Marketing Research 2 - WZ UW · PDF fileMarketing Research Role and Key Tasks 2. ... Questionnaire Design & Survey Methods 6. ... Establishing the Need for Marketing Research 2

Marketing Research_2

Krzysztof Cybulski, Ph. D.

Marketing Chair

Faculty of Management

Warsaw University

Warsaw, 2016

Marketing Research Program

1. Marketing Research Role and Key Tasks

2. Research Process and its Components

3. Secondary Research, Syndicated and Online Information

4. Exploratory Research: Qualitative Research

5. Exploratory Research: Questionnaire Design & Survey Methods

6. Measurement in Marketing Research

7. Exploratory Research: Observation Methods

8. Exploratory Research: Experimental Research

9. Sampling Design. Procedures, Sampling Size and Errors

10. Basic Data Analysis

11. Report Preparation

12. Research Findings Presentation

Agenda

1. Establishing the Need for Marketing Research

2. Defining the Marketing Problem

3. Establishing Research Objectives

4. Determining Research Design

5. Identifying Data Sources

6. Determining Methods of Accessing Data

7. Determining Sample Plan and Size

8. Collecting Data

9. Analyzing Data

10.Research Findings Presentation

Learning Objectives

How to understand marketing research process

as a whole?

How to establish the needs for marketing

research?

How to define the problem and identify research

objectives?

How to choose the most appropriate design plan?

How to recognize types and sources of

information?

How to collect and analyse data?

How to present research results and

communicate findings?

The Marketing Research Process An Overview

Establishing the Need for Marketing Research

Defining the Marketing Problem

Establish the Research Objectives

Determine Research Design

Identify Data Sources

Determine Methods of Accessing Data

Determine Sample Plan and Size

Data Collection

Data Analysis

Research Findings Presentation

Step 1: Establishing the Need for Marketing

Research

Time Constraints: is sufficient time available

before a managerial decision must be made ?.

Availability of Data: is the information already on

hand inadequate for making the decision ?.

Nature of Decision: is the decision strategic or

tactical ?.

Benefits versus Costs: does the value of the

research information exceed the cost of conducting

research ?.

Step 1: Establishing the Need for Marketing

Research

When marketing research is not needed?

Decisions Must be Made Now!

The Information is Already Available!

The Consequences of Decision Are Easy

Reversible!

The Company Cannot Afford Research!

Costs Overweight the Value of Research!

Step 2: Defining the Marketing Problem

Defining the problem is crucial

to setting the direction for all

subsequent steps in marketing

research process.


Marketing Problem

Problem or Opportunity

Analysis

Decisions

Alternatives

The Research Users: The

Decsion Maker

Overt or Covert

Purposes Ethical Issues


Problem Definition

Problems

Problem Definition

Too Broad ?

Too Many, Unimportant

Information

Problem Definition

Too Narrow?

Too narrow Concept of Solution


Marketing Manager’s

Situation

Company ‘s

Expectations

Gravity of the

Problem


Gravity of the

Problem

Current Trends

Customers Behaviors

Competition Presure

Company Goals and

Expectations

The Iceberg Principle in Marketing Research

Problem Definition

Obvious Symptoms

Marketing Management

Problems

The Iceberg Principle in Marketing Research

Observation that in many (if not most) cases

only a very small amount (the 'tip') of information is

available or visible about a situation or phenomenon,

whereas the 'real' information or bulk of data is

either unavailable or hidden.

The principle gets its name from the fact that

only about 1/10th of an iceberg's mass is seen

outside while about 9/10th of it is unseen, deep

down in water.


Causes of the

Problem

Symptoms of

the Problem

Migration Crisis in UE & Mercy Ladder Concept

For some countries migration is a huge social, financial,

political and moral problem.


