project on marketing research

Description
it includes how would we classify information,types of research objective,research process.

Marketing Information & Research

AMA

What Is Marketing Research

Source: Why We Buy. P Underhill.

Marketing Research Varies



Studies shopping behavior

– People tend to walk right on entry – Women more likely to avoid narrow aisles than men – Men move faster than women – Shoppers slow down at reflective surfaces and speed up at blanks – Don’t notice elaborate signs in the first 30 ft of entrance.

Research contexts differ
Whirlpool Market Research

– Marketing researchers visited consumers homes and observed the following: – Consumers didn’t wait for dishwasher to fill up machine before running – The result: A smaller version
Brandweek.com Nov. 3, 2003 p. 28 Wasserman, Todd
“Sharpening the Focus”

Integrates Multiple Partners
• Questions Borders would like to answer:
– Which books are bought on impulse? – How should books be configured (by subject, by age, by author)? – How much space should be devoted to bestsellers?

• Greg Josefowica
– Borders’ CEO

• Announcement:

– Future decisions about books to distribute based on marketing research vs. publishers’ input.

• Example of research finding:
– Use of exit and phone interviews:
• Cooking category • 25% of the books sold are being given as gifts

• To gather consumer data:

– Focus groups, exit interviews and polling, and sales figures

?2002:

Addresses Multiple Mktg. Mix Aspects

• •

Starbucks chooses Wisconsin for Chocofino Introduces hot drinking chocolate beverage called Chocofino.

– Blend of cocoa powder and cocoa butter, combined with whole milk and then steamed. – Beverage test phase: March 17 to April 22 2004



City-wide campaign: Variety of popular Milwaukee venues,

– Local theatres, concerts and museums. – Chocofino Cab, a Euro-designed, chocolate-brown car delivering complimentary Chocofino beverage coupons around town.



Have you seen it?
5:24 a.m. March 13, 2004 Starbucks test markets hot chocolate drink in Brew City By Molly Snyder Edler

Different Time Periods
• Try new breakfast meal: Egg, rice and Spam. • Spam musubi ("moo-soo-BEE"): Popular breakfast food
– Strip of cooked Spam on block of rice; held in place by a sushi-style seaweed girdle, is a popular breakfast food and lunchtime or picnic snack. – Already sold regularly at 7-Elevens in Hawaii.

• 78 McDonald's outlets in Hawaii • Hormel product made from pork parts is staggeringly popular in Hawaii:
– Highest Spam consumption per capita of any state.

• Approximately 8-16 week trial • Decide if it is selling well enough to add to a menu
?June 11, 2002

Varying Levels of Depth

• Geodemographics:
– Describe classification of arbitrary, usually small, geographic areas in terms of characteristics of inhabitants.

• Claritas: market profiling system PRIZM.
– Defines every neighborhood in the U.S. in terms of 62 different clusters.
http://www.clusterbigip1.claritas.com/MyBe stSegments/Default.jsp?ID=20

Variety of Data Forms
Experimental • Simulated test market or full test market

Tracking • Purchase diaries; usage studies • Scanner data

With So Many Varieties, Tools & Information At The Marketer’s Disposal

What is Marketing Research?

What is Marketing Research?



Kotler:

“The systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing and organization”





What it means to us:



The essential link between the market and the marketing manager Marketing research brings the voice of the customer or environment to the marketing manager

Marketing Research & Marketing Information Systems
• In some organizations, marketing research comprises an element of a more formalized process

• Marketing Information System
• Assesses information needs • Develops needed information • Distributes information

But Before We Get Started Into The Process of Mktg. Research
• Let’s take a perspective from 50,000 feet
• What are the key questions we need to ask about marketing research
– Before and during the process

• How could we classify the different types of marketing information

• Then let’s move into the more tactical, processoriented issues of marketing research
– What are the steps in the process – What transpires during these steps

What Questions Should We Ask Before & During The Marketing Research Process
Pre-game preparation: Questions we ask before we conduct the research Post-game follow-up: Questions we ask once we have the information • • Why did the people respond/what was their motivation? What were people’s motive to respond





Why do we need the information:
– TO MAKE A DECISION

What do we know now?
– –

What does our previous research suggest? How does this fit into our strategic roadmap

Are certain types of people more likely to respond (non-response bias)



• • •

Can the question be answered? Can we find and identify the respondents we are interested in? Does the data already exist?
– – Secondary data: Information we’ve already collected…But collected for another purpose Primary data: collected for our purposes

Are there ethical limitations in how people respond
– – Sexual behavior; norms Bay Watch vs PBS

How Could We Classify
Marketing Research Information
Internal Sources Examples
Order processing; sales orders, Point of purchase Readily available; may not be in form

Secondary sources
U.S. Census Data

Market Intelligence
Internet commun. Benchmarking Published information; War games; Key customers Systematic; access to public information; may require formal resources devoted to gathering Moderate expense

