Marketing Research (BBA-206) Unit I

Dr. Lokesh Jindal Associate Professor

Definition of Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

The function that links the consumer, the customer, and public to the marketer
through INFORMATION

Used to identify and define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

Marketing research is the systematic and objective identification collection

analysis
dissemination and use of information For the purpose of improving decision making related to the identification and

solution of problems and opportunities in marketing

 Specifies the information necessary to address these issues

Manages and implements the data collection process Analyzes the results

Communicates the findings and their implications

Helps managers use this information to make decisions

Applications of Marketing Research

Fig. 1.1

Marketing Research

Problem Identification Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research

Problem-Solving Research Segmentation Research

Product Research Pricing Research Promotion Research Distribution Research

Marketing Research Process

Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

My Experience as a Researcher

The Problem Definition Process

Fig. 2.1
Discussion with Decision Maker(s)

Tasks Involved

Interviews with Experts

Secondary Data Analysis

Qualitative Research

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem Marketing Research Problem

Step II: Approach to the Problem

Objective/ Theoretical Foundations Analytical Model: Verbal, Graphical, Mathematical

Research Questions

Hypotheses

Specification of Information Needed

Step III: Research Design

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Should a new product be introduced? Marketing Research Problem To determine consumer preferences and purchase intentions for the proposed new product

Should the advertising campaign be changed?

To determine the effectiveness of the current advertising campaign To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes

Should the price of the brand be increased?

Research Questions and Hypotheses

Research

refined statements of components of the problem.

questions

(RQs) are the specific

A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

A Comparison of Basic Research Designs

Table 3.2
Objective:

Exploratory
Discovery of ideas and insights Flexible, versatile

Descriptive
Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Secondary data: quantitative analysis Surveys Panels Observation and other data

Causal
Determine cause and effect relationships Manipulation of independent variables, effect on dependent variables

Characteristics:

Often the front end of total research design

Methods:

Expert surveys Pilot surveys Case studies Secondary data: qualitative analysis qualitative research

Control mediating variables

Experiments

The following research questions and hypotheses may be posed. RQ H1: How important is food for airline customers? Food is an important factor for airline travelers.

H2:
H3: H4:

Travelers value branded food.

Travelers prefer larger food portions, but with consistent quality. Travelers prefer exotic food.

Research Design: Definition

A research design is a framework or blueprint for conducting the marketing

research project. It details the procedures

necessary for obtaining the information needed to structure or solve marketing research problems.

A Classification of Marketing Research Designs

Fig. 3.1

Research Design
Conclusive Research Design Descriptive Research Cross-Sectional Design Single CrossSectional Design Longitudinal Design Causal Research

Exploratory Research Design

Multiple CrossSectional Design

Exploratory & Conclusive Research Differences

Table 3.1
Objective: Characteristics:

Exploratory
To provide insights and understanding Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and nonrepresentative. Analysis of primary data is qualitative Tentative Generally followed by further exploratory or conclusive research

Conclusive
To test specific hypotheses and examine relationships Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative

Findings/ Results: Outcome:

Conclusive Findings used as input into decision making

Potential Sources of Error in Research Designs

Fig. 3.2
Total Error Non-sampling Error Response Error Non-response Error

Sampling Error

Researcher Error
Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error

Interviewer Error

Respondent Error
Inability Error Unwillingness Error

Respondent Selection Error Questioning Error Recording Error Cheating Error

Marketing Information System

A Structured, interacting complex of persons, machines and procedures designed to generate an orderly flow of pertinent information, collected from both intra and extra firm sources, for use as the basis for decision making in specified areas of marketing management.

Value of Information in Decision Making

1. Decision Tree

2. EMVPI = EMV ( C ) -

EMV ( UC )

Marketing Research Proposal

Executive Summary Background Problem Definition/Objectives of the Research Approach to the Problem Research Design Fieldwork/Data Collection Data Analysis Reporting Cost and Time Appendices

Evaluation and Control of Marketing Research

1. 2. 3. 4. 5. 6. 7.

Check List Flow Chart Gnatt Chart PERT Technique Advisory Committee Marketing Research Audit Budget Control

Case Study
1. Discuss the role that MR can play in helping Dell maintain and build on its leadership position in the personal computers market. What problem-identification research should Dell undertake? What problem-solving research should Dell undertake?

2. 3.

4.

Define the management decision problem facing Dell as it seeks to maintain and build on its leadership position in the market.
Define an appropriate MR problem corresponds to your definition of management decision problem. that the

5.

6.

Formulate three research questions, with one or more hypothesis associated with each.