Title: The Marketing Research Process
1The Marketing Research Process
- MKTG3342
- Fall 2008
- Professor Edward Fox
2The Marketing Research Process
- Research Process - Key Questions
- 1. Why should we do research?
- Management Decision Problem Research Purpose
- 2. What research should be done?
- Research Objective
- 3. Is it worth doing the project ?
- Value of Information
3Key Questions (cont.)....
- 4. How should research be conducted?
- Research Design
- 5. How should data be collected?
- Sampling and Data Collection
- 6. What will we do with the data?
- Data Analysis and Interpretation
- 7. How do we communicate the results?
- Report Writing and Presentation
4Step 1 - Problem/Opportunity Identification
- The research process begins with the recognition
of a marketing problem or opportunity - As changes occur in the firms external
environment, marketing managers are faced with
the fundamental questions, Should we change the
current marketing mix? and, If so, how?
5Problem Definition
- Translating the Management Decision Problem into
Research Objectives - Management Decision Problem
- Managers version of the problem for which
decisions is to be made. The management decision
problem is action oriented. - e.g., How can I increase sales? What product
features should I add? Should I increase my
advertising? Who should I target for coupon
distribution?
6Role of the Marketing Researcher
- Once a problem or opportunity has been
identified, the marketing researcher comes into
the picture. - The first responsibility of the researcher is to
work with the marketing manager to clearly
articulate the management decision problem(s)
whose symptoms have been observed and then to
precisely define the marketing research problem.
7Definition of Research Objectives
- The culmination of the problem/ opportunity
formulation process is a statement of research
objectives - These objectives are stated in terms of the
precise information necessary to address the
marketing research problem - Objectives must be as specific and unambiguous as
possible. All subsequent efforts will be geared
toward achieving the research objectives
8Some wrong formulations Symptoms vs. Problems
(the Iceberg Principle)
- Management Decision Problem
- Sales were falling below quotas.
- What should we do?
- Research Objective
- Find ways to motivate salesforce
9Some wrong formulations
- Management Decision Problem
- A major soft drink competitor is gaining market
share. - In blind tests, this competitors product is
considered better by majority of consumers. - Research Objective
- Determine whether new product formulations are
preferred to the competitors product.
10Research Objectives
- Research objectives can be stated as
- Questions
- Researchable statements
- Hypotheses
- A hypothesis is a conjectural statement about a
relationship between two or more variables that
can be tested with empirical data.
11Example of Problem Formulation - Ford SUV
- A recent report suggests that middle-class
families with children are taking more frequent
and longer road trips for vacations. Ford wants
to exploit this opportunity and add features to
their next-generation sport utility vehicle (SUV)
in order to make it more attractive to potential
buyers.
12Management Decision Problem -Ford SUV
- To identify features that could be added to the
SUV in order to increase its attractiveness to
potential buyers taking long trips. In
particular, the following features are under
consideration - built-in TV/Video system, food warmer,
refrigerator
13Research Objectives Question FormFord SUV
- Consider the following research objectives
- What is the likely consumer demand for an SUV
with an in-built refrigerator? - With a built-in refrigerator, would consumers
need additional cup holders in the SUV? If so,
what locations in the vehicle would be most
convenient? - What is the likely consumer demand for an SUV
with Video/TV system at different price points
(i) 1500, (ii) 2000 or (iii) 2500. - What are the characteristics of consumers who
would buy the video system? -
14Research Objectives Statement FormFord SUV
- Consider the following research objectives
- Estimate consumer demand for an SUV with an
in-built refrigerator. - Determine whether, with a built-in refrigerator
in the SUV, consumers would need additional cup
holders if so, identify the most convenient
locations in the vehicle. - Estimate consumer demand for an SUV with Video/TV
system at different price points (i) 1500, (ii)
2000 or (iii) 2500. - Identify the characteristics of consumers who
would buy the video system.
15Research Objectives Hypothesis FormFord SUV
- Consider the following research objectives
- Demand for SUVs with built-in refrigerators will
be higher in Sun Belt states (e.g., Florida,
Texas) than in other states. - Customers who would buy an SUV with a built-in
refrigerator would also prefer that the vehicle
have more cupholders. - Demand for SUVs with video/TV systems will be
highest among families with young children 1-6
years of age, compared to families with older
children or no children.
16Points to Take Away
- Problem Definition is the first and very
important phase of marketing research. - Problem Definition step involves translation of
Management Decision Problem into Research
Objectives. - Research Objectives are generally framed in terms
of questions, researchable statements or
hypotheses. - Clearer and more specific Research Objectives are
easier to design and implement research. - There are no hard and fast rules for defining the
problem. However, doing so requires interacting
with managers and getting pertinent information.