© Associate Professor Dr. Jamil Bojei, 2007 STEPS IN MARKETING RESEARCH Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 1: DEFINING THE PROBLEM Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 2: DEVELOPING AN APPROACH TO THE PROBLEM Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 3: FORMULATING A RESEARCH DESIGN Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 4: DOING FIELD WORK OR COLLECTING DATA Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 5: PREPARING AND ANALYZING DATA Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 6: PREPARING AND PRESENTING THE REPORT Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 1: DEFINING THE PROBLEM Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 STEP 1 Problem definition – a broad statement of the general problem and identification o the specific components of the marketing research problem Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 2.3 The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed Steps in MR Step 3: Research Design © Associate Professor Dr. Jamil Bojei, 2007

Tasks Involved in Problem Definition Discussions with Decision Makers Interviews with Industry Experts Secondary Data Analysis Qualitative Research Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

The Seven Cs of Interaction The interaction between the DM and the researcher should be characterized by the seven Cs: Communication Cooperation Confidence Candor Closeness Continuity Creativity Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 2.5 Discussion Between the Researcher and the DM Focus of the DM Focus of the Researcher Symptoms Loss of Market Share Underlying Causes Superior Promotion by Competition Inadequate Distribution of Company’s Products Lower Product Quality Price Undercutting by a Major Competitor Discussion Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

STEP 2: DEVELOPING AN APPROACH TO THE PROBLEM Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Task Involved Discussions with decision makers The history of problem The alternative course of action available to decision maker The criteria that will be used to evaluate the alternative courses of action The nature of potential actions that are likely to be suggested based on the research findings. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Task Involved Discussions with decision makers (cont.) The information that is needed to answer the decision maker’s questions The manner in which the decision maker will use each item of information in making decision. The corporate culture as it relates to decision making. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Task Involved Interviews with industry experts Individuals knowledgeable about the fir and the industry—may help researcher formulate the marketing research problem. Experts may be found inside and outside the firm. A prepared list of topics to be covered during the interviews is often helpful Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Task Involved Secondary data analysis Secondary data is data collected for some purpose other than the problem at hand. Primary data is data originated by the researcher specifically to address the research problem. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Primary vs. Secondary Data Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Table 4.1 A Comparison of Primary and Secondary Data Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 Uses of Secondary Data Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Criteria for Evaluating Secondary Data Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data Currency: When the Data Were Collected Objective(s): The Purpose for Which the Data Were Collected Nature: The Content of the Data Dependability: Overall, How Dependable Are the Data Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 4.3 A Classification of Secondary Data Internal External Ready to Use Syndicated Services Published Materials Requires Further Processing Computerized Databases Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 4.4 A Classification of Published Secondary Sources Data Government Sources General Business Sources Statistical Data Census Data Guides Directories Other Government Publications Indices Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 4.5 A Classification of Computerized Databases Online Internet Offline Special Purpose Databases Bibliographic Databases Numeric Databases Full- Text Databases Directory Databases Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Task Involved Qualitative research An unstructured exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 THE PROCESS OF STEP 1 & 2 Environmental context of the problem Past information and forecast Resources and constraints Objectives of the decision maker Buyer behavior Legal environment Economic environment Marketing and technological skills Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

MANAGEMENT DECISION PROBLEM The problem confronting the decision maker. It asks what the decision maker need to do. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

MARKETING RESEARCH PROBLEM The marketing research problem asks what information is needed and how it can best be obtained. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

© Associate Professor Dr. Jamil Bojei, 2007 MANAGEMENT DECISION PROBLEM AND MARKETING RESEARCH PROBLEMS Management Decision Problem Research Problem Should the price be cut in response to a price cut by a competitor? Determine the buyer behavior at various price levels. Should “Keropok Segera” be introduced in the market. Assess the probable market size and market share for “Keropok Segera” What should be done to increase the market share of “Celcom”? Determine the relative strengths and weaknesses of Celcom vis-à-vis those of the competitors. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Management Decision Problem Vs. Marketing Research Problem Management Decision Problem Marketing Research Problem   Should a new product be To determine consumer introduced? preferences 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. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 2.7 Errors in Defining the Market Research Problem Common Errors Problem Definition is too Broad Does Not Provide Guidelines for Subsequent Steps e.g., Improving the Company’s Image Problem Definition is too Narrow May Miss Some Important Components of the Problem e.g. Changing Prices in Response to a Competitor’s Price Change. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

Figure 2.8 Proper Definition of the Marketing Research Problem Broad Statement SPECIFIC COMPONENTS Component 1 Component 2 Component 3 Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

COMPONENTS OF THE APPROACH Analytical Framework and Models Objective evidence – unbiased evidence that is supported by empirical findings. Theory – a conceptual scheme based on foundational statements, which are assumed to be true. Analytical model – an explicit specification of a set of variables and their interrelationships designed to represent some real system or process in whole or in part Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

COMPONENTS OF THE APPROACH Analytical Framework and Models (cont.) Verbal model – analytical model that provide a written representation of the relationships between variables. Graphical model – analytical model that provides a visual picture of the relationships between variables. Mathematical model – analytical model that explicitly describe the relationships between variables, usually in equation form. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

COMPONENTS OF THE APPROACH Research questions Are refined statements of the specific components if the problem. A problem components may break into several research questions. Research questions are designed to ask the specific information required to address each problem component. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007

COMPONENTS OF THE APPROACH Hypothesis An unproven statements or proposition about a factor or phenomenon that is of the interest to the researcher. Steps in MR © Associate Professor Dr. Jamil Bojei, 2007