problem
• Management Problem: Should a new product be introduced?
• Market Research Problem: Determine consumer preferences and purchase intentions for proposed new product
Linking Management Decisions and Market Research Problem
• Management wants to (take an action)
• Therefore we should study (topic)
• So that we can explain (question)
What to AVOID when defining the problem:
• Too broad – not actionable and doesn’t provide clear guidelines for steps in project
• Example: How can we improve the company’s image?
• Too narrow – eliminates interesting options
• Example: Which of these options should we pursue?
• Not too narrow and not too broad
How to avoid too narrow and too broad research problems
• State the market research problem in BROAD GENERAL TERMS and identify SPECIFIC components
• Broad Statement – provides perspective on the problem and acts as a safeguard against being too narrow
• Specific components – focus on the key aspects of the problem an provide clear guidelines on how to proceed further, reducing the likelihood of being too broad
Step 2: Develop an Approach
1. Theory
2. Analytical Model
3. Research Question
4. Hypotheses
5. Info Needed to Test Hypothesis
Theory
• Objective and theoretical foundations
• They suggest variables/constructs, relationships, design, sampling, interpretation and explanation
• Can find in marketing journals
• Requires creativity and thoughtfulness (theories incomplete and abstract, create linkages)
Analytical Model
• How do variables relate to one another?
• Suggest direction
• Analytical – verbal, graphical, mathematical
Research Questions
• Refined statement about the problem phrased in a question
• Break down components of problem further
• What info is required?
• What should be measured/how?
Hypothesis
• Unproven statement about a relationship between two or more variables that can be tested with empirical data
• Possible answer to a research question
Info Needed to Test Hypothesis
• What info is needed to prove/disprove this hypothesis?
Step 3: Research Design Formulation
• Plan for addressing the research objectives or hypotheses
• Define the information needed
• Design the exploratory, descriptive and or causal phases of research
• Specify the measurement and scaling procedures
• Construct and pretest a questionnaire or an appropriate form for data collection
• Specify the sampling process and sample size
• Develop a plan of data analysis
Classification of Research Design
1. Exploratory
2. Conclusive
Exploratory
o Novel insights and understanding, clarify issues
o Information needed is defined only loosely
o Research process is flexible and unstructured
o Sample is small and non-representative
o Analysis of primary data is qualitative
o Followed by further exploratory or conclusive research OR sometimes the only research conducted
Conclusive
o Tests specific hypotheses and examine relationships
o Information needed is clearly defined
o Research process is formal and structured
o Sample is large and representative
o Data analysis is quantitative
o Findings used as an input to decision making
Exploratory Research
• Pilot surveys, survey of experts
• Qualitative research (focus groups, interviews, observation)
• Secondary data
• Meaningful in any situation where the researcher does not have ENOUGH understanding to proceed with the research project
Preliminary research is conducted to
o Increase understanding of a concept
o Define a research problem more precisely
o Isolate key variables and relationships to be studied
o Develop hypotheses for future studies
Descriptive Research market characteristics or functions
o Characteristics of consumers/market areas (heavy users vs. non users)
o Estimate percentages
o Determine consumers perceptions
o Determine association between marketing variables
o Make marketing predictions
Descriptive Research
• Describes market characteristics or functions
• Has clear statement of the problem, specific hypotheses, and detailed information needs
• Majority of market research studies involve descriptive research
Types of Descriptive Research
o Surveys (primary method)
o Secondary research
o Panels
o Observational and other data
Examples of Descriptive Research
o Size of market
o Buying power of consumers
o Sales by geographic region, product line, type or size of account
o Consumer perceptions
o Product usage
o Traffic flow patterns
o Range and frequency of prices
o Media consumption habits and audience profiles
Clarifying descriptive design
o Who – should we be studying
o What – info should be gathered
o When – should the info be gathered (point of purchasing decision, what time of the year/month?)
o Where – should participants be contacted, surveyed, interviewed
o Why – is the marketing research being conducted, questions and objectives
o Way – How are we going to collect the information? (surveys, interviews, observation, etc)