Marketing Research Ninth Edition, Global Edition PDF

Marketing Research Ninth Edition, Global Edition Chapter 3 The Marketing Research Process and Defining the...

Marketing Research Ninth Edition, Global Edition Chapter 3 The Marketing Research Process and Defining the Problem and Research Objectives Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objectives In this chapter you will learn 3.1 The steps of the marketing research process 3.2 The importance and process of defining the problem 3.3 How to formulate research objectives 3.4 What an action standard is and why it can be helpful 3.5 The components of the marketing research proposal Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Figure 3.1 Steps in the Marketing Research Process Step 1: Establish the need for marketing research Step 2: Define the problem Step 3: Establish research objectives Step 4: Determine research design Step 5: Identify information types and sources Step 6: Determine methods of accessing data Step 7: Design data collection forms Step 8: Determine the sample plan and size Step 9: Collect data Step 10: Analyze data Step 11: Communicate the insights. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Where We Are 1. Establish the need for marketing research. 2. Define the problem. 3. Establish research objectives. 4. Determine research design. 5. Identify information types and sources. 6. Determine methods of accessing data. 7. Design data collection forms. 8. Determine the sample plan and size. 9. Collect data. 10. Analyze data. 11. Communicate the insights. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Marketing Research Process: Caveats to a Step-By-Step Process The “Step-by-Step Process” – Not always presented as an 11-step process – Not all studies use all 11 steps – Few studies follow the steps in order Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 1: Establish the Need for Marketing Research (1 of 3) Is there a real need for marketing research? Research takes time and costs money Cost of information may outweigh value of information Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 1: Establish the Need for Marketing Research (2 of 3) Is there a real need for marketing research? Marketing research is not always needed. We often have the information Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 1: Establish the Need for Marketing Research (3 of 3) When is marketing research Not needed? The information is already available The timing is wrong to conduct marketing research Funds are not available for marketing research Costs outweigh the value of marketing research Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Table 3.1 Research Is Not Always the Best Solution Research might not be the best Circumstances to consider solution when… The information is already available Can we obtain the information from past studies? Can we get the information from internal reports from the marketing intelligence system (MIS)? The timing is wrong Do we need to act immediately to remain competitive? Is the product at the end of its life cycle? Costs outweigh the value Have we conducted a cost benefit analysis? What is the marketing return on investment of the market research project? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 2: Define the Problem The need to make a decision requires decision alternatives. If there are no alternatives, no decision is necessary. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 3: Establish Objectives Research objectives state what the researchers must do. Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 4: Determine Research Design Exploratory Research: collecting information in an unstructured and informal manner. Descriptive research: research that describes the phenomena of interest. Causal studies: attempt to uncover what factor or factors cause some event. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 5: Identify Information Types and Sources Primary information: information collected specifically for the problem at hand Secondary information: information already collected Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 6: Determine Methods of Accessing Data Secondary data is relatively easy to access Primary data is more complex Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 7: Design Data Collection Forms (1 of 2) The questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents. If a focus group is used, a focus group guide must be developed. If we observe respondents, the form is called an observation form. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 7: Design Data Collection Forms (2 of 2) Software programs are available to assist marketing researchers in preparing data collection forms. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 8: Determine Sample Plan and Size A sample is drawn from an entire group or population. The sample plan describes how each sample element, or unit, is to be drawn from the total population. Gives you representativeness! Sample size refers to determining how many elements of the population should be included in the sample. Gives you accuracy! Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 9: Collect Data Researchers aim to minimize this possibility by undertaking a control referred to as validation. Companies that specialize in data collection are referred to as field service firms. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 10: Analyze Data Data analysis involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Step 11: Communicate the Insights Communicating the results, the last step, is one of the most important phases of marketing research. Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Defining the Problem Problems are situations calling for managers to make choices among decision alternatives. Defining the problem is the most important step in the marketing research process. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Figure 3.2 Process for Defining a Problem Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Research Objective (1 of 2) Research objectives are specific and tell the researcher exactly what information must be collected to solve the problem by facilitating selection of an alternative. They are goal-oriented statements or questions that specify what information is needed. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Research Objective (2 of 2) Specify from whom information is to be gathered Specify what information is needed Specify the unit of measurement used to gather information Word questions used to gather information using the respondents’ frame of reference Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Table 3.3 Formulating Research Objectives as Statements or Questions Problem Statement: The American Red Cross wishes to increase the number of American university students who donate blood each year. Formulating Research Objectives as Formulating Research Objectives as Questions Statements To determine what college students see as the What do college students see as the benefits of benefits of donating blood donating blood? To determine what college students see as the What do college students see as the obstacles to obstacles to donating blood donating blood? To identify the incentives that would encourage What incentives would encourage students to students to donate blood donate blood? To distinguish the types of promotions that are What types of promotions are most likely to attract most likely to attract college students college students? To identify how the information defined from the How does the information defined from the previous statements varies according to the previous questions vary according to the characteristics of college students, including characteristics of college students, including gender, class standing, type of university gender, class standing, type of university attended, attended, domestic versus international student, domestic versus international student, and and geographical region. geographical region? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Hypotheses and Constructs Hypotheses are statements that are taken as true for the purposes of argument or investigation. A construct is an abstract idea or concept composed of a set of attitudes or behaviors that are thought to be related. – What is the unit of measurement? – What is the proper frame of reference? Variables are elements of constructs that can be measured or quantified Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Action Standards An action standard is a predesignation of some quantity of a measured attribute or characteristic that must be achieved for a research objective for a predetermined action to take place. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Table 3.2 Sample Key Performance Indicators (KPIs) Marketing Objectives Sample KPIs Brand awareness Ad recall, unique visitors, comments, referrals, retail traffic Engagement Likes, shares, blog comments, net promoter score, bounce rate Sales Market share, marketing penetration, orders, revenue, growth, conversion Return on investment Customer acquisition cost, marketing return on investment, customer lifetime value Quality control Returns, complaints, review scores Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Market Research Proposal The marketing research proposal serves as the basis of a contract as it documents what the marketing researcher proposes to deliver to the client for some consideration, typically a fee. When a client first contacts a marketing research supplier to conduct research, the client will generally request a proposal prior to agreeing to work with the firm in a process called an invitation to bid (ITB) or request for proposal (RFP). Copyright © 2020 Pearson Education Ltd. All Rights Reserved.