Marketing Chapter 7 - The Marketing Research Process

step 1 - defining the problem and research objectives

defining the problem

problem can be identified by anyone inside the company or even by someone close to the company (supplier)

problem usually defined in terms of a research question or a research hypothesis

research objectives

exploratory research

"marketing research to gather preliminary information that will help define problems and suggest hypotheses"

research conducted for a problem that has not been clearly defined

helps determine the best...

research design

data collection method

selection of subjects

relies a lot on...

secondary research

case studies

pilot studies

projective techniques

through focus groups

descriptive research

"marketing research to better describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers"

all about describing things and people who take part in the study

who, where, how, what, why

cross-sectional study

snap-shot at a single point in time

longitudinal study

data collection at several periods in time which enable trends over time to be examined

causal research

investigation of cause-and-effect relationships

eg. if price is increased by 10% what will be the effect on demand?

step 2 - developing the research plan

framework for designing marketing research programn should be in place

research plan spells out sources of existing data and outlines the specific research approaches, contact methods, sampling plans and instruments that researchers will use to gather new data

requires the greatest amount of thought, time and expertise

ideally presented in the form of a written proposal

research question/s

objectives

information to be obtained

how this will help management in decision making

step 2A - gathering secondary research

"information that already exists somewhere, having been collectec for another purpose

secondary research

information collected for another purpose but might be useful for other purposes

sales revenues

sales forecasts

customer demographics

purchase patterns

other info collected about customer

data mining

step 2B - primary data collection

"information collected for the specific purpose at hand"

quantitative research

qualitative research

used to quantify the problem by the way of generating numerical data or data that can be transformed into useable statistics

used to gain an understanding of underlying reasons, opinions, and motivations

main criterias researchers consider

cost

research expertise

product or service knowledge

special equipment

objectivity

confidentiality

step 2C - observation research

"gathering primary data by observing relevant people, actions and situations"

observers obtaining data by noticing the behaviour of people

ethnographic research

sending the observers to watch and interact with consumers in their natural environment

webnography

observation of consumers in a natural context on the internet

survey research

"gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behaviour"

experimental research

"gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses"

step 2D - contact methods

personal interviews

can be done either individually or in a group

online marketing research

internet and mobile surveys

online focus groups

customer tracking

online experiments

online panels and brand communities

step 2E - sampling plan

"a segment if the population selected for marketing research to represent the population as a whole"

3 main decisions when designing a sample plan

sample unit

sample size

sample procedure

who is to be studied?

examining who does and does not fit into your group

the bigger the sample size, the more reliable the results are

unfortunately it comes against a bigger cost and more time

one needs to examine statistics to choose the correct sample size

margin of error

estimate of how much the results of the sample may differ due to chance when compared to what would have been found if the entire population were included in the research

confidence level

if the same sample had to be repeated several times, the same result will occur at the confidence level percentage

probability sample

non-probability samples

structured/systematic

non-structured

simple random sample

stratified random sample

cluster (area) sample

every member of the population has a known and equal chance of selection

the population is divided into mutually exclusive groups and random samples are drawn from each group

the population is divided into mutually exclusive groups and the researcher draws a sample

convenience sample

the research selects the easiest population members

judgment sample

researcher uses their judgement to select population members

quota sample

researcher finds and interviews a prescribed number of people in each of several categories

step 2F - research instruments

questionnaire

questionnaire design

before designing a questionnaire, one must answer questions such as what info is needed, from whom is it required, and what communication is going to be used?

questions to be asked once the question is designed

are all questions needed?

is each question sufficient to generate the required information?

will the respondent answer questions correctly?

are all questions in a logical sequence?

guidelines to be followed when designing a questionnaire

questionnaire should move from topic to topic in a logic manner

sensitive questions should appear at the end

the first few questions should be simple, objective and interesting

minimize open ended questions

pre-test questionnaire (piloting the questionnaire

mechanical instruments

meters attached to television sets to monitor what people watch

supermarket scanners to study the behaviour of people at point of sale

not a widely used technique due to expense, require unrealistic advertising exposure conditions and are hard to interpret

step 3 - implementing the research plan

involves actual act of collecting and analysing raw data and finally interpreting into valid information

whole process must be monitored

analysis process must be kept on a good watch to make sure the accuracy of data for a reliable result

step 4 - interpreting and reporting the findings

any data analysis will depend on how the research method was constructed

less complex data analysis can be handled with office programmes, while more complex data analysis requires dedicated marketing research analysis programs such as SPSS or PASW

the more complex the level of statistical data analysis, the ore time and cost it will take to execute

success of the info and knowledge that results from marketing research depends by how it is presented to decision makers

presentations must be as simple as possible through...

bar charts

scatter charts

pie charts

histogram