Marketing Research Process

Marketing Research is Systematic and Objective It is not haphazard

Marketing Research Process

R esearch R ep ort

A n a lys is & In te rp re ta tion o f D a ta

S am p le D es ig n & D ata C o llec tion

D es ig n o f D a ta C o llec tion M eth od & F orm s

R esearch D es ig n

P rob lem F orm u la tion

Notes on the Research Process Not a Simple Process Steps do not Take the Same Amount of Time Objective is Information for Decision Making

(not Completing a Report) Key is to develop a design which minimizes

“Total Error” Total Error = Sampling Error + Non-sampling

Error Cannot calculate non-sampling error

Problem Formulation

Key is to define the problem Problem Definition – broad statement of the general problem

and identification of research problem Requires Interaction Between Researcher &

Manager Specification of Management & Research

Objectives What information is needed?

Development of Hypotheses (in the “Ideal World”) Statement of what we think the answer might be

May require “research”

Research Design

Exploratory Research -- Help Define Problem and/or Develop Hypotheses

Descriptive Research -- Describing the Marketplace

Causal Research -- Developing Cause-and-Effect Statements

Research Design

Exploratory Research Research completed to help reduce the ambiguity

of a problem and/or specify hypotheses Often performed without applying purely

“scientific” principles Typically return to “Problem Formulation” stage

when this step is completed

NOTE: In recent times researchers are using exploratory methods for descriptive studies (more on this next week)

Research Design

Descriptive Research Research used to describe the characteristics of

a population Key is to make sure that you utilize a

representative sample of the population

Research Design

Causal (Experimental) Research Research used to identify cause-and-effect

relationships Scientific principles must be carefully employed

(i.e., experimentation) More than saying “if x happens, y is likely to

occur” (concomitant variation) Want to say “x causes y”

Design of Data Collection Method & Forms Secondary vs. Primary Data

Secondary Data -- data collected for purposes other than the focal study, but applied to the present problem (e.g., Nielsen Television Ratings)

Primary Data -- data gathered exclusively for the study at hand (e.g., Customer Satisfaction Study for Maytag Neptune)

Design of Data Collection Method & Forms Communication (Survey) vs. Observation

Communication (Survey) Involves communication with a set of respondents

Observation Monitor the actions of a set of respondents

Advantages of each?

Sample Design & Data Collection Who do we talk to (or observe)?

Identification of sample frame How many people do we talk to?

Sample Size Must gather the data -- actually talk to

respondents or observe them

Analysis & Interpretation of Data Objective -- turn Raw Data into Information Screen the Data (i.e., does the data look like

the information we need?) Edit the Data (e.g., is the data usable?) Code the Data (i.e., turn responses into

numbers) Analyze the Data (counts & statistical

analyses)

Research Report

Clear, Concise & Communicate

Problem Formulation

“A problem is half solved when it is defined” Anonymous

Key Steps in Problem Formulation Meet with Client Clarify Problem / Opportunity State Manager’s Decision Problem Develop Full Range of Possible Research Problems Select the Research Problem that is best represents

Managerial Problem Prepare Research Request

Agreement

Problem Formulation

How can this needed communication (between researcher and manager) be facilitated? Research Request Agreement

Force manager to write out the request Clearly articulate why research is needed

Research Proposal system Propose what you can do, how long it will take to do it,

and how much it will cost

Facilitates communication

Problem Formulation

Research Request Agreement (Prepared by Manager)

ORIGIN The events that led to the manager’s decision problem

DECISION PROBLEM The underlying question confronting the manager

RESEARCH PROBLEMS The range of research problems that would provide input to the decision

problem USE

The way each piece of information will be used TARGETS AND THEIR SUBGROUPS

The groups from whom the information must be gathered LOGISTICS

Estimates of time and money that are available to conduct the research

Problem Formulation

Research Proposal (Prepared by Researcher) – generated in response to the Research Request Agreement Tentative project title Statement of the marketing problem Purpose and limits of the project Outline Data sources and research methodology Estimate of time and personnel requirements Cost estimates

Problem Formulation

What follows the “Research Proposal”? Negotiation between manager and researcher When agreement is reached

Both parties sign

The Future and Research Design Future trends

Sampling – greater access to research respondents (primarily via the Internet) Test hypotheses with greater precision Disaggregation of samples

Ability to break down results by segment

Pre-testing of Marketing Stimuli Can create and test electronically

Technology provides the ability to “create” and test electronic ads Creation and testing of products

Conjoint analysis allows the design of “optimal” products Test attribute levels prior to test markets

The Future and Research Design Future trends

Analysis and Reporting Ability to integrate data from differing parts of the world

immediately Creation of MIS

On-line experiments (different stimuli sent to certain customers – track responses with technology)

Marketing Research & Ethics

Researchers needs to be ethical Avoid these issues

Misidentification of respondents Misrepresentation of results Sales disguised as research

Marketing Research & Ethics

Researchers absolutely need to be concerned about ethics Ethical practices enhance the public’s acceptance

of marketing research Ethical practices can improve marketers’

sensitivity to their customers Ethical practices can help forestall government

intervention and regulation

Marketing Research & Ethics

What Researchers owe Respondents Duty not to engage in deceptive practices Duty not to invade privacy Duty to manifest concern for respondents

Marketing Research & Ethics

What Researchers owe Clients Forthright research designs

Avoid unneeded research Designs that fit the budget of the clients

Researchers’ responsibilities No over billing Confidentiality Eliminate conflicts of interest

Marketing Research

What Researchers owe the Public Accurate reporting

No incomplete reports No misleading reports

Objective Reporting

Organizational Issues in MR

Gathering Marketing Research Information Level 1: Organizations have a need for

information to help them make decisions Level 2: Research Suppliers

Custom and syndicated research providers Design and obtain needed studies

Level 3: Data Collectors Field service organizations

Personal / Telephone interviewers Focus group facilitators

Level 4: Respondents

Organizational Issues in MR

Marketing Research Successes Works best when organizations have a

commitment to research (top management commitment) View research as in investment (not a cost) Work with Level 2, 3, and 4 organizations as partners

Share mission, objectives, etc. Watch for these danger signals

Magic techniques (there is no magic) Guaranteed solutions (no guarantees – you are gathering

information to help make decisions)

Organizational Issues in MR

Marketing Research Successes Watch for these danger signals (continued)

Price variance – cheapest may not be the best (but may not be the worst)

Making research successful Clear objectives Build relationships with Levels 2, 3, and 4 View research as a process (one study may not get it

done)