mr- lecture 2

8/8/2019 MR- Lecture 2

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MARKET RESEARCH

Planning the Research Process


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Today we will define:

m arketing research;skills required to identify the business proble m, the decisionalternatives , and the client's needs.

Planning is the m ost critical phase of any m arketing researchproject and is often m ishandled or overlooked.

The person involved in m arketing research is expected to beproficient in planning the research process by:

understanding the m arket infor m ation needs of key decision- m akers;andknowing the proper processes and procedures for obtaining thatinfor m ation.


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Marketing Research

" Marketing research is the function that links the consu m er ,custo m er , and public to the m arketer through infor m ation -infor m ation used to identify and define m arketingopportunities and proble m s; generate , refine and evaluatem arketing actions; m onitor m arketing perfor m ance; andim prove understanding of m arketing as a process. "

Marketing research specifies the infor m ation required toaddress these issues; designs the m ethod for collectinginfor m ation; m anages and i m ple m ents the data collectionprocess; analyzes the results; and co mm unicates the findingsand their i m plications.


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Planning the Research ProcessWhy Do Research?

Strategically , m arketing research is e m ployed to reduceuncertainty and thus reduce financial risk.

Is m arketing research worth the effort? It is not cheap.

In brief , the cost of research is far outweighed by the likelycost of m aking an erroneous decision due to lack of research.

The successful researcher in the future will be the one whosuggests creative ways to answer the questions with a

judicious use of the research budget without sacrificing

quality.


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OB SERVATION Broad area of

Research InterestIdentified

T heoretical Framework and Hypothesis Development

Source: Research Methods for Business , Um a Sekaran

PRELIMIN ARYDATA GATHERIN GS

Interviewing

Literature Survey

PROBLEMDEFINIT ION

ResearchProblemDelineated

T HEORET ICALFRAMEWOR K GENERAT ION

OFHYPOT HESIS

SCIENT IFIC

RESEARCHDESIGN

DATA COLLECT ION

ANALYSIS, ANDINT ERPRETAT ION

DEDUCT IONHypotheses

Substantiated?

Research Questionanswered?

Report

Writing

ReportPresentation

Decision

Making

1

Variablesalready

identified andlabeled

2

34

5 6 7

8

9 10 11N oYes


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T heoretical Framework and Hypothesis Development

What is a theoretical Framework:It is a conceptual m odel of how one theorizes or m akeslogical sense of the relationships a m ong the several factorsthat have been identified as i m portant to the proble m .

The logical flow for develop m ent of theoretical fra m ework

is: Docu m entation of previous work carried out in this area. Integrating one s logical beliefs with published research. Taking into consideration the boundaries and constraints governing

the situation.

The theoretical fra m ework discusses the interrelationshipsam ong the variables that are dee m ed to be integral to thedyna m ics of the situation being investigated.Such a fra m ework helps us to postulate or hypothesize and

test certain relationships.


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Research and the Scientific Method

Research can never predict the future with absolute certainty , but it can reduce uncertainty.

To keep the research project focused on identified objectives , m ost research questions should go through a two-stage

transfor m ation process.1. The first stage is to fra m e the questions as for m al proble m

state m ents. A proble m state m ent is an interrogativesentence that asks: "W hat is the relation between variable A

(e.g. , sales volu m e) and variableB

(e.g. , a 5% priceincrease)? "2 . The second stage is to reconstruct that interrogative

sentence into a hypothesis in the for m of a declarativesentence: " There is an inverse relation between variable Aand variable B ."


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Research questions are transfor m ed in for m al proble m andhypothesis state m ents.For quantitative m arketing research , three criteria m ust bem et.

1. The variables m ust be clearly defined.2 . The variables m ust be m easurable.3. The variables m ust be testable in the field.

It is with the use of for m al proble m and hypothesisstate m ents that the purpose of m arketing research can bestbe fulfilled.


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Planning the Research ProcessT he Functions of Marketing Research

General Functions

Provide knowledge about the m arketing processScan the environ m entIdentify m arket opportunitiesBe the infor m ation link between the custo m er and the fir m

Project-Specific Functions

Institute research to exploit opportunities

Clarify proble m sForecastFram e research objectives in ter m s of the fir m 's goalsAnswer questions for which data do not exist


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Planning the Research ProcessT he Functions of Marketing Research

Process Functions

Gather data relative to the fir m 's objectivesAnalyze existing data

Use Functions

Provide infor m ation relevant to m arketing intelligenceProvide actionable infor m ation that influences decisions

Develop m ethods to i m prove decision m aking

Monitor perfor m ance against fir m 's goalsInstitutionalize research findings


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Research Design

The research design consists of a set of actions that constitutea plan to justify , conduct , and draw conclusions fro m aresearch project. Its purpose is to set in place a m echanis m toanswer research questions so as to influence m arketing

actions.According to a survey 90% of the co m plaints about m arketingresearch resulted fro m an inadequate definition of the realproble m .


