Unit1

marketing research definition

marketing research definition

the systematic & objective -identification -collection -analysis -dissemination

• and use of information

what is the purpose of marketing research

improving decision making related to identification and solution of problems and opportunities in marketing

3 functional role of marketing research

1. descriptive

2. diagnostic

3. predictive

descriptive

who, what, where, how

*gathering and presentation of statements of fact

ex: what is the historic sales trend in the industry? what are consumers attitudes toward x product?

diagnostic

why

*the explanation of data or actions

predictive

what if

*specification of how to sue descriptive and diagnostic research to predict the results of a planned marketing decision

marketing strategy

a plan to guide the long-term use of a firm's resources based on its existing and projected internal capabilities and on projected changes in the external environment

2 types of research

1. basic

2. applied

basic research

general/expand knowledge

ex: UNL

applied research (3 types)

solve a specific problem

1. programmatic

2. selective

3. evaluative

ex: P&G

programmatic research (applied)

develop marketing options

ex: ebook -- research found ppl don't distinguish between independent or traditional publishers and ppl will pay more to bundle an ebook and real book

selective research (applied)

test decision alternatives

ex: flavor contest for lays & doritos commercial competition

**type of research can backfire (naming of the boat)

evaluative research (applied)

assess program performance

ex: satisfaction survey

when do you not conduct research?

1. resources are lacking

2. results would not be useful

3. too late --- decision already made

4. disagreement - what is needed amongst decision makers

5. necessary info already exists

6. costs > benefits

7. consumers don't know the answer

2 determinants of potential benefits for market research

1. profit margin

2. market size

should you conduct research if:

small market size - small profit margin

no

***cost>benefit

should you conduct research if:

small market size - large profit margin

maybe

***learn what you can from existing information prior to making decision to conduct research

should you conduct research if:

large market size - small profit margin

maybe (ex: frozen entrees, crest teeth white strips)

*** ***learn what you can from existing information prior to making decision to conduct research

should you conduct research if:

large market size - large profit margin

yes (ex:medical equipment, 3d printer)

***benefits most likely to be greater than costs

who are marketing research stakeholder?

-management -client -field services -respondents -general public

ethics

moral principals/values (generally) governing the conduct of an individual or group

most important factor between client & research supplier

confidentiality & trust

3 types of ethical theories

1. deontology

2. utilitarianism

3. casuist

deontology

*people should adhere to obligation & duties *always keep promises, follow rules and laws

utilitarianism

*choose the option that leads to the most benefit to the most people *act/rule utilitarians??

casuist

rely on previous examples

ethical risks of research supplier

pricing, subjectivity, up-selling, violating confidentiality, abusing respondents

ethical risks of clients

malicious RFP's (request for proposals), false promises

ethical risks of field services

professional respondents, pressure to bias response/data

respondents rights

1. right to choose

2. right to safety

3. right ot be informed

4. right to privacy

corporate code of ethics

*framework for a company's approach to doing business *point of reference for individual employee behavior *can help decision making *can have a positive effect on customers

individual code of ethics

influences how a person makes a decision in certain situations

marketing research process

1. planning

2. collection

3. analysis

4. communication

planning

formulate problem ---> determine research design ---> choice of method

collection

design sample procedure & collect data

analysis

analyze and interpret the data

communication

prepare the research project

when determining a problem you need to ..... (2)

1. understanding management decision problems

2. derive corresponding market research problem and market research objectives

management decision problem is...

*asks what the decision maker needs to do

*action oriented

*focus on symptoms

*should advertising campaign be changed

*should price of a product be changed

market research problem is...

*ask what info is needed and how it should be obtained

*information oriented

*focuses on underlying causes

*determine effectiveness of current campaign

*to determine impact on sales and profits of various level of price changes

types of exploratory research

1. situational analysis

2. pilot studies

3. case analysis

4. focus groups

5. experience surveys

6. secondary data analysis

decision makers look at ______ where researchers look at _____

*iceberg principle

symptoms

causes

research design

a framework or blueprint for conducting the market research project that details the procedures necessary for obtaining the info needed to structure or solve marketing research problems

exploratory research

*formulates problem more precisely *helps develop hypothesis *clarifies concepts or eliminates ideas

ex: literature, focus groups, interviews

types of quantitate research

1. descriptive

2. casual

descriptive research

*describe segment characteristics *estimate proportion of ppl. who behave in a certain way

