Marketing Research

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Marketing Research

• Introduction

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What is marketing research?

• Systematic objective process
• designing, gathering, analyzing reporting
  information
• used to solve a specific problem
• Provides information for aid in making marketing
  decisions
• Identify marketing opportunities
• Generate refine marketing actions
• Helps reduce risk inherent in decision making

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Defined

• Function that links an organization to its
  market through the gathering of information.
  This information allows for the generation,
  refinement and evaluation of marketing actions.
  It allows for the monitoring of marketing
  performance and improved understanding of
  marketing as a business process.
• (Hair, Bush Ortinau (2003), p. 4.)

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Why is research important?

• Provides an important link to customers
• Allows implementation of the marketing concept
• Enables managers
• to identify understand consumers wants
  needs
• develop appropriate strategies to meet these needs

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Link to Customers CRM

• Customer Relationship Management (CRM)
• Process utilized to implement a relationship
  marketing strategy
• Develop sustain long-term relationships with
  customers by offering value providing customer
  satisfaction
• Customer satisfaction delight lead to loyalty
  and improved financial performance

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Information Needs Critical to CRM?

• Customers
• Marketing Mix variables
• Competition
• Industry
• Suppliers
• Environmental factors
• Social Cultural Environment
• Economic Environment
• Political Legal Environment
• Technological Environment

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Characteristics of Research

• Applied vs. Basic
• Applied -- solve a specific problem
• Basic -- extend knowledge
• Sometimes inaccurate
• Limited by budget time constraints

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Marketing Research Today

• On-going commitment to information gathering
  use
• Technological advances resulting in real time
  access to information
• Challenge in using information to make decisions
• Value of traditional research
• Competitive Intelligence (www.scip.org)

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The Research Process
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The Four Phases of the Information Research
Process
Determination ofInformationResearch Problem
Development ofAppropriateResearch Design
Execution of theResearch Design
Communication ofthe Results
2-5
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Phases and Task Steps in the Information Research
Process

• PHASE I DETERMINATION OF THE INFORMATION
  RESEARCH PROBLEM
• Task Step 1 Determine and Clarify Managements
  Information Needs
• Task Step 2 Redefine the Decision Problem as a
  Research Problem
• Task Step 3 Establish Research Objectives and
  Determine the Value of the Information
• PHASE II DEVELOPMENT OF THE APPROPRIATE
  RESEARCH DESIGN
• Task Step 4 Determine and Evaluate the Research
  Design and Data Sources
• Task Step 5 Determine the Sample Plan and Sample
  Size
• Task Step 6 Determine the Measurement Issues and
  Scales

2-7a
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Phases and Task Steps in the Information Research
Process

• PHASE III EXECUTION OF THE RESEARCH DESIGN
• Task Step 7 Collect and Process Data
• Task Step 8 Analyze Data
• Task Step 9 Transform Data Structures into
  Information
• PHASE IV COMMUNICATION OF THE RESULTS
• Task Step 10 Prepare and Present the Final
  Report to Management

2-7b
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Defining Research Objectives

• Ultimately information gaps become the basis for
  marketing research activity
• Each objective must be precise, detailed, clear
  and operational

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Research Objectives Example

• Company Food products pre-cooked, prepared
  meat entreesnew product development
• Understand consumers meal planning processes and
  the types of meals or food items families desire
  to eat
• Understand how the preferences of family members
  influence meal planning and product/brand choice
• Understand consumer decision making processes
  with regard to convenience meal items or food
  products utilized in meal preparation or
  replacement

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Example continued

• Understand consumer processes in planning grocery
  shopping trips such as use of lists, frequency of
  shopping, grocery store choice (e.g. what
  attributes of the store are important to
  consumers?)
• Determine how consumers learn about new products
  (e.g. word-of-mouth, advertising,
  point-of-purchase information, coupons, etc.)
• Explore in-store decision processes when
  evaluating brands or considering alternative
  products for meal entrees
• Identify specific target market groups of
  customers by demographic, psychographic or market
  offering interest characteristics
• Identify appropriate communication message(s) and
  medium(s) to effectively position the brand with
  specific target market(s)

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Marketing Research Problem Formulation

• Specify constructs (e.g. satisfaction, brand
  awareness, customer loyalty, product knowledge)
• Develop operational definition
• Identify relationships
• Determine the hypothesized or theoretical model

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Operational Definition Example

• Construct Price Shopper
• Theoretical Definition Consumers who are
  sensitive to price and desire to save money.
  Will typically sacrifice price/value over brand
  name.
• Operational Definitions (survey questions)
• I often compare products by examining unit
  pricing (e.g. price per ounce).
• I normally compare prices when shopping for main
  meal preparation items.
• I will switch brands if I can save 10 by buying
  a different brand.
• I typically buy the lowest-priced product when
  shopping for main meal preparation items.

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Theoretical Relationship
Family and Household Characteristics
Likelihood to Purchase Convenience Products
Grocery Shopping Habits Meal Planning Characteri
stics
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Request for Proposals (RFPs)

• Client organizations publicize RFPs
• Research firms develop research proposal to bid
  on the project
• Proposal includes
• Management problem
• Research objectives
• Specifies research method(s)
• Identifies time frame and budget for completion

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Research Design
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RESEARCH DESIGNS
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Ethical Issues Research

• Research Integrity
• Withholding information
• Falsifying information
• Misinterpreting information to be consistent
• Treating Buyers Suppliers Fairly
• Do not sell unnecessary research
• Fair levels of profit
• Pay on time
• Ethical in asking for proposals

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Ethical Issues continued

• Research Confidentiality
• Conflicts of interest
• Respecting respondent privacy
• Protecting social welfare
• Disclosure of research to participants
• Sugging - Selling under the guise of a survey
• Frugging -- Fund raising under the guise of a
  survey

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Ethical Issues continued

• Incomplete Reporting
• Misleading Reporting
• Nonobjective Research
• See also www.casro.org
• Council of Survey Research Organizations code of
  ethics