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Research Design

The procedures for identifying causes m ust be taken incontext. O therwise , the danger arises of concentrating onsym pto m s of proble m s rather than on the proble m s

the m selves. This has two i m plications.1. First , the research design m ust be fra m ed so as to allow the

consideration of situational , non- m arketing forces that haveraised the concerns of m arketing m anagers.

2 . Second , the research design m ust be fra m ed so that data canbe reduced to infor m ation and then further reduced tointelligence. That intelligence is the basis upon whichm arketing decisions are m ade.


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Types of Research Planning DocumentFrom a researcher's perspective , a m arketing researchplanning docu m ent is a state m ent to conduct a specificresearch project at certain cost or price and is intended toenable a beneficiary to m ake an infor m ed , reasoned choice

when m aking decisions about m arketing activities.There is no industry standard to follow and no one right wayto write a planning docu m ent. It can be si m ple or co m plex ,short or long; they can be generated by clients or researchagencies; and they can be for m al docu m ents or infor m alletters confir m ing the details set out in verbal agree m ents.The exact for m a planning docu m ent on the source of therequest , the situation that pro m pts the request , and thenature and co m plexity of the request itself.


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There are four types of situations that lead to m arketingresearch plan.TYPE 1: The provider is presented with the proble m and askedto solve it. In this situation , the client recognizes a real orpotential proble m but cannot m ake any decisions without

specific m arketing infor m ation. The client turns to a researchprovider to provide the answers.TYPE 2 : The provider is presented with the proble m and aprocedure for obtaining infor m ation necessary to solve theproble m . In this situation , the client recognizes not only theneed for infor m ation but also the best way to obtain it. W hatlacks is the ti m e , the resources , and/or the expertise to findthe answers.


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TYPE 3: The provider is given the research instru m ent andsa m pling plan and asked to m ake a bid. W ith this m uchinfor m ation already in hand , the client is not really asking fora proposalbut for the m anpower to get the job done and anesti m ate of the costs.

TYPE 4: The provider uses accu m ulated knowledge about thecategory and the brand to outline potential m arketingproble m s and sub m its an unsolicited proposal to the clientcom pany. Because of their inti m ate association with clientcom panies and their knowledge of product/service categoriesand brands , providers have begun to anticipate the researchneeds of the client and to propose research progra m sdesigned to fine-tune the client's m arketing activities.


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Planning the Research ProcessElements of a Planning Document

Background:The purpose of the background section is to establish a context andrationale for the proposed research.Historical base: Introduces relevant infor m ation about where the productis, how it got there , and where it is going in the future.Proble m definition: Establishes the need for research. Careful proble m definition allows the researcher to identify the specific m arketing issuesfacing the brand and to isolate those variables that are m ost likely toyield actionable infor m ation.

Two rules that researchers should keep in m ind when defining the

proble m are:1. Proble m definition covers m arketing proble m s, not research proble m s. The approach

and the ter m inology should focus on the client's needs rather than on the researcher'sneeds.

2 . Research works best when the variables under consideration are s m all, m anageable , and m easurable.


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Elements of a Planning DocumentO bjectives:

O bjectives outline how m uch and what kind of infor m ationwill be provided by the research and specify how researchinfor m ation is to be translated into m anage m ent decisions. As

such , they serve as the researcher's pro m ise to deliverinfor m ation that can be acted upon. They follow naturallyfro m proble m definition.


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Elements of a Planning Document

Method:In general , the m ethod section of a research PlanningDocu m ent includes the following infor m ation:Data requirements: Identifies what the research will cover. Byidentifying the specific pieces of infor m ation to be gathered ,the researcher can show how s/he expects to live up to thepro m ises set down in the research objectives. If appropriate ,the description should also include an outline of the

discussion guide (for qualitative studies) and/or thequestionnaire (for quantitative studies)


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Method:Data collection method: Identifies how the infor m ation is going to beobtained. This section should include infor m ation on the data gatheringprocedures to be used (e.g. , m all intercept , central location telephone , m ail survey) and their order of sequence (e.g. , 2 focus groups followed by300 central location interviews).Sample: Identifies who will be included in the study by detailingcharacteristics of qualified respondents. This description includesinfor m ation about age , sex , inco m e , usage rates , and geographic locationas well as special quota groups or booster sa m ples e.g. , sa m ple subgroups

with target nu m bers of interviews , if any , and the total nu m ber of interviews to be co m pleted.


