Role of Marketing Research -Management Decision Making

Prof. Rushen Chahal

Prof. Rushen Chahal

The Nature of Marketing

Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing Concept

Prof. Rushen Chahal

Marketing Research Defined

Marketing research is the function of linking the consumer, customer, and public to the marketer through information. Also, the planning, collection, and analysis of data relevant to the marketing decision making and the communication of the results of this analysis to management.
The Marketing Research Association:

Prof. Rushen Chahal

The Marketing Research Impact

Its Importance to Management - Three Critical Functions

Descriptive:
The gathering and presenting of statements of fact;

Diagnostic:
The explanation of data or actions;

Predictive:
The specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision.

Prof. Rushen Chahal

Return on Quality
Ensuring Managements Continued Support

1. The quality being delivered is at a level desired by the target market;

2. The quality level must have a positive impact on profitability.

Prof. Rushen Chahal

Marketing Strategy

A plan to guide the long-term use of a firms resources based on its existing and projected internal capabilities and on projected changes in the external environment. The development of the means by which the firms will position itself in the eyes of the consumer. Marketing research will enable the firm to determine the best course of action to meet the strategic objectives of the firm.
Prof. Rushen Chahal

Types of Research Studies

Research aimed at solving a specific pragmatic problem such as a better understanding of the marketplace, determining why a strategy or tactic failed, or reducing uncertainty in management decision making.

Research aimed at expanding the frontiers of knowledge rather than for solving a specific problem. Research done for research sake. Universities, and other grant recipients, often conduct basic research. Sometimes called pure research.

Prof. Rushen Chahal

Types of Applied Research Studies

Research conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitudes and predict usage studies;

Programmatic

Selective

Research used to test decision alternatives;

Evaluative

Research done to assess program performance.

Prof. Rushen Chahal

Decision to Conduct Marketing Research

Weighing the Pros and Cons

Its not always a good idea or in the best interest of the business to conduct marketing research. Reconsider conducting marketing research under the following circumstances:

 The resources are lacking  The research results might not be useful  The opportunity has passed  The decision has already been made  Managers cannot agree on what they need to know to make a decision  Decision-making information already exists  The research cost outweighs the benefits of the research  You do not have the time to do the research right  The research results will likely only be shelved
Prof. Rushen Chahal

The Internet
Its Impact on Marketing Research

The Internet Impact:

Enables rapid access to information Fosters easier executing of follow-up and longitudinal studies Enables management to respond quickly to customers needs Can dramatically reduce data collection costs One can quickly publish, report, disseminate research results Has transformed secondary data collection Enables personalization of surveys & increase response rates Facilitates quick survey response/analysis capabilities Produces higher response rates Ability to contact the hard-to-reach

Prof. Rushen Chahal

The Internet
Its Impact on Marketing Research

Advantages/Disadvantages of Internet Surveys:

Rapid development and real time reporting Dramatically reduced costs Ability to personalize and tailor the study General higher response rates Ability to reach hard to reach Ability to change the research focus quickly Results might not be representative of the population Ease of use might lead to over-surveying your audience Not everyone has Internet access or good connection speed

Prof. Rushen Chahal

Marketing Research Ethics

Click to go the the Marketing Research Association for information on marketing research ethics

Moral principles or values generally governing the conduct of an individual or group.

Ethics is not a one-way relationship as all parties are responsible for maintaining and fostering ethical standards and conduct.

If you are concerned about a research supplier, contact research associations to vet suppliers.
Prof. Rushen Chahal

Marketing Research Ethics

Low ball pricing; Underpaying field services; Allowing bias/subjectivity; Abusing respondents; Misleading clients on costs, etc.; Selling unnecessary research; Violating client confidentiality.
Prof. Rushen Chahal

Marketing Research Ethics

Issue a bid when supplier has already been selected; Solicit free advice under the guise of a bid request; Make false promises to the researcher; Issue unauthorized requests for proposals; Withhold information the research supplier needs.

Prof. Rushen Chahal

Marketing Research Ethics

Over report hours worked; Falsify data or analysis; Use professional respondents; Overlook properly validating the data; Use others research as original work; Overstate qualifications; Provide staged references.
Prof. Rushen Chahal

Respondents Rights
The Respondent Has the Right to:
Choose whether to participate in the research; Withdraw from the research at any time; Be in a safe environment during the research; Be informed as to what the research is about; Be granted privacy of the research results if promised; Get compensated for participation when offered.

Prof. Rushen Chahal

Issues in Research Professionalism

A style of research in which zealous political supporters deride one candidate to lead voters to support the other candidate. Biased polling techniques skew respondents answers. Poll

Process by which research can attaining professional standing among research authorities as being qualified.
Prof. Rushen Chahal

Problem Definition, Exploratory Research, and the Research Process

Prof. Rushen Chahal

The Problem Definition Process

Can the problem become opportunity?

Recognize the problem or opportunity Find out why the information is sought Understand the decision making environment

Any suspect motives?

Examine cultural & bureaucracy issues

Determine cause & effect relationships

Use the symptoms to help clarify the problem Translate mgt. problem to marketing research problem

Mgt. support is key

Have you researched other research?

Determine whether the information already exists

Are the objectives doable / realistic? Include timetable and responsible party

Determine whether the question can be answered State the research objectives

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Understanding the Decision Making Environment

Situation Analysis
Know the environment & market Conduct SWOT analysis Assess the competitive position Review regulatory issues Define business scope Establish competitive advantages Map targeted segments Set performance objectives Product & channel discussions Communication decisions Determine pricing approach Promotional mix decisions Performance monitoring Refine approach Change strategy as necessary Revamp programs as necessary

Strategy Development

Marketing Program Development

Implementation

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The Decision Making Environment

Exploratory Studies
Exploratory Studies Defined Preliminary research conducted to increase understanding of a concept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied.

