Intro to Marketing Research_chapters 1-2_s2011

8/10/2019 Intro to Marketing Research_chapters 1-2_s2011

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Ice Breakers

Name

Where you were born

Most interesting and/or fun thing you did over break

What you like best about WSU/Pullman


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Discussion Questions

What is marketing?

What is marketing research?

How does marketing research play a role in managerial

decision-making?

What are the different steps in a marketing research project?


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Role of

Marketing Researchin Managerial Decision-Making

Chapter 1
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What is Marketing?

American Marketing Association Definition:

Marketing is an organizational function and a set of processes forcreating, communicating, and delivering value to customers and formanaging customer relationships in ways that benefit the organizationand its stakeholders.

In sum, marketing is about

meeting needs

delivering value to all people affected by a transaction

getting the right product to the right folks at the right time/place for theright price using an appropriate combination of promotional techniques(the four Ps)


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What is Marketing Research?

American Marketing Association (p. 4 in your book):

the function that links an organization to its market through thegathering of information. This information allows for the identificationand definition of market-driven opportunities and problems and allowsfor the generation, refinement and evaluation of marketing actions. Itallows for the monitoring of marketing performance and improvedunderstanding of marketing as a business process.

Malhotra & Peterson (2006, p. 5): the systematic and objective identification, collection, analysis,

dissemination, and use of information that is undertaken to improvedecision making related to identifying and solving problems (also knownas opportunities) in marketing.

Feinberg et al. (2008, p. 4): the systematic process of using formal research and consistent datagathering to improve the marketing function within an organization.This information is used to identify opportunities and problems,monitor performance, and link marketing inputs with outputs ofinterest, such as awareness, satisfaction, sales, share and profitability.


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The Marketing Concept

Need for marketing research based on marketing concept

Idea introduced in 1952, GEs Annual Report:

The (marketing) concept introduces the marketer at the beginning

rather than at the end of the production cycle and integrates

marketing into each phase of the business. Thus, marketing,

through its studies and research, will establish for the engineer, thedesigner, and manufacturer, what the customer wants in a given

product, what price he (or she) is willing to pay, and where and

when it will be wanted. Marketing will have authority in product

planning, production scheduling, and inventory control, as well as

in sales, distribution, and servicing of the product.

Gave rise to the Marketing System

Conceptual model linking Independent Variables (causes) to

Dependent Variables (outcomes)

Understanding the link between IVs and DVs (and reducing

uncertainty) is a key function of marketing research
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Marketing System

Marketing Mix(controllable)

PricingPromotionProductDistribution

Behavior

AwarenessKnowledgeLikingPreference

Intent to buyPurchase

Independent Variables Dependent Variables

Situational Factors(uncontrollable)

DemandCompetitionLegal/politicalEconomic climateTechnologyGov regulation

Performance

Measures

SalesMarket shareProfitROIImage

Understanding relationship

between IVs and DVs

is a key function of MR

From Feinberg et al. (2008)


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The Decision-Making Process

1. Recognize a unique marketing problem or opportunity

2. Clarify the decision (what do we need to know?)

3. Identify alternative courses of action

4. Evaluate the alternatives

5. Select a course of action

6. Implement selected course of action and monitor results

From Feinberg et al. (2008)


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Common Questions Addressed

by Marketing Researchers

Where are new market opportunities (based on macroenvironmental trends)?

How should we segment the market (based on customer characteristics)?

How are we doing (compared to the competition)? Are consumers satisfied with ourproduct or service? If not, what should we improve?

How should we position our product (relative to the competition)?

How will people respond to a new product concept? Test marketing

If our product is priced at $100, what will be the expected demand?

How effective is our advertising? Promotions? Sales force?

Whats in store for the future, and how should we adapt?


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Marketing Research Process:

Transforming Data into Information

Chapter 2
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Overview

Types of Marketing Research Firms

When is Marketing Research Needed?

Decision-Makers vs. Researchers

Iceberg Principle: Symptoms vs. Underlying Problems

Steps in Marketing Research

Elements in a Marketing Research Proposal

Unethical Activities in Marketing Research


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Marketing Research Industry

Internal External

Research Supplier

Full Service Limited Service

CustomizedSyndicated Internet Data Coding

and Entry

Field

Services

Data

AnalysisAC Nielsen Synovate Greenfield

On-Line Field WorkChicago

Malhotra & Peterson (2006)

SDRAtlanta

DavisCodingGroup
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When is Marketing Research Needed?

Can decision problem be resolvedwith subjective information?

YES

Dontundertake theInfo research process

Is problem of strategic importance?

