Burns MR9 PPT 03

Marketing Research
Ninth Edition
Chapter 3
The Marketing Research

Process and Defining the
Problem and Research
Objectives
Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved
Learning Objectives
In this chapter you will learn
3.1 The steps of the marketing research process
3.2 The importance and process of defining the problem
3.3 How to formulate research objectives
3.4 What an action standard is and why it can be helpful
3.5 The components of the marketing research proposal
Figure 3.1 Steps in the Marketing
Research Process
Step 1: Establish the need for marketing research
Step 2: Define the problem
Step 3: Establish research objectives
Step 4: Determine research design
Step 5: Identify information types and sources
Step 6: Determine methods of accessing data
Step 7: Design data collection forms
Step 8: Determine the sample plan and size
Step 9: Collect data
Step 10: Analyze data
Step 11: Communicate the insights.
Where We Are
1. Establish the need for marketing research.
2. Define the problem.
3. Establish research objectives.
4. Determine research design.
5. Identify information types and sources.
6. Determine methods of accessing data.
7. Design data collection forms.
8. Determine the sample plan and size.
9. Collect data.
10. Analyze data.
11. Communicate the insights.
The Marketing Research Process:
Caveats to a Step-By-Step Process
• The “Step-by-Step Process”
– Not always presented as an 11-step process
– Not all studies use all 11 steps
– Few studies follow the steps in order
Step 1: Establish the Need for
Marketing Research (1 of 3)
• Is there a real need for marketing research?
• Research takes time and costs money
• Cost of information may outweigh value of information
Is there a real need for marketing research?
• Marketing research is not always needed.
• We often have the information
When is marketing research Not needed?
• The information is already available
• The timing is wrong to conduct marketing research
• Funds are not available for marketing research
• Costs outweigh the value of marketing research
Table 3.1 Research Is Not Always the
Best Solution
Research might not be the best Circumstances to consider
solution when…
The information is already available Can we obtain the information from past
studies?
Can we get the information from internal
reports from the marketing intelligence system
(MIS)?
The timing is wrong Do we need to act immediately to remain
competitive?
Is the product at the end of its life cycle?
Costs outweigh the value Have we conducted a cost benefit analysis?
What is the marketing return on investment of
the market research project?
Step 2: Define the Problem
• The need to make a decision requires decision
alternatives. If there are no alternatives, no decision is
necessary.
Step 3: Establish Objectives
• Research objectives state what the researchers must do.
• Research objectives, when achieved, provide the
information necessary to solve the problem identified in
step 2.
Step 4: Determine Research Design
• Exploratory Research: collecting information in an
unstructured and informal manner.
• Descriptive research: research that describes the
phenomena of interest.
• Causal studies: attempt to uncover what factor or factors
cause some event.
Step 5: Identify Information Types and
Sources
• Primary information: information collected specifically
for the problem at hand
• Secondary information: information already collected
Step 6: Determine Methods of
Accessing Data
• Secondary data is relatively easy to access
• Primary data is more complex
Step 7: Design Data Collection Forms (1 of 2)
• The questionnaire must be worded objectively, clearly,
and without bias in order to communicate with
respondents.
• If a focus group is used, a focus group guide must be
developed.
• If we observe respondents, the form is called an
observation form.
Step 7: Design Data Collection Forms (2 of 2)
• Software programs are available to assist marketing
researchers in preparing data collection forms.
Step 8: Determine Sample Plan and Size
• A sample is drawn from an entire group or population.
The sample plan describes how each sample element,
or unit, is to be drawn from the total population. Gives
you representativeness!
• Sample size refers to determining how many elements
of the population should be included in the sample. Gives
you accuracy!
Step 9: Collect Data
• Researchers aim to minimize this possibility by
undertaking a control referred to as validation.
• Companies that specialize in data collection are referred
to as field service firms.
Step 10: Analyze Data
• Data analysis involves entering data into computer files,
inspecting data for errors, and running tabulations and
various statistical tests.
Step 11: Communicate the Insights
• Communicating the results, the last step, is one of the
most important phases of marketing research.
• Its importance cannot be overstated because it is the
report, or its presentation, that properly communicates the
results to the client.
Defining the Problem
• Problems are situations calling for managers to make
choices among decision alternatives.
• Defining the problem is the most important step in the
marketing research process.
Figure 3.2 Process for Defining a Problem
Consequences & Assumption

Identify what additional information is
needed:
• Information state
• Information gap
Conduct a Situation Analysis
Methods: Kinds of information:

• Explore secondary internal & External secondary data
external data • Industry
• Experience surveys (discussion • Key products & services
with knowledgeable persons) • Markets & Market segments
• Case analysis (example of
former, similar situation) Internal secondary data
• Pilot studies • Company history
• Focus group • Business Performance
• Products/ Services
• Unique competencies
• Marketing plans
• Customers
• Major competitors
Clarify the Symptoms & Determine the Probable
Causes of the Symptoms
Methods: Kinds of information:

