The marketing research process
Step 1: Define the problem, the decision alternatives, and the research objectives
- Marketing managers must be careful not to define the problem too broadly or too narrowly for the marketing research.
- Management needs to set specific research objectives.
- Types of research * Explanatory: its goal is to shed light on the real nature of the problem and to suggest possible solutions or new ideas. * Descriptive: it seeks to quantify demand. * Causal: its purpose is to test a cause-and-effect relationship
Step 2: develop the research plan
- Develop the most efficient plan for gathering the needed information and what that will cost.
Data sources
- The researcher can gather data from various sources. * Secondary data: collected for another purpose and already exist somewhere. * Primary data: freshly gathered for a specific purpose.
- Research is usually started through secondary data to see whether they can wholly or partly solve the problem without collecting costly data.
Research approaches
- Primary data is collected in five main ways.
- Observational research: gather fresh data by observing the relevant actors and settings unobrusively as they shop. * Ethnographic research: uses tools from anthropology to provide deep cultural understanding of how people live.
- Focus group research: a gathering of 6 to 10 people carefully selected and brought together to discuss various topics of interest. * Participants are normally paid a small sum for attending. * A moderator provides questions and probes the discussion.
- Survey research: companies undertake surveys to assess people's knowledge, beliefs, preferences and satisfaction. * Many are done online.
- Behavioral research: Customers leave traces of their purchasing behavior in store scanning data. * Actual purchases reflect customers' preferences and often are more reliable than statements they offer to market researchers.
- Experimental research: Designed to capture cause and effect relationships by eliminating competing explanations of the observed findings. * It is the most scientifically valid.
Research instruments
- Questionnaires: a set of questions presented to responders. * Close-end questions specify all the possible answers and provide answers that are easier to interpret and tabulate. * Open-end questions allow respondents to answer in their own words and often reveal more about how people think
- Qualitative measures: relatively unstructured measurement approaches that permit a range of possible responses * Because of the freedom, it can often be a useful first step in exploring consumers' perceptions. * Some other qualitative measures are: * Word associations: ask subjects what words come to mind when they hear the brand's name. * Projective techniques: give people an incomplete stimulus and ask them to complete it. * Visualization: requires people to create a collage to depict their perceptions. * Brand personification: ask subjects what kind of person they think of when the brand is mentioned. * Laddering: a series of increasingly more specific "why" questions can reveal consumer motivation and more deeper goals.
- Technological devices: * Galvanometers: measure emotions aroused by a specific picture * Tachistoscope: flashes an ad to a participant, who is then asked to describe the image * Skin sensors, brain wave scanners, full body scanners
Sampling plan
- Three decisions need to be made: * Sampling unit: Whom should we survey? * Sample size: How many people should we survey? * Sampling procedure: How should we choose the respondents?
Contact methods
- Mail contacts: mail questionnaire is one way to reach people who would not give personal interviews.
- Telephone contacts: telephone interviewing is a good method for gathering information quickly and clarify questions.
- Personal contacts: it's the most versatile method, but also the most expensive. Other qualitative information can be recorded, such as body language. * Arranged interviews: marketers contact respondents for an appointment. * Intercept interviews: researchers stop people at a shopping mall or busy street.
- Online contacts: the Internet offers many ways to do research. * Advantages * Inexpensive * Fast * People tend to be honest and thoughtful * Versatile * Disadvantage * Samples can be small and skewed * Online communities can suffer from excessive turnover * Technological problems and inconsistencies
Step 3: collect the information
- The data collection phase is generally the most expensive and most prone to error. * One of the biggest obstacles is the need to achieve consistency.
Step 4: analyze the information
- Extract findings by tabulating the data and developing summary measures.
- Compute averages and measures of dispersion and apply statistical techniques and decision models.
Step 5: present the findings
- The researcher presents findings relevant to the major marketing decisions facing management.
- Research findings should be presented in an understandable and compelling way.
Step 6: make the decision
- The findings support the final decision.
- Marketing decision support system: a coordinated colection of data, systems, tools, and techniques, by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.
Overcoming barriers
- Some companies fail to use marketing research correctly. * They may provide the wrong problem. * They may have unrealistic expectations.
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