Syndicated sources
A.C. Nielsen IRI Arbitron

Primary sources
Test markets; surveys

Benefits & Challenges

Provides greater breadth; obtained quickly; less targeted; may or may not be usable Low; often already a sunk cost

More targeted; greater expense

Specialized, private, proprietary

Cost

Low expense; sunk cost Limited

Moderate expense

Highest expense

Flexibility

Limited

Moderate

Moderate

Greatest

The Marketing Research Process
Four key steps

Keys • It’s a sequential, disciplined process • One step logically leads to the next

The Marketing Research Process
Define the problem and research objective Developing the research plan for collecting information
How are going to answer this question

Implement research plan & collect and analyze data
Who and how will we collect the data/information Sampling plan: Who will we select to represent the population? 1. Who will be surveyed 2. How many people will be surveyed 3. How should the sample be chosen Choose the research instrument: 1. Personal or mechanical 2. Questionnaire

Interpret and report the findings

Have we adequately defined our problem and the decision we need to make? Have we already asked pregame questions 1. Will this aid in making a decision? 2. What do we know now? 3. Can the question be answered? 4. Can we find the right people? 5. Does the data already exist?

What does the information mean; not what the numbers say.

Can we use secondary data or primary data What will our sources for the data be

Descriptive statistics alone are meaningless

How do we integrate the knowledge with what we already know.
Have we answered our problem and met our research objective?

Based on our problem, are we (research objective): 1. Exploring 2. Describing 3. Looking for cause & effect relationships or associations

Based on the research objective, the method we will use: • Observation • Survey • Experiment

Can we make our decision?

Marketing Research Step I:
Defining the Problem & Research Objectives

• Defining the problem and research objectives
– Don’t confuse the symptoms of the problem with its cause when defining the problem. – How does one write a problem statement?
• • • • • Is it measurable Description of problem Description of context Time period Do we want a description, an exploration or an association

• The problem statement leads to the research objectives?
– The research objectives are important?
• What do you/ don’t you understand

– Exploratory, descriptive, and causal research each fulfill different objectives.

Types of Research Objectives
• Exploratory (unaware of specific problem) • Descriptive (aware of problem) Example: • Why are sales declining Example: • Who buys our competitor’s products? • What features do buyers prefer in our product? Example: • Which of the two ad campaigns increased sales the most? • Will consumers purchase more of our product in a new package?

– Describe who, what, when, where

• Causal (Problem clearly defined)
– Cause and effect
• Describe why or how

Marketing Research Step II:
Developing The Research Plan

• Developing the Research Plan – Research objectives guide the determination of specific information needs. – Are we trying to explore, describe or find cause and effect



Research proposals outline the type of data needed and the research plan.
– Does the info. already exist?



Secondary data:

– Information collected for another purpose which already exists. – May exist internally or externally to your organization



Primary data:

– Information collected for the specific purpose at hand

• Developed specifically by you for your needs • Relates directly to your research question • May be qualitative or quantitative • May be developed through observation; survey or experiment

Secondary Data

Information collected for another purpose which already exists.

External To The Firm

Secondary Research Examples

Internal To The Firm

U.S. Census Syndicated (IRI and A.C. Nielsen Trade Assoc. Govt. Agencies Academic Research Internet Mass Media Business/Trade Mags.

Sales information Financial statements Research reports Sales databases Customer letters Customer lists Sales/product mix

Types of Primary Research
Developed specifically by you for your needs

Quantitative

Primary Research Examples

Qualitative

Experiments: Test markets Simulations Mechanical and electronic observation People meters Surveys and Questionnaires Mail surveys Personal interview Telephone, fax, e-mail, Web In-house, self-administered

Ethnography Phenomenology Focus groups In-depth interviews Case Studies

Review:
• •

The Flow of Marketing Research
A research problem leads to a research objective The research objective leads to a research approach



A research approach leads to a specific research instrument
If our research objective is We are most likely to use the following research approaches (primary data) Observation Survey Examples of Specific research instrument Focus groups Questionnaire

Example of a research problem

Why are our sales declining? Who buys our competitor’s products? Which of the two ad campaigns will increase sales the most?

Exploratory (unaware of specific problem) Descriptive (aware of problem) •Describe who, what, when, where Causal (Problem clearly defined) •Cause and effect •Describe why or how

Experiment

Test Market

What Is An
Observation Research Approach?
• Remember, our research objective is exploratory



Observation: Gather primary data by observing people, actions and situations
Research approaches: – Discovers behavior but may or may not uncover motivation – Usually involves: • People watching people • People watching an activity • Machines watching people







Mechanical instruments – Traffic counters – Retailer store checkout scanners – Video-taped store traffic – People meters – Website logs, cookies, software – Physiological measurement equipment – Mystery shoppers People instruments – Ethnographic research – Focus groups

Mystery shopping

Focus groups

What Is


An Experimental Research Approach?
Remember, our research objective is causal



Cause and Effect or some type of association – Provide different treatments (advertisements) to gauge sales – ***Simulation (mathematical and computer modeling)

