MKT500 Test 1 Notes PDF

Week 1 - Why do research? (Chapters 1 & 2) Why do research? ● Do you agree or disagree with Jobs? Why? ● ● Assumption #1: Marketing research is about asking people to create a new product! ○ INCORRECT! Assumption #2: Marketing research cannot capture what people need but don’t have! ○ INCORRECT!...

Week 1 - Why do research? (Chapters 1 & 2) Why do research? ● Do you agree or disagree with Jobs? Why? ● ● Assumption #1: Marketing research is about asking people to create a new product! ○ INCORRECT! Assumption #2: Marketing research cannot capture what people need but don’t have! ○ INCORRECT! Why do research? ● Fun fact: Steve Jobs was known to eavesdrop on his customers. According to lore, he world lurk around the apple store in Palo Alto, peering in windows and squatting in the bushes. ○ This is an observational study! ● APPLIED RESEARCH VS BASIC RESEARCH ○ Applied Research ■ Specific ■ (Often) Unpublished ■ Funded by Company ■ Self-regulated ethics ○ Basic Research ■ Generalized ■ Published ■ Funded by institutions (e.g. university) or the government ■ Tri-Council Panel of Research Ethics (in Canada) ○ Why do applied research if basic research is enough ■ Basic is not specific enough for a company ■ A company's target, product, place, price and promotions might be different from the generalized target, product, place, price and promotions ■ For example: ● Finding: Engaging in promotional sales every 3 months can improve sales! ● Question: Does this necessarily apply to Apple? Why or why not? ○ No because, Apple products are worth a lot and are high end products. While promotional sales could be for a $10 t-shirt. So making promotions for a $1000 product every 3 months might actually decrease profit and apple products sell themselves, they do not need promotions. Why do research? ● Applied Research ● ○ Supply-Side (External) Researchers Research Steps: What we will explore this semester 1. Step 1: Establish the need for research 2. Step 2: Define the ‘problem’ 3. Step 3: Establish research objectives 4. Step 4: Establish research design 5. Step 5: Identify information types & sources 6. Step 6: Determine data access method 7. Step 7: Design data collection forms 8. Step 8: Determine sample plan & size 9. Step 9: Collect data 10. Step 10: Analyze data 11. Step 11: Prepare & Present Report Week 2 - Asking the Right Questions (Chapter 3) ● 11 steps of mkt research ○ Chapter 3 will cover ■ Step 1: Establish the need for research ■ Step 2: Define the ‘problem’ ■ Step 3: Establish research objectives Imagine a doctor’s office ● Nurse: What seems to be the problem? Patient: My stomach hurts Nurse: No problem, Here is some anti-acid. ● How does this differ from how you would expect a doctor to interact with their patient? ○ Nurse would ask: Previous experience with stomach issues? When did this start?Any changes in your diet recently? Have you been experiencing heightened stress? Any family history of heart attacks? ○ Why would the nurse ask these questions? ■ Because they need to figure out what the problem is first and asking the right questions can help figure out the problem. ● Conclusion: Just treating the symptoms is not a great idea! ○ Not effective for eliminating the underlying problem ○ Too broad to identify the ‘problem’ without digging in further ● How does this apply to the research process? ○ Researcher: What seems to be the issue? ○ Symptom: ■ We didn’t make as much money with Product X as we wanted! ■ We sold Product X way more than expected! ○ What tools does the researcher and the company have at their disposal to investigate what the ‘problem’ is? ■ (Hint: think of MKT100 – how do we analyze a ‘situation’?) SWOT Analysis ○ Researcher and Management ■ Is there a simple explanation? ● Brainstorm possible reasons for the symptom ■ Do we have more information at our disposal? ● Check company data )i.e., secondary research) ■ What else could be going on? ● Conduct SWOT analysis for a broad perspective and collect data yourself ● But hold on, let’s take a step back. When would the company even want/need research? ○ Patient: My stomach hurts ■ Does the patient always go to a doctor’s office when they have stomach ache? ■ What are some factors in this decision? ○ Should I devote the time to do a doctor’s visit and for tests? ○ Should I devote the money to do a doctor’s visit and the tests? ○ Is the issue significant/persistent enough? How does this apply to the research process? ● Management ○ Before beginning the process, the company must identify: ■ Does the company have time/resources to devote to gathering more information? ■ Are costs > benefits? ■ Is there already enough information without having to engage in research? ● In general, more information is better than less information, but… ○ Opportunity costs ■ Money ■ Time ■ Personnel ■ Access ○ Research shortcuts => Questionable data => Bad decisions? ○ What value does the information you could get provide? ○ Would more information lead to a different outcome? ● You may not need to go through all the steps of research if… ○ You already know what decision alternative makes sense/is required ○ 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 the information gained from research. ○ The importance of the decision does not outweigh the ‘costs’ of the research. ○ The company lacks the resources, more broadly, to conduct research. Recap 1. Symptom Appears: Symptoms are changes in the level of some key monitor that measures the achievement of an objective. For example: Sales are down, Customer complaints are up and Inventory levels are inconsistent 2. The need for research is established: Looking at the symptom (or, in some cases, after defining the problem), we can assess whether more information is necessary and whether the benefits outweigh the costs. 