Presentation on theme: "Ice Breakers Name Where you were born"— Presentation transcript:
1 Ice Breakers Name Where you were born Most interesting and/or fun thing you did over breakWhat you like best about WSU/Pullman
2 Discussion Questions What is marketing? What is marketing research? How does marketing research play a role in managerial decision-making?What are the different steps in a marketing research project?
3 Role of Marketing Research in Managerial Decision-Making Chapter 1
4 What is Marketing? American Marketing Association Definition: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.In sum, marketing is about…meeting needsdelivering value to all people affected by a transactiongetting the right product to the right folks at the right time/place for the right price using an appropriate combination of promotional techniques (the four Ps)
5 What is Marketing Research? American Marketing Association (p. 4 in your book):…the function that links an organization to its market through the gathering of information. This information allows for the identification and definition of market-driven opportunities and problems and allows for the generation, refinement and evaluation of marketing actions. It allows for the monitoring of marketing performance and improved understanding of marketing as a business process.Malhotra & Peterson (2006, p. 5):…the systematic and objective identification, collection, analysis, dissemination, and use of information that is undertaken to improve decision making related to identifying and solving problems (also known as opportunities) in marketing.Feinberg et al. (2008, p. 4):… the systematic process of using formal research and consistent data gathering to improve the marketing function within an organization. This information is used to identify opportunities and problems, monitor performance, and link marketing inputs with outputs of interest, such as awareness, satisfaction, sales, share and profitability.
6 The “Marketing Concept” Need for marketing research based on “marketing concept”Idea introduced in 1952, GE’s Annual Report:The (marketing) concept introduces the marketer at the beginning rather than at the end of the production cycle and integrates marketing into each phase of the business. Thus, marketing, through its studies and research, will establish for the engineer, the designer, and manufacturer, what the customer wants in a given product, what price he (or she) is willing to pay, and where and when it will be wanted. Marketing will have authority in product planning, production scheduling, and inventory control, as well as in sales, distribution, and servicing of the product.Gave rise to the “Marketing System”Conceptual model linking Independent Variables (causes) to Dependent Variables (outcomes)Understanding the link between IVs and DVs (and reducing uncertainty) is a key function of marketing research
7 Understanding relationship Marketing SystemIndependent VariablesDependent VariablesUnderstanding relationshipbetween IVs and DVsis a key function of MRBehaviorAwarenessKnowledgeLikingPreferenceIntent to buyPurchaseMarketing Mix(controllable)PricingPromotionProductDistributionSituational Factors(uncontrollable)DemandCompetitionLegal/politicalEconomic climateTechnologyGov regulationPerformanceMeasuresSalesMarket shareProfitROIImageFrom feinberg et al. – marketing research text; p. 7From Feinberg et al. (2008)
8 The Decision-Making Process 1. Recognize a unique marketing problem or opportunity2. Clarify the decision (what do we need to know?)3. Identify alternative courses of action4. Evaluate the alternatives5. Select a course of action6. Implement selected course of action and monitor resultsFrom Feinberg et al. (2008)
9 Common Questions Addressed by Marketing Researchers Where are new market opportunities (based on macroenvironmental trends)?How should we segment the market (based on customer characteristics)?How are we doing (compared to the competition)? Are consumers satisfied with our product or service? If not, what should we improve?How should we position our product (relative to the competition)?How will people respond to a new product concept? Test marketing…If our product is priced at $100, what will be the expected demand?How effective is our advertising? Promotions? Sales force?What’s in store for the future, and how should we adapt?