Obvious Symptoms

Mass sexual harasements and other criminal behaviors of

many immigrants

Conflicts and riots in migration centers

Attacks of migration centers by local hooligans

Negative atitudes against imigrants in most of UE countries

Huge tensions in UE political system

Rising importance of radical parties in UE

Rising euroscepticism and lack of acceptance of current

European Union leadership

Brexit


Real Causes

Wars, political and socioeconomic chaos in Middle East

countries

Poor border control and security of outside UE lines

Huge cultural differences between European and migrants

from Middle East

Lack of effective leadership in UE

Political correctness and multiculturalism philosophies as a

results of generation 1968 in power

Poor demographics in UE countries

Social welfare state benefits as a incentive to migration

Popularity of jihad ideology among joung immigrants -

muslims


Clarify the Symptoms of the Marketing Problem

Devasting Market Share

Decreasing Sales Volume

Reducing Profit

Falling Dealers Orders

Raising Customers Complaints

Aggressive Competitors

Pinpoint Suspected Causes of the Marketing

Problem

Price - Value Ratio Was Decreasing

Buyers Stop Buying

Product

Sales

Is Dropping

Pinpoint Suspected Causes of the Marketing

Problem

Local Business

School Occupancy Rate Drop

from 100% to 80% Last Year

Lowering

Level of

Education’s

Service

Aggressive Competitors’

Actions

Changes in the Student

Target Population

General Enviromental

Factors

Identify the Manager’s Assumptions About the

Consequences of the Marketing Problem

Example:

The manager may say „I am positive that our lost

customers will come back if we drop the price (tuition)

to 500 $ per month” or „Our occupancy rate should go

up if we gain more awareness by using advertising”.

How he knows that?


Defining the

Problem

Defining the

Problem

Ascertain the

Decision Makers’

Objectives

Ascertain the

Decision Makers’

Objectives

Isolate & Identify

the Problem, Not

the Symptoms

Isolate & Identify

the Problem, Not

the Symptoms

State Research

Questions

State Research

Questions

Develop well –

formulated

Hypotheses

Develop well –

formulated

Hypotheses


Discussion with Decision Makers

Discussion with Industry Experts

Study of Secondary Data Analysis

Conducting Qualitative Research

Gathering & Analysis of Syndicated Data

Brain Storming Sessions with Clients


Poor problem definition can expose researcher to

range of undesirable consequences:

incorrect research designs

inappropriate or needlessly expensive data

collection

assembly of incorrect or irrelevant data

poor choice of the sample selection

It is critical, therefore that the marketing management

problem be defined accurately and fully.

Step 3: Establish the Research Objectives

Research Objective is the research version of the

marketing problem.

After the research questions or hypotheses have

been stated, the research project’s objectives are

derived from the problem definition.

They explain the purpose of the research in

measurable terms and define standards for what the

research should accomplish.

The research objectives should be limited to a

manageable number!


Research Objective

Research Question

Hypothesis

Development

Research Bounderies


Research Question Hypothesis

Is advertising copy X is better than

advertising copy Y?

75% potential product users prefer

advertising copy X

Are teenager buyers satisfied with

brand A?

There is dissatisfaction. Over 60%of

teeenagers are dissatisfied.

What are the main cause of

salespeople turnover in company

ABC?

The main cause of salespeople

turnover is toxic atmospher in sales

department

What are the key determinants of

retail price of gasoline in Warsaw?

The key price factor of retail price of

gasoline in Warsaw is gasoline station

location

Is the price of product A the most

important factor for potential buyers?

Yes the price matter most

Are Polish owners of VW cars care

about vw dieselgate?

Most of Polish owners of VW carsdont

even know about vw dieselgate affair


Retail Store Smith Clothing Case

Which women’s clothing stores compete with

Smith?

What is the image of Smith’s and how does this

image compare with that of competitors?

How is the Smith customer and how does she

differ from that of Smith competitors?

and so on…


How we test hypothesis?

Initial testing e.g. pilot study

Full research investigations


Types of pilot study techniques

Discussion with decision makers

Prior discussion with Company Managers

Focus Group Interview Session with Customers

Informal Conversations with Salespeople

Informal Conversations with Customers

Informal Conversations with Dealers

Secondary Data Studies

Syndicated Data Analysis


Research Boundaries

Time Pressure

Difficult Access to Data

Operational Character of Decision

Low Benefits versus High Costs

Limited Research Skills and Competences

Short and Unadequate Research Experience

Step 4: Determine Research Design

Research Design

Research Solutions

Research Types

Research

Instruments


Types of Marketing Research Solutions

Inner Solution

Company’s Marketing

Department

External Solution

Outside Research Suppliers


Inner Solution:

Company’s own marketing department project, & implement

marketing research.