3. The ‘managerial’ problem is identified: ● From symptom to the problem. ● The problem is not always bad! It is just something we do not understand how to handle and respond to yet. 4. The ‘managerial’ decision arises: ● Based on the problem, what type of conundrum does the management have? What marketing action do we believe might help resolve the problem? ● Note: Steps 3 and 4 can be informed from each other. ● Some characteristics of ‘managerial decisions’ ○ Should not be too narrow or too broad: ■ Too narrow – typically no need for research (or need more Qs) ● “Will regular Starbucks customers pay an extra $0.25 for their coffee?” ■ Too broad – unanswerable by research because there are too many possible alternatives ● “How can we increase our sales?” ○ A choice (or combination of choices) to change thing(s) that will take advantage of/address the opportunity/problem Mini-Test 1. Which one of the following should be considered THE LEAST when establishing the need for research? a. Amount of time before a managerial decision must be made b. Relative monetary cost of conducting research to the cost of making the wrong decision c. Whether or not you have internal resources for research (i.e., the ability to conduct research in-house) 2. Which one best describes a ‘problem statement’? a. Will clearly identify the problem/opportunity being faced b. Will summarize the symptoms faced by the company c. Is a goal-oriented statement that specifies information needed. d. Is only relevant when dealing with negative issues. 3. Which one best describes the role of the SWOT analysis? a. Is conducted after the problem is defined to specify research objectives. b. Helps identify when the data needs to be gathered. c. Helps identify the problem. d. Determines the need for research. Case Study ● Let’s think like a manager ● Situation: Your company delivers groceries and a meal plan to customers. They recently spent $8mn on an advertising campaign. The commercials ran nationally on YouTube, promoting a new ‘dishes from around the world’ package. ● Early numbers indicate that (a) there were no appreciable changes to sales levels and (b) brand awareness measures remained fairly consistent. ○ What are some possible explanations for these outcomes? (i.e., possible problems) ■ Maybe it would take time to see results ■ Youtube premium, skips ads ■ Takes time for something to trends ■ Platform may be the issue ■ Used only one platform ■ Might be reaching just kids ○ What are some things you’d want to clarify before getting worried? ■ See the demographics ○ If you were to engage in primary research, what information would you want to have? ○ Given the situation, and the likely problem, what decision alternatives would make sense? ■ Only on youtube, need to invest into multiple channels ■ Ads could not be seen ■ If audience is young, then they would not be able to view the ads ■ Ad can be ineffective to reaching the target audience ■ Alternatives ● Product bad ○ Take it off the market or update the product? Define the Research Objective(s): From the problem to required information ● DEFINITIONS ○ Managerial Problem: a situational overview, a description of the current situation. ○ Managerial Decision: a statement that describes the particular choice to be made - “what does management need to do?” ○ Marketing Research Problem: “what information is needed and how should it be obtained in order to make the best decision?” 5. Identify the Marketing Research Objective (or Research Questions): ● Based on the managerial decision to be made, what information do we need and how should we get it? 5. Identify the Marketing Research Objective (or Research Questions): (continued) What is the difference? ● Based on the managerial decision to be made, what information do we need and how should we get it? ● Managerial decision vs Research objective What is the focus? ● What constructs do I want to measure? Recap: How to Define the Research Objective(s) 1) Specify from whom information is to be gathered 2) Specify what information is needed 3) Specify the unit of measurement used to gather the information (e.g., ‘liking’ or ’attitude’) Week 3 - Finding the Right Research Design & Secondary Data Collection (Chapters 4 and 5) 11 Steps of MKT Research ● Step 4: Establish research design ● Step 5:Identify information types & sources ● Step 6: Determine data access method Research Design ● Each research objective requires its own research design ○ The research design flows through the RQ *i.e., research objectives): ○ Exploration 1. Understand Sentiment: What is the public opinion (past and current) about Millennial pink and its association with brands? ○ Description and/or casual 2. Identify Appeal for Product Category: Whether and to what extent do Millennials (existing customers and previous customers) prioritize product color in their purchase decisions for the product category? 