• Explore secondary internal & External secondary data
external data • Industry
• Experience surveys (discu& • Key products & services
ssion with knowledgeable • Markets & Market segments
persons)
• Case analysis (example of Internal secondary data
former, similar situation) • Company history
• Pilot studies • Business Performance
• Focus group • Products/ Services
• Unique competencies
• Marketing plans
• Customers
• Major competitors
The Research Objective (1 of 2)
• Research objectives are specific and tell the researcher
exactly what information must be collected to solve the
problem by facilitating selection of an alternative.
• They are goal-oriented statements or questions that
specify what information is needed.
The Research Objectives (2 of 2)
• Specify from whom information is to be gathered
• Specify what information is needed
• Specify the unit of measurement used to gather
information
• Word questions used to gather information using the
respondents’ frame of reference
Table 3.3 Formulating Research
Objectives as Statements or Questions
Problem Statement: The American Red Cross wishes to increase the number of American
university students who donate blood each year.
Formulating Research Objectives as Formulating Research Objectives as Questions
Statements
To determine what college students see as the What do college students see as the benefits of
benefits of donating blood donating blood?
To determine what college students see as the What do college students see as the obstacles to
obstacles to donating blood donating blood?
To identify the incentives that would encourage What incentives would encourage students to
students to donate blood donate blood?
To distinguish the types of promotions that are What types of promotions are most likely to attract
most likely to attract college students college students?
To identify how the information defined from the How does the information defined from the
previous statements varies according to the previous questions vary according to the
characteristics of college students, including characteristics of college students, including
gender, class standing, type of university gender, class standing, type of university
attended, domestic versus international student, attended, domestic versus international student,
and geographical region. and geographical region?
Hypotheses and Constructs
• Hypotheses are statements that are taken as true for the
purposes of argument or investigation.
– Managers make assumptions about the consequences of decision
alternatives.
• A construct is an abstract idea or concept composed of a

set of attitudes or behaviors that are thought to be related.
– What is the unit of measurement?
– What is the proper frame of reference?
– Examples: Memory, Relevancy, Believability, understandability, likeability,
attitude and intention are construct of Ad Evaluation.
• Variables are elements of constructs that can be

measured or quantified
Problem vs. Research Objectives
Problem Research Objectives
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product.
Should the advertising To determine the effectiveness
campaign be changed? of the current advertising
campaign.
Should the price of the To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels
 Action orientation of price changes.
 Information orientation
Action Standards
• An action standard is a predesignation of some quantity
of a measured attribute or characteristic that must be
achieved for a research objective for a predetermined
action to take place.
Table 3.2 Sample Key Performance
Indicators (KPIs)
Marketing Objectives Sample KPIs
Brand awareness Ad recall, unique visitors, comments,
referrals, retail traffic
Engagement Likes, shares, blog comments, net promoter
score, bounce rate
Sales Market share, marketing penetration, orders,
revenue, growth, conversion
Return on investment Customer acquisition cost, marketing return
on investment, customer lifetime value
Quality control Returns, complaints, review scores
The Market Research Proposal
• The marketing research proposal serves as the basis of
a contract as it documents what the marketing researcher
proposes to deliver to the client for some consideration,
typically a fee.
• When a client first contacts a marketing research supplier
to conduct research, the client will generally request a
proposal prior to agreeing to work with the firm in a
process called an invitation to bid (ITB) or request for
proposal (RFP) .
(Assignment A)
• Introduction
– Statement of Problem
• The Research Objectives
• Research Background/ Literature Search (5 references)
• The Research Design

– Methodology
– Data collection method
– Sampling plan
• Ethical Issues
• Deliverables: analysis plan (optional)
• Cost & Timeline (optional)
1. Research Brief/
Request for Proposal/
Invitation for Bid
Client/ Marketer Research Agency
2. Research Proposal
35
Exercises
• A local confectionery company want to introduce a new

soft chocolate product in an easy tube for children. This
product would be positioned as “the fun-filled soft
chocolate” to be consumed mainly by children, and it is
not an expensive product.
• What should be the decision (managerial) problem?

• What should be research objectives?
Exercises: RFP & RP
1. Vietnam Airlines would like to explore their competitive advantages and

disadvantages over competitors in international routes
2. Transportation/ delivery service booking apps would like to measure the
market potential, their business performance and competition.
3. Understand the customers’ behavior shifting towards e-commerce among
13-45 y.o. customers.
4. Go2Joy hourly hotel booking app would like to evaluate their current
brand performance and maximize it with better marketing programs.

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Marketing Research

The Marketing Research

2. Define the problem.

3. Establish research objectives.

4. Determine research design.

5. Identify information types and sources.

6. Determine methods of accessing data.

7. Design data collection forms.

8. Determine the sample plan and size.

10. Analyze data.

11. Communicate the insights.

Consequences & Assumption

Methods: Kinds of information:

Methods: Kinds of information:

• A construct is an abstract idea or concept composed of a

• Variables are elements of constructs that can be

• The Research Objectives

• Research Background/ Literature Search (5 references)

• The Research Design

• Deliverables: analysis plan (optional)

• Cost & Timeline (optional)

• A local confectionery company want to introduce a new

• What should be the decision (managerial) problem?

1. Vietnam Airlines would like to explore their competitive advantages and

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