10 Marketing Research Process: Transforming Data into Information Chapter 2
11 Overview Types of Marketing Research Firms When is Marketing Research Needed?Decision-Makers vs. ResearchersIceberg Principle: Symptoms vs. Underlying ProblemsSteps in Marketing ResearchElements in a Marketing Research ProposalUnethical Activities in Marketing Research
12 Marketing Research Industry Research SupplierInternalExternalFull ServiceLimited ServiceSyndicatedCustomizedInternetFieldServicesData Codingand EntryDataAnalysisAC NielsenSynovateGreenfieldOn-LineSDRAtlantaField WorkChicagoDavisCodingGroupMalhotra & Peterson (2006)
13 When is Marketing Research Needed? Exhibit 2.3Type of informationCan decision problem be resolvedwith subjective information?YESDecisionMakerNONODon’t undertake theInfo research processNature of decisionIs problem of strategic importance?YESAvailabilityof dataIs secondary data inadequate foraddressing the problem?NOYESMarketing ResearcherBring inNOTimeconstraintsIs there enough time to collectdata for managerial decision?YESNOResourcesrequiredAre there enough resources($, people) to carry out the study?YESCost/BenefitRatioDoes value of researchoutweigh costs of research?NODo undertake theInfo research processYES
14 When NOT to conduct research… Sufficient information for a decision already existsInsufficient time for research – must make an immediate decisionInsufficient resources for researchWhen costs of research are greater than its benefits
15 Components of the Research Proposal Purpose of proposed research plan (problem, objectives)Type of study (e.g., exploratory, causal, primary, secondary etc.)Define target population and sample sizeDescribe sampling technique and actual data collection methods to be usedResearch instruments to be usedPossible managerial benefitsProposed cost of whole projectDescribe primary researchers and research firmProposed tables (how data might be presented)
16 Researchers vs. Decision-Makers Like to explore new questionsCan tolerate long investigationsNot concerned about costEnjoy surprisesTentative; speak in probabilitiesInterested in past behaviorWant info to confirm decisionWant quick informationLess willing to pay for more infoDislike & reject surprisesDecision- and results-orientedInterested in future performance
20 Step 1: Identify and Clarify Information Needs The researcher must work with the decision-maker (requestor) to…Understand the reason for the research requestHelp decision maker separate out symptoms (e.g., low sales) from causes (e.g., poor quality products)Figure out unit of analysis: Individuals ? Couples? Families?Narrow down independent variables (causes) and dependent variables (consequences)
21 Step 2: Specify Research Questions and Define Research Problem Most important step, because it influences all remaining stepsInitial research questionWill Boise support new stadium and a move from Single-A to Triple-A?Revised research questionsYour questions?
22 Step 3: Confirm Research Objectives and Evaluate the Value of the Information Building on the research questions, develop specific objectives of the research project and figure out the value of the information. For example, our objective is to find out:Will Boise residents (and surrounding area) support a new stadium?How many games would they be willing to attend with new stadium?Would they attend more games if the Hawks were Triple-A?How much more are they willing to spend if new stadium and Triple-A?
23 Step 4: Determine Research Design and Data Sources ExploratoryUnstructured or semi-structured data collection on a limited group of respondentsFocus groups, interviews, pilot studiesCan be used to develop future studiesDescriptiveDescribes existing characteristics of a target populationCausalManipulate an independent variable (e.g., in-store music) and observe effect on dependent variable (e.g., sales)
24 Step 5: Determine Sample Plan and Size Census (a survey of all those in the target population) vs. a Sample (a smaller group of respondents who are representative of the target population)Step 6: Assess Measurement Issues and ScalesGoal here is to determine what level of information is needed and to choose reliable and valid measures to assess the constructs of interest.Step 7: Pretest the QuestionnaireA small group of respondents completes the questionnaire and provides feedback on it so any adjustments can be made before final sample completes it.
25 Step 8: Collect and Prepare the Data Interviewer-administered/self-completed questionnaires or observationData must be coded (female = 1; male = 2) and cleaned up (look for errors)Step 9: Analyze the Data (the Fun Part)Assess frequencies, relationships, cause and effectSteps 10 & 11: Transform Data (Results) into InformationPrepare the Final ReportInterpret what the results mean. Answer the “so what?” question.Prepare the final report.
26 Unethical Activities… by Client (End User)Solicit proposals, but choose none. Use proposals as a guideline for how to conduct one’s own study.Promise a long-term relationship to get a low introductory rate, but then never follow through with more projectsby ResearcherUnethical pricing: promise low price, then jack it upFail to provide (promised) incentives to research subjectsAbuse respondents; promise short survey that turns into an hour; pass along information without permission; collect information without permissionSelling useless research servicesInterviewers make up data (“curbstoning” or “rocking chair” interviewing)Interviewers create “phantom” data (duplicate actual data to boost sample)Change or fail to report results in an effort to reach a certain conclusionby RespondentGive misleading responses (can include “socially desirable” responding)