Ch.

1 Marketing Research y Def: the function that links the company to the consumer through information y Used to: o Identify and define marketing opportunities/problems o Generate, refine and evaluate marketing actions o Monitor marketing performance o Improve understanding of the marketing process Marketing Research y Overview of Marketing Research y Problem Definition y Research Design y Data collection Methods y Data Collection Forms y Sampling and Data Collection y Data Analysis CH. 2 & 3 Marketing Research System Approach (Normal process of doing business) y Sheds continuous light,m even as conditions change y Rarely shows all details of a situation y Pros: Generates current information whenever managers need it y Cons: Information is limed to whatever is in the database Data Mining y Use of powerful analytical technologies to explore huge collections of data to gather usuful information Customer Relationship Management (CRM) y Strategy for learning more abtcustomers needs and behaviors y Used to develop strong rel. with them y Involves gathering relevant info abt co. s customers Marketing Dashboards Project Approach (Unusual situations) y Focuses intense light on details of an issue y Looks only at a particular issue at a particular time y Pros: Generates detailed information to a specific situation y Cons: Costly, used for limited time

Marketing Research Process y Formulate Problem y Determine Research Design y Determine Data Collection Method y Design Data collection forms y Design sample and collect Data y Analyze and Interpret Data y Present the Research Report Marketing Ethics

y y CH. 4

The principles, values, and standards of conduct followed by marketings Legal=Ethical

Formulate Problem y Importance of Designing the problem o Ex. Coca Cola vs. Pepsi mistake y Key steps in problem formulation o Meet with client  Obtain management s statement of the problem/opportunity  Get background information  Understand management s objectives  Learn possible managerial actions to result from research  How to have an effective client meeting? y Communication y Cooperation y Confidence y Candor y Closeness y Continuity y Creativity o Clarify the problem/opportunity  Help manager get to the precise heart of the problem y Bring a new perspective to the problem y Perform exploratory research o EXPLORATORY RESEARCH o State the Managers Decision Problem  State the basic problem facing the manager for which the research is intended to provide answers y Takes the manager s perspective y As simple as possible y Stated in the form of a question  Discover oriented: what or why y Generating information  Strategy oriented: How y Choose a course of action o Develop full range of possible research problems  State specifically what research can be done to provide answers to the decision problem  Ex. Why are store sales low? Can measure customer satisfaction, asses target customer s perceptions of our store vs. competitors o Select research problem(s) to Address  Determine which research problem(s) to pursue given the resource constraints o Prepare and submit research request agreement  Document prepared by the researcher after the meeting with the decisions maker that summarizes the problem and the information needed to address it Marketing Research Don t s o Steal competitor s documents o Falsify data or results o Attempt to sell products after conducting research o Perform research without sufficient time and budget o CONDUCT RESEARCH ONLY TO SUPPORT A PRE-DEFINED POSITION Decisions Making Biases

o o o o o Ch. 5

Confirmation Bias Bandwagon effect ( groupthink ) Irrational escalation Planning fallacy Status quo bias

Determine Research Design What is a Research Design? y The framework or plan for a study that guides the collection and analysis of the data Types of Research Designs (all three can be related somehow) y Exploratory Research o Emphasis: Gaining Ideas and Insights o Useful for: Clarifying manager s decision problem  Developing hypothesis  Becoming more familiar with problem  Clarifying concepts o Small Scale o Flexible Literature Search o A search of statistics, trade journal articles, other articles, magazines, newspapers, and books for data or insight into the problem Depth Interview o Interviews with people knowledgeable about the general subject being investigated Focus Groups o An interview conducted among a small number of individuals simultaneously o Relies more on group discussion that on directed questions to generate data o Characteristics of Good Focus Group Moderators  Good Listener  Good short-term auditory memory  Well organized  High energy level  Personable  Intelligent Case Analyses o Intensive study of selected examples of the phenomenon of interest o Types  Benchmarking  Ethnography Projective Methods o Using indirect tasks to encourage respondents to reveal their own feelings, thoughts and behaviors o Types  Word Association  Sentence completion  Storytelling  Role playing y Descriptive Research o Emphasis: Determining frequency with which something occurs  Determining relationship between 2 variables o Useful for: Investigating a hypothesis  Determining the proportion of people who behave in a particular way  Making predictions

