research methodology & report preparation 1
TRANSCRIPT
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PAN African eNetwork Project
Bachelor of Finance and Investment
Research Methods and Report Presentation
Semester - III
Prof- Sonia Singh
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Session Outline
1) Overview
2) Definition of Marketing Research
3) A Classification of Marketing Research
4) Marketing Research Process
5) The Role of Marketing Research in Marketing Decision Making
6) Marketing Research and Competitive Intelligence
7) The Decision to Conduct Research
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8) Importance of Defining a Problem
9) The Process of Defining the Problem and
Developing an Approach
10) Tasks involved in Problem Definition
11) Environmental Context of the Problem
12) Management Decision Problem andMarketing Research Problem
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Redefining Marketing Research
The American Marketing Association (AMA) redefined Marketing Research as:
The function that links the consumer, the
customer, and public to the marketer
through INFORMATION
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Used to identify and define market opportunities and problems
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding of marketing as a process
Redefining Marketing Research
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Definition of Marketing Research
Marketing research is the systematic and objective
identification
collection
analysis
dissemination
and use of information
For the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing.
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Market Research
• Specifies the information necessary to address these issues
• Manages and implements the data collection process
• Analyzes the results
• Communicates the findings and their implications
• Helps managers use this information to make decisions
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Classification of Marketing Research
Two types1.Problem-Identification Research• Research undertaken to help identify
problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
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2. Problem-Solving Research
• Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
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A Classification of Marketing Research
Marketing Research
Problem Identification Research
Problem-Solving Research
Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research
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Product research
• Test concept
• Determine optimal product design
• Package tests
• Product modification
• Brand positioning and repositioning
• Test marketing
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Problem Solving research
• Segmentation research• Determine the basis of segmentation• Establish market potential and
responsiveness for varioussegments
• Select target markets • Create lifestyle profiles:
demography, media, and product image characteristics
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Problem-Solving Research
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
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Problem-Solving Research.
DISTRIBUTION RESEARCH
Determine…Types of distributionAttitudes of channel members Intensity of wholesale & resale coverage
Location of retail and wholesale outlets
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Marketing Research Process
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Marketing Research Process
Step 1 : Problem Definition
Step 2 : Development of an Approach to the Problem
Step 3 : Research Design Formulation
Step 4 : Fieldwork or Data Collection
Step 5 : Data Preparation and Analysis
Step 6 : Report Preparation and Presentation
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Marketing Research ProcessStep 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
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The Role of Marketing Research
ControllableMarketing
•Product•Pricing•Promotion•Distribution
VariablesMarketing Research
MarketingDecisionMaking
ProvidingInformation
AssessingInformationNeeds
Marketing Managers
• Market Segmentation
• Performance & Control
•Target Market Selection• Marketing Programs
UncontrollableEnvironmentalFactors
• Economy• Technology• Laws &
Regulations• Social &
Cultural Factors
• Political Factors
• Consumers• Employees• Shareholders• Suppliers
Customer Groups
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ClientNeeds Fin
dSeek Pla
nAct
Solve Problem
Achieve Goal
How WeHelp
ClarifyDecisions
Research
Analysis
EvaluateInterpretFacilitate
Recommend
MarketPlanResearch
AdviseAssistExecution
Opportunity scan
Option generation
Refine options
Decision
Power Decisions’ Methodology
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Selected Marketing ResearchCareer Descriptions
Vice President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department.
Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects.
Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.
(Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.
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Selected Marketing Research Career Descriptions
Vice President of Marketing Research
• Part of company’s top
management team
• Directs company’s entire
market research operation
• Sets the goals & objectives of
the marketing research
department
Research Director
• Also part of senior management
• Heads the development and execution of all research projects
Assistant Director of
Research
• Administrative assistant to
director
• Supervises research staff
membersSenior Project Manager• Responsible for design, implementation,
& research projects
.
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Analyst• Handles details in execution of
project• Designs & pretests questionnaires• Conducts preliminary analysis of
data
Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of
data
Fieldwork Director•Handles selection, training, supervision, and evaluation of interviewers and field workers
Senior Analyst• Participates in the development of projects• Carries out execution of assigned projects• Coordinates the efforts of analyst, junior analyst, & other personnel in
the development of research design and data collection• Prepares final report
Statistician/Data Processing
• Serves as expert on theory and application on statistical techniques
• Oversees experimental design, data processing, and analysis
Selected Marketing Research Career Descriptions
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Marketing Research Suppliers & Services
• Internal suppliers • External suppliers
– Full-service suppliers • Syndicated services• Standardized services• Customized services• Internet services
– Limited-service suppliers • Field services• Coding and data entry services • Analytical services • Data analysis services• Branded marketing research products
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Criteria for Selecting a Research Supplier
What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier
have? Has the firm had experience with projects similar to this one?
Do the supplier's personnel have both technical and non-technical expertise?
Can they communicate well with the client? Competitive bids should be compared on the
basis of quality as well as price.
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Chain Restaurant Study
One day I received a phone call from a research analyst who introduced himself as one of our alumni.
