Exploring Marketing Research Basit Afzal

Chapter 1:

The Nature of Marketing Research

Marketing research is one of the principal tools for answering questions because it: Links the consumer, customer, and public to the market through information used to identify and define marketing Generates, refines, and evaluates marketing actions Monitors marketing performance Underlines the understanding of marketing as a process

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

Scientific method
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

Marketing Strategy Stage 1. Identifying and Evaluating Opportunities

Example of Market Research Mattel Toys investigates desires for play experiences MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly

2. Analyze market Segments and Cadillac investigates buyers Select Target Markets demographic characteristics 3. Plan and Implement a Price: Safeway does a competitive Marketing Mix pricing analysis Distribution: Caterpillar Tractor Co. investigates dealer service program. Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy Promotion: consumers recall Coke 4. Analyze Marketing Performance This years market share is compared to last years.

Performance-monitoring research
Research that regularly provides feedback for evaluation and control Indicates things are or are not going as planned Research may be required to explain why something went wrong

Determining When to Conduct Marketing Research

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

Availability of Data Yes

Nature of Decision Yes Is the decision Yes strategic importance?

Benefits vs. Costs

Does the value Yes of info exceed the cost of research?

Is the info already on hand

Conduct Marketing Research

No

No

No

No

Do Not Conduct Marketing Research

Determining when to conduct marketing research

Time constraints Availability of data Nature of the decision Benefits versus costs

Potential value of a marketing research effort should exceed its estimated costs
Costs Value
Decreased Certainty Increased Likelihood of a Correct Decision Improved Marketing Performance and Resulting Higher Profits Research Expenditures Delay of Marketing Decision and Possible Disclosure of Information to Rivals Possible Erroneous Research Results

Marketing Research (MR)

the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
(Philip Kotler)

Marketing Research Defined

This process includes:

specifying what information is required; designing the method for collecting information; managing and implementing the collection of data; analyzing the results; and communicating the findings and their implications.

IMPORTANCE OF MR
Shift from local to national to international to multinational Transition from Consumer need to wants Shift from Price to Non-price competition

IN-HOUSE Vs OUTSIDE RESEARCH

Economic factors Expertise Special equipment Political consideration Promotional / legal consideration Administrative facts Confidentiality

Uncertainty Influences the Type of Research

CAUSAL OR DESCRIPTIVE EXPLORATORY
COMPLETELY CERTAIN ABSOLUTE AMBIGUITY

Degree of Problem Definition

Exploratory Research (Unaware of Problem) Our sales are declining and we dont know why. Would people be interested in our new product idea?

Descriptive Research (Aware of Problem)

Causal Research (Problem Clearly Defined)

What kind of people are buying Will buyers purchase more of our product? Who buys our our products in a new package? competitors product? Which of two advertising What features do buyers prefer campaigns is more effective? in our product?

Exploratory Research
Initial research conducted to clarify and define the nature of a problem Does not provide conclusive evidence Subsequent research expected

Descriptive Research
Describes characteristics of a population or phenomenon Some understanding of the nature of the problem

Causal Research
Conducted to identify cause-and-effect relationships

I keep six honest serving men, (they taught me all I knew), their names are what, and why, and when, when, and how, how and where and who. --Rudyard Kipling

Defining Problem Results in Clear Cut Research Objectives

Symptom Detection Analysis of the Situation

Terminology of Marketing Research

Primary data - collected firsthand Secondary data - already exists, desk research Quantitative research - statistical basis Qualitative research - subjective and personal sampling - studying part of a population to learn about the whole

Problem Definition Statement of Research Objectives

Exploratory Research (Optional)

Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous data In-home scanning - hand-held light pen to scan barcodes Telephone research Observation
home audit direct observation

CHALLENGES
Proper problem definition Recruiting & Training of Staff Acceptance of a stochastic world Timely research & reports Biased interpretive frames

In-store testing