1. Introduction to Marketing Research

2. Introduction to Marketing Research
CHAPTER 1
Introduction to Marketing Research

3. 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.

4. Classification of Marketing Research
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.
Problem Solving Research
Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

5. Problem Identification Research
Figure 1.3 A Classification of Marketing Research
Marketing Research
Problem Identification Research
Problem
Solving
Research
Market Potential Research
Market Share Research
Image Research
Market Characteristics Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research

6. Figure 1.4 The Marketing Research Process
Step 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

8. 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 obtained and compared on the basis of quality as well as price.

9. Careers in Marketing Research
Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)
Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau)
Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam)
Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.

10. Selected Marketing Research Career Descriptions
Research Director
Also part of senior management
Heads the development and execution of all research projects
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
Assistant Director of Research
Administrative assistant to director
Supervises research staff members
Senior Project Manager
Responsible for design, implementation, & research projects

11. Selected Marketing Research Career Descriptions
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
Analyst
Handles details in execution of project
Designs & pretests questionnaires
Conducts preliminary analysis of data
Statistician/Data Processing
Serves as expert on theory and application on statistical techniques
Oversees experimental design, data processing, and analysis
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

12. Preparation for a Career in Marketing Research
Take all the marketing courses you can.
Take courses in statistics and quantitative methods.
Acquire Internet and computer skills. Knowledge of programming languages is an added asset.
Take courses in psychology and consumer behavior.
Acquire effective written and verbal communication skills.
Think creatively. Creativity and common sense command a premium in marketing research.

13. Marketing Research Associations Online
Domestic
AAPOR: American Association for Public Opinion Research (
AMA: American Marketing Association (
ARF: The Advertising Research Foundation (
CASRO: The Council of American Survey Research Organizations (
MRA: Marketing Research Association (
QRCA: Qualitative Research Consultants Association (
RIC: Research Industry Coalition ( industry.org)

14. Defining the Marketing Research Problems and Developing an Approach
CHAPTER 2
Defining the Marketing Research Problems and Developing an Approach

15. Figure 2.4 Conducting a Problem Audit
History of the Problem
Alternative Courses of Action Available to DM
Criteria for Evaluating Alternative Courses
Nature of Potential Actions Based on Research
Information Needed to Answer the DM’s Questions
How Will Each Item of Information Be Used by the DM?
Corporate Decision-Making Culture

16. Table 2.1 Management Decision Problem Versus the Marketing Research Problem

17. 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.

18. 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.

19. 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.

20. Pop Quiz

21. Question 1.
Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information…
for the purpose of improving decision making related to problem:
(1)____________________
(2)____________________

22. Question 2. How Will Each Item of Information Be Used by the DM?
WHAT GOES HERE?
Alternative Courses of Action Available to DM
Criteria for Evaluating Alternative Courses
Nature of Potential Actions Based on Research
Information Needed to Answer the DM’s Questions
How Will Each Item of Information Be Used by the DM?
Corporate Decision-Making Culture

23. Answer 1. identification and
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.

24. Answer 2. How Will Each Item of Information Be Used by the DM?
History of the Problem
Alternative Courses of Action Available to DM
Criteria for Evaluating Alternative Courses
Nature of Potential Actions Based on Research
Information Needed to Answer the DM’s Questions
How Will Each Item of Information Be Used by the DM?
Corporate Decision-Making Culture

25. CHAPTER 3
Research Design

26. Figure 3.4 A Classification of Market Research Designs
Exploratory Research
Design
Conclusive Research
Design
Descriptive
Research
Causal
Research
Cross-Sectional
Design
Longitudinal
Design

27. Table 3.2 A Comparison of Basic Research Designs
Causal Exploratory Descriptive
Objective: Discovery of Describe market Determine
ideas and characteristics cause and effect
insights. or functions. relationships.
Character- Flexible. Marked by the Manipulation of
istics: Versatile. prior formula- one or more
Often the tion of specific independent
front end of hypotheses. variables.
total research Preplanned and Control of other
design. structured mediating
design. variables.
Table 3.2 A Comparison of Basic Research Designs

28. Table 3.2 A Comparison of Basic Research Designs (Cont.)
TABLE 3.2 (Cont.)
A COMPARISON OF BASIC RESEARCH DESIGNS
Exploratory Descriptive Causal
Expert surveys Secondary data Experiments
Pilot surveys Surveys
Case Studies Panels.
Secondary data Observational and other data.
(qualitative)
Qualitative Research.

