Download Marketing Research Might Not Be Worth Pursuing When

Marketing Research
Lecture 3
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When Might Marketing Research
Not Be Needed?
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Marketing Research Might Not Be Worth
Pursuing When:
You already have the information you need.
Time isn’t on your side.
You lack the necessary resources to pull it
off.
The cost of the information outweighs the
benefits.
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Some “Rules Of Thumb” To Apply
Before Undertaking The Research
Process
Marketing Research is worth doing if:
• The information helps clear up the
problem or identifies changes in the
market that can directly impact the
company.
• The information helps the company
develop a meaningful competitive
advantage within the landscape of the
market.
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cont….
• The information flows into marketing
actions that result in achieving marketing
objectives.
• The information provides a “window” into
the future of the market in terms of trends
& opportunities.
• The value of information is bigger than the
costs of obtaining it.
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Research Purpose
1. Problems or Opportunities To Be Studied
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Which problems or opportunities are anticipated?
What is the scope of the problems & the possible
reasons?
2. Decision Alternatives to be Evaluated
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What are the alternatives being studied?
What are the criteria for choosing among the
alternative?
What is the timing or importance of the decision?
3. Users of the Research Results
– Who are the decision makers?
– Are there any covert purposes?
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Research Objective
Components of Research Objectives:
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Research Question
Development of Hypotheses
Scope or Boundaries of Research
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Other Subjective Criteria for a
“NO-GO” Decision
Marketing Research should not be given
a “green Light” if:
• Doing the research would give valuable
information to your competitors.
• The outcomes can’t or won’t be
implemented.
• The research design doesn’t match up
with reality.
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cont…
• The outcomes are going to be used as
legal fodder.
• The key variables can’t be designed or
measured due to circumstances beyond
your control or quirks in the market.
• The research is motivated by a political
agenda.
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Describing an Apparent Problem
• Problem: A decline in sales.
• Objectives of Research: A number of factors
responsible for a decline in sales….. decline in
demand, increased competition, loss of
distribution, high prices, problem with product
quality, ineffective promotions etc…
• Needed Information: A well specified list of
information is difficult to make. Gather whatever
information is necessary.
• Data collection Project: A series of
unstructured investigations needed.
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Identifying A Potential Opportunity
• Problem: Identify new product ideas or develop
more effective advertisements.
• Research Objectives: Can’t be specific… identify
new ideas of product usage, product features,
packaging and communicating about the product.
• Needed Information: Specified in general terms
only. Consumers attitudes, behavior, likes
dislikes…
• Data Collection Project: Unstructured research…
exploratory in design.
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Developing A Marketing Plan
• Problem: Develop a marketing plan for a
new product or re-evaluate for an existing
one.
• Research Objectives: Consumer
attitudes & opinions. Awareness, trial,
repurchase patterns
• Needed Information: fig 3-1
• Data collection Project: Formal &
structured large-scale descriptive studies.
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Selecting Between Specific Alternatives
• Problem: Select between two or more
alternatives under consideration
• Research Objectives: Identify the best
alternatives
• Needed Information: Depends what is
being measured. E.g. (i) for testing two or
more advertisements, collect information
on brand awareness & attitudes
• Data Collection Project:
Experimentation/ casual design used.
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