WILLIAM G ZIKMUND Business Research Methods

MARKETING RESEARCH
A Consumer Insight & Decision Support System (C.I. & D.S.S.)

What is Marketing?
Marketing is A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler, 1988,p.3)
Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer.

What is marketing research?

Marketing Research is the systematic and scientific planning, collection, analysis and communication of data to facilitate the quality and quantum of marketing decisionmaking, and subsequent implementation of recommendations, relevant to insights gained through the research process.

Role of marketing research

1. Descriptive (What?) Gathering and presenting statements of fact, e.g., industry sales trends, competitors activities effects or consumers' brand attitudes.
2. Diagnostic (Why?) To explain outcomes or events, e.g., learning why did 3rd quarter sales fall in comparison with 2nd quarter? 3. Predictive (What if?) What will be the effect of an anticipated marketing action, e.g., how will the market respond if a new product is introduced?

Management use of MR
Identifying and treating problem areas. Focusing on customers & consumers. Understanding market dynamics. Strategy development for retention of existing customers/consumers, and generating new ones. Improving the quality & quantum of decision making.

Business Research
Research information is neither intuitive nor haphazardly gathered. Business research must be objective Detached and impersonal rather than biased It facilitates the managerial decision process for all aspects of a business. Information reduces uncertainty.

The secret of success is to Know something Nobody else knows ARISTOTLE

Redefining Marketing Research

Used to identify and define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

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Information Value Chain

Data

Information
(Data In structure format)

Knowledge
(Information with actionable direction)

Decision Making Process

(Outcome)

Implementing Expertise
(In measurement)

Research methodology
Qualitative Research: is conducted to collect data about how people think & feel, & why they behave as they do. It includes all techniques which attempt to illustrate the views of those being studied without assuming that these views are necessarily held by others who have not been investigated. Primary Advantage Gives depth of view.

Quantitative Research: is conducted to collect data about how many people hold similar views, display similar characteristics to behave in similar ways. It includes all techniques which attempt to measure the responses of individuals & compare them with each other. Primary Advantage Gives a Go/No-Go decision gives breadth of view.

The Decision-making Process Associated with the Development and Implementation of a Strategy
Identifying problems and opportunities Diagnosis and assessment Selecting and implementing a course of action Evaluating the course of action

Marketing Research

Problem Identification Research

Problem Solving Research

Market Potential Research Market share research Image Research Business trends Research

Segmentation Research Pricing research Taste Research Promotion Research

Basic Research
Attempts to expand the limits of knowledge. Not directly involved in the solution to a pragmatic problem.

Applied Research
Conducted when a decision must be made about a specific real-life problem

Determining When to Conduct Business Research

Time Constraints
Is sufficient time available before a managerial decision must be made?
Yes

Availability of Data
Is the information already on hand inadequate for making the decision?
Yes

Nature of the Decision

Is the decision Yes of considerable strategic or tactical importance?

Benefits vs. Costs

Does the value Yes of the research information exceed the cost of conducting research?

Conducting Business Research

No

No

No

No

Do Not Conduct Business Research

THE MARKETING RESEARCH PROCESS

Research
Recognition of information needs Effective decision making Systematic & Objective Exude or disseminate information Analysis of information Recommendations for actions Collection of information Helpful to managers

Solutions at every step

IDEA GENERATION & VALIDATION MARKET UNDER -STANDING CONCEPT/ PRODUCT PROPOSITION DEVELOPMENT DEVELOPMENT PRODUCT LAUNCH MIX COMMUNICATION MONITOR/ PROTECT/ EXPAND LINE EXTENSION BRAND RELAUNCH

Exploratory qualitative

Usage & Attitude (U&A) Habits & Practices (H&P) Segmentation Brand Positioning Studies

Concept screening Concept test

Formulation Evaluation Concept & Use Test (C & U) Packaging

C& U Pricing

Cue Development Pre-test Impact studies

Brand Health Monitor

Advertising & Brand Strategy Monitor U&A / H&P Segmentation Customer Satisfaction Mystery Shopping

Chapter 2: Information Systems and Knowledge Management

Global Information System

An organized collection of computer hardware, communication equipment, software, data, and personnel designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities.

Data versus Information

Datathe raw factsrecord measures of certain phenomena. Informationfacts in a form suitable for managers to base decisions on or a body of facts in a format suitable for decision making or in a context that defines relationships between pieces of data.

Knowledge
A blend of information, experience, and insights that provides a framework that can be thoughtfully applied when assessing new information or evaluating relevant situations.

Characteristics of Valuable Information

Relevance Quality Timeliness Completeness

Decision Support System

A computer-based system that helps decision makers confront problems through direct interaction with databases and analytical software programs.(Evidence base decision ) The purpose of a decision support system is to store data and transform them into organized information that is easily accessible to marketing managers.

Management Information Systems vs. Decision Support Systems

MIS DSS

Structured Problems
Use of Reports Rigid Structure

Unstructured Problems Use of Models User Friendly Interaction Adaptability Can Improve Decision Making by Using What if Analysis

Information Displaying
Restricted Can Improve Decision Making by Clarifying Data

A Decision Support System Has Two Components

Database

Software

Database
A database is a collection of raw data arranged logically and organized in a form that can be stored and processed by a computer. E.g., a mailing list of customer names is one type of database or employment data.

Data Warehousing
Data warehousing systems are developed by compiling and storing many different databases by a company.

It is a process that allows information from operational systems to be stored and organized into separate systems designed for simple access.

Software
Various types of programs that tell computers, printers, and other hardware what to do.
Software allows managers to combine and restructure databases, diagnose relationships, build analytical models, estimate variables, and otherwise analyze the various databases.

Four Major Sources of Input For a Decision Support Systems

Internal records Proprietary business research Business intelligence Outside vendors and external distributors

Internal Records
Internal records that may become useful information for managers. Accounting reports of sales and inventory figures, provide considerable data. Data about costs, shipments, inventory, sales, and other aspects of regular operations are routinely collected and entered into the computer. DOCF Data on company files

Proprietary Research
Emphasizes the companys gathering of new data. Not conducted regularly or continuously. Projects conducted to study specific company problems.

Business Intelligence
A business intelligence system consists of a network of sources and regular procedures by which executives obtain everyday information about nonrecurring developments in the external business environment.

Outside Vendors And External Distributors

Distributors of market information as their products. Many organizations specialize in the collection and publication of high-quality information. E.g. Gallup / Media Logic provides television program ratings, audience counts.

Example of Computerized Data Archives

Organized and retrievable DVD and CD-ROM Internet

Input Management
Inputs - all numerical, text, voice, and image data entered into the decision support system.

Filled questionnaires
Data Coding Data Entry Data Process Data Compilation Process Data Analysis

Presentation of Findings

Information Collecting Tools

PAPI - Pen & paper Method CAPI Computer Assistant personal Interview CATI Computer Assistant telephonic Interview CAWI - Computer Assistant Web based Interview

Thank you !