MARKETING RESEARCH [PRELIM].pdf

UNIVERSITY OF STO. TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION MM BSBA Major in Marketing Management CHAPTER 1: THE ROLE OF MARKETING RESEARCH AND THE ○ Effective marketing management...

UNIVERSITY OF STO. TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION MM BSBA Major in Marketing Management CHAPTER 1: THE ROLE OF MARKETING RESEARCH AND THE ○ Effective marketing management requires research. RESEARCH PROCESS Mastercard used marketing research to introduce and gain trust, acceptance and adoption of PromptPay (new mobile MARKETING RESEARCH payment technology) in rural Thailand ○ The function that links the consumer, customer and public ○ Marketing research helps fulfill the marketing manager’s to the marketer through information that identifies and need for knowledge of the market, leading to better defines marketing opportunities and problems; generates, outcomes. refines and evaluates marketing actions; monitors marketing performance; and improves the understanding THE MANAGERIAL VALUE OF MARKETING RESEARCH FOR of marketing as a process.’ STRATEGIC DECISION 1. Identifying and evaluating opportunities ○ The systematic and objective process of generating 2. Analyzing segments and selecting target markets information to aid decision-making through: 3. Planning and implementing a marketing mix specifying the information required to address 4. Analyzing market performance managerial decision-making designing the method/s for collecting information WHEN IS MARKETING RESEARCH NEEDED? managing and implementing the data-collection process analyzing the results communicating the findings and their implications. THE DYNAMIC NATURE OF MARKETING RESEARCH MARKETING RESEARCH IN THE TWENTY-FIRST CENTURY Global marketing research Marketing research has become increasingly global Companies that conduct business in foreign countries must understand the nature of those particular markets BASIC RESEARCH AND APPLIED RESEARCH Communication technologies Advancement in technology has changed the way people connect with one another, and BASIC RESEARCH APPLIED RESEARCH acquire, share and distribute information, which is the essence of marketing research Expand the limits of knowledge Conducted when a decision and to learn more about a must be made about a specific certain concept real-life problem MARKETING RESEARCH IN THE TWENTY-FIRST CENTURY Not necessarily aimed at Aimed to understand and Increased globalization Communication solving a particular problem answer questions about technologies specific problems Marketing research has The way people connect Verify the acceptability of a Undertaken to make decisions become increasingly global (acquiring, sharing and given theory about particular courses of distributing information) with action or policies Companies that conduct one another in real time business in foreign countries provides a vast amount of data must understand the nature of those particular markets and Marketing research (data customize their activities accessibility) potential as well accordingly as data privacy and security concerns STAGES IN THE RESEARCH PROCESS THE VALUE OF MARKETING RESEARCH 1 I @nicoleemartha  UNIVERSITY OF STO. TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION MM BSBA Major in Marketing Management The systematic inquiry of research requires careful planning of an effective?’ orderly investigation 1. DEFINING THE PROBLEM Note: The degree of uncertainty of the research problem determines the research methodology The research process begins with problem discovery. Often, only symptoms of the problem may be 2. PLANNING THE RESEARCH DESIGN apparent. ○ A master plan specifies the methods and Example: sales may be declining, but procedures for collecting and analyzing the management may not know the exact nature of needed information (i.e., a framework for the the problem. research plan of action). ○ The researcher must determine the sources of a. Problem definition stage information, the design technique, the sampling The stage in which management seeks to methodology, the schedule and the cost of the identify a clear-cut statement of the problem or research. opportunity. Allows the researcher to set the ○ Different methods and techniques are chosen proper research objectives. for exploratory, descriptive or causal research design. ○ An orderly definition of the research problem lends a sense of direction to the investigation A. EXPLORATORY RESEARCH Every marketing problem can be classified on a ○ Initial research conducted to clarify and define a continuum ranging from complete certainty to problem, gain insights and discover new ideas absolute ambiguity ○ It is not intended to provide conclusive evidence ○ Generally qualitative, but expectation is that subsequent research will be required to provide conclusive evidence. Narrowing of the research scope by: ○ investigating any existing studies on the subject ○ Statement of research objectives ○ talking with knowledgeable individuals and After identifying and clarifying the problem, the experts researcher should make a formal statement of ○ informally investigating the situation the problem and the research objectives. The best expression of a research objective is a Exploratory research techniques: well-formed, testable research hypothesis. a. Secondary data A hypothesis is a statement that can be refuted b. Pilot studies or supported by empirical (numerical) data. c. Case studies d. Experience surveys SELECTION OF BASIC RESEARCH METHOD ○ The level of uncertainty influences the type of research TECHNIQUES: selected a. Secondary data ○ Data previously collected and assembled for some project other than the one at hand EXPLORATORY Descriptive Casual ○ Can be sourced from: RESEARCH research research (ambiguous (partially (problem the company, library, Internet problem) defined clearly firms specializing in providing data (ABS, EIU) problem) defined) literature reviews of journals and books published reports and industry white papers. POSSIBL ‘Our sales are ‘What kind of ‘Will buyers E declining, and we people are purchase ○ Gathered more quickly and inexpensively than primary SITUATIO don’t know why’ buying our more of our data N product? Who product in a ○ Data may be outdated or may not exactly meet research buys our new competitors’ package?’ needs products?’ b. Pilot studies ‘Would people be ‘What features ‘Which of the ○ Collection of data from actual research subjects interested in our do buyers two to serve as a guide for a larger study. new product idea?’ prefer in our advertising ○ Data-collection methods are informal and product?’ campaigns is findings may lack precision. more 2 I @nicoleemartha  UNIVERSITY OF STO. TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION MM BSBA Major in Marketing Management ○ Focus group interview to obtain qualitative ○ Observation methods involve recording behavior information. Sharing of ideas and preferences of without relying on reports from respondents. six to 10 people in a group. ○ Example: the number of cars that pass by a ○ For example, the National Drugs campaign used proposed site for a petrol station. focus groups to identify attitudes and ○ Can be recorded mechanically or observed by motivations of youth towards the use of illicit people. drugs. C. CAUSAL RESEARCH c. Case studies ○ Main goal is to identify cause-and-effect ○ Qualitative research technique that intensively relationships among variables. investigates one or a few situations/entities A typical causal study has similar to the problem situation. management change one variable (for example, advertising) and then d. Experience surveys observe the effect on another variable ○ Interviewing a small group of people who have (such as sales). knowledge (experience) surrounding a particular Exploratory and descriptive research situation or issue. normally precede causal research. Provide initial research direction. ○ Researchers seek certain types of evidence to help them B. DESCRIPTIVE RESEARCH understand and predict relationships. ○ Purpose is to describe characteristics of a No causal relationship exists if there is no population association between two variables Example: Determining who purchases a product, portraying the size of the ○ Marketing experiments (which allow for variable market, identifying competitors’ manipulation and control), such as test marketing, hold the actions etc. greatest potential for causal studies. ○ Seeks to determine the answers to who, what, TECHNIQUES when, where, and how questions a. Experiments - Segmentation and target marketing ○ Experiments can establish cause-and-effect - Revealing the nature of consumer relationships. behavior ○ Experimentation allows investigation of changes in one variable (such as sales) while ○ Descriptive studies are based on some previous manipulating one or two other variables understanding of the nature of the research problem. (perhaps price or advertising) under controlled Note that this is distinct from exploratory research. conditions in order to test a hypothesis. ○ Accuracy is of paramount importance. ○ Experimental control provides a basis for isolating causal factors by eliminating outside, or TECHNIQUES: exogenous, influences. a. Surveys ○ Many companies in the fast-moving consumer ○ Most common method of descriptive research goods industry conduct experiments that simply ○ In this technique, information is gathered from a determine consumer reactions to different types sample of people using a questionnaire of packaging. ○ Research investigators may choose to contact respondents by telephone or mail, on the THE BEST RESEARCH DESIGN? Internet or in person ○ It is argued that there is no single best research design. ○ Each survey method has advantages and ○ There are no hard-and-fast rules for good marketing disadvantages, and researchers need to decide research. on the appropriate method for the data - This does not mean that the researcher faces collection. chaos and confusion. ○ Researchers can choose among many alternative b. Secondary data methods for solving a problem ○ An example of descriptive research using SAMPLING secondary data includes a mathematical model ○ A sample is a subset of a larger population. to predict sales on the basis of past sales. Sampling procedure uses a small number of items or a ○ Generally, the quantitative analysis of secondary portion of the population to make a conclusion regarding data is more sophisticated than that of the whole population. exploratory studies. ○ Results of a good sample should have the same characteristics as the population as a whole. c. Observation 3 I @nicoleemartha  UNIVERSITY OF STO. TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION MM BSBA Major in Marketing Management ○ Researcher determines who is to be sampled, how large a sample is needed and how sampling units will be selected. SAMPLING ISSUES: Three key sampling decisions: 1. Target population - Who is to be sampled? THE RESEARCH PROGRAM STRATEGY 2. Sample size - How big should the sample be? The overall plan to conduct a series of marketing research 3. Sampling method - How should the sampling units be projects selected? Marketing research is not a one-shot activity but a continuous process TECHNIQUES: An exploratory research (e.g., interview, a. Probability sampling: Every member of the population has observation) study may be followed by a a known, non-zero probability of selection descriptive research (e.g., survey) and/or a b. Non-probability sampling: Members of the population are causal research (e.g., market test) activity; selected based on certain judgement criteria of researchers may design specific research researchers projects for each aspect of the marketing mix Management should view marketing research as playing GATHERING DATA important roles at both the strategic planning and ○ Data may be collected by humans or recorded by operational levels machines ○ Many research techniques involve various methods of KEY TAKEAWAYS: data collection Marketing research is the systematic and objective ○ Two phases of data gathering: process of gathering information to aid marketing 1. Protesting: small-scale study on a small subsample to decision-making determine the appropriateness of the research design and Extends to other not-for-proft areas; e.g., informing policy minimise errors planning, health campaigns, road-safely campaigns etc. 2. Main study Similar underlying research process Research skills applicable across different PROCESSING AND ANALYZING DATA contexts and industries Editing and coding At the marketing management level, marketing research Checking the data-collection forms for helps to fine-tune marketing mix decisions. omissions, legibility and consistency in Helps minimise risk and reduce uncertainty when making classification: editing decisions. Developing rules for interpreting, categorizing, Shift risky, intuitive decisions to systematic, recording and transferring the data to the data objective-based decisions. storage media: coding Investments (e.g., marketing dollars spent) are Analysis backed by research evidence derived from data, Application of reasoning to understand the data. ensuring well-informed decisions. Analysis may involve summarising relevant Two classifications of research basic (pure) research vs findings, determining consistent patterns, and applied research statistical analysis. Marketing research may not always be useful DRAWING CONCLUSIONS AND PREPARING A REPORT E.g., urgent decision needed, costs of research Researchers should look at the analysis of information outweigh benefits. collected and ask, “What does this mean to Business and consumer environments are not static but management?” dynamic (and real-time). Consists of interpreting information and making Digital (big, messy data) challenges ahead. conclusions for managerial decisions Research reports should effectively communicate the findings of the research THE RESEARCH PROCESS 4 I @nicoleemartha