3. Identify Willingness to Switch Back: Would incorporating the Millennial pink in the design encourage Millennial consumers to switch back? 4. Assess Brand Consistency: Would the inclusion of Millennial pink fit with existing brand image and messaging? ● Exploration is reserved for questions that tell you “I don’t yet know what I don’t know” 1. Understand Sentiment: What is the public opinion (past and current) about Millennial pink and its association with brands? ● This leads to: 1. I don’t yet know the type of sentiments/opinions that exists out there! ○ Define terms/constructs 2. I don’t yet understand the background of the Millennial pink ○ Gain Background Information 3. Without knowing the terms and constructs, I don’t have a clear prediction ○ Clarify problem/prediction & prioritie ● ● Quantitative research is reserved for when you know what you don’t know Identify Appeal for Product Category: Whether and to what extent do Millennials (existing customers and previous customers) prioritize product color in their purchase decisions for the product category. This leads to 1. I know what I don’t know (prioritization of color in purchase decisions) a. Ask consumers to rank or rate important attributes for their purchase decision (Description) b. Examine whether/to what extent changing product color impacts purchase decisions (Causal) ● Secondary Data - When do we want/need it? Primary vs Secondary Data Primary vs Secondary Data: An Analogy Primary vs. Secondary Data: The Reality Types of Secondary Data Week 4 - Qualitative Research (Exploration!) (Chapter 6) 11 Steps of Marketing Research ● Step 4: Establish research design ● Step 5: Identify information types & sources ● Step 6: Determine data access method Qualitative (vs. Quantitative) Research When to Conduct Qualitative vs. Quantitative Research? When to Conduct Qualitative vs. Quantitative Research? Mixed Methods Approach 1. Qualitative BEFORE Quantitative: 2. Qualitative AFTER Quantitative: 3. Qualitative AND Quantitative: Recapping and Elaborating Types of Qualitative Research ● ● ● Primary Data: Direct Observation ○ Observing people in real time! Secondary Data: Archival Sources ○ Example 1: Exploring newspaper titles throughout the last century to understand the evolution of people’s sentiments toward marijuana ○ Example 2: Objects that remain now to provide us a gateway into the past. ■ E.g., Examining artifacts from 2000 years ago to make sense of people’s lives at that time! Secondary Data: Online Behaviors ○ Quick exploration of behaviors in online forums and social media platforms. ○ Likes, shares, views, click through rates, purchase tendencies Types of Qualitative Research: Observation Types of Qualitative Research Focus Groups, In-depth Interviews, and Case Studies Week 5 - Quantitative Research Describe a Situation and Establish Causality (Chapters 4 and 7) 11 Steps of Mkt Research ● Step 4: Establish research design ● Step 5: Identify information types & sources ● Step 6: Determine data access method Quantitative Research: Descriptive vs. Causal Descriptive Studies: How to administer surveys Descriptive Studies: Secondary Data Descriptive Studies: ‘Qualitative’ Data Descriptive Studies Option a is the correct answer. Option (b) suggests a causal relationship between dog ownership and an increased likelihood of getting COVID-19, which is a strong and potentially misleading statement. The word "increases" implies causation, and making such a claim would require rigorous scientific evidence and studies to establish a direct link between dog ownership and COVID-19 transmission. Option (a) is a more cautious and scientifically sound statement, indicating a positive correlation between dog ownership and COVID-19 cases, which may or may not imply causation. Correlation does not necessarily prove causation and allows for a more accurate representation of the findings without making strong claims about causality. Recap: Descriptive Studies 1) The ability to generalize the findings beyond the study (# of observations are high and representative) 2) Captures the key concepts being measured, along with the inherent variance (i.e., can show relationships) 3) Uses a sufficient, representative sample size (larger than exploratory research) 4) You need to have foreknowledge of what you want to measure and describe (i.e., I know what I don’t know) 5) (If using surveys): Relies on preset, structured questions and response options to gather the information Descriptive vs. Qualitative Casual Research Causal Research: Experiments Causal Research: Experiments Types of Experiments How to conduct experiments Lab vs. Field Studies