Advantages:

No communication problems

Know the company and the market

Keep information in secret

Disadvantages:

Lack of know-how in marketing research

Lack of objectivity

Rather expensive

Rather long lasting


External Solution:

We employ outside marketing research company:

Advantages:

Objectivity

Wider perspective towards company problems

Speed

Cost advantage

Know-how & Infrastructure

Disadvantages:

Lack of secrecy

Communication Problems

Lack of understanding specific marketing & company

problems


Marketing Research Types

Descriptive

Research

Casual

research

Exploratory

Research

Continuous

Research


Descriptive research: (aware of problem)

the major purpose of descriptive research, as name

implies, is to describe characteristics of a population or

phenomenon.

Marketing managers frequently need to determine

who purchases a product, accurately portray the size of the

market, identify competitors’ actions, and so on.

Unlike exploratory research, descriptive studies are

based on some previous understanding of the nature of the

research problem.

Frequently descriptive research attempts to determine the

extent of differences in needs, attitudes, and opinions among

subgroups.


Descriptive research example:

Magazines typically conduct descriptive research

to identify characteristics of their our audience.

For years Teen magazine managers sensed that

12-to-15 – year-old girls cared a lot about

fragrances, lipstick, and mascara, but they lacked

any quantitative data.


The objective of descriptive research is to answer

the questions like follows:

Who?

What?

When?

How?

How often?


Descriptive research typical topics:

„What kind of people are buying our product?”

„Who buys our competitor’s product?”

”What features do buyers prefer in our product?”

Typical techniques of descriptive research are:

Searching for Secondary Data Gathering Techniques

Obtaing Syndicated Data

Questioning Respondents by Surveys & Interviews


Casual research: (problem clearly defined)

the main goal of casual research is to identify

cause—and-effect relationships among variables.

Exploratory and descriptive research normally

precede cause-and-effect relationship studies.

In casual studies, researchers typically have an

expectation about the relationship to be explained, such as

predicting the impact of price, packaging, advertising, and

the like on sales.

Thus the researchers must be quite knowledgeable

about the subject. Ideally the manager wants to establish

that one event (say, a new package) is the means for

producing another event (say, sales).


Casual research typical topics:

„Will buyers purchase more of our product in new

package?”

„Which of two advertising campaigns is more

effective?”

Casual research typical techniques:

experiments

surveys & interviews research

some observations


The objective of experimental research is to identify cause - and – reflect relationships.

Main types of experiment situations are:

Field (natural market condition) experiments

Laboratory (artificial condition) experiments


Exploratory research: (ambiguous problem)

is conducted to clarify the nature of ambiguous

problems. Managers may have discovered a general

problem but the same time they need research to gain a

better understanding of the dimensions of the problem and to

aid analysis.

Exploratory research is not intended to provide

conclusive evidence from which to determine a particular

course of action.

Usually exploratory research is conducted with

expectations that subsequent research will be required to

provide such conclusive evidence.


The objective of exploratory research is to provide

understanding of problem or situation.

Exploratory research is designed to further the

understanding of marketing problem or issue.

Exploratory research can help clarify the real issue that

need to be researched .

Exploratory research is useful for exploring and explaining

consumer motivations, attitudes, and behavior.

It also can provide input to futher stage of research or

development.


Exploratory Research:

Problem finding

Hypothesis generating

Exploratory research typical problems:

„Our sales are declining and we don’t know why”

„Would people be interested in our new-product idea?”


Commonly used exploratory research techniques:

Experience survey

Delphi Method

Case Study

In Depth Interviews

Focus Group Interviews

Projective Techniques


Continuous Research – Panels

Households panels

Retail outlets panels

Wholesalers panels

Special panels


Group of Research Instruments Types of Data

Surveys and Questionnaires • Simple facts

• Opinions

• Declarations

• Intentions

• Attitudes

• Preferences

Observations • Facts

Experiments • Facts

Qualitative research • Psychological bases of

peoples behaviors, opinions,

intentions and motivations


Research Instruments Quantitative Measures

Questionnaires

Psycho tests

Observation Scenario

Experiments Project


Research Instruments Qualitative Measures

Shadowing

Behavior Mapping

Consumer Journey

Camera Journal

Extreme User Interviews

Story Telling

Unfocussed Groups

FGI Scenario

Step 5: Identify Data Sources

Types of Marketing Data to Obtain

Secondary Data

Syndicated Data

Primary Data


Secondary Data

Inside Company

Data

Outside Company

Data


Syndicated Data

Media

Usage

Data

Market

Performance

Data

Household

Purchase

Data


Obtaining Primary Data

Surveys by Asking People

Observations by Observing People’

Behaviour

Experiments through Influencing

People’s Behaviour

By Searching Peoples Hidden Motives


The Kind of Primary Data

Quantitative:

structure design

large sample

what, how much, who, …?

