Market Research Exam 1

Marketing Concept

a business philosophy that emphasizes understanding and meeting customer needs to achieve organizational goals

Segmenting

dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors

Targeting

selecting specific market segments to serve with tailored marketing strategies

Positioning

creating a distinct image and identity for a product/service in the minds of the target market

4 P's

product, price, place, promotion

Marketing Research

systematic process of collecting, analyzing, and interpreting data to inform marketing decisions

Purpose of Market Reserach

to provide actionable insights for decision-making by understanding consumer preferences, market trends, and competitive dynamics

Categories of Firms Conducting MR

in-house marketing departments

external full-service agencies

syndicated research firms

competitive dynamics

Syndicated Research

provides standardized data to multiple clients

Customized Research

tailored to a specific client's needs

Full Service Firm

offers comprehensive research solutions

Limited Service Firm

specialize in specific research tasks

Stages in MR Process

problem definition

research design and data collection

data analysis and interpretation

respect for participants

MR Ethics

principles guiding ethical conduct in research, ensuring fairness, transparency, and respect for participants

Justice Approach to Ethical Reasoning

emphasizes fairness and equality in decision-making

Utility Approach to Ethical Reasoning

produces the greatest good for the greatest number

Rights Approach to Ethical Reasoning

protects individual rights (right to privacy/consent)

Advocacy Research

research conducted to support a specific agenda/viewpoint, potentially compromising objectivity

Sugging

selling under the guise of conducting research, unethical

Situations when MR not needed:

decisions are low risk

data already available

time/cost outweighs benefits

Steps in Problem Formation

1. identify manager's decision problem

2. clarify objectives

3. define research problem

4. develop research questions

5. formulate hypotheses

Iceberg Principle

focus on underlying causes of a problem rather than treating visible symptoms

Discovery-Oriented Decision Problems

problems aimed at exploring new opportunities or gaining insights without a predefined strategy

Strategy-Oriented Decision Problem

problems aimed at evaluating/choosing between specific strategic options

Research Problem

defines what info is needed

Decision Problem

broader managerial issue requiring a solution

Research Question

question the researcher aims to answer, guides study's focus

Hypothesis Development

formulating testable statements based on theory/observation to guide research

NAICS

North American Industry Classification System

categorizes business/industries by economic activity, helps in customer profiling/mkt segmentation for syndicated data

Qualitative Research

non-numerical; interviews, focus groups; explores attitudes, motivators, behaviors

Quantitative Research

numerical; surveys, experiments; measure and analyze data statistically

Exploratory Research

research to gain insights, generate ideas, identify problems typically with qualitative methods

Descriptive Research

describes characteristics/behaviors of a population, often uses surveys

Causal/Experimental Research

establish cause and effect relationships through controlled experiments

In-Depth Interviews

one on one interviews to gain detailed insights intro individual perspectives/experiences

When are in-depth interviews effective?

exploring complex topics, sensitive issues, needing detailed personal insights

Focus Group Interviews

group discussion led by moderator to explore collective opinions/reactions

Steps in Conducting Focus Group Interviews

plan objectives, recruit participants, design questions, moderate discussion, analyze results

Case Studies

in depth analysis of a single subject/event to gain detailed contextual insights

Experience Interview

interviews capturing personal experiences to understand behaviors/motivations

Protocol Interviews

participants verbalize their thought processes while performing a task to reveal decision making patterns

Ethnography

observing/studying people in their natural environment to understand behavior/culture

Projective Techniques

indirect methods (word association) to uncover subconscious attitudes or feelings

Primary Data

info collected specifically for investigation at hand

Secondary Data

data that already exists and gathered for purposes other than current study

Internal vs External Secondary Data

internal is cheaper

Advantages of Secondary Data

time and cost savings

less effort

some things can only be located through secondary data (census info)

Disadvantages of Secondary Info

problem of fit

different unit of measurement

too general

age of data

Decision Support System (DSS)

standardized up to the minute reports needed to day to day; database (data system), analytical model (model system), user interface (dialog system)

Big Data

data sets whose size/type is beyond ability of traditional relational databases to capture, manage, process

5 V's of Big Data

velocity (created)

veracity (trustworthiness)

volume

variety

value

Structured Data

can fit under standard headings; customer purchase data

Unstructured Data

not easily arranged in structured format, text based

Descriptive Analytics

describes/summarizes data

Diagnostic Analytics

identifying causal relationships

Predictive Analytics

uses tech, algorithms, data to identify the likelihood of future outcomes based on historical data

Prescriptive Analytics

recommend actions based on data

Geodemographics

combine census data with own survey data/data obtained from administrative records; credit transactions

Consumer Media Panels

media consumption habits; tv, radio, print media, internet, cross-platform services)

Conditions for Causality

1. concomitant variation

2. time order (x before y)

3. absence of other factors

Concomitant Variation

x & y vary together

ex- as ad spending increases, so do sales

Lab Experiments

high internal validity, controlled, may not reflect real world behavior

Field Experiments

real-world, less controlled, more generalizable to real life

A/B Testing

split groups, test different versions

Extraneous Variable

other outside factor that may influence DV but not controlled by researcher

Standard Test Market

real setting, slow, expensive, exposed to competition

coke launches new flavor in a few cities before national roll out

Controlled Test Market

managed environment, moderate speed/cost

nielsen partners with retailers to test new brand on specific store shelves under monitored conditions

Simulated Test Market

artificial setting, fast, low cost, high secrecy

p&g tests new shampoo by showing ads in mock tv commercial, lets participants shop in "store", models mkt potential

Cross-Sectional Research

one time snapshot (one survey)

Longitudinal Research

repeated over time