EXAM 1 notes - Marketing research PDF

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EXAM 1- MARKETING REASERCH Chapter 1 -Definition of marketing research 

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Marketing research is the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. Marketing research specifies the information necessary to address these issues. Manage and implements the data collection process, analyzes the results and communicates the findings and their implications.

-Purpose and solution Marketing research is use for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. -Classification marketing research- problem identification and problem solving Problem identification research: research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future.       

Market potential Market share Image Market characteristics Sales analysis Forecasting Trends research

Problem solving research: research undertaken to help to solve specific marketing problems. 

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Segmentation research o Determine the basis of segmentation o Establish market potential and responsiveness for various segments o Select target markets o Create lifestyle profiles: demography, media, and product image characteristics Product research o Test concept o Determine optimal product design o Package test o Product modification o Brand positioning and repositioning o Test marketing o Control score tests

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Pricing research o Pricing policies o Importance of price in brand selection o Product line pricing o Price elasticity of demand o Initiating and responding to price changes Promotional research o Optimal promotional budget o Sales promotion relationship o Optimal promotion mix o copy decisions o media decisions o creative advertising testing o evaluation of advertising effectiveness o claim substantiation Distribution research o Determines types of distribution o Attitudes of channel members o Intensity of wholesale and resale coverage o Chanel margins o Location of retail and wholesale outlets

-Marketing research process- defining the problem 1. Defining the problem 2. Developing an approach to the problem 3. Formulating a research design o Secondary and syndicated data analysis o Qualitative research o Survey and observation research o Experimental research o Measurement and scaling o Questionnaire and form design o Sampling process and sample size o Preliminary plan of data analysis 4. Doing field work/ collecting data 5. Preparing and analyzing data 6. Preparing and presenting report -Uncontrollable environmental factors   

Economy Technology Competition

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Laws and regulations Social and cultural factors Political factors

-Research suppliers  

Internal External o Full service  Customized services  Syndicated services  Internal/social media services o Limited service  Field services  Qualitative services  Analytical services  Other services

Chapter 2 -Development process -Tasks involved in problem definition    

Discussions with decision makers Interviews with industry experts Secondary data analysis Qualitative research

Environmental context of the problem Step 1: problem definition- begins with discussions with the key decision makers o Management decision problem o Marketing research problem Step 2: approach to the problem o Analytical framework and models o Research questions and hypothesis o Specification of information needed Step 3: research design -The problem audit : Is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature. -Decision maker- DM- symptoms: loss of market share -Researcher- underlying:  

Superior promotion by competition Inadequate distribution of company’s products

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Lower product quality Price undercutting by a major competitor

Factors to be considered in the environment. Needs examples       

Past information and forecasts Resources and constrains Objectives of the decision maker Buyer behavior Legal environment- public policies, laws, government agencies and pressure groups Economic environment- purchasing power, discretionary income, general economic Marketing and technological skills

-Management decision problem       

Asks what the decision maker needs to do Action oriented Focuses on symptoms Should a new product be introduced? Should the advertising campaign be changed? Should the price of the brand be increased? Ex. should Harley Davidson invest to produce more motorcycles?

-Marketing research problem       

Asks what information is needed and how it should be obtained Information oriented Focuses on the underlying causes To determine consumer preferences and purchase intentions for the proposed new product To determine the effectiveness of the current advertising campaign To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes Ex. to determine if customers would be loyal buyers of Harley Davidson in the long term

-Common errors 1. Problem definition is too broad  

Does not provide guidelines for subsequent steps Ex. improving the company’s image

2. Problem definition is too narrow  

May miss important components of the problem Ex. changing prices in response to a competitor’s price change ´

-Research question: are refined statements of the specific components of the problem

-Hypothesis: is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question CHAPTER 3 -Market research design: is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. -Classification of market research designs  

Exploratory research design Conclusive research design o Descriptive research  Cross-sectional design  Longitudinal design o Causal research

-Exploratory research design  

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Objective: to provide insights and understanding Characteristics: o information needed is defined only loosely o research process is flexible and unstructured o sample is small and nonrepresentative o data analysis is qualitative findings: tentative outcome: generally followed by further exploratory or conclusive research

-Conclusive research design – primary data  

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Objective: to test specific hypotheses and examine relationships Characteristics: o information needed is clearly defined o research process is formal and structured sample is large and representative o data analysis is quantitative findings: conclusive outcome: findings used as input into decision making

-Differences between exploratory and conclusive Exploratory research just explore and give you understanding by using qualitative data, conclusive research gives you results and use quantitative data and primary data. -Exploratory research design is qualitative. -Conclusive research design is quantitative -Uses of exploratory research  

Formulate a problem or define a problem more precisely Identify alternative courses of action

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Develop hypotheses Isolate key variables and relationships for further examination Gain insights for developing an approach to the problem Establish priorities for further research

-Descriptive studies 

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Sales studies o Market potential o Market share o Sales analysis Consumer perception and behavior studies o Image o Product usage o Advertising o pricing Market characteristics studies o Distribution o Competitive analysis

-Uses of descriptive analysis     

To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas To estimate the percentage of units in a specified population exhibiting a certain behavior To determine the perceptions of product characteristics To determine the degree to which marketing variables are associated To make specific predictions

