MNM 4.

03
Marketing Research

Chapter 3: Research Design

 Marketing Research

Marketing Research provides information to

reduce uncertainty.

“The nature of change has changed. It is not

evolving in comfortable incremental steps,
rather, it is turbulent erratic, and often rather
uncomfortable.”

Schlegelmilhc and Sinkovics (1998):

 Set The Objectives

The Objective of Marketing Research should be

to reduce the need for a company to have to
react by making the organization pro-active.
 Define the Research Problem

• Write the description of the problem and ask:

• What do we need to accomplish (needs)?
• What are the obstacles?
• What constraints must be accepted to solve the problem?

•Redefine the problem answering these questions

 Problem Audit

•What led to the decision that action was needed?

•What courses of action are open to the decision maker?
•How will the company decide which course of action to take?
•How will the research information be used?
•What information is needed to answer the decision market's question?
•How will the decisions be made once the research is presented?
 Assessment of the Value
•Do a cost benefit analysis including:

• Degree of complexity of the environment

• Strategic importance and cost of making the wrong decision
• Degree of importance the company attaches to decisions

•Research should never cost more than the value of the results!!
 Assessment of the Research Problem

• Remember – Management Decision Problem

is not the same as Marketing Research Problem

Management Decision Research Problem

• What should be done to

increase our sales at the ??
restaurant?

• Who should we target

with our new brand of ??
softdrink?
 Deconstruct the Research Problem

•Break the problem into specific components

• Example: Determine strengths and weaknesses of the restaurant compared to competitors, on factors that
influence return visits.
• What criteria to customers use when selecting a restaurant?
• How do they evaluate the restaurant and its competitors on these criteria?
• Which restaurants to customers visit most frequently?
• What is the profile of the restaurant’s customers?
 Decide on the Research Design

Research Design

Exploratory Design Conclusive Design

Descriptive Research Causal Research

Cross Sectional Longitudinal

Design Design
 Exploratory Vs. Conclusive
Exploratory Conclusive
Objective • To provide insights and understanding •To test specific hypotheses
of the nature of marketing problems and examine relationships
• To gain in-depth understanding •To measure
Characteristics •Information needed may be loosely •Information needed is clearly
defined defined
•Research process is flexible and less •Research process is formal
structured and unstructured
•Samples are small •Sample is large
•Data analysis is quantitative
Findings / Results •Can be used alone •Can be used alone
•Can feed into conclusive research •May feed into exploratory
•May illuminate specific conclusive research
findings
Methods •Expert surveys •Surveys
•Pilot surveys •Secondary data
•Secondary data •Databases
•Qualitative methods •Panels
•Unstructured observations •Structured observations
•Experiments
 Descriptive Vs. Causal Research

Conclusive Design

Descriptive Research Causal Research

A type of research that has A type of research where

as its major objective the the major objective is to
description of something, obtain evidence regarding
usually market cause-and-effect
characteristics or functions relationships
 Causal Research – Key Uses

• Determine Impact of changing a Marketing

Variable
• Manipulate Variables in a controlled
Environment
• Experimentation
Causal Research – Types of Studies

Studies that are conducted in the form of an

experiment, where variables are controled to
determine if a cause-and-effect relationship
exists.

Example Case: Eckerd Drug Company

 Descriptive Research – Key Uses

• Estimate the percentage of consumers exhibit

certain behaviours
• Determine the perception of product / store
characteristics
• Determine the degree to which marketing
variables are related
Descriptive Research – Types of Studies

Market Demand Estimation

Market Segmentation
Market Share
Image Studies
(Product) Usage and Attitude Studies
Advertising Pre/Post Testing
Pricing Research
Distribution Research
Product Research

• Concept Tests
• Product Design Research (usability)
• Package Testing (bundling)
• Product Modification
• Demand Estimation
• Test Marketing
Promotional Research

• Optimal Promotional budget

• Sales Vs. Promotion Relationship
• Copy Decisions
• Advertising Pre-testing
• Advertising Effectiveness
Distribution Research

• Channel Effectiveness Study

• Shopper Satisfaction
• Channel Member Satisfaction
• Efficiency of Retail Coverage
 Pricing Research

• Product / Service Price testing

• Price Elasticity of demand
• Initiating and responding to price changes
• Importance of price in product/service
offering
Image & Branding Research

• Corporate Image Studies (what

customers think of their company and
its competitiors)
• Brand Image Studies (what
customers think of a branded product
or service)
Segmentation Research

• Identify high potential segments for

product / service
• Size and nature of key market
segments
• Market potential and responsiveness
of key market segments
• Development of offerings to suit the
specific needs of different segments