Is secondary data inadequate foraddressing the problem?

Is there enough time to collectdata for managerial decision?

Are there enough resources($, people) to carry out the study?

Does value of researchoutweigh costs of research?

NO

YES

YES

YES

YES

NO

NO

NO

NO

NO

YES Do undertake theInfo research process

Type of

information

Nature of

decision

Availability

of data

Time

constraints

Resourcesrequired

Cost/Benefit

Ratio

Decision

Mak

er

B

ringin

MarketingResearcher

Exhibit 2.3


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When NOT to conduct research

1. Sufficient information for a decision already exists

2. Insufficient time for researchmust make an immediate decision

3. Insufficient resources for research

4. When costs of research are greater than its benefits


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Components of the Research Proposal

1. Purpose of proposed research plan (problem, objectives)

2. Type of study (e.g., exploratory, causal, primary, secondary etc.)

3. Define target population and sample size

4. Describe sampling technique and actual data collection methods to be used

5. Research instruments to be used

6. Possible managerial benefits

7. Proposed cost of whole project

8. Describe primary researchers and research firm

9. Proposed tables (how data might be presented)


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Researchers vs. Decision-Makers

Researchers

Want info to confirm decision

Want quick information

Less willing to pay for more info

Dislike & reject surprises

Decision- and results-oriented

Interested in future performance

Decision-Makers

Like to explore new questions

Can tolerate long investigations

Not concerned about cost

Enjoy surprises

Tentative; speak in probabilities

Interested in past behavior


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Iceberg Principle: Symptoms vs. Problems


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Four Broad Phases in Information Research

Ten steps


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Ten Steps in Information Research


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Step 1:

Identify and Clarify Information Needs

The researcher must work with the decision-maker (requestor) to

Understand the reason for the research request

Help decision maker separate out symptoms (e.g., low sales) from

causes (e.g., poor quality products)

Figure out unit of analysis: Individuals ? Couples? Families?

Narrow down independent variables (causes) and dependent variables(consequences)


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Step 2:

Specify Research Questions

and Define Research Problem

Most important step, because it influences all remaining steps

Initial research question

Will Boise support new stadium and a move from Single-A to Triple-A?

Revised research questions

Your questions?


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Step 3:

Confirm Research Objectives and

Evaluate the Value of the Information

Building on the research questions, develop specific objectives of the

research project and figure out the value of the information. For example,

our objective is to find out:

Will Boise residents (and surrounding area) support a new stadium?

How many games would they be willing to attend with new stadium?

Would they attend more games if the Hawks were Triple-A?

How much more are they willing to spend if new stadium and Triple-A?


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Step 4:

Determine Research Design and Data Sources

Exploratory

Unstructured or semi-structured data collection on a limited group of

respondents

Focus groups, interviews, pilot studies

Can be used to develop future studies

Descriptive

Describes existing characteristics of a target population

Causal

Manipulate an independent variable (e.g., in-store music) and observe effect on

dependent variable (e.g., sales)


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Step 5:

Determine Sample Plan and Size

Census (a survey of all those in the target population) vs. a Sample (a smaller

group of respondents who are representative of the target population)

Step 6:

Assess Measurement Issues and Scales Goal here is to determine what level of information is needed and to choose

reliable and valid measures to assess the constructs of interest.

Step 7:Pretest the Questionnaire

A small group of respondents completes the questionnaire and provides feedback

on it so any adjustments can be made before final sample completes it.


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Step 8:

Collect and Prepare the Data

Interviewer-administered/self-completed questionnaires or observation

Data must be coded (female = 1; male = 2) and cleaned up (look for errors)

Step 9:

Analyze the Data (the Fun Part) Assess frequencies, relationships, cause and effect

Steps 10 & 11:

Transform Data (Results) into InformationPrepare the Final Report

Interpret what the results mean. Answer the so what? question.

Prepare the final report.


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Unethical Activities

by Client (End User)

Solicit proposals, but choose none. Use proposals as a guideline for how toconduct ones own study.

Promise a long-term relationship to get a low introductory rate, but thennever follow through with more projects

by Researcher

Unethical pricing: promise low price, then jack it up Fail to provide (promised) incentives to research subjects

Abuse respondents; promise short survey that turns into an hour; pass alonginformation without permission; collect information without permission

Selling useless research services

Interviewers make up data (curbstoning or rocking chair interviewing)

Interviewers create phantom data (duplicate actual data to boost sample)

Change or fail to report results in an effort to reach a certain conclusion

by Respondent

Give misleading responses (can include socially desirable responding)

Documents

Intro to Marketing Research_chapters 1-2_s2011