-Cross-sectional and longitudinal designs  

Cross-sectional design: involves the collection of information from any given sample of population elements only once Longitudinal design: a fixed sample or samples of population elements is measured repeatedly on the same variables

-Descriptive vs casual research  

Descriptive research: association. Ex. X and Y vary together Causal research: cause and effect. Ex. X is a cause of Y

-Uses of causal research  

To understand which variables are the cause(independent variables) and which variables are the effect(dependent variable) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted

-Primary and secondary data- differences and uses 

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Primary data: originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process. o The purpose is for the problem on hand o The process is involved o The cost is high o The time is long Secondary data: data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively. o The purpose is for other problem o The process is rapid and easy o The cost is relatively low o The time is short

-Uses of secondary data      

Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design Answer certain research questions and test some hypotheses Interpret primary data more insightfully

-Criteria for evaluating secondary data      

Specifications: methodology used to collect data Error: accuracy of the data Currency: when data were collected Objectives: the purpose for which the data were collected Nature: the content of the data Dependability: overall, how dependable are the data

CHAPTER 4 -Primary data: originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process. -Classification of qualitative research procedures 

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Direct (nondisguised) o Focus group o Depth interview Indirect (disguised) o Projective techniques  Word association  Sentence completion  Picture response and cartoon test

 Role playing and third person -Qualitative research: is an unstructured, exploratory research methodology based on small samples that provides insights and understanding of the problem setting. Openending questions     

Objective: to gain a qualitative understanding of the underlying reasons and motivations Sample: small number of non-representative cases Data collection: unstructured Data analysis: nonstatistical Outcome: develop an initial understanding

-Quantitative research: is a research methodology that seeks to quantify the data and typically applies some form of statical analysis. You can ask more questions     

Objective: to quantify the data and generalize the results from the sample to the population of interest Sample: large number of representative cases Data collection: structure Data analysis: statistical Outcome: recommend a final course of action

-Focus groups: is an interview conducted by a trained moderator in an unstructured and natural -Advantage of focus group   

The group interaction produces a wider range of information, insights, and ideas than do individual interviews The comments of one person can trigger unexpected reactions from others, leading to snowballing with participants responding to each other’s comments The responses are generally spontaneous and candid, providing rich insights. Ideas are more likely to arise out of the blue in a group than in an individually interview and are likely to be unique and potentially creative

-Disadvantages of focus group 

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The clarity and conviction with which group members often speak leads to a tendency for researchers and managers to regard findings as conclusive rather than as exploratory Focus group also are difficult to moderate. The quality of the results depends heavily on the skills of the moderator; unfortunately, moderators who possess all of the desirables skills are rare The unstructured nature of the responses makes coding, analysis, and interpretation difficult

-Advantage of online focus groups

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In online focus groups, geographical constrains are removed and time constrains are lessened Unique opportunity to re-contact group participants at the later date Can recruit people not interested in traditional focus groups: doctors, lawyers Moderators can carry on side conversations with individual respondents There is no travel, video taping, or facilities to arrange, so the cost is much lower

-Disadvantages of online focus group     

Only people that have access to the internet can participate Verifying that a respondent is a member of a target group is difficult There is lack of general control over the respondent’s environment Only audio and visual stimuli can be tested. Products cant be touched or smelled It is difficult to capture body language and emotions

-Application- the why?: depth interviews can be effective in situations that involve detailed probing if respondents, discussion of sensitive topics, or where strong social norms exist -Projective technique: is an unstructured, indirect form of questioning that encourages respondents to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern -Word association: respondents are presented with a list of words, one at a time and asked to respond to each with the first word that comes to mind. The words of interest, called test words, are interspersed throughout the list which also contains some neutral or filler words to disguise the purpose of the study. -Sentence completion: respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase thar comes to mind. -Paragraph completion: the respondent completes a paragraph beginning with the stimulus phrase -Picture sentence: the respondents are asked to describe a series of pictures of ordinary as well as unusual event. The respondent’s interpretation of the pictures gives indications of that individual’s personality -Cartoon tests: cartoon characters are shown in specific situation related to the problem. The respondent asked to indicate what one cartoon character might say in response to the comments of another character. Cartoon tests are simpler to administer and analyze than picture response techniques -Projective technique Role playing: respondents are asked to play the role or assume the behavior of someone else Third-person technique: the respondent is presented with a verbal or visual situation and the respondent is asked to relate the beliefs and attitudes of a third person rather

than directly expressing personal beliefs and attitudes. This third person may be a friend, neighbor, colleague, or typical person -Advantages of projective technique   

They may elicit responses that subjects would be unwilling or unable to give if they knew the purpose of the study Helpful when the issues to be addressed are personal, sensitive, or subject to strong social norms Helpful when underlying motivations, beliefs, and attitudes are operating at a subconscious level

-Disadvantages of projective technique      

Suffer from many of the disadvantages of unstructured direct techniques, but to a greater extent Require highly trained interviewers Skilled interpreters are also required to analyze the responses There is a serious risk of interpretation bias They tend to be expensive May require respondents to engage in unusual behavior

-Guidelines for using projective techniques   

Projective techniques should be used because the required information cannot be accurately obtained by direct methods Projective techniques should be used for exploratory research to gain initial insight and understanding Given their complexity, projective techniques should not be used naively...