He was working for a restaurant chain in town and wanted help analyzing the data he had collected while conducting a marketing research study.
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Chain Restaurant Study
When we met, he presented me with a copy of the questionnaire and asked how he should analyze the data. My first question to him was,
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Chain Restaurant Study
When he looked perplexed, I explained that data analysis is not an independent exercise.
Rather, the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE
PROBLEM COMPONENTS.
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Chain Restaurant StudyI was surprised to learn that he did not have a clear understanding of the marketing research problem and that a written definition did not exist. So before going any further, I had to definedefine the marketing research problem.Once that was done, I found that
much of the data collected was not relevant to the problem. In this sense, the whole study was a waste of resources. A new study had to be designed and implemented to address the problem defined.
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The Problem Definition Process
Discussionwith
Decision Maker(s)
Interviewswith Experts
SecondaryData Analysis
QualitativeResearch
Management Decision Problem
Marketing Research Problem
Tasks Involved
Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/ TheoreticalFoundations
ResearchQuestions
Hypotheses
Step III: Research Design
Analytical Model: Verbal, Graphical, Mathematical
SpecificationofInformationNeeded
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• Discussions with Decision Makers
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research
Tasks Involved in Problem Definition
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The Problem AuditThe problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.1. The events that led to the decision that action is needed, or the history of the problem. 2. The alternative courses of action available to the DM. 3. The criteria that will be used to evaluate the alternative courses of action.
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4.The potential actions that are likely to be suggested based on the research findings.
5. The information that is needed to answer the DM's questions.
6. The manner in which the DM will use each item of information in making the decision.
7. The corporate culture as it relates to decision making.
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The Seven Cs of Interaction
The interaction between the DM and the researcher should be Characterized by the seven Cs:
1. Communication2. Cooperation3. Confidence 4. Candor5. Closeness6. Continuity7. Creativity
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Factors to be Considered in theEnvironmental Context of the Problem
PAST INFORMATION AND FORECASTS
RESOURCES AND CONSTRAINTS
OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIROMENT
ECONOMIC ENVIROMENT
MARKETING AND TECHNOLOGICAL SKILLS
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Management Decision Problem Vs. Marketing Research Problem
Management Decision Problem Marketing Research Problem
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product.
Should the advertising To determine the effectiveness
campaign be changed? of the current advertising
campaign.
Should the price of the To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels of price changes.
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Proper Definition of the Research Problem
Marketing Research Problem
Broad Statement
Specific Components
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Department Store Project
Problem DefinitionIn the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-à-vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.
1. What criteria do households use when selecting department stores?2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific
product categories?4. What is the market share of Sears and its competitors for
specific product categories?5. What is the demographic and psychological profile of the
customers of Sears? Does it differ from the profile of customers of competing stores?6. Can store patronage and preference be explained in terms of store evaluations and customer characteristics?
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Components of an Approach
Objective/Theoretical Foundations
Analytical Model
Research Questions
Hypotheses
Specification of the Information Needed
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ModelsAn analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process.
In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.
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Graphical ModelsGraphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
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Mathematical Models
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Mathematical models explicitly specify therelationships among variables, usually inequation form.
Wherey = degree of preference
= model parameters to be estimated statistically
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Development of Research Questions and Hypotheses
Components of the
Research Questions
Hypotheses
Objective/TheoreticalFrameworkAnalyticalModel
Marketing Research Problem
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Research Questions and Hypotheses
• Research questions (RQs) are refined statements of the specific components of the
problem.
• A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.
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Department Store Project• RQ: Do the customers of Sears exhibit store
loyalty?
• H1: Customers who are store-loyal are less knowledgeable about the shopping environment.
• H2: Store-loyal customers are more risk-averse than are non-loyal customers.
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Department Store Project
Specification of Information Needed
Component 1• The researcher identified the following factors as part of the
choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection.
Component 2• The researcher identified nine department stores as
competitors to Sears based on discussions with management. The respondents should be asked to evaluate Sears and its nine competitors on the eight choice criteria factors.
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Component 3
• Sixteen different product categories were selected, including women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the ten stores for each of the 16 product categories.
Component 4
• No additional information needs to be obtained from the respondents.
Department Store Project
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Component 5• Information should be obtained on the standard
demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.
Component 6• No additional information needs to be obtained
from the respondents.
Department Store Project
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Marketing research provides information to help implement…
• The Study of Marketing• The Use of the Marketing Concept• Marketing Strategy
Let’s look at each of these in turn
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Marketing research provides information to help implement…
• Marketing: process of all activities necessary for the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
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Marketing research provides information to help implement…
• Marketing Concept: the business philosophy that holds the key to achieving organizational goals consists of determining the benefits sought by target market members and delivering these benefits more effectively & efficiently than competitors. This is to be done at a “profit.”
