Introduction To Marketing Research.ppt 1o4p3t

Introduction to Marketing Research

CHAPTER

1

Introduction to Marketing Research

Definition of Marketing Research Marketing research is the systematic and objective  identification,  collection,

 analysis,  dissemination, and  use of information

for the purpose of improving decision making related to the  identification and  solution of problems and opportunities in marketing.

Classification of Marketing Research Problem Identification Research  Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem Solving Research  Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

Figure 1.3 A Classification of Marketing Research

Marketing Research Problem Identification Research

• • • •

Market Potential Research Market Share Research Image Research Market Characteristics Research • Forecasting Research • Business Trends Research

Problem Solving Research

• Segmentation Research

• Product Research • Pricing Research • Promotion Research • Distribution Research

Figure 1.4 The Marketing Research Process

Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

Table 1.1 Honomichl Global Top 25

TOP 25 GLOBAL RESEARCH ORGANIZATIONS Rank 2003 2002 1 2 – – 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

1 – 4 8 2 3 6 7 5 9 11 10 12 13 14 16 17 15 184 194 21 23 25 20 23 – 22

Organization VNU N.V. Taylor Nelson Sofres plc Taylor Nelson Sofres NFO WorldGroup Inc. IMS Health Inc. The Kantar Group GfK Group Ipsos Group S.A. Information Resources Inc. Westat Inc. Synovate NOP World Arbitron Inc. Maritz Research Video Research Ltd.3 J.D. Power and Associates Harris Interactive Inc. Opinion Research Corp. INTAGE Inc.3 The NPD Group Inc. AGB Group Market & Opinion Research Int’l Lieberman Research Worldwide Dentsu Research Inc. Abt Associates Inc. Nikkei Research Inc. Wirthlin Worldwide

Headquarters Haarlem London London Greenwich, Conn. Fairfield, Conn. Fairfield, Conn. Nuremberg Paris Chicago Rockville, Md. London London New York St. Louis Tokyo Agoura Hills, Calif. Rochester, N.Y. Princeton, N.J. Tokyo Port Washington, N.Y. Milan London Los Angeles Tokyo Cambridge, Mass. Tokyo McLean, Va

Parent country

Website

Netherlands U.K. U.K. U.K. U.S. U.K. U.S. U.S. U.K. U.K. U.S. U.S. Japan U.S. U.S. U.S. Japan U.S. Italy U.K. U.S. Japan U.S. Japan U.S.

www.vnu.com www.tns-global.com www.tns-global.com www.tns-global.com imshealth.com www.kantargroup.com www.gfk.com www.ipsos.com www.infores.com www.westat.com www.synovate.com www.nopworld.com arbitron.com maritzresearch.com www.videor.co.jp jdpower.com harrisinteractive.com opinionresearch.com www.intage.co.jp npd.com agb.com www.mori.com Irwonline.com www.dentsuresearch.co.jp abtassociates.com nikkeiresearch.com Wirthlin.com

No. of countries with subsidiaries branch offices1

Global research revenue2 (U.S. $ millions)

Percent of global revenue from outside home country

81 70 54 40 75 61 48 36 18 1 46 6 3 4 4 6 4 6 2 11 19 2 1 1 3 4 4 TOTAL

$3,048.3 1,565.1 1,050.5 514.6 1,381.8 1002.1 673.6 644.6 554.3 381.6 357.7 335.6 273.6 188.8 166.7 144.8 137.0 131.2 122.3 117.6 81.6 64.4 63.2 57.0 54.0 52.1 52.0 $11,651.0

99.0%* 83.5 78.6 93.5 61.1 66.1* 62.8 84.1 30.0 NA 91.3 80.5 2.9 34.9 1.1 17.8 19.0 35.4 1.0 17.7 79.0 2.8 8.7 1.1 4.3 3.5 22.9 67.3%

* Estimated by Top 25 1 Includes countries that have subsidiaries with an equity interest or branch offices, or both. 2 Total revenue that includes nonresearch activities for some companies are significantly higher. This information is given in the individual company profiless 3For fiscal year ending March 2004 4Reranked based on corrected revenue of the NPD Group Inc. See NPD’s profile for details.

