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Chapters 3 & 4

The Marketing Research

Process

Problem Formulat ion

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Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare the Research Report

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Sources Marketing Problems

Sources of

Marketing Problems

Purpose of

Marketing Research

Unanticipated Change Find out what is

happening and why.

Planned Change How to bring about the

desired change.

Serendipity in the Form

of New Ideas

How to capture and

evaluate the promise of

the new idea.

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The Problem Definition Process

Diagnosis of the Situation

Identifying the Marketing Problem

Deriving the Research Problem

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Case 1.1: Big Brothers of Fairfax

County

What is (are) the marketing decision

problem(s)?

What is (are) the marketing research

problem(s)?

What types of information would be useful

to answer the questions?

How would you go about securing this

information?

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Marketing Research Process

Using the steps in the research process to

structure your thinking evaluate the

following marketing research effort.

See Question 3, Page 53 for scenario.

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Which type of research design is

most appropriate?

Franks flies is a fishing lure manufacturer.

Franks management has decided to enter

the lucrative market for trout flies, an areain which the company has little experience.

The fly development department has

decided that it needs more informationconcerning trout fishing in general before it

can begin designing the new product line.

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Which type of research design is

most appropriate?

The management team at Aardvark Audiostrongly suspects that the companys currentadvertising campaign is not achieving its stated

goal of raising consumer awareness of thecompanys name to a 75 percent recognition levelin the target market. The team has decided tocommission a research project to test the

effectiveness of the various ads in the currentcampaign.

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Which type of research design is

most appropriate?

Ace Fertilizer company is trying to decide where

advertisements for its vegetable garden fertilizers

should be placed. Management is contemplating

a research project to determine whichpublications home gardeners read on a regular

basis.

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Problem Definition Areas Questions

Symptoms What has changed that is causing

you concern?

Background What is the recent history of the

brand, service, company, or

market involved?

Decision Maker's Situation How are these changes

impacting your objectives?

What resources do you have at

your disposal? What is the time

frame for required action?

Information What do you know about the

circumstances of these changes?

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Problem Definition Areas Questions

Suspected Causes Why do you think these changes

have come about?

Possible Solutions What do you have the power todo about these changes?

Anticipated Consequences If you do things in your power,what are the most likely results?

Assumptions Why do you anticipate these

responses to your actions to

resolve the problem?

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Constructs Often Investigated by

Marketing Research

Construct Operational Def.

Brand awareness Percent of respondents having

heard of brand

Recall, recognition of

advertising

The number who remember

seeing a specific ad

Knowledge of product,

features

What can they tell about the

product

Brand familiarity Those who have seen the

brand or tried it

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Constructs Often Investigated by

Marketing Research

Construct Operational Def.

Comprehension of product

benefits

What respondents think the

product does for them

Attitudes, feelings toward

brand

The number who feel positive,

negative or neutral

Intentions to purchase The number that are planningto buy it

Past purchase or use The percent that bought it

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Constructs Often Investigated by

Marketing Research

Construct Operational Def.

Satisfaction How they evaluate its

performance

Importance of some factor What factors determine their

purchase choice

Demographics How old, what gender, etc.

Brand loyalty How many times they bought

the brand in the last 6 mos.

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Problem Definition Process Examples

GeneralSituation

Diagnosis MarketingProblem

ResearchProblem

Market share isdeclining

Customers areswitching to

brand A

Reinforcebrand loyalty

Find out whybrand A is

preferred

Sales are down Store traffic is

down

Build store

traffic

Find out why

fewer peopleare visiting

store

Profit decline Big advertising

campaign failed

Design new ad

campaign

Evaluate

alternative adsand media

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Problem Definition Process Examples

GeneralSituation

Diagnosis MarketingProblem

ResearchProblem

Product line isgrowing

obsolete

New product isneeded

Select newproduct to

market

Evaluatealternative

product designs

Distribution is

weak

More stores are

needed

Insert new

stores

Evaluate

prospectivestore locations

New productline is being

introduced

Promotionalresources must

be allocated to

geographic

markets

Assign salesforce and

distribute local

advertising

budget

Identify andarray high

sales-potential

markets

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