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Marketing research provides information to help implement…
• Marketing Strategy: consists of selecting one or more segments of the market as the company’s target market(s) and designing the proper “mix” of the “4Ps”
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Sales Research• Sales Analysis by territory
• Sales Analysis by Product
• Sales Analysis by Customers
• Sales Forecasting
Thus MR helps in
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Product Research• Concept Testing
• Product Testing
• Usage Test
• Test Marketing
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Advertising Research
• Media Research
(a) Circulation Number
(b) Number of people exposed to media
(c) number of people buy the product
• Copy testing
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Segmentation Targeting and Positioning
• Bases of Segmentation
• Target Market
• Positioning of Product
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Application of MR
• Traditional Applications: 4P (product, price, promotion, Place)
• Contemporary Applications: Competitive Advantage, Brand Equity, Customer Satisfaction
Emerging Applications: database marketing, Relationship Marketing
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What is online research?
• Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution
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What is online research?
• Web-based research: research that is conducted to evaluate various facets of Web applications; may use traditional methods as well as on-line research methods in conducting research on Web-based applications
• Online survey research: collection of data using computer networks
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Overview of Marketing Research Process
MR Process Evolves From Answers to Five Key Questions
• Why should we do research?
• What research should be done?
• Is it worth doing the research?
• How should the research be designed to achieve the research objectives?
• What will we do with the research?
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Marketing Research in Practice
Programmatic Research• Develops market options through market segmentation,
market opportunity analysis, or consumer attitude and product usage studies
Selective Research• Tests different decision alternatives such as new product
testing, advertising copy testing, pre-test marketing, and test marketing
Evaluative Research• Evaluation of performance of programs
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Information System• A continuing and interacting structure of
people, equipment, and procedures, designed to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information to decision makers.
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Databases
Contain 3 types of information:
• 1st type: Recurring day-to-day information
• 2nd type: Intelligence relevant to the future strategy of the
business
• 3rd type: Research studies that are not of a recurring
nature
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Decision Support Systems (DSS)
• DSS models are developed and adapted to support each firms own decision problems
• Used to retrieve data, transform it into usable information, and disseminate it to users
• Allow managers to interact directly with database
• To retrieve information
• Provides a modeling function to help interpret information retrieved
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Use of Information Systems (IS) in Marketing Research
• IS emphasizes that market research should part of systematic and continuous effort to improve decision-making process
• Marketing research used to close gaps in data bank revealed by use of models and IS
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Marketing Decision Support System
• Combines marketing data from diverse sources into a single database, enabling product managers, sales planners, market researchers, financial analysts, and production schedulers to share information.
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Marketing Decision Support Systems Cont..
Managers’ needs for decision relevant information:
• Routine comparisons of current performance against past trends on each of the key measures of effectiveness
• Periodic exception reports to assess which sales territories or accounts have not matched previous years’ purchases
• Special analyses to evaluate the sales impact of particular marketing programs, and to predict what would happen if changes were made
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Marketing Decision Support Systems Cont..
Characteristics of MDSS:• Interactive
• Flexible
• Discovery oriented
• User friendly
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Marketing Decision Support Systems Cont..
Four components of MDSS:• Database
• Reports and Displays
• Analysis capabilities
• Models
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Information suppliers and services
Information Supplier
Corporate In-house Supplier
Structured (Independent Department
Syndicated Services
Customized Services
Standardized Services
External Supplier
Unstructured (one or more MR employees)
Field Services
Branded Product/Services
Selective Services
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Factors Influencing Choice of Information Supplier
• Internal personnel may not have skills or experience
• Outside help may be called to boost internal capacity in response to urgent deadline
• Often it is cheaper to go outside
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Factors Influencing Choice of Information Supplier (Contd.)
• Outside suppliers may have special facilities or competencies which would be costly to duplicate for a single study
• Political considerations
• Increased credibility of research used in litigation or in proceedings before regulatory or legislative bodies
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Type and Nature of Services
Customized – Work with individual clients
Syndicated – Routinely collect information on several different issues
and provide it to firms that subscribe to their services (e.g.,Nielsen television index)
Standardized – Projects conducted in standard, prespecified manner
and supplied to several different clients. (e.g., Starch readership surveys)
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Type and Nature of Services (Contd.)Field
– Suppliers concentrate only on collecting data for research projects
Selective – Specialize in just one or two aspects of marketing
research, mainly concerning data coding data, editing or data analysis
Branded products / services – Develop specialized data collection and analyses
procedures to address specific of research problems that they market as branded products
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Criteria For Selecting External SuppliersSteps in deciding if supplier can deliver promised data, advice, or conclusions:
1. A thorough search for companies with an expertise in the area of study
2. Selection of a small number of bidders on basis of recommendations of colleagues or others with similar needs
3. Personal interviews with potential project leaders, asking for examples of previous work, their procedures for working with clients, and they should provide references
4. Check of references on each potential supplier, with special attention on expertise, creativity, and quality and adequacy of resources available
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International Marketing Research
Definition
• International Marketing Research can be defined as marketing research conducted to aid in making decisions in more than one country
Function
• Provides a systematic, planned approach to the research process
• Ensures all aspects of the research project are consistent with each other