ex: longitudinal study, cross sectional

casual research

*provide evidence regarding casual relationship

ex: lab experiment, field experiment

objective of qualitative research

gain a qualitative understanding of the underlying reasons and motive

qualitative research : sample

small number of non representative cases

qualitative research : data collection

unstructured

qualitative research : data analysis

non-statistical

qualitative research : outcome

develop an INITIAL understanding

objective of quantitative research

to draw inference

quantitative research : sample

large number of representative cases

quantitative research : data collection

structured

quantitative research : data analysis

statistical

quantitative research : outcome

recommend a final course of action

descriptive research methods (3) ---

1. secondary data

2. survey --- binary -- yes or no -- 1 or 0

3. observation -- monitoring w/o asking questions

*still quantitative

survey

interview, mail, online --- everyone gets the same questions

observation

monitoring without asking questions -- tracking, sensors

expierements

manipulate independent variable(s), observe effects on dependent variable(s) --- hold everything else constant

correlation

relationship between two variables

causation

one variable producing an effect in another variable

t or f correlation equals causation

FALSE

*correlation does NOT mean causation

3 factors necessary for causation

1. correlation

2. temporal antecedence

3. no third factor driving both

spurious correlation

*artificial fake relationship *dangers of data mining *lots of thing correlate but are not really related

primary data

data collected to solve a specific problem

secondary data

data that already exists

two sources of secondary data

1. internal databases --- accounting, sales, purchasing, logistics, customer service

2. external databases --- gov. agencies, trade association consumer reports, syndicated market research services

characteristics of primary data

-slow -expensive -relevant to problem at hand

characteristics of secondary data

-fast -inexpensive -may or may not be relevant to problem at hand

why should you use secondary data before primary?

-helps clarify the problem -may inform primary data collection alternatives -may highlight forthcoming difficulties in primary data collection -can support research report & assist in identifying a sample

how to check secondary data

1. is data available?

2. relevant?

3. accurate? (who, what purpose, what info, when, how)

4. sufficient?

database

a collection of related information

data mining

the use of software or statistical tools to identify non obvious patterns in a database

what do you look for with database marketing and data mining?

classes, clusters, associations, sequential patterns

how to apply data-mining applications

-behavioral targeting -customer acquisition -customer retention -customer abandonment -market basket analysis (which products are bough together) -forecasting

geographic information system (GIS)

-computer based system that displays various types of data geographically -uses both primary and secondary data

ex: google maps

GIS applications

-map & target customers -choose new store sites -develop local advertising campaigns ---> micro-marketing

decision support systems

interactive, personalized information management system designed to be initiated and controlled by individual decision matters

characteristics of decision support systems

-interactive -flexible -discovery-oriented -easy to learn & use -theoretical but rapidly evolving

ex: cortona

Walgreens examples

using customers purchase data to show relevance of the flu across the country

*knew information before the CDC

qualitative research

non numeric research

-research whose finding are not subject to quantification or quantitative analysis

when is qualitative research used?

used to UNDERSTAND in depth motivations and feeling of consumers

why use qualitative research?

1. better able to capture emotional and subconscious influencers of purchase and usage of offerings

2. the above is accurately communicated only through indirect communication techniques

focus groups

-8 to 12 individuals -moderator (well trained researcher) -informal discussion about research topic -contains group dynamics

advantages of focus groups

1. in depth in from RIGHT customer dynamics

2. observe and record

3. group dynamics can enhance conversation

disadvantages of focus groups

1. can't just use findings by itself

2. bandwagon effect

3. peer pressures (dominant talkers, socially desirable responses)

4. moderator can introduce bias

5. participants may or may not be your typical customers

individual in-depth interviews

-non directive interviews -semi- structured or focused individual interviews -constant probing

*respondent enjoys max freedom

advantages individual in-depth interviews

1. group pressures are eliminated

2. respondent is focused

3. longer talking time

4. flexible location

disadvantages of individual in-depth interview

1. cost

2. time

3. no group dynamic

hermeneutics

-research that focuses on interpretation through conversation -identification of THEMES across multiple participants

projective techniques

-unstructured & indirect form of questioning -project underlying motivations, beliefs, attitudes/feelings

types of projective techniques

1. association

2. completion

3. construction

4. expressive

association techniques

word association

word association

-words are read aloud and each respondent is asked to say the first word that comes to mind -analyzed in terms of responses, non-responses, time-elapsed

*type of association technique

completion techniques

1. story completion

2. sentence completion test

ex: ppl who eat chipotle are...

construction techniques

1. thematic apperception test (TAT)

2. storytelling

thematic apperception test (TAT)

-subject given pictures w/ consumers or products at the center -subject asked to write a story about each picture

storytelling

??? ZMET- Zaltman Metaphor Elicitation Technique