Marketing Research Chapter 1 & 2

Marketing Research
the function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.
descriptive, diagnostic or predictive
3 types of Marketing Research
– governments
– businesses
– nonprofits
– universities
Major Customers of Marketing Research
Problem Identification
– declining sales
– lower customer satisfaction
– product defects
– market share slippage
– more product returns
Issue Exploration
– expanding markets
– assessing competition
– cost cutting/efficiencies
– environmental analysis
– new product development
The Marketing Mix
the segment based combination of the four Ps of marking – price, product, promotion, and place.
Product Orientation
– the business focus is primarily on the product and its features
– production of produce itself is the focus
Marketing Orientation
– consumer products/services needs and wants are researched first and then, to the extent possible, produced to meet to needs, wants and desires of the marketplace and consumers
Descriptive (least complicated)
– research designed to answers who, what, where, and how related questions. Describes what it sees in the marketplae
Diagnostic (moderately complicated)
attempts to explain what might be occurring in the marketplace by answering the “why” related questions. For example, why are customers unhappy, why have sales declined, why are customers returning purchased products?
– requires more in-depth questions to determine customer motivations
Predictive (most complicated)
helps management or organization leaders in deciding what action should be taken. This type of research is useful by explaining: if X occurs, Y will happen. This type of research is complicated because it aims to determine customer actions before they happen.
The Marketing Research Process
the entire process from research objective development to data collection and analysis, to report writing and to presenting the results
– the number and complexity of the steps will depend on the research focus
Establish the Need or Reason
the first step in the Market Research Process:
– the research sponsor must determine that the research is warranted
– perhaps a business has had declining or is expanding into a new market or suspects customers are not satisfied. Might prompt business leaders to conduct marketing research to determine what might be happening in the marketplace.
Define the Problem or Issue
the second step in the marketing research process:
– separating the symptoms from the problem is critical.
– there might not be a problem but an issue to define (trying to understand what customers think)
Establish the Research Objectives
the third step in the marketing research process:
– the marketing research provider and the research sponsor must agree to the research goals, objectives, timetable, budget and general resources needed to complete the project.
– may be revisited during the execution phase of the research if preliminary research results cause a reevaluation of the project
– should be clear, concise and specific.
Identify Information Sources and Types
the forth step in the marketing research process:
– information requirement parameters must be agreed to before the research is initiated.
– knowing how to get the needed information can be the difference between project success and failure.
Determine the Research Design
the fifth step in the marketing research process:
– step-by-step guide by which to execute the research. enables researchers to have the benefit of a research execution plan.
– this provides repeatability, traceability and quality verification
– should detail how each phase of the research will be executed
– helps researchers stay on track with a timetable for each phase of the research.
Accessing the Data
the sixth step in the marketing research process:
– refers to how researchers will collect the primary and secondary data
– deciding on how to access the data plays a pivotal role in the marketing researcher’s cost and timetable
Design Data Collection Forms
the seventh step in the marketing research process:
– writing a good questionnaire requires a significant amount of time and expertise.
– pre and post questionnaire testing is critical.
– the questionnaire length and complexity are driven by the research objectives, costs, timetables and execution methods.
Developing the Sample Plan
the eighth step in the marketing research process:
– how researchers will select the respondents and how many respondents will be targeted are key decisions in the research process.
– how respondents are to be chosen involves whether they will be selected randomly or not
Collect the Data
the ninth step in the marketing research process:
– this phase is when researchers begin to formally collect the data.
– this part of the process involves executing the data collection
– changes might include a different data collection method or adjustments to the sample plan
Analyze the Data
the tenth step in the marketing research process:
– involves melding the secondary and primary research data collection results into a comprehensive report. Researchers produce both descriptive and analytic results.
– Should be developed that addresses the key data analysis techniques you will use and how those techniques will advance the understanding of the research objectives or “tell the story” of the data.
– discuss what descriptive and inferential techniques you will use and why
Present and Report Findings
the last step in the marketing research process:
– marketing researchers produce a written report, and perhaps an executive summary presentation slide deck.
– it is important that the research providers receive clear guidance on the format and content of the research report that the client sponsoring the research required
Letter of Transmittal
if the research conducted is for a client, this may be included in the report, formally releasing the research to the client
The Analytical Model
an important step in the research design process. Helps the researcher to understand or visualize, the interrelationships between and among the key parts (variables) relevant to the research issue
Dependent Variable
a variable changed through manipulating independent variables and one that is not under the direct control of the relevant parties
Independent Variable
a variable that can be changed directly with the purpose of affecting the dependent variable
Extraneous Variable
a variable not under direct control but can “manage to” such as the weather, government regulations, competition and the economy
Request for Proposal
a notification that an organization would like bids, from prospective research companies, on a project. These bids includes the cost and research approach.
Request for Quote
a notification that an organization is looking for cost proposal, from a research company, to execute their established approach
Research Approach
the overall scope of the marketing research study
Applied Research Approach
research conducted for a specific purpose – to solve a particular problem or address a certain issue
Basic Research Approach
research conducted to expand general knowledge. often involves more general research goals
Research Method
the steps undertaken to accomplish the marketing research objectives
Primary Research Methods
research collected directly from the population of interest such as through focus groups, interviews, questionnaires, experiments and observations
Secondary Research Methods
research someone else conducted which researchers are learning from through newspapers, the Internet, news programs, professional journals, etc.
Types of Marketing Research Providers
Full Service & Syndicated
Exploratory Research
research designed to gain a general understanding of the issue under study. Because its approach is more general, typically qualitative research methods are used.
ex:
-secondary data analysis
-focus groups & depth interviews
-observation
-case studies
-pilot studies
-experience surveys
Descriptive Research
research designed to quantify understanding of the research topic. Answers the who, what, where and how related questions.
Includes: Cross section surveys and Longitudinal surveys
Cross Section Surveys
part of descriptive research.
– asking questions of various respondents, but not re-surveying the same group. Ask one set of respondents at one point in time
Longitudinal Surveys
part of descriptive research.
– asking the same questions to the same respondents over time. Enable the research to track trends and movement between and among respondents
Causal Research
research designed to answer the “why” related questions. Requires that 3 principles are met:
1) Concomitant Variation
2) Time Order of Occurrence
3) Systematic Elimination
Concomitant Variation
a statistically predictable pattern between responses/variables. ex: if price is lowered by 10%, sales will increase by 5%
ex: the more miles driven, the less gas there will be in the tank
ex: if students study more, their grades will increase
Time Order of Occurrence
“A” must precede “B” if A is the cause of “B”.
ex: the pen will fall when it s dropped, it will not fall before it is dropped
Systematic Elimination
all other possible causes have been eliminated
– “if you eliminate the impossible, whatever remains, however improbable, must be the truth” Sherlock Holmes
Market Penetration
selling existing products in existing markets
Product Development
selling new products in an existing market
Market Development
selling existing products in new markets
Market Diversification
selling new products in new markets
The Research Design (the Detailed Blueprint)
The most critical piece of the puzzle in research execution