Drawn from Marketing News with permission from the American Marketing Association.

Criteria for Selecting a Research Supplier      

What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier have? Has the firm had experience with projects similar to this one?  Do the supplier's personnel have both technical and nontechnical expertise?  Can they communicate well with the client? Competitive bids should be obtained and compared on the basis of quality as well as price.

Careers in Marketing Research  Career opportunities are available with marketing research firms

(e.g., AC Nielsen, Burke, Inc., M/A/R/C)  Careers in business and non-business firms and agencies with in-

house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau)  Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J.

Walter Thompson, Young & Rubicam)  Positions: vice president of marketing research, research director,

assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.

Selected Marketing Research Career Descriptions Research Director

Vice President of Marketing Research •

• Also part of senior management

Part of company’s top

• Heads the development

management team • •

Directs company’s entire market

and execution of all

research operation

research projects

Sets the goals & objectives of the marketing research department

Assistant Director of Research •istrative assistant to director •Supervises research staff

Senior Project Manager • Responsible for design, implementation, & research projects

Selected Marketing Research Career Descriptions Senior Analyst • Participates in the development of projects • Carries out execution of assigned projects • Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection • Prepares final report

Analyst

Statistician/Data Processing

• Handles details in execution of project • Designs & pretests questionnaires • Conducts preliminary analysis of data

• Serves as expert on theory and application on statistical techniques • Oversees experimental design, data processing, and analysis

Junior Analyst

Fieldwork Director

• Secondary data analysis • Edits and codes questionnaires • Conducts preliminary analysis of data

• Handles selection, training, supervision, and evaluation of interviewers and field workers

Preparation for a Career in Marketing Research  Take all the marketing courses you can.  Take courses in statistics and quantitative methods.  Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.  Take courses in psychology and consumer behavior.  Acquire effective written and verbal communication

skills.  Think creatively. Creativity and common sense

command a in marketing research.

Marketing Research Associations Online Domestic AAPOR: American Association for Public Opinion Research (www.aapor.org)

AMA: American Marketing Association (www.ama.org) ARF: The Advertising Research Foundation (www.amic.com/arf) CASRO: The Council of American Survey Research Organizations (www.casro.org) MRA: Marketing Research Association (www.mra-net.org) QRCA: Qualitative Research Consultants Association (www.qrca.org) RIC: Research Industry Coalition (www.research industry.org)

CHAPTER 2

Defining the Marketing Research Problems and Developing an Approach

Figure 2.4 Conducting a Problem Audit History of the Problem Alternative Courses of Action Available to DM Criteria for Evaluating Alternative Courses Nature of Potential Actions Based on Research Information Needed to Answer the DM’s Questions

How Will Each Item of Information Be Used by the DM? Corporate Decision-Making Culture

R k h u V r P o s i c D t m g n M 1 . 2 e l b a T

TABLE 2.1 Management Decision Problem Versus the Marketing Research Problem ______________________________________________________________ Management Decision Problem Marketing Research Problem ______________________________________________________________ Asks what the decision maker needs to do Action oriented

Asks what information is needed and how it should be obtained Information oriented

Focuses on symptoms Focuses on the underlying causes ______________________________________________________________

Management Decision Problem Vs. Marketing Research Problem Management Decision Problem

Marketing Research Problem

Should a new product be introduced?

To determine consumer preferences and purchase intentions for the proposed new product.

Should the advertising campaign be changed?

To determine the effectiveness of the current advertising campaign.

Should the price of the brand be increased?

To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

m l b P c R k a M h t f D n s o E 7 . 2 e r u g i F

Figure 2.7 Errors in Defining the Market Research Problem

Common Errors

Problem Definition is too Broad • Does Not Provide Guidelines for Subsequent Steps • e.g., Improving the Company’s Image

Problem Definition is too Narrow • May Miss Some Important Components of the Problem • e.g. Changing Prices in Response to a Competitor’s Price Change.