29. Table 3.1 Differences Between Exploratory and Conclusive Research
RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL AND CROSS-SECTIONAL DESIGNS
Evaluation Cross-Sectional Longitudinal
Criteria Design Design
Detecting change
Large amount of data
collection
Accuracy
Representative
sampling
Response bias
Note: A + indicates a relative advantage over the other design whereas a - indicates a relative disadvantage.
Table 3.1 Differences Between Exploratory and Conclusive Research

30. Uses of Exploratory Research
Formulate a problem or define a problem more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further examination
Gain insights for developing an approach to the problem
Establish priorities for further research

31. Methods of Exploratory Research
Survey of experts (discussed in Chapter 2)
Pilot surveys (discussed in Chapter 2)
Secondary data analyzed in a qualitative way (discussed in Chapter 4)
Qualitative research (discussed in Chapter 5)

32. Use of Descriptive Research
To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas.
To estimate the percentage of units in a specified population exhibiting a certain behavior
To determine the perceptions of product characteristics
To determine the degree to which marketing variables are associated
To make specific predictions

33. Methods of Descriptive Research
Secondary data analyzed in a quantitative as opposed to a qualitative manner (discussed in Chapter 4)
Surveys (Chapter 6)
Panels (Chapters 4 and 6)
Observational and other data (Chapter 6)

34. Figure 3.5 Major Types of Descriptive Studies
Market Potential
Market Share
Sales Analysis
Sales Studies
Consumer Perception
And Behavior Studies
Image
Product Usage
Advertising
Pricing
Market
Characteristic
Studies
Distribution
Competitive
Analysis

35. Cross-sectional and Longitudinal Designs
A cross-sectional design involves the collection of information from any given sample of population elements only once.
In a longitudinal design, a fixed sample (or samples) of population elements is measured repeatedly on the same variables
A longitudinal design differs from a cross-sectional design in that the sample or samples remain the same over time

36. Figure 3.6 Cross Sectional vs. Longitudinal Designs
Sample Surveyed at T1
Cross Sectional Design
Same Sample also Surveyed at T2
Sample Surveyed at T1
Longitudinal Design T1
Time T2

37. Uses of Casual Research
To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon
To determine the nature of the relationship between the causal variables and the effect to be predicted
METHOD: Experiments

38. Pop Quiz
1. What are the three research designs we discussed in lecture today? 2. Define what each design does. 3. Provide an example for each of the three.

39. Answer.
What are the three research designs we discussed in lecture today? Exploratory Descriptive Causal

40. Exploratory Research Design Focus: Secondary Data
CHAPTER 4
Exploratory Research Design Focus: Secondary Data

41. 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.

42. Table 4.1 A Comparison of Primary and Secondary Data

43. 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

44. 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

45. Table 4.2 Criteria for Evaluating Secondary Data
Criteria Issues Remarks
_________________________________________________________________
Specifications/ Data collection method Data should be
Methodology Response rate reliable, valid,
Quality of data and generalizable
Sampling technique to the problem
Sample size at hand.
Questionnaire design
Field work
Data analysis
Error/ Examine errors in: Assess accuracy by
Accuracy Approach, Research design, comparing data
Sampling, Data collection, from different
Data analysis, Reporting sources.
Currency Time lag between collection Census data are
and publication. periodically
Frequency of updates updated by
syndicated firms
Table 4.2 Criteria for Evaluating Secondary Data

46. Criteria for Evaluating Secondary Data
TABLE 4.2 (Continued)
Criteria for Evaluating Secondary Data
Criteria Issues Remarks
________________________________________________________________
Objective Why were the data The objective will
collected? determine the relevance of data.
Nature Definition of key variables Reconfigure the
Units of measurement data to increase
Categories used their usefulness,
Relationships examined if possible.
Dependability Expertise, credibility, Data should be
reputation and obtained from an
trustworthiness of the original rather
source. than an acquired source.

47. Internal Secondary Data
Department Store Project
Sales were analyzed to obtain:
Sales by product line
Sales by major department (e.g., men's wear, house wares)
Sales by specific stores
Sales by geographical region
Sales by cash versus credit purchases
Sales in specific time periods
Sales by size of purchase
Sales trends in many of these classifications were also examined.

