Marketing Research

Def. - Formal communication link with the environment to provide accurate and useful information for better decision making.

Systematic process of specifying, collecting, analyzing, and interpreting.

Useful for planning, problem-solving, and controlling (see Exhibits 1.1)

Application of MR Marketing research activities can be

divided into four main strategic categories: Market Analysis

Identifying and evaluating opportunities Competitive Analysis

Market Segmentation Analyzing market segments and selecting target

markets Marketing Strategy Design

Planning and implementing a marketing mix Analyzing Marketing Performance

Managerial Value of MRValue

Relevance

Quality

Timeliness

Completeness

Data vs. Information vs. Knowledge

Science or Art? Objectivity of Investigator

Unbiased Procedural integrity Accurate reporting

Accuracy of Measurement Valid and Reliable Meaningful and useful Appropriate design (sample, execution)

Open-minded to Findings Willing to refute expectations Acknowledge limitations

Difficulties of Achieving “Scientific Studies” in Marketing

Investigator is deeply involved in the use of the results.

Imprecise measuring devices Very complex and interrelated subject

matter Difficulty using experiments Influence of the measurement process on

results Time pressure for results

The Research Process

1. Define the Research Problem

2. Determine Research Design and Data Sources

3. Develop Sample Design and Sample Size

4. Develop Measurement Instruments

5. Collect and Prepare Data

6. Analyze and Interpret Data

7. Communicate Results

Step 1: Identifying and Formulating the Research Problem/Opportunity

Process begins with the recognition of a marketing problem or opportunity: Marketing Problem: Set of circumstances in a

market and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance.

Market Opportunity: Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy.

Step 2: Determine the Research Design and Data Sources

Exploratory, Descriptive, Causal

Secondary vs. Primary Data Survey research Observation research Focus Groups Experiments

Step 3: Design Sample

Sample: a subset from a larger population

Probability vs. nonprobability sample Number of respondents Method of contact Management of non-response Detailed field instructions Handling of data

Step 4: Develop Measurement Instruments

What observation form or questionnaire will be best suit the needs of the project?

Anonymous? Confidential? Structured vs. open-ended What types of rating scales? What is the layout going to look like?

Step 5: Collect and Prepare Data

Editing and Coding

Data Entry

Data Cleansing

Summarization

Error Assessment

Reliability/Validity

Step 6: Analyzing the Data

Purpose of the analysis is to interpret and draw conclusions from the mass of collected data

Must select appropriate analytic tools to match data, research objectives, and information needs

Researchers must remember to speak in managerial terms rather than in the terminology understood only by research specialists

Reports should outline technical details of the research project and methods in an appendix, if at all

Researchers should spell out their conclusions in clear, concise, and actionable terms

Be open-minded to findings, be willing to refute expectations, and acknowledge limitations.

Step 7: Communicating Results