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Presentation on theme: "MARKETING RESEARCH."— Presentation transcript:


2 Marketing “ The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.” McDaniel & Gates

3 What is Research? Investigation or experimentation aimed at the discovery and interpretation of facts

4 What is Marketing Research?
“The planning, collection, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management” McDaniel and Gates

5 What functions should be performed to successfully market this product?
What are all the potential research activities needed to support each of these marketing functions?

6 Why Should Organizations Spend Money on Market Research?

Chinese proverb Marketing research is an investment that produces a return on investment by reducing the possibility of failure and enhancing the success of marketing strategies and decision-making. In a word it reduces risk.

8 How does research achieve reduction in risk?
Why should research be hypothesis driven? Indigo books has noticed that many customers abandon the shopping process part way through. What might be the reasons for this?

9 What sort of decisions does management face that require information (i.e. Marketing research)
Product Price Promotion Place

10 What Qualities of the data will be relevant to marketing decision making?
ccurate elevant imely

11 What are the Two main types of information?
Qualitative “How do people feel about the your product?” Not predictive of market behavior Qualify needs, wants, preferences Focus Groups, In-depth interviews Ethnography, observational studies Quantitative “How many people like your product?” Predictive if done correctly Surveys: Telephone, Mail, Intercept, Internet

12 What are Two main sources of information?
Secondary Research Existing studies, census data, articles Internet, library, trade journals Non-specific and often dated Primary Research data originated specifically for the study at hand Create your own questions and find your own answers by asking people what they think, feel, know, etc. Common methods include: Focus groups, surveys

13 What are the Major Sources of Information?
Marketing Research Customer Databases Internal Reporting Systems/ Scanner Data The Internet / On-line Sources

14 Types Of Research Exploratory Descriptive Causal

15 Exploratory Research Initial research conducted to clarify and define the nature of a problem Does not provide conclusive evidence Helps develop hypotheses but does not test them Subsequent research expected Published sources, depth interviews, focus groups characterized by its flexibility

16 Descriptive Research Describes characteristics of a population or phenomenon (who, what, where, when, why, and how) Some understanding of the nature of the problem Tends to be more quantitative than qualitative Tests hypotheses and provides conclusive information more rigid than exploratory research

17 Causal Research Conducted to identify cause and effect relationships, especially to see how actions now will affect a business in the future accomplishes goal through laboratory and field experiments For example, if Kellogg’s wants to know what impact on sales a change in package design would have. Stores are matched in terms of demographics, location etc. with only the packaging changed. Following the research, marketing managers will be able to decide whether changing the package design would be profitable.

18 (Problem Clearly Defined)
Uncertainty Influences The Type Of Research CAUSAL OR DESCRIPTIVE EXPLORATORY ABSOLUTE AMBIGUITY COMPLETELY CERTAIN Exploratory Research (Unaware of Problem) “Our sales are declining and we don’t know why.” “Would people be interested in our new product idea?” Descriptive Research (Aware of Problem) “What kind of people are buying our product? Who buys our competitor’s product?” “What features do buyers prefer in our product?” Causal Research (Problem Clearly Defined) “Will buyers purchase more of our products in a new package? “Which of two advertising campaigns is more effective?”

19 Determining When to Conduct Marketing Research
Do we really need research? Expensive. Valuable? Benefits versus costs Nature of the decision Vital? When should we NOT conduct research: No time or money Insufficient payback Information already available Information too hard to get

20 The Bank of Montreal has been trying to sell its services online but finds that new web users are not signing up for services. Management wonders whether or not they should invest in a guided tour. Should they conduct market research to help them decide? A guided tour involves a considerable financial risk. There are also concerns about brand image. So they decide to proceed with the research. What do they need to know? What are some hypotheses as to why users are not signing up? How might they discover which, if any, of these possible reasons is correct? Assume they discover that the reason was a poor portrayal of the value proposition, I.e.people did not understand why they should use the service. What would be the next step?

21 Anecdotal evidence suggests that although customers like the performance and comfort of the Ford Crown Victoria, they are not overly enthusiastic about it’s design which has changed little since the last major design change in Ford has decided to hire an external market research company (i.e. you) to find out how the public are likely to feel about a new design. What steps would you take to provide this information? 1992 2009

22 The Marketing Research Process
Problem identification specifying what information is required – define research objectives (hypothesis driven) designing the method for collecting information (, exploratory, survey, observation, secondary, experiment) Select sample managing and implementing the collection of data Preparing, analyzing and interpreting the data communicating the findings and their implications.

23 1. Define the problem or opportunity
What is the purpose of the study? What is the relevant background information? Problem definition involves discussion with the decision makers, analysis of secondary data, perhaps, some exploratory research Once the problem has been precisely defined, the research can be designed and conducted properly A decline in sales is a problem, but its underlying cause is what must be corrected To define the problem, list every factor that may have influenced it, then eliminate any that cannot be measured

24 2. specifying what information is required
Ascertain the decision maker’s objectives Determine unit of analysis Understand background of the problem Determine relevant variables Isolate/identify the problem, not the symptoms State research questions and objectives

25 3. Determine Research Design
Exploratory: Initial, unstructured, informal When you don’t know much Focus groups, lit review, case study, pilot study, secondary data, experience survey Descriptive: Answers who, what, why and how Surveys, observation Causal: Relationships between variables Experiments

26 4. Select Sample Subjects Identify target population
Census = all Sample = portion Identify target population Cost vs. generalizability Identify unit of analysis Individual, household, community How will you select subjects? Probability vs. nonprobability

27 5. Collect Data Determine data gathering methods Properly prepare
Secondary data: Internal records, reports for purchase, library, web Primary data: Telephone, web, in person, mail, observation (in person, electronic) Properly prepare Pretest, pilot test, main study

28 6. Analyze Data Edit data Code data Select appropriate analysis method
Use to summarize findings Use to interpret results Will the findings hold for the general population?

29 7. Prepare Report SUMMARY: What was done and what was found
Goal: clear, unbiased conclusions Write for your audience

30 The Marketing Research Process
Problem Discovery Selection of Sample Design Exploratory Research Collection of the Data Selection of the Basic Research Method

31 The Research Process (cont.)
Editing and Coding Report Data Processing Interpretation of the Findings

32 Would you talk only to men?
Would you talk only to current owners? Would you talk to only 10 people? Would it matter if you asked them about the Cadillac Escalade? Would it matter if you did a multiple regression analysis?

33 Marketing research works because, by talking to a relatively small number of people, it is possible to find out about a far larger number. But….. it only works if you talk to the right number of people it only works if you talk to the right type of people it only works if you ask the right questions and it only works if you analyze the data in the right way.

34 Research Ethics No harm Full disclosure No coercion
The moral principals and values that govern actions and decisions. They are guidelines on how to act when faced with moral dilemmas. No harm Confidential or Anonymous? Full disclosure Before and after (debriefing) No deception (passive or active) No coercion Right of refusal Identity protection Anonymity or confidentiality

35 “The formulation of the problem is often more essential than its solution”
Albert Einstein

36 The Management Problem versus the Marketing Research Problem
A distinction must be made between the management problem and the marketing research problem. Marketing Research Problems Management Problem Focus on symptoms Action oriented Focus on causes Data oriented


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