Research Questions and Hypotheses  Research questions (RQs) are refined statements of

the specific components of the problem.  A hypothesis (H) is an unproven statement or

proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

Pop Quiz

Question 1. Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information… for the purpose of improving decision making related to problem: (1)____________________ (2)____________________

Question 2. WHAT GOES HERE? Alternative Courses of Action Available to DM Criteria for Evaluating Alternative Courses Nature of Potential Actions Based on Research Information Needed to Answer the DM’s Questions

How Will Each Item of Information Be Used by the DM? Corporate Decision-Making Culture

Answer 1. Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of improving decision making related to the:

 identification and  solution of problems and opportunities in marketing.

Answer 2. History of the Problem Alternative Courses of Action Available to DM Criteria for Evaluating Alternative Courses Nature of Potential Actions Based on Research Information Needed to Answer the DM’s Questions

How Will Each Item of Information Be Used by the DM? Corporate Decision-Making Culture

CHAPTER

3

Research Design

Figure 3.4. A Classification of Market Research Designs D h R k M n o t c f s a l C A 4 . 3 e r u g i F

Research Design

Exploratory Research Design

Conclusive Research Design

Descriptive Research

Cross-Sectional Design

Causal Research

Longitudinal Design

TABLE 3.2 A COMPARISON OF BASIC RESEARCH DESIGNS

Causal

Exploratory

Descriptive

Objective: Discovery of ideas and insights.

Describe market characteristics or functions.

Determine cause and effect relationships.

Character- Flexible. istics: Versatile. Often the front end of total research design.

Marked by the prior formulation of specific hypotheses. Preplanned and structured design.

Manipulation of one or more independent variables. Control of other mediating variables.

TABLE 3.2 (Cont.) A COMPARISON OF BASIC RESEARCH DESIGNS Exploratory Expert surveys Pilot surveys Case Studies Secondary data (qualitative) Qualitative Research.

Descriptive Causal Secondary data Experiments Surveys s. Observational and other data.

h R v u C d y o p x E w t B s c n r f i D 1 . 3 e l b a T

TABLE 3.3 RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL AND CROSS-SECTIONAL DESIGNS Evaluation Criteria Detecting change

Cross-Sectional Longitudinal Design Design +

Large amount of data collection

-

+

Accuracy

-

+

Representative sampling

+

-

Response bias

+

-

Note: A + indicates a relative advantage over the other design whereas a - indicates a relative disadvantage.

Uses of Exploratory Research  Formulate a problem or define a problem more

precisely  Identify alternative courses of action  Develop hypotheses  Isolate key variables and relationships for further

examination  Gain insights for developing an approach to the

problem  Establish priorities for further research

Methods of Exploratory Research  Survey of experts (discussed in Chapter 2)  Pilot surveys (discussed in Chapter 2)

 Secondary data analyzed in a qualitative way

(discussed in Chapter 4)  Qualitative research (discussed in Chapter 5)

Use of Descriptive Research  To describe the characteristics of relevant groups,

such as consumers, salespeople, organizations, or market areas.  To estimate the percentage of units in a specified

population exhibiting a certain behavior  To determine the perceptions of product

characteristics  To determine the degree to which marketing variables

are associated  To make specific predictions

Methods of Descriptive Research  Secondary data analyzed in a quantitative as

opposed to a qualitative manner (discussed in Chapter 4)  Surveys (Chapter 6)  s (Chapters 4 and 6)  Observational and other data (Chapter 6)

Figure 3.5. Major Types of Descriptive Studies d S v t c D f s p y T o j a M 5 . 3 e r u g i F

Descriptive Studies

Consumer Perception And Behavior Studies

Market Characteristic Studies

• Market Potential

• Image

• Distribution

• Market Share

• Product Usage

• Competitive Analysis

• Sales Analysis

• Advertising

Sales Studies

• Pricing

Cross-sectional and Longitudinal Designs  A cross-sectional design involves the collection of

information from any given sample of population elements only once.  In a longitudinal design, a fixed sample (or samples)

of population elements is measured repeatedly on the same variables  A longitudinal design differs from a cross-sectional

design in that the sample or samples remain the same over time

Figure 3.6. Cross Sectional vs. Longitudinal Designs D d L v l a n t c S s o C 6 . 3 e r u g i F

Cross Sectional Design

Longitudinal Design

Time

Sample Surveyed at T1

Sample Surveyed at T1

T1

Same Sample also Surveyed at T2

T2

Uses of Casual Research  To understand which variables are the cause

(independent variables) and which variables are the effect (dependent variables) of a phenomenon  To determine the nature of the relationship between

the causal variables and the effect to be predicted  METHOD: Experiments

Pop Quiz 1. What are the three research designs we discussed in lecture today?

