MARKETING RESEARCH PROCESS

Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Marketing research process

Marketing research process is a set of those steps which defines the tasks to be accomplished in conducting a marketing research study.

Stages of the Research Process

1. 2. 3. 4. 5. 6. 7. Define the problem definition Specify the research objectives Develop a research design Find sources of data Collection of Data Analyze Data Write and present research report

PROBLEM DEFINITION

RESEARCH OBJECTIVES

RESEARCH DESIGN & SAMPLE DESIGN SOURCES OF DATA

DATA COLLECTION

DATA ANALYSIS

REPORT & PRESENTATION

1. PROBLEM DEFINITION

What decisions need to be made and what information is needed?

The formulation of the problem is often more essential than its solution
Albert Einstein

Problem Definition Process

1. Recognize the problem or opportunity 2. Find out why the information is being sought 3. Understand the decision-making environment (the industry, company, products, and target market) 4. Use the symptoms to help clarify the problem 5. Translate the management problem into a marketing research problem 6. Determine whether the information already exists 7. Determine whether the question really can be answered

2. RESEARCH OBJECTIVES
Once we know what the problem is, we need to know what information we need to collect that would tell us the appropriate course of action. Precise Detailed Clear A road map in pursuing the research project

Research Objectives as Hypothesis

A conjectural statement about a relationship between two or more variables that can be tested with empirical data An unproven proposition A possible solution to a problem Guess, statement of predicted outcomes of research

3. RESEARCH DESIGN
The plan to be followed to answer the marketing research objectives. provides the framework to be used as a guide in collecting and analyzing data. Master plan Framework for action Specifies methods and procedures Can take any of three forms Exploratory Descriptive Causal

Market Research Design types

Research Design Exploratory Research Descriptive Design Causal Design

Secondary Data (historical data) Experience Surveys Focus groups Case Studies

Longitudinal Study

Cross-sectional Study

Experiment

1. Exploratory
Usually conducted during the initial stage of the research process. Initial research conducted to clarify and define the nature of a problem.
1. Secondary Data (historical data) 2.Experience Surveys 3.Focus groups 4.Case Studies

2. Descriptive
Describes characteristics of a population or phenomenon Research to describe what is Who are our customers? (i.e., describe them) What do they want? (i.e., describe their needs) 1. Longitudinal Takes the form of a sample of respondents studied over a period of time 2. Cross-Sectional Research study consists of a sample of the population(sample survey)

3. Causal
Research to prove that X causes a change in Y. Cause and effect relationship of two or more variables. 1. Experiments

EXAMPLE
Exploratory Research (Unaware of Problem) Our sales are declining and we dont know why. Would people be interested in our new product idea? Descriptive Research (Aware of Problem) Causal Research (Problem Clearly Defined)

What kind of people are buying Will buyers purchase more of our product? Who buys our our products in a new package? competitors product? Which of two advertising What features do buyers prefer campaigns is more effective? in our product?

4. SAMPLE DESIGN
Sample: subset of a larger population

SAMPLE

POPULATION

 Sampling Unit defining the target population

Sample Size How many people should be surveyed? Sampling Procedure How respondents are chosen?

Probability sampling: A subset of a population

where every element in the population has a known nonzero chance of being selected.
Non-probability sampling: A subset of a population

in which the chances of selection for the various elements in the population are unknown. Sample design indicates who will be sampled, and how they will be sampled. Do you want a census or a sample?

SOURCES OF DATA
Primary Research
Data gathered for a specific purpose or for a specific

research project and requires original data. Data obtained for the first time and used specifically for the current study Involves collection of information from the actual sources such as consumers, dealers, or other entities involved in the research.

Secondary Research
Data collected for another purpose and already exist
Involves collection of data from published sources like

periodicals, newspaper reports, internet, etc

Methods of obtaining Primary Data

Survey Method
Info gathered from people directly through use of questionnaires or interviews.

Observation Method

Actions of people are observed and recorded. Natural conditions. Experiment Method One or more marketing variables are observed under controlled conditions.

Focus group Method

Involves a group of people selected because they match the characteristics of the target market.

Sources of Secondary Data

1. Internal Sources
Info found within your company Past sales figures Budget records Income/expense records Customer records Inventory records

2.

External Sources

Info found outside your company U.S. government (Census) Business publications (Inc., Wall Street Journal) Commercial research agencies (Nielson) Trade publications (Ad Age, Grocer) Local and state governments

DATA COLLECTION
Techniques of data collection
Observation Experimentation Survey Focus group Tools of data collection Questionnaire Interview Thematic appreciation test (TAT){part of HRM.}

DATA ANALYSIS
Compiling, analyzing and interpreting the results of the collected data clean the data

Extract findings from the collected data Researcher tabulates the data and develops frequency distributions. Researcher may use some advanced statistical techniques

Central tendency

Cross Tabulation
correlation coefficient multivariate analysis

DECISION MODELS USED BY MARKETERS

Markov-process model: helps to understand the probability of moving from current state to any future state. Queuing model: shows waiting time and queue length that can be expected in ant system. Brand aid model: marketing-mix model focused on consumer goods industry. Medial: media planning tool used by advertisers. Sales response model: functional relationship between one or more marketing variables, e.g.. Sales and demand level.

REPORT & PRESENTATION

Presentation of major findings relevant to marketing decisions include summary of relevant findings and recommendations you need to be sure to answer the research question. Reports are written for managers, not for other marketing researchers - be clear. Use of charts and diagrams.

Implementing the findings

Putting the solutions to work. Includes monitoring the results.