MKT 360 Chapter 3

Marketing is an…
Art and a Science
Marketing as an Art
Communication and Delivery of how you communicate. (ex: Promotion and Advertising)
Marketing as a Science
Marketing Research, creates data that can become information
Caveats to the step-by-step Process
Not always presented in 11 steps; not all studies uses all of the steps; may be able to solve problem with secondary data; few studies follow steps in order.
Step 1 of Marketing Research Process
Establish the need for marketing research
Step 2 of Marketing Research Process
Define the problem
Step 3 of Marketing Research Process
Establish research obectives
Step 4 of Marketing Research Process
Determine research design
Step 5 of Marketing Research Process
Identify information types and sources
Step 6 of Marketing Research Process
Determine methods of accessing data
Step 7 of Marketing Research Process
Design data collection forms
Step 8 of Marketing Research Process
Determine the sample plan and size
Step 9 of Marketing Research Process
Collect data
Step 10 of Marketing Research Process
Analyze data
Step 11 of Marketing Research Process
Prepare/present the final research report
Establishing the Need for Marketing Research
Research takes time and costs money, value of information vs. cost of information.
When is marketing research not needed?
Info is already available, timing is wrong to conduct marketing research, funds are not available for marketing research, costs outweigh the value of marketing research.
Example of when timing is wrong for marketing research
Ask people about their stock marketing performance after the market lost 10% of its worth. People are more apt to give negative reviews.
Define the problem
Most important of the 11 step process, if we do this step wrong, all else is a wasted effort.
The need to make a decision requires ________________. If we don’t have these, no decision is necessary.
decision alternatives
Establish Research Objectives
This provides the information necessary to solve the problem, state what the researchers must do.
Determine Research Design
Decide wether we need descriptive research, diagnostic research, or prescriptive research.
Descriptive Research
A set of methods and procedures describing marketing variables. Describes the phenomena of interest.
Diagnostic Research
Designed to determine sources of satisfaction and dissatisfaction.
Prescriptive Research
Provides information that allows the manager to best remedy the dissatisfaction.
Exploratory Research
Collecting information in an unstructured and informal manner.
Causal studies
Attempt to uncover what factor or factors caused some event.
When to use Exploratory Research
Going into an area where we have no preconceived notion of how the customer thinks. An area where we have no data.
When to use Descriptive Research
Talk to people, take the data, and turn the words into numerical data from interviews. Set up focus groups with the data.
Correlation
There is a relationship between two factors.
Causality
One factor causes another.
Does correlation equal causality?
NO
Identify Information Types and Sources
Primary and Secondary
Primary Information
Collected specifically for the problem at hand. It is the best data available to answer the question, it is very expensive.
Secondary information
Information already collected, very cheap and quickly produced, but may not be able to answer the question needed.
Most popular form of accessing data
Online Surveys
Main choices for Primary Data
Have a person ask questions; Use computer-assisted or direct questioning; Allow respondents to answer questions themselves without computer assistance; Use some combination of two or more of the previous methods.
Questionnaires must…
be worded objectively, clearly, and without bias in order to communicate with respondents.
Observation form
When we observe respondents
Sample Plan
Describes how each sample element, or unit, is to be drawn from the total population. Gives us Representativeness.
Sample size
Refers to determining how many elements of the population should be included in the sample. Gives us Accuracy.
Non-sampling errors
Will occur in data collection, researchers must know sources and implement controls to minimize them.
Validation
When researchers aim to minimize the possibility of non-sampling errors by undertaking a control
Data analysis
Involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests.
Prepare and Present the Final Research Report
One of the most important phases of marketing research, it is the last step.
Reporting
It communicates the results to the client.
Recognizing the Problem
Managers must be aware of opportunities. Unless they have implement opportunity identification, they will not succeed in this.
Opportunity Identification
A system for monitoring opportunities
Problems
Situations calling for managers to make choices among decision alternatives
Symptoms
Not the problem, but are the “signals” that alert us to the problem. Changes in the level of some key monitor that measures the achievement of an objective.
Marketing Opportunity
An area of buyer need or potential interest in which a company can perform profitably.
When you define a problem incorrectly…
there is NOTHING you can do in the research process to overcome this error.
Requests for proposals (RFPs)
Used mostly in heavy B2B companies, are often used in marketing research processes.
Invitations to bid (ITBs)
Used in most service oriented companies, often used in marketing research process.
Situation Analysis
A form of exploratory research undertaken to gather background info and gather data pertinent to the problem area that may be helpful in properly defining the problem decision.
Researchers have a responsibility…
to ensure they are addressing the right problem, even when the problem has ben previously defined by management.
Determine all possible causes
If only a partial list of causes is made, it is possible that the real cause will be overlooked.
When a probable causes of the symptom is identified…
this triggers a decision to be made by management
Consequences
The results of marketing decisions
Assumptions
Assertions that certain conditions exist or that certain reactions will take place if the considered alternatives are implemented.
Information state
The quantity and quality of evidence a manager possesses for each of his/her assumptions.
Information gaps
Discrepancies between the current information level and the desired level of information.
Research objectives
State specifically what information the researcher must produce so that the manager can choose the correct decision alternative to solve his or her problem.
Hypothesis
Statements that are taken as true for the purposes of argument investigation.
Construct
An abstract idea inferred from specific instance that are thought to be related.
Operational definition of Construct
Intention to buy or satisfaction, which describes the operations to be carried out for the construct to be measured empirically.
Criteria for writing research objectives
Specify from whom info is to be gathered, Specify what info (construct) is needed, Specify the unit of measure used to gather the info, Word questions used to gather info using the respondents’ frame of reference.
Research objective
Specifies exactly what info the researcher must collect to fill the info gaps.
Action Standards
A pre-designation of some quantity of a measured attribute or characteristic that must be achieved for a research objective for a predetermined action to take place.
Example of Action Standards
If premium satellite mean is above 3.5 and is statistically different from a lower mean for basic cable, they will still go with the decision alternative of premium satellite.
Marketing Research Proposal
Serves as the basis of a contract as it documents what the marketing researcher proposes to deliver to the client for some consideration, typically a fee.
Elements of the Market Research Proposal
Statement of the problem; Research Objectives; Research Method; Statement of deliverables; Costs; Timetable