o Larger Scale o More rigid design Longitudinal Study o Investigation involving a fixed sample of elements that is measures repeatedly over time o Elements = individuals, stores, supplies, etc. o Continuous Panel  A fixed sample of respondents who are measures repeated over time with respect to the same variables o Discontinuous Panel  A fixed sample of respondents who are measured repeatedly over time on variables that change from measurement occasion to occasion Cross-sectional Study o Investigation involving a sample of elements selected from the population of interest that are measured at a single point in time o Sample Survey  Sample is selected to be representative of the target population  Emphasis is on producing summary statistics such as averages and percentages y Causal Research o Emphasis: Determining cause and effect relationships o Useful for: Examining the effect of a marketing action  Testing cause-and-effect relationships  Addressing very clear, explicit research questions o Large Scale o Controlled Design o Conditions of Causality  Consistent variation between the cause and the effect  The cause must occur before the effect  Other explanations must be eliminated o Experiments  Scientific investigation in which an investigator manipulates and controls independent variables (causes) and observes changes in dependent variables (effects)  Laboratory Experiment y Research conducted in an exactly controlled situation y Researcher controls some variables and manipulates others y Internal validity  Field Experiment y Research conducted in a realistic situation y Researcher tries to control some variables and manipulate other variables as carefully as possible y External validity o Market Tests  Controlled experiment done in a limited, carefully selected sector of the market place  Issues include: y Cost y Time y Control CH. 7 & 9 Determine Data Collection Method y Types of Data o Secondary Data  Information that was collected for another purpose, rather than the study at hand  Advantages y Saves time

y Less expensive Disadvantages y Data may not completely fit the problem at hand y Data may not be totally accurate  Types of Secondary Data y Internal Data o Data that are produced within the organization that is doing the research y External Data o Data that are produced outside the organization that is doing the research o Published  Directories  Periodicals  Statistical sources o Commercial  Geodemographic Data  Diary panel data  Scanner data y Evaluating Secondary Data o Specidications o Error o Currency o Objective o Nature o Dependability Primary Data  Information that is collected specifically for the study at hand  Types y Demographic/Socioeconomic y Personality/Lifestyle y Attitudes/Opinion y Awareness/knowledge o Measures of awareness  Unaided recall  Aided recall  Recognition y Intentions y Behavior y Motivation 

CH. 10 Determine Data Collection Method How should we collect the data? y Communication o Questioning respondents using a questionnaire o Advantages  Versatility  Speed  Cost o Structured vs. Unstructured  Structure= the degree of standardization used in the questionnaire y Fixed alternative questions y Open ended questions o Disguised vs. Undisguised

Disguise= the amt of info abt the purpose or sponsor of a study that is communicated to the respondent  Undisguised: purpose is obvious  Disguised: purpose is hidden Methods of Administering Questionnaires  Personal Interviews y High Response Rate y Maximizes amt of info collected  Telephone Interviews y High Response Rate y Minimizes time  Mail Questionnaires y Personal Info/ Offers anonymity y Maximizes amt of info collected y Minimizes costs  Electronic Questionnaires y Maximizes amt of info collected y Minimizes time y Minimizes costs

CH. 11 y Observation o Watching a situation and recording relevant facts, actions or behaviors o Advantages  Objectivity  Accuracy o Structures vs. Unstructured Observation  Structured: y The problem has been defined precisely enough so that the observed behaviors can be specified beforehand  Unstructured y The problem has not been defined precisely, so observers have flexibility in what they record o Disguised vs. Undisguised Observation  Undisguised y Subjects are aware they are being observed  Disguised y Subjects are not aware they are being observed o Human vs. Mechanical Observation  Human Observation  Electrical/mechanical observation y Video cameras y Bar code scanners y Response latency y Galvanometer y Voice-pitch analysis y Eye camera o Natural vs. Contrived Setting Observation  Natural Setting y Subjects are observed in an environment where the behavior normally takes place  Contrived Setting y Subjects are observed in an environment designed for recording their behavior