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MARKE TI NG

RES EAR CH

Power Point Slides by Ronald J. Shope in collaboration with John W. Creswell


MA RKETI NG RESE ARCH

• Marketing Research is the


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

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Burns and Bush Definition)

• Marketing research is the process of


designing, gathering, analyzing, and
reporting information that may be used
to solve a specific marketing problem

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AMA definition

• Marketing research: the function that links


the consumer, customer, and public to
the marketer through information –
information used to identify and define
marketing opportunities and problems;
generate, refine, and evaluate marketing
actions; monitor marketing performance;
and improve the understanding of
marketing as a process.

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Market Research vs. Marketing
Research
• Market research: the “systematic
gathering, recording, and analyzing of
data with respect to a particular market,
where ‘market’ refers to a specific group
in a specific geographic area.”

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What are the uses of
Marketing Research?
• Identify marketing opportunities and
problems
• Generate, refine, and evaluate
potential marketing actions
• Monitor marketing performance
• Improve marketing as a process

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MARKETING RESEARCH
PROCESS

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Define the problem and
research objectives
The formulation of the problem is
often more essential than its
solution.”

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The Importance of Properly
Defining the Problem
• Properly defining the problem is the
most important step in the marketing
research process.
• If the wrong problem is defined, all the
remaining steps in the marketing
research process are wrong.

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Define the Problem

• Two sources of problems:


– A problem exists when a gap exists
between what was supposed to happen
and what did happen, i.e., failure to meet
an objective.
– An opportunity occurs when there is a gap
between what did happen and what could
have happened…called an opportunity.

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–Focusing on uncovering the nature and
boundaries of a situation or question related
to marketing strategy or implementation
Determining what information is needed and how
that information can be
obtained efficiently and effectively.

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The degree of decision certainty influences
Problem Definition & Type of Research

Uncertain Aware Certain


(VAGUE)

Exploratory Descriptive Casual


Research Research Research

Three major types of research studies


Power Point Slides by Ronald J. Shope in collaboration with John W. Creswell
Uncertainty Influences the
Type of Research
Degree of Problem Definition
Exploratory Descriptive Causal
Research
(Unaware of Problem) (Aware of Problem)
(Problem Clearly Defined)

“Our sales are declining “What kind of people


“Will buyers purchase Specific
AMBIGUITY
.& we don’t
Certainty
know why? are buying our product? our product in
a new ?
package?
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Marketi ng Re sea rch Process
Step 1. Defining the Problem & Research
Objectives

Exploratory
Research Gathers preliminary information
Small scale surveys, that will help define the problem
focus groups, interviews and suggest hypotheses

Descriptive Describes things such as market


Research potential for a product, consumer
Larger scale surveys, attitudes, actual behavior
observation, etc.

Causal Tests hypotheses about cause-


Research and-effect relationships
Experiments
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II- develop the research plan

• Steps in research plan development :


– Determine specific information needs

• Data sources
• Research approaches
• Research instrument
• Sampling plan
• Contact methods
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Primary Versus Secondary
Data
• Primary data:
• information that
is developed or gathered
by the researcher
specifically for research
project at hand.
• Secondary data: information
that has previously been gathered by someone
other than the researcher and/or for some
other purpose than the research project at
hand. Educational Research 2e: Creswell
Classification of Secondary
Data
• Internal secondary data are data that
have been collected within the firm such
as sales records, purchase requisitions,
and invoices.
– Internal secondary data is used for
database marketing.
Data

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Types of Secondary Data
Internal Data – Internal
databases (files, records,
reports, etc.)
Database: Sales records
Records Fields Scanner data
Sales reports

Data mining
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External Secondary Data

• Published: are sources of information


prepared for public distribution and
normally found in libraries or a variety of
other entities such as trade
organizations.

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SECONDARU DATA
COLLECTION
• INTERNET:
• WWW now greatest repository of information
the world has seen.
• Secondary sources of data on line

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Table 5-1: Secondary-Data Sources

Secondary- A. Internal Sources


Data Sources Company profit-loss statements, balance
sheets, sales figures, sales-call reports,
invoices, inventory records, and prior research
reports.
C. Government Publications
• Statistical Abstract of the United States
• County and City Data Book
• Industrial Outlook
• Marketing Information Guide
H. Periodicals and Books
• Business Periodicals Index
• Standard and Poor’s Industry

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Categories of Research

• Quantitative research: research


involving the use of structured
questions in which response options
have been predetermined and a large
number of respondents involved
• Qualitative research: research involving
collecting, analyzing, and interpreting
data by observing what people do and
say

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Research approaches

• Primary data can be collected in five


ways.
• Observation
• Focus group
• Survey
• Behavioral data
• experiment

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Observation Techniques

• Observation methods: techniques in


which the researcher relies on his or her
powers of observation rather than
communicating with a person in order to
obtain information

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Focus Groups

• Focus groups are small groups of


people( six to ten) brought together and
guided by a moderator through an
unstructured, spontaneous discussion
for the purpose of gaining information
relevant to the research problem

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Focus Groups

• The moderator’s task is to ensure that


open discussion is “focused” on some
area of interest.
• Focus groups are used to generate
ideas, to learn the respondents’
“vocabulary,” to gain some insights into
basic needs and attitudes.