Define Terms Clarify Problems Develop Theories Establish Priorities Gain General Information

Pilot Studies Focus Groups Case Analyses Secondary Data Concept Testing Depth Interviews Taste Tests Experience Surveys

Prof. Rushen Chahal

Key Methods

Purpose

Making the Transition:

Frame the Argument in Terms of a Marketing Research Problem
A statement specifying the type of information needed by the decision maker to help solve the management decision problem and how that information can be obtained efficiently and effectively.

Marketing Research Problem

A goal statement defining the specific information needed to solve the marketing research problem.

Management Problem Becomes a Marketing Research Problem:

Management Decision Problem

Marketing Research Objective

A statement specifying the type of managerial action required to solve the problem.

Prof. Rushen Chahal

The Marketing Research Process:

Understanding the Research Design
Does it involve hypothesis or just a statement?
Exploratory, descriptive, causal, planning, implementing, controlling

Problem definition and statement of objectives Creation of the research design Choice of research method

Primary/secondary - survey, focus groups, experiments, etc.

Probability vs. nonprobability, sample size Telephone, mail, mall intercept, Internet, etc.

Sampling selection / plan

Data collection

Level & scope must be determined early

Data analysis

Determine format, font, layout, PPTs, etc.

Were recommendations followed? Is more research needed ?

Write and present the research report Follow-up

Prof. Rushen Chahal

Research Design Defined:

The plan to be followed to answer the marketing research objectives. It is the detailed blueprint used to guide the research study towards its objectives including what and how you will conduct the research study.

Prof. Rushen Chahal

Research Hypothesis Vs. Research Statement

A Research Hypothesis:
A conjectural statement about a relationship between two or more

variables that can be tested with empirical data. A claim, or argument about your theory of what is causing X that you will research to prove or disprove:
Sales are declining because of competition

A Research Statement:
A remark about what the researcher wants to learn without

making a claim about what might be causing the issue at hand.

Sales are declining. problem to find out. We dont know why, so lets research the

Prof. Rushen Chahal

Creating the Research Design

Descriptive Studies

Descriptive research studies answer the what, where, when and how questions. It is used when one wants to gain a better understanding of the specifics or details of the market. Determining marketing trends, brand loyalty, customer profiles are key applications of descriptive research.

Confirm Theories Brand Loyalty Measure Describes Population Build Customer Profile Gain Specific Information

Key Methods
Prof. Rushen Chahal

Purpose

Secondary Data Cross sectional Surveys Longitudinal Surveys Statistical Data Analysis

Survey Types
Cross Sectional and Longitudinal Approaches

Cross Sectional Surveys:

Are one time snapshots of population; Use the same survey & different sample.

Longitudinal Surveys:
Identify market trends; Use the same survey & same sample; Use tracking panels & groups.
Prof. Rushen Chahal

Creating the Research Design

Causal Studies

Research studies that examine whether the value of one variable causes or determines the value of another variable.

Key Methods
Prof. Rushen Chahal

Confirm Theories Identify Cause & Effect Relationships Among Variables

Surveys Experiments Time Sequence Secondary Data Systematic Elimination

Purpose

Creating the Research Design

Causal Studies Dependent Variable: A symbol or concept expected to be explained or influenced by the independent variable. One affects the dependent variable by manipulating independent variables.

Independent Variable: A symbol or concept over which the research has some control and that is hypothesized to cause or influence the dependent variable.
Prof. Rushen Chahal

Creating the Research Design

Causal Studies
Concomitant Variation: The degree to which a presumed cause and a presumed effect occur or vary together.

Temporal Sequence: An appropriate causal order of events.

Spurious Association: A relationship between a presumed cause and a presumed effect that occurs as a result of an unexamined variable or set of variables.

Prof. Rushen Chahal

Choosing the Research Method

Which Way is Best? Observation Research: Typically descriptive research that monitors respondents actions. Survey Research: Research in which an interviewer interacts with respondents to obtain facts, opinions, and attitudes. Experiments: Research to measure causality, in which the researcher changes one or more variables and observes the effect of the changes on another variable.

Other Qualitative Research: Research such as focus groups, interviews, secondary analysis, and case studies.
Prof. Rushen Chahal

Collecting the Data

Two Key Sampling Types

Probability Sampling:
A subset of the population that can be assumed to be a representative cross section because every element in the population has a known non-zero chance of being selected.

Non-probability Sampling:
A subset of the population in which the chances of selection for the various elements in the population are unknown.

Prof. Rushen Chahal

What do Clients Want?

Maintenance of client confidentiality; Researcher honesty & integrity; Punctuality - on time with results & meetings; Flexibility - ability to change research direction; Delivering against project specifications; Provides high-quality output; Is responsive to the clients needs; Has high quality-control standards; Is customer oriented in client interactions; Keeps the client informed throughout the project;
Prof. Rushen Chahal

Managing the Research Process

Data quality management; Cost management; Keeping the project on time; Client profitability management; Ensuring research process integrity; Selecting the right research suppliers; Customer service - client relations, being responsive.
Prof. Rushen Chahal

Managing the Research Process

Expand sampling; Change the screening criteria; Increase incentives; Retrain research staff; Redo research steps; Upgrade secondary data analysis; Adjust the interview schedules; Increase the budget; Hire expert consultants to follow project.
Prof. Rushen Chahal