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Method:Analysis: Describes how data will be analyzed and for m atted.. Forquantitative studies , this should include tabulation assu m ptions;e.g. , the nu m ber of tables (which provide the data for each

question) and banners (sets of colu m n headings that are used toanalyze the data in total and by subgroup). More sophisticatedstatistical techniques , if used , should be described only briefly , andthe Planning Docu m ent should e m phasize the results they willproduce rather than how they work.

Reporting and Other Deliverables: It is also i m portant to state thefor m at in which the data and the results will be presented. So m eprojects require only a si m ple report of results; others de m andm ore for m al reports and presentations including the insertion of co mm ents for qualitative studies , or statistics , tables , graphs , and

charts for quantitative studies.


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Research UseClients and providers agree that research is useful only if it iscredible and actionable. For exa m ple , research results m ay indicatethat awareness of the client co m pany's brand is 60% , or that 70% of

the consu m ers in a test m arket expressed interest in the product.Alone , these facts have very little m eaning , however , when linkedwith a specific decision -- e.g. , if brand awareness m easures 50% orhigher , the co m pany should continue to roll-out nationally , or if purchase intent is less than 80% , the product should be withdrawn

fro m test m arket - they beco m e powerful m arketing tools.Action standards , therefore , are a critical piece of the researchPlanning Docu m ent. By describing how the results of the study willbe used to m ake decisions or to resolve issues related to them arketing proble m at hand , the researcher can turn research data

into usable infor m ation.


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Research Use:

Examples of Specific Action Standards:

Proceed with the new i m proved anti-dandruff sha m poofor m ula if it wins significantly (at the 95% confidence level) inoverall preference versus the current for m ula in blind ho m eusage and if it achieves parity for " is pleasant to use " and" sm ells nice. "

Proceed with the new lower cost variety of ready- m ade

dehydrated soup if it perfor m s at least at parity with thecurrent variety in overall evaluation , purchase intent , andtaste preference.


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Elements of a Planning DocumentT iming:

At a m inim um, Planning Docu m ents usually include dates forfielding the study and turning in the su mm ary and finalreports.

If the research is conducted in phases , e.g. , focus groupsfollowed by surveys , then co m pletion dates for the phasesshould be given as well.More co m plicated Planning Docu m ents m ay break the project

down into even s m aller details , including dates for projectapproval , questionnaire design , coding and tabbingquestionnaires , analysis , table preparation , and presentationof results.


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Causes of Misunderstanding About ResearchT HE CORPORAT E CULT URE

Marketing m anagers at ti m es wonder if so m e researchershave too m uch of an " ivory tower " m entality. They know thattim e and cost constraints do not allow for ideally thorough

research. Research does not have to always be thorough. Itonly has to be sufficient to m eet the objectives.Researchers who are enthusiastic about their findings andwho suggest tactical i m ple m entation of the results m ust alsokeep one caveat in m ind. W hat appears to be the best tacticalsolution m ay not always fit the client fir m 's broad strategicgoals.


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Causes of Misunderstanding About Research

CLIENT REACT IONS

Som e clients , especially those who are new to the use of research , see research as their salvation. They are looking fora panacea. They accept all that the researcher suggests.

Rem e m ber that no one has been able to accurately andconsistently predict the future , including m arketingresearchers.O ther clients fear research. They engage in it because of outside pressure but would prefer to go with their gut feeling.Part of the fear is that the research results will uncoverso m ething that they should have done in the past orso m ething that they feel unable to do in the future.


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PROJECT PROBLEMSA list of project proble m s could be presented fro m both client andsupplier perspectives. Sa m pling proble m s (fro m representation toadequacy) m ight lead that list.

Tim ing of project approvals , data collection schedules , and reportpresentations are additional causes of concern. Changes in projectspecifications and their effect on ti m ing and costs also causem isunderstandings. Likewise , the detail expected in the final reportcan be another area of dispute.O ne practical proble m so m eti m es confronted by clients is

deter m ining who can provide up-to-date infor m ation about theprogress of a project. Subcontracting of project parts anddelegation of authority and responsibility can m ake this confusingto clients. It is i m portant that a client always has a pri m ary contactperson at a research co m pany , and it is this person's responsibility

to provide progress reports to the client.

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