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MARKETING RESEARCH ESSENTIALS WITH DATA ANALYSIS IN EXCEL AND SPAA McDaniel │ Gates │ Sivaramakrishnan │ Main Chapter Two: Problem Definition, Exploratory Research, and the Research Process LEARNING OBJECTIVES Chapter Two: Problem Definition, Exploratory Research, and the Research Process • Understand the problem definition process • Describe the steps involved in the marketing research process • Understand the components of the research request • Describe the three basic research methods • Learn how the marketing research process is initiated The Problem Definition Process What is the problem or opportunity? Any suspect motives? Complete situational analysis Find the root of the problem Mgt. support is key Have you researched other research? Are the objectives doable / realistic? Ensure information needs are clearly stated Recognize the problem or opportunity Find out why the information is sought Understand the decision-making environment Use the symptoms to help clarify the problem Translate mgt. problem to marketing research problem Determine whether the information already exists Determine whether the question can be answered State the research objective Recognize the Problem or Opportunity 1. This is the first step 2. Need to be anticipate / be responsive to changes in the external environment 3. Marketing research can define problems and opportunities Why is the Information Needed? 1. Important to understand this so time/money not wasted or incorrect research completed 2. What will the information be used for? 3. What information is most important? The Decision-Making Environment 1. Situation Analysis 2. Exploratory Research • Pilot Studies • Experience Surveys Analysis • Secondary Data Analysis • Case Analysis • Focus Groups • Intranets Use Symptoms to Clarify Problem 1. What are the symptoms of the problem? 2. What is the deeper problem? • Iceberg Principle From Management to Research Problem 1.Management Decision Problem – action oriented, broader 2.Marketing Research Problem – what information is needed to solve the management problem 3.Marketing Research Objective – goal statement Does the Information Exist? 1. Dig through company information to find out 2. If it exists, time and money are saved 3. Avoid the “Nice-to-Know Syndrome” – research must be actionable Can The Question be Answered? 1. Yes, if the type of information exists or can be obtained 2. If you are looking for something quite new, it’s risky State the Research Objectives 1. Stated in terms of precise information needed to address the problem or opportunity 2. Must be well formulated as they are the project’s roadmap 3. Must be specific, unambiguous, and approved by the manager 4. Not a task list, but what the study will achieve The Marketing Research Process Creating the Research Design Research Design – the plan to be followed to answer the marketing research objectives Descriptive Studies – answer who, what, where, when and how; helps define and understand relationships between variables in the problem • To gain better understanding of the market • Determine trends, brand loyalty, customer profiles Creating the Research Design Causal Research • Confirms theories • Identifies cause and effect • Shows clear relationships between independent and dependent variables Creating the Research Design Dependent Variable • • Concept expected to be explained or influenced by the independent variable Change in the dependent variable occurs by manipulating independent variables Independent Variable: • Concept over which the researcher has control and which is hypothesized to cause or influence the dependent variable • Concomitant Variation • Temporal Sequence • Spurious Association Choosing the Research Method Survey Research: Interviewer interacts with respondents to obtain facts, opinions, and attitudes Observation Research: Descriptive research that monitors respondents’ actions Experiments: Measures causality, in which the researcher changes one or more variables and observes the effect of the changes on another variable Selecting a Sampling Procedure Probability Sampling: • Sample a subset of the population • Assumed to be a representative cross-section • Every element in the population has a known chance of being selected Non-probability Sampling: • A subset of the population • Chances of selection for the various elements in the population are unknown • Usually based on convenience Complete the Process… • Collect the Data • Analyze the Data • Write and Present Report • Follow Up with Client Managing the Research Process The Research Request • • Describes potential research project Includes benefits and estimated costs Request for Proposal • Soliciting suppliers to submit formal proposal • Company provides why study is needed, research objectives, methodology, and time frame • Suppliers provide costs, their experience, and references The Marketing Research Proposal I. II. III. IV. V. VI. VII. VIII. IX. X. Title Page Statement of Research Objectives Study Design Areas of Questioning Data Analysis Personnel Involved Specifications and Assumptions Services Cost Timing What Do Clients Want? Clients want a marketing research supplier who: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Maintains client confidentiality Is honest Is Punctual Is flexible Delivers against project specifications Provides high-quality output Is responsive to the client’s needs Has high quality-control standards Is customer-oriented in client interactions Keeps the client informed throughout the project Will the Research Be Used? Determinants of whether research is used or not: 1. 2. 3. 4. 5. 6. 7. 8. Researcher communicates effectively Quality data is generated Costs are controlled Information is delivered on time Conforms to prior expectations Clear presentation Political acceptability within company Lack of challenge to the status quo Copyright Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (the Canadian copyright licensing agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these files or programs or from the use of the information contained herein.