Marketing Research Process

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Marketing Research Process

• Marketing Research is Systematic and Objective
• It is not haphazard

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Marketing Research Process
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Notes on the Research Process

• Not a Simple Process
• Steps do not Take the Same Amount of Time
• Objective is Information for Decision Making (not
  Completing a Report)
• Key is to develop a design which minimizes Total
  Error
• Total Error Sampling Error Non-sampling Error
• Cannot calculate non-sampling error

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Problem Formulation

• Key is to define the problem
• Problem Definition broad statement of the
  general problem and identification of research
  problem
• Requires Interaction Between Researcher Manager
• Specification of Management Research Objectives
• What information is needed?
• Development of Hypotheses (in the Ideal World)
• Statement of what we think the answer might be
• May require research

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Research Design

• Exploratory Research -- Help Define Problem
  and/or Develop Hypotheses
• Descriptive Research -- Describing the
  Marketplace
• Causal Research -- Developing Cause-and-Effect
  Statements

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Research Design

• Exploratory Research
• Research completed to help reduce the ambiguity
  of a problem and/or specify hypotheses
• Often performed without applying purely
  scientific principles
• Typically return to Problem Formulation stage
  when this step is completed
• NOTE In recent times researchers are using
  exploratory methods for descriptive studies (more
  on this next week)

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Research Design

• Descriptive Research
• Research used to describe the characteristics of
  a population
• Key is to make sure that you utilize a
  representative sample of the population

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Research Design

• Causal (Experimental) Research
• Research used to identify cause-and-effect
  relationships
• Scientific principles must be carefully employed
  (i.e., experimentation)
• More than saying if x happens, y is likely to
  occur (concomitant variation)
• Want to say x causes y

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Design of Data Collection Method Forms

• Secondary vs. Primary Data
• Secondary Data -- data collected for purposes
  other than the focal study, but applied to the
  present problem (e.g., Nielsen Television
  Ratings)
• Primary Data -- data gathered exclusively for
  the study at hand (e.g., Customer Satisfaction
  Study for Maytag Neptune)

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Design of Data Collection Method Forms

• Communication (Survey) vs. Observation
• Communication (Survey)
• Involves communication with a set of respondents
• Observation
• Monitor the actions of a set of respondents
• Advantages of each?

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Sample Design Data Collection

• Who do we talk to (or observe)?
• Identification of sample frame
• How many people do we talk to?
• Sample Size
• Must gather the data -- actually talk to
  respondents or observe them

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Analysis Interpretation of Data

• Objective -- turn Raw Data into Information
• Screen the Data (i.e., does the data look like
  the information we need?)
• Edit the Data (e.g., is the data usable?)
• Code the Data (i.e., turn responses into numbers)
• Analyze the Data (counts statistical analyses)

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Research Report

• Clear, Concise Communicate

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Problem Formulation

• A problem is half solved when it is defined
• Anonymous
• Key Steps in Problem Formulation
• Meet with Client
• Clarify Problem / Opportunity
• State Managers Decision Problem
• Develop Full Range of Possible Research Problems
• Select the Research Problem that is best
  represents Managerial Problem
• Prepare Research Request Agreement

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Problem Formulation

• How can this needed communication (between
  researcher and manager) be facilitated?
• Research Request Agreement
• Force manager to write out the request
• Clearly articulate why research is needed
• Research Proposal system
• Propose what you can do, how long it will take to
  do it, and how much it will cost
• Facilitates communication

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Problem Formulation

• Research Request Agreement (Prepared by Manager)
• ORIGIN
• The events that led to the managers decision
  problem
• DECISION PROBLEM
• The underlying question confronting the manager
• RESEARCH PROBLEMS
• The range of research problems that would provide
  input to the decision problem
• USE
• The way each piece of information will be used
• TARGETS AND THEIR SUBGROUPS
• The groups from whom the information must be
  gathered
• LOGISTICS
• Estimates of time and money that are available to
  conduct the research

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Problem Formulation

• Research Proposal (Prepared by Researcher)
  generated in response to the Research Request
  Agreement
• Tentative project title
• Statement of the marketing problem
• Purpose and limits of the project
• Outline
• Data sources and research methodology
• Estimate of time and personnel requirements
• Cost estimates

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Problem Formulation

• What follows the Research Proposal?
• Negotiation between manager and researcher
• When agreement is reached
• Both parties sign

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The Future and Research Design

• Future trends
• Sampling greater access to research respondents
  (primarily via the Internet)
• Test hypotheses with greater precision
• Disaggregation of samples
• Ability to break down results by segment
• Pre-testing of Marketing Stimuli
• Can create and test electronically
• Technology provides the ability to create and
  test electronic ads
• Creation and testing of products
• Conjoint analysis allows the design of optimal
  products
• Test attribute levels prior to test markets

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The Future and Research Design

• Future trends
• Analysis and Reporting
• Ability to integrate data from differing parts of
  the world immediately
• Creation of MIS
• On-line experiments (different stimuli sent to
  certain customers track responses with
  technology)

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Marketing Research Ethics

• Researchers needs to be ethical
• Avoid these issues
• Misidentification of respondents
• Misrepresentation of results
• Sales disguised as research

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Marketing Research Ethics

• Researchers absolutely need to be concerned about
  ethics
• Ethical practices enhance the publics acceptance
  of marketing research
• Ethical practices can improve marketers
  sensitivity to their customers
• Ethical practices can help forestall government
  intervention and regulation

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Marketing Research Ethics

• What Researchers owe Respondents
• Duty not to engage in deceptive practices
• Duty not to invade privacy
• Duty to manifest concern for respondents

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Marketing Research Ethics

• What Researchers owe Clients
• Forthright research designs
• Avoid unneeded research
• Designs that fit the budget of the clients
• Researchers responsibilities
• No over billing
• Confidentiality
• Eliminate conflicts of interest

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Marketing Research

• What Researchers owe the Public
• Accurate reporting
• No incomplete reports
• No misleading reports
• Objective Reporting

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Organizational Issues in MR

• Gathering Marketing Research Information
• Level 1 Organizations have a need for
  information to help them make decisions
• Level 2 Research Suppliers
• Custom and syndicated research providers
• Design and obtain needed studies
• Level 3 Data Collectors
• Field service organizations
• Personal / Telephone interviewers
• Focus group facilitators
• Level 4 Respondents

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Organizational Issues in MR

• Marketing Research Successes
• Works best when organizations have a commitment
  to research (top management commitment)
• View research as in investment (not a cost)
• Work with Level 2, 3, and 4 organizations as
  partners
• Share mission, objectives, etc.
• Watch for these danger signals
• Magic techniques (there is no magic)
• Guaranteed solutions (no guarantees you are
  gathering information to help make decisions)

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Organizational Issues in MR

• Marketing Research Successes
• Watch for these danger signals (continued)
• Price variance cheapest may not be the best
  (but may not be the worst)
• Making research successful
• Clear objectives
• Build relationships with Levels 2, 3, and 4
• View research as a process (one study may not get
  it done)