Research instruments • Web based experiments – Customer buying experience on the web – Site content; Availability of links; Spatial layout; Usability – Pricing tests



In-market experiments • Test markets: Measure and predict sales or profitability of a product • Test marketing mix variations

What Is A
• •

Survey Research Approach?
Remember, our research objective is descriptive Survey – Help understand about people’s knowledge, attitudes, preferences or buying behavior



Common forms of survey research: – Questionnaires • Include different types of questions – Open-ended question: What are the most important benefits you seek when buying a car? – Closed-ended question: What is your gender? ____ Male ____ Female
– Cross sectional survey (brand awareness)

How do they collect them? •In-Home Interviews, •Mail Surveys •Mall Intercept Interviews •Telephone Interviews

How Do You Choose Between Instruments?
1. Resource Issues
1. How much money do you have 2. How much time do you have (trade-off)

2. Information quality and quantity
1. How comfortable are we in making this decision 2. How much information do we need 3. What is the quality of information that we need

Marketing Research Step III:
Implementing The Research Plan Collecting and Analyzing Data

Who will we measure and draw from • Sample: subgroup of population from whom information will be collected • Sampling Plan Decisions:
– – – Sampling unit: Who will be surveyed Sample size: How many people will be surveyed Sampling procedure: How should the sample be chosen
• • Probability samples Non-probability samples

Marketing Research Step III:
We should be cognizant that errors may influence our results • Quantitative data errors
– Sample error: Which respondents replied vs. those who did not – Measurement error: Did we use the correct surrogates/proxies

Implementing The Research Plan Collecting and Analyzing Data

– The language of the questions: Did we confuse or bias the respondents’ answers – Leading questions: “When did you stop drinking?” – Double barreled questions: “What is your opinion of Dick Cheney and the job he is doing as Vice-President?” – The respondent doesn’t possess the correct knowledge base: “Were our retail associates supportive of one another in the store?” – Do they facilitate acquiescence of social desirability answers: “Do you watch more PBS Nova or BayWatch?”



Qualitative data errors

– Validity errors: Not checking with respondents – Lack of qualitative analysis: Coding; validity checks; use of qualitative analysis software – Not ensuring saturation of results; ensuring certain themes are relevant

Marketing Research Step III:
• How is the data analyzed
– Qualitative and Quantitative data applications are available for a number of analyses
• Excel is limited • Descriptive statistics, such as averages or trends of averages provide a limited picture.

Implementing The Research Plan Collecting and Analyzing Data

– Every statistical model has assumptions, benefits and flaws – You should outline and understand these assumptions and flaws in your discussions and presentations
• Acceptance by the industry does not equal perfection
– Perhaps, only the best instrument we have at this time.

Marketing Research Step IV:
Interpreting and Reporting The Findings

• Goal:

– Develop interpretations and draw conclusions – In order to execute this goal:
• The information should answer the original research problem and research objective • The interpretation should be a multi-functional effort • The results should be incorporated into a larger understanding (pre-existing information)
– Converge or diverge – How does this add or challenge to what we know

– The presentation should be devoted to gaining additional meaning, not describing the data

Summary

• Marketing Research:

– Essential link between the market & marketing manager – Brings the voice of the customer to the marketing manager

• Marketing Research Process:

– Sequential, disciplined process – We start with a problem and our results should facilitate a decision regarding this problem – Four main steps that lead/ dove-tail into one another – Ultimately, our interpretation should incorporate what we found out with our current understanding

On Your Own?Develop
• What is the research problem
– – – – Write a problem statement Write the research objective(s) Does existing data exist What published data could aid in understanding this problem

• Develop the research plan

– What sources of data will you use (primary or secondary)

• What specific types of primary or secondary data will you use?

– What research method will you use (observation, survey, or observation)

• Identify a sampling plan and an instrument

Summary
Define the problem and research objective Developing the research plan for collecting information
How are going to answer this question

Implement research plan & collect and analyze data
Who and how will we collect the data/information Sampling plan: Who will we select to represent the population? 1. Who will be surveyed 2. How many people will be surveyed 3. How should the sample be chosen

Interpret and report the findings

Have we adequately defined our problem and the decision we need to make? Have we already asked pregame questions 1. Will this aid in making a decision? 2. What do we know now? 3. Can the question be answered? 4. Can we find the right people? 5. Does the data already exist?

What does the information mean; not what the numbers say. Descriptive statistics alone are meaningless How do we integrate the knowledge with what we already know. Have we answered our problem and met our research objective?

Can we use secondary data or primary data
What will our sources for the data be

Based on our problem, are we (research objective): 1. Exploring 2. Describing 3. Looking for cause & effect relationships or associations

Based on the research objective, the method we will use: • Observation • Survey • Experiment

Choose the research instrument: 1. Personal or mechanical 2. Questionnaire

Can we make our decision?



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