Chapters 3 & 4

The Marketing Research Process Problem Formulation

Formulate Problem Determine Research Design Determine Data Collection Method Design Data Collection Forms Design Sample and Collect Data

Analyze and Interpret Data

Prepare the Research Report

Sources Marketing Problems

Sources of Purpose of Marketing Problems Marketing Research
Unanticipated Change Find out what is happening and why. How to bring about the desired change. How to capture and evaluate the promise of the new idea.

Planned Change

Serendipity in the Form of New Ideas

The Problem Definition Process

Diagnosis of the Situation Identifying the Marketing Problem Deriving the Research Problem

Case 1.1: Big Brothers of Fairfax County

What is (are) the marketing decision problem(s)? What is (are) the marketing research problem(s)? What types of information would be useful to answer the questions? How would you go about securing this information?

Marketing Research Process

Using the steps in the research process to structure your thinking evaluate the following marketing research effort. See Question 3, Page 53 for scenario.

Which type of research design is most appropriate?

Franks flies is a fishing lure manufacturer. Franks management has decided to enter the lucrative market for trout flies, an area in which the company has little experience. The fly development department has decided that it needs more information concerning trout fishing in general before it can begin designing the new product line.

Which type of research design is most appropriate?

The management team at Aardvark Audio strongly suspects that the companys current advertising campaign is not achieving its stated goal of raising consumer awareness of the companys name to a 75 percent recognition level in the target market. The team has decided to commission a research project to test the effectiveness of the various ads in the current campaign.

Which type of research design is most appropriate?

Ace Fertilizer company is trying to decide where advertisements for its vegetable garden fertilizers should be placed. Management is contemplating a research project to determine which publications home gardeners read on a regular basis.

Problem Definition Areas

Symptoms Background

Questions
What has changed that is causing you concern? What is the recent history of the brand, service, company, or market involved? How are these changes impacting your objectives? What resources do you have at your disposal? What is the time frame for required action? What do you know about the circumstances of these changes?

Decision Maker's Situation

Information

Problem Definition Areas

Suspected Causes Possible Solutions

Questions
Why do you think these changes have come about? What do you have the power to do about these changes? If you do things in your power, what are the most likely results? Why do you anticipate these responses to your actions to resolve the problem?

Anticipated Consequences

Assumptions

Constructs Often Investigated by Marketing Research

Construct
Brand awareness

Operational Def.
Percent of respondents having heard of brand The number who remember seeing a specific ad What can they tell about the product Those who have seen the brand or tried it

Recall, recognition of advertising Knowledge of product, features Brand familiarity

Constructs Often Investigated by Marketing Research

Construct
Comprehension of product benefits Attitudes, feelings toward brand Intentions to purchase

Operational Def.
What respondents think the product does for them The number who feel positive, negative or neutral The number that are planning to buy it The percent that bought it

Past purchase or use

Constructs Often Investigated by Marketing Research

Construct
Satisfaction

Operational Def.
How they evaluate its performance What factors determine their purchase choice How old, what gender, etc. How many times they bought the brand in the last 6 mos.

Importance of some factor

Demographics Brand loyalty

Problem Definition Process Examples

General Situation Diagnosis Marketing Problem Reinforce brand loyalty Research Problem Find out why brand A is preferred Find out why fewer people are visiting store

Market share is Customers are declining switching to brand A Sales are down Store traffic is down

Build store traffic

Profit decline

Big advertising Design new ad Evaluate campaign failed campaign alternative ads and media

Problem Definition Process Examples

General Situation Product line is growing obsolete Distribution is weak Diagnosis Marketing Problem Research Problem Evaluate alternative product designs Evaluate prospective store locations Identify and array high sales-potential markets

New product is Select new needed product to market More stores are Insert new needed stores

New product line is being introduced

Promotional resources must be allocated to geographic markets

Assign sales force and distribute local advertising budget