Marketing Test 1- Chapter 3

Steps in the marketing research process

Step 1: Establish the need for marketing research

Step 2: Define the problem

Step 3: Establish research objectives

Step 4: Determine research design

Step 5: Identify information types and sources

Step 6: Determine methods of accessing data

Step 7: Design data collection forms

Step 8: Determine the sample plan and size

Step 9: Collect data

Step 10: Analyze data

Step 11: Communicate the insights.

The “Step-by-Step Process”

Not always presented as an 11-step process

Not all studies use all 11 steps

Few studies follow the steps in order

Step 1: Establish the need for marketing research

•Is there a real need for marketing research?

•Research takes time and costs money

•Cost of information may outweigh value of information

Is there a real need for marketing research?

marketing research is not always neeeded

we often have the information

When is marketing research not needed?

•The information is already available

•The timing is wrong to conduct marketing research

•Funds are not available for marketing research

•Costs outweigh the value of marketing research

the information is already available

can we obtain the information from past studied?

Can we get the information from internal reports from the Marketing Intellegence SYstem (MIS)?

the timing is wrong

Do we need to act immediately to remain competitive?

Is the product at the end of its life cycle?

costs outweigh the value

Have we conducted a cost benefit analysis?

What is the marketing return on investment of the market research project?

Step 2: Define the problem

The need to make a decision requires decision alternatives. If there are no alternatives, no decision is necessary.

Step 3: Establish research objectives

Research objectives state what the researchers must do.

Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2.

Exploratory research

collecting information in an unstructured and informal manner

Descriptive research

research that descries the phenomena of interest

Casual studies

attempt to uncover what factor or factors cause some event

Step 4: Determine research design

exploratory, descriptive, casual

Step 5: Identify information types and sources

Primary and Secondary Information

Primary information

inforamtion collected specifically for the problem at hand

Secondary information

information already collected

Step 6: Determine methods of accessing Data

Secondary and Primary data

secondary data

relatively easy to access

primary data

more complex

refers to information that is developed or gathered by the researcher specifically for the research project at hand

Step 7: Design Data Collection Forms

•The questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents.

•If a focus group is used, a focus group guide must be developed.

•If we observe respondents, the form is called an observation form.

•Software programs are available to assist marketing researchers in preparing data collection forms.

Step 8: Determine sample plan and size

•A sample is drawn from an entire group or population. The sample plan describes how each sample element, or unit, is to be drawn from the total population. Gives you representativeness!

Sample size

refers to determining how many elements of the population should be included in the sample. Gives you accuracy!

Step 9: Collect Data

•Researchers aim to minimize this possibility by undertaking a control referred to as validation.

•Companies that specialize in data collection are referred to as field service firms.

Step 10: analyze data

data analysis

data analysis

involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests.

Step 11: Communicate the insights

•Communicating the results, the last step, is one of the most important phases of marketing research.

•Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client.

Defining the problem: problems

situations calling for managers to amke choices among decision alternatives

most important step in the marketing research process

defining the problem

Process for defining a problem

Recognize the problem, understand the backround of the problem, determine the decision alternatives

Recognize the problem

Is it a failure to meet an objective or identification of an oppurtunity

Understand the Backround of the Problem

-conduct a situation analysis

-clarify the symptoms

-determine the probable causes of the symptoms

Determine the decision alternatives

• specify decision alternatives

• weigh the alternatives

Formulate the problem statement

develop a concise description of the problem

Research Objectives

Are specific and tell the researcher exactly what information must be collected to solve the problem by facilitating selection of an alternative.

•They are goal-oriented statements or questions that specify what information is needed.

The Research Objective

•Specify from whom information is to be gathered

•Specify what information is needed

•Specify the unit of measurement used to gather information

•Word questions used to gather information using the respondents’ frame of reference

Hypotheses

statements that are taken as true for the purposes of argument or investigation.

Construct

an abstract idea or concept composed of a set of attitudes or behaviors that are thought to be related.

–What is the unit of measurement?

–What is the proper frame of reference?

Variables

elements of constructs that can be measured or quantified

action standard

a predesignation of some quantity of a measured attribute or characteristic that must be achieved for a research objective for a predetermined action to take place.

Sample Key Performance Indicators (KPIs)

marketing research proposal

serves as the basis of a contract as it documents what the marketing researcher proposes to deliver to the client for some consideration, typically a fee.

invitation to bid (ITB) or Resequest for proposal (RFP)

When a client first contacts a marketing research supplier to conduct research, the client will generally request a proposal prior to agreeing to work with the firm in this process