Turning Marketing Information into Action:

Marketing Research

Chapter 8

Marketing Research Defined:

• Marketing Research is a process of:– Defining a marketing problem or opportunity,– Systematically collecting,– And analyzing the data,– Recommending actions based on the research,– with the intent to make the organization better

off.

Why Conduct Marketing Research:

• Mainly to reduce RISK and reduce UNCERTAINTY.

• Marketing Research is Most Valuable when:• There is a great deal of uncertainty• There are sever consequences to a given set of actions.• There are several apparently equally viable alternatives

to a problem.

Good, Reliable Marketing Research is Difficult:

• Respondents to questions on product or Idea may not be familiar it, may not have given it any thought and as a result give a uneducated response that is misleading to researchers.

• Respondents may not give answers to certain questions, preferring to keep their opinions to themselves.

• Respondents may say they would like to buy a product service or idea, however when time comes to buy, they may choose not to.

Key Research Terminology

• Research must be:

– A) Reliable - Research results should reflect the true nature of what is being measures. You should be able to repeat a reliable experimental method and get similar results each time.

– B) Valid - The research measures what it is designed to measure.

Types of Marketing Research

• Ask yourself: What is the nature of the problem? – Is this a first time problem or unfamiliar problem? (Use

Exploratory Research)– Are we trying to find out about the basic characteristics of

the population or to profile particular marketing situations? (Use Descriptive research)

– Are we trying to link the establish a “cause and effect” relationship in a marketing situation? (Use Causal Research)

Types of Marketing Research (Exploratory Research)

– If you are looking at a research problem that is highly unusual, unfamiliar and difficult to understand it is essential to get a ‘handle’ on the issues surrounding the problem first – before doing specific research.

– Research conducted to clarify the scope and the nature of the problem is known as Exploratory Research.• You have been asked to determine the needs of a group of

African immigrants in the town of St. Anthony. – Possible Exploratory Research questions – Where is St. Anthony? How many

and what services are available in St. Anthony? What are these people doing – what are their needs?

Types of Marketing Research (Descriptive Research)

– If you are looking at a research problem that has specific characteristics – what are these characteristics?

– Research conducted to describe the basic characteristics of a given population is known as Descriptive Research.• You have been asked to determine the ‘typical shopper’ for

Mercer’s Marine in Clarenville. – Possible Descriptive Research questions – Gender?, Age?, Hometown?,

Fisherperson?, Recreational Boater?

Types of Marketing Research (Causal Research)

– If you are looking at a research problem that we feel has a relationship between two or more variables – one variable influences another?

– Research designed to identify cause-and-effect relationships among variables. Normally Descriptive Research is only done after Exploratory and Descriptive Research is conducted.• You have been asked to determine if there is a relationship

between the opening of the recreational food fishery and sales at Mercer’s Marine in Clarenville.

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Survey? Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process (1)

• Define the Problem or Marketing Opportunity.– Separate symptoms from problems– Problems spur questions.

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Survey? Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process

• Do Initial Research.(Page 1 of 2)

– Find out about the issues involved?• This is the exploratory research stage where you

casually and informally seek out information on answering the problem. This information may come from internal sources or external sources.

The Marketing Research Process

• Do Initial Research .(Page 2 of 2)

– Sources of Exploratory Data• Secondary Data Analysis: use existing data the others have

collected or you have collected for other purposes. Secondary data may come from internal or external sources.

• Focus Groups (Primary Data)– Informal interview sessions with 6-10 people

• Depth Interviews (Primary Data)– Detailed interviews with people relevant to the research process

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Survey? Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process

• Formalize Research Design.– Once you have defined the problem and completed your

initial research you move to collect specific data on the problem at hand -- this is Primary Data gathering.

– Ways to collect Primary Data• Sampling - note the different types of sampling.• Qualitative Research - interviews, focus groups• Quantitative Research - Observation, surveys and experiments.

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Survey? Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process

• Surveys– Note the various advantages and disadvantages of

telephone, personal and mail surveys.– Note problem questions Note the different question

types:• Open Ended - fill in• Closed Ended - dichotomous, semantic differential, Likert

scale– Sampling – probability and non-probability samples

The Marketing Research Process

• Experiments– Hypothesis - A statement to be proven true or

false. E.g. More ice cream is sold when it is hot.– Independent Variable - The one you manipulate -

the Cause variable. E.g. the temperature.– Dependent Variable - The variable that depends

on the independent. E.g. How many ice cream sold

The Marketing Research Process

• Observation– Observation involves watching, either

mechanically or in person, how people behave.• For an example of mechanical observation see • www.facebook.com/clarenvillecampus

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Survey? Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process

• Data Collection - Analysis and Interpretation– Once the data is gathered, it must be analyzed in

order to yield useful information, that can be then acted on.

Survey?

The Basic Marketing Research Process

Step 1 - Problem Definition

Exploratory Research?

Step 2 – Formalize Research Design

Probability or Non Probability Sampling?

Secondary Data? Focus Groups?

Depth Interviews?

Observation?Experiment?

Step 3 - Data Collection and Analysis

Step 4 - Communication of Conclusions

The Marketing Research Process

• Communication of the Conclusions– Ensure a clear and concise presentation.– For the report to be effective at resolving the

problem researched, management must be committed to act on the results of the research.

– Implemented actions must be monitored– Ongoing research– Ethical considerations