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survey

• A survey is gathering of primary data


by asking people question about their
knowledge. Attitude,preferences and
buying behavior.

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Behavioral data

• Purchasing behavior can be seen by


store scanning data, catalog purchase
record, customer data base.

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Experiment research

• The gathering of primary data by


selecting matching group of subjects,
giving them different treatment,
controlling related factors, and checking
for differences in group responses.
• It tries to explain cause and effect
relationship.

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Research instruments

• Two main instrument in collecting


primary data
• Questionnaire
• Mechanical devices

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What is a Questionnaire

• A questionnaire is the vehicle used to


pose the questions that the researcher
wants respondents to answer.

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• Questionnaire design is a systematic
process in which the researcher
contemplates various question formats,
considers a number of factors
characterizing the survey at hand,
ultimately words the various questions
very carefully, and organizes the
questionnaire’s layout.

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Types of questionnaire

• Open-ended questions :Respondents


express opinions, ideas, or behaviors in their
own words.
• This captures the “voice” of respondents.

• Closed-end or fixed alternative questions


:The simplest form of a fixed alternative
question is the dichotomous question, which
allows only a “yes” or “no” response

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Mechanical instruments:

• Mechanical devices are used in


marketing research.
• Eyes camera study respondent eye
movements to see where their eyes
land first and how longer they linger on
a given item?
• An audiometer is attached to television
set in participating homes to record
when the set is on and to which channel
it is tuned.
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Marketi ng Re sea rch Process
Step 2. Develop the Research Plan
- Primary R esearch (p p. 157 )

• Sampling Plans

Who is to be
surveyed?
“sampling Sample = How should
unit” the sample be
representative chosen?
segment of the
relevant “sampling
procedure”
population
How many
should be
surveyed? NOTE: Typo on Table
“sample size” 5.4 –

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Corrected on next slide
Sa mpli ng pl an
• A segment of population
selecting for marketing
research to represent the
population as whole.
– Population—all the
elements, units, or
individuals of interest to
researchers for specific
study
– Sample—a limited number
of units chosen to
represent the
characteristics of a total
population
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• Sampling unit: who is to be served?
• Define the target population that will be
sampled.
• Sample size:how many people should
be served?
• Sampling procedure: how should the
responded be chosen?
• Probability and non probability sample
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Probability sample
• Probability sample –
• each population member has a known
chance of being included in the sample

• Simple random sample – every member of the population has a


known and equal chance of selection

• Stratified random sample – the population is divided into mutually


• exclusive groups (e.g., age groups), and random samples are
drawn from
• each group

• Cluster (area) sample – the population is divided into mutually


exclusive
• groups (e.g., blocks), and the researcher draws a sample of the
groups to
• interview
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Nonprobability sample

• Convenience sample – the researcher selects


easiest population members
• from which to obtain information

• Judgment sample – the researcher uses his/her


judgment to select
• population members who are good prospects for
accurate information

• Quota sample – the researcher finds and interviews


a prescribed number of
• people in each of several categories
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Contact method

• Mail
• Telephone
• Personal
• On line interviews

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Step III- collect the
information
• At this stage the researcher is ready to go into the field and
collect data

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Analyze the information

• Extract finding from collected data


• Tabulate the data and develop
frequency distribution.
• Averages are computed for major
decision
• Use advance statistical and techniques
and decision models in discovering
additional findings.
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Present the Findings

• After the data are analyzed, the researcher must


draw conclusions from the findings and present the
findings in a comprehensible manner.
• When summarizing and presenting a research
project, the best guide is to keep it simple and
‘accessible’ to the reader of the report.
• The temptation for the researcher is often to rely too
heavily on statistics and this can very rapidly lose the
attention and interest of the client.
• Oral presentation
• Written Report

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• Probability samples: ones in which
members of the population have a
known chance (probability) of being
selected into the sample
• Non-probability samples: instances in
which the chances (probability) of
selecting members from the population
into the sample are unknown

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Contact method

• Mail questionnaire :
• Personal interviewing

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