2. Define what each design does.

3. Provide an example for each of the three.

Answer. What are the three research designs we discussed in lecture today? Exploratory Descriptive Causal

CHAPTER

4

Exploratory Research Design Focus: Secondary Data

Primary vs. Secondary Data

Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

TABLE 4.1 t D c S d y P f n s i r p m o C A 1 . 4 e l b a T

A Comparison of Primary and Secondary Data ________________________________________________________________ PRIMARY DATA

SECONDARY DATA

________________________________________________________________ Collection purpose

For problem at hand

Collection process

For other problems

Very involved

Rapid and easy

Collection cost

High

Relatively low

Collection time

Long

Short

_________________________________________________________________

Uses of Secondary Data  Identify the problem  Better define the problem  Develop an approach to the problem  Formulate an appropriate research design (for example, by

identifying the key variables)

 Answer certain research questions and test some

hypotheses

 Interpret primary data more insightfully

Criteria for Evaluating Secondary Data  Specifications: Methodology Used to Collect

the Data  Error:

Accuracy of the Data

 Currency: When the Data Were Collected  Objective(s):

The Purpose for Which the Data Were Collected

 Nature:

The Content of the Data

 Dependability: Overall, How Dependable Are

the Data

D y d c S g n u v E o f t i r C 2 . 4 e l b a T

TABLE 4.2 Criteria for Evaluating Secondary Data Criteria Issues Remarks _________________________________________________________________ Specifications/ Data collection method Data should be Methodology Response rate reliable, valid, Quality of data and generalizable Sampling technique to the problem Sample size at hand. Questionnaire design Field work Data analysis Error/ Examine errors in: Assess accuracy by Accuracy Approach, Research design, comparing data Sampling, Data collection, from different Data analysis, Reporting sources. Currency Time lag between collection Census data are and publication. periodically Frequency of updates updated by syndicated firms

TABLE 4.2 (Continued) Criteria for Evaluating Secondary Data Criteria Issues Remarks _________________________________________________________ _______ Objective

Why were the data collected?

The objective will determine the relevance of data.

Nature

Definition of key variables Reconfigure the Units of measurement data to increase Categories used their usefulness, Relationships examined if possible.

Dependability

Expertise, credibility, reputation and trustworthiness of the source.

Data should be obtained from an original rather than an acquired source.

Internal Secondary Data Department Store Project Sales were analyzed to obtain:  Sales by product line  Sales by major department (e.g., men's wear, house wares)  Sales by specific stores  Sales by geographical region  Sales by cash versus credit purchases  Sales in specific time periods  Sales by size of purchase  Sales trends in many of these classifications were also examined.

Internal Secondary Data Example

Retail Link Dataset

Type of Individual/Household Level Data Available from Syndicated Firms I.

Demographic Data - Identification (name, address, telephone) - Sex - Marital status - Names of family - Age (including ages of family ) - Income - Occupation - Number of children present

- Home ownership - Length of residence - Number and make of cars owned

Demographic Data Example

US Census

http://www.census.gov/

BLS

http://www.bls.gov/

Type of Individual/Household Level Data Available from Syndicated Firms II.

Psychographic Lifestyle Data - Interest in golf - Interest in winter skiing - Interest in book reading - Interest in running - Interest in bicycling

- Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television

Other Syndicated Data Example Edgars

http://www.sec.gov/edgar.shtml

Hoovers

http://www.hoovers.com

WRDS

http://wrds.wharton.upenn.edu

Published External Secondary Data Guides  An excellent source of standard or recurring information  Helpful in identifying other important sources of directories, trade associations, and trade publications  One of the first sources a researcher should consult Directories  Helpful for identifying individuals or organizations that collect specific data  Examples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory Indices  Helpful in locating information on a particular topic in several different publications

A Classification of Computerized Databases b D d z p m n o t c f s a l C A 5 . 4 e r u g i F

Computerized Databases

Intranet

Internet

Special Purpose Databases

Bibliographic Databases Numeric Databases

Offline

Full- Text Databases

Directory Databases

Classification of Computerized Databases  Bibliographic databases are composed of citations to

articles.  Numeric databases contain numerical and statistical

information.  Full-text databases contain the complete text of the

source documents comprising the database.  Directory databases provide information on individuals,

organizations, and services.  Special-purpose databases provide specialized

information.

u o F r e t p a h C

Pop Quiz

What is the difference between primary and secondary data sources?

