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
y Identifying and evaluating opportunities y Competitive Analysis

 Market Segmentation
y Analyzing market segments and selecting target markets

 Marketing Strategy Design

y Planning and implementing a marketing mix

 Analyzing Marketing Performance

Managerial Value of MR
Value  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. 2. 3. 4. 5. 6. 7. Define the Research Problem Determine Research Design and Data Sources Develop Sample Design and Sample Size Develop Measurement Instruments Collect and Prepare Data Analyze and Interpret Data 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

Step 7: Communicating Results 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.