48. Internal Secondary Data Example
Retail Link Dataset

49. Type of Individual/Household Level Data Available from Syndicated Firms
I. Demographic Data
- Identification (name, address, telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned

50. Demographic Data Example
US Census BLS

51. Type of Individual/Household Level Data Available from Syndicated Firms
II. Psychographic Lifestyle Data
- Interest in golf
- Interest in winter skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television

52. Other Syndicated Data Example
Edgars Hoovers WRDS

53. Published External Secondary Data
Guides
An excellent source of standard or recurring information
Helpful in identifying other important sources of directories, trade associations, and trade publications
One of the first sources a researcher should consult
Directories
Helpful for identifying individuals or organizations that collect specific data
Examples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory
Indices
Helpful in locating information on a particular topic in several different publications

54. Figure 4.5 A Classification of Computerized Databases
Intranet
Internet
Offline
Special Purpose Databases
Bibliographic
Databases
Numeric Databases
Full- Text
Databases
Directory Databases

55. Classification of Computerized Databases
Bibliographic databases are composed of citations to articles.
Numeric databases contain numerical and statistical information.
Full-text databases contain the complete text of the source documents comprising the database.
Directory databases provide information on individuals, organizations, and services.
Special-purpose databases provide specialized information.

56. Pop Quiz
Chapter Four
What is the difference between primary and secondary data sources?

57. Exploratory Research Design Syndicated Sources of Secondary Data
CHAPTER 5
Exploratory Research Design Syndicated Sources of Secondary Data

58. Syndicated Services
Companies that collect and sell common pools of data of known commercial value designed to serve a number of clients
Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions).
Household/consumer data may be obtained from surveys, panels, or electronic scanner services.
Institutional data may be obtained from retailers, wholesalers, or industrial firms.

59. Figure 5.3 A Classification of Syndicated Services
Unit of Measurement
Households/
Consumers
Institutions

60. Figure 5.4 A Classification of Syndicated Services:
Household/Consumers
Figure 5.4 A Classification of Syndicated Services: Household/Consumers
Household/Consumers
Electronic
Scanner Services
Consumer Panels
Surveys
Volume
Tracking
Data
Purchase
Psychographic
& Lifestyles
Scanner
Panels
Media
Advertising
Evaluation
Scanner
Panels with
Cable TV
General

61. Figure 5.5 Classification of Syndicated Survey Research
Surveys by Syndicated Firms
Figure 5.5 Classification of Syndicated Survey Research
Periodic
Panel
Shared
Psychographic and Lifestyles
Advertising Evaluation
General

62. Figure 5.6 Classification of Syndicated Services: Institutions
Retailers
Wholesalers
Industrial Firms
Audits
Direct
Inquiries
Clipping
Services
Corporate
Reports

63. Table 5.1 Overview of Syndicated Services

64. Table 5.1 Overview of Syndicated Services (Cont.)
Type Characteristics Advantages Disadvantages Uses
Scanner Diary Panels with
Cable TV
Scanner panels of households that subscribe to cable TV
Data reflect actual purchases; sample control; ability to link panel data to household characteristics
Data may not be representative; quality of data limited
Promotional mix analyses; copy testing; new-product testing; positioning
Audit Services
Verification of product movement by examining physical records or performing inventory analysis
Relatively precise information at the retail and wholesale levels
Coverage may be incomplete; matching of data on competitive activity may be difficult
Measurement of consumer sales and market share; competitive activity; analyzing distribution patterns; tracking of new products
Industrial Product
Syndicated Services
Data banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reports
Important source of information in industrial firms; particularly useful in initial phases of the projects
Data is lacking in terms of content, quantity, and quality
Determining market potential by geographic area; defining sales territories; allocating advertising budget

65. Single-Source Data
Single-source data provide integrated information on
household variables, including media consumption and
purchases, and marketing variables, such as product
sales, price, advertising, promotion, and in-store
marketing effort.
Recruit a test panel of households and meter each home's TV sets.
Survey households periodically on what they read.
Grocery purchases are tracked by UPC scanners.
Track retail data, such as sales, advertising, and promotion.

66. Review
Primary vs. Secondary Demographic vs. Psychographic Institutional vs. Consumer/Household