Qualitative:

less formal design,

small „convenience” sample

why ? (motivation research)

Step 6: Determine Methods of Accessing Data

Methods of Accessing Data (primary data only)

Observation

FGI

Survey

Experiment

Behavioral Data

Step 6: Determine Methods of Accessing Data

Determine Contact Methods with Respondents

Personal

by Telephone

via Internet

by Mail

Step 7: Determine Sample Plan and Size

Sampling Plan

Sampling Unit – Who is to be surveyed?

Sample Size – How many people should be

surveyed?

Sampling Procedure – How should be respondents

be chosen?

Step 8: Collecting Data

The data collection phase of marketing research is

generally the most expensive and the most prone to

error.

In case of survey problems arise. Some respondents

will not at home and must be connected again or

replaced.

Other respondents will refuse to cooperate. Still

others will give biased or dishonest answers.

Finally, some interviewer will be biased or dishonest.

Getting the right respondents is critical!.


1.Managing Field Work

2.Selecting Fieldworkers

3.Training Fieldworkers

4.Supervising Fieldworkers

5.Validating Fieldwork

6.Evaluating Fieldworkers

7.Quality of Interview and Data


Training fieldworkers

Supervising fieldworkers

Validating fieldwork

Good implementation of

research project

Evaluating fieldworkers

Selecting fieldworkers

Step 9: Analyzing the Data

Analyze the information is to extract findings from

collected data.

The researcher tabulates the data and develops

frequency distributions. Averages and measures of

dispersion are computed for the major variables.

The researcher will also apply some advanced

statistical techniques and decision models in the

hope of discovering additional findings.


Data Cleaning

Selecting Data

Analysis

Strategy

Coding

The Data

Preparation

Process

Questionnaire

Checking and

Editing

Transcribing


Data Analysis

Descriptive

Analysis

Predictive

Analysis


Descriptive Analysis in Marketing Research

Tabulation

Cross-Tabulation

Contingency Table

Percentage Cross-Tabulation

Elaboration and Refinements

Measures of Central Tendency

Measures of Dispertion


Measures of Central Tendency

The Mean The Mode The Median


Measures of Dispersion

The Range Deviation Scores

The Standard Deviation


Predictive Analysis in Marketing Research

Correlation Analysis

Bivariate Regression Analysis

Multiple Regression Analysis

Stepwise Multiple Regression


SPECIAL

STATISTICAL TOOLS

Discriminant Analysis Factor Analysis

Cluster Analysis MDS and

Conjoint Analysis

Step 10: Research Findings Presentation

1. Importance of report and presentation

2. Communications model insights

3. Planning research report

4. Principles of writing

5. Report format

6. Main parts of marketing research raport

7. Oral presentation

8. Main principles of oral presentation

9. Preparing your presentation


Data Presentation

Written Presentation Oral Presentation


Main Principles of Oral resentation

K.I.S.S. principle – keep it simple stupid

Repeat key insights: tell them what

you’re going to tell them (forecast), tell

them, and tell them what you told them

(summary).

Key Terms

Need for Marketing Research

Marketing Research Problem

Marketing Research Objectives

Research Design

Types and Sources

Methods of Accessing Data

Collection Forms

Sample Plan and Size

Collecting Data

Analyzing the Data

Communicating Results

References:

1. Burns, A.C., Bush, R. F. (2003). Marketing Research Online

Research Applications, Pearson Education International – Prentice

Hall, 4 th. Ed.

2. Chisnall, P.(2001). Marketing Research, Sixth Edition, The McGraw

Hill Companies.

3. Leedy, P. D,Ormrod J.E. (2001). Practical Research. Planning and

Design, 7 th. Ed, Pearson Education International – Prentice Hall.

4. Saunders, M. Lewis, P., Thornhill, A. (2003). Research Methods for

Business Students, Pearson Eductaion Limited.

5. Zikmund, W.G. (1999). Essentials of Marketing Research, The

Dryden Press.

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Marketing Research 2 - WZ UW · PDF fileMarketing Research Role and Key Tasks 2. ... Questionnaire Design & Survey Methods 6. ... Establishing the Need for Marketing Research 2