CHAPTER

5

Exploratory Research Design Syndicated Sources of Secondary Data

Syndicated Services  Companies that collect and sell common pools of data of

known commercial value designed to serve a number of clients  Syndicated sources can be classified based on the unit of

measurement (households/consumers or institutions).  Household/consumer data may be obtained from surveys,

s, or electronic scanner services.  Institutional data may be obtained from retailers,

wholesalers, or industrial firms.

Figure 5.3 A Classification of Syndicated Services v d y S n o t c f s a l C A 3 . 5 e r u g i F

Unit of Measurement

Households/ Consumers

Institutions

Figure 5.4 A Classification of Syndicated Services: Household/Consumers m / h H : v d y S n o t c f s a l C A 4 . 5 e r u g i F

Electronic Scanner Services

Household/Consumers

Consumer s Surveys

Volume Tracking Data

Purchase

Psychographic & Lifestyles

Media Advertising Evaluation General

Scanner s Scanner s with Cable TV

Figure 5.5 Classification of Syndicated Survey Research

Surveys by Syndicated Firms h R v d y S n o t c f s a l C . 5 e r u g i F

Periodic

Psychographic and Lifestyles



Advertising Evaluation

Shared

General

Figure 5.6 Classification of Syndicated Services : Institutions I : v d y S n o t c f s a l C 6 . 5 e r u g i F

Institutions

Retailers

Wholesalers

Audits

Direct Inquiries

Industrial Firms

Clipping Services

Corporate Reports

Table 5.1: Overview of Syndicated Services Type

Characteristics

Advantages

Disadvantages

Uses

Surveys

Surveys conducted at Most flexible way of Interviewer errors; regular intervals obtaining data; respondent errors information on underlying motives

Market segmentation, advertising theme selection, and advertising effectiveness

Purchase s

Households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur

Recorded purchase behavior can be linked to the demographic/ psychographic characteristics

Lack of representativeness; response bias; maturation

Forecasting sales, market share, and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution

Media s

Electronic devices automatically recording behavior, supplemented by a diary

Same as purchase

Same as purchase

Establishing advertising rates; selecting media program or air time; establishing viewer profiles

Table 5.1: Overview of Syndicated Services (Cont.) ) C ( s t c d n y S f o w i r v O 1 . 5 e l b a T

Type

Characteristics

Advantages

Disadvantages

Uses

Scanner Diary s with Cable TV

Scanner s of households that subscribe to cable TV

Data reflect actual purchases; sample control; ability to link data to household characteristics

Data may not be representative; quality of data limited

Promotional mix analyses; copy testing; newproduct testing; positioning

Audit Services

Verification of product movement by examining physical records or performing inventory analysis

Relatively precise information at the retail and wholesale levels

Coverage may be incomplete; matching of data on competitive activity may be difficult

Measurement of consumer sales and market share; competitive activity; analyzing distribution patterns; tracking of new products

Industrial Product Syndicated Services

Data banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reports

Important source of information in industrial firms; particularly useful in initial phases of the projects

Data is lacking in of content, quantity, and quality

Determining market potential by geographic area; defining sales territories; allocating advertising budget

Single-Source Data Single-source data provide integrated information on household variables, including media consumption and purchases, and marketing variables, such as product sales, price, advertising, promotion, and in-store marketing effort.  Recruit a test of households and meter each

home's TV sets.  Survey households periodically on what they read.  Grocery purchases are tracked by UPC scanners.  Track retail data, such as sales, advertising, and promotion.

Review

Primary vs. Secondary

Demographic vs. Psychographic Institutional vs. Consumer/Household