Marketing Research for Managers

Determining the Need for Information Research

• Managers often encounter problems that require additional information
• Marketing research can provide a scientific solution to these problems
• The internet and big data have significantly changed the marketing research process
• Big data is unstructured secondary data stored in data warehouses
• Marketing research is now playing a role in strategy development
• Global expansion introduces new cultural challenges
• Research may not be necessary if the problem can be solved using existing information and managerial judgment
• Consider these factors when deciding whether or not to conduct research:
  • Insufficient time
  • Inadequate resources
  • Costs outweighing the value
  • Benefits outweighing the costs
  • If the research will provide useful decision-making feedback
  • If the research will provide valuable insights

Debate: To Research or Not to Research

• Two teams can debate the pros and cons of conducting research
• Team A argues for conducting research, while Team B argues against it

Coffee Bliss Expansion Dilemma

• Coffee Bliss, a successful local coffee shop chain, is considering expanding
• The CEO needs to decide between opening a new location or launching a mobile coffee truck service
• The company has $500,000 set aside for expansion
• Basic foot traffic data for the Seaport District and general information about the food truck industry in Boston are available.
• The marketing team suggests comprehensive market research to determine the best option, costing $50,000 and taking 2 months to complete.
• The CEO needs to decide whether to invest in market research or make a decision based on existing information and intuition.

Overview of the Research Process

• The research process consists of 11 steps:
  • Identify and clarify information needs
  • Define the research questions
  • Specify research objectives
  • Determine the research design and data sources
  • Develop the sampling plan
  • Examine measurement issues and scales
  • Design and pretest the questionnaire
  • Collect and prepare the data
  • Analyze the data
  • Interpret the data to create knowledge
  • Prepare and present the final report
• The scientific method guides these steps
• The primary goal of the research process is to provide decision-makers with knowledge to address problems or pursue opportunities.
• Data becomes knowledge when someone interprets it and attaches meaning.
• Factors that influence the number of steps and their order include:
  • The complexity of the problem
  • The urgency of solving the problem
  • The cost of alternative approaches
  • The need for clarifying information

Determine the Research Problem: Step 1— Identify and Clarify Information Needs

• Agree on the decision maker's purpose for the research.
• The Iceberg Principle: Decision-makers are often only aware of 10% of the information needed.