importance, definition and process of market research

HOW DOES RESEARCH FIT INTO THE BROADER SCOPE OF MARKETING MANAGEMENT??

Leading Online Market Research Company in Vietnam

Review of Marketing Management

product price

place

promotion

target

market

The External Environment

CompetitiveEnvironment

TechnologicalEnvironment

NaturalEnvironment

SocialEnvironment

Politicaland Legal

Environment

EconomicEnvironment

MarketingStrategy

CustomerValue andBehavior

The Value of Marketing Research

Reduces risk in decision making

Let’s move away from making decisions based on anecdotal evidence (i.e., information or casual observation that is not based on facts or careful study)

Marketing research is the “function which

links the consumer, customer, and public to

the marketer through information--

information used to identify and define

marketing opportunities and problems;

generate, refine and evaluate marketing

actions; monitor marketing performance;

and improve understanding of m Marketing

research is the “function which links the

consumer, customer, and public to the

marketer through information-information

used to identify and define marketing

opportunities and problems; generate,

refine and evaluate marketing actions;

monitor marketing performance; and

improve understanding of marketing as a

process.”

- American Marketing Association-

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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 of problems and opportunities and solution of problems and opportunities in

marketing.

Marketing Research Defined

7

Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Using Information….

The need for information…

MR focuses on the use of information as a source of strategic advantage

As marketers, we should strive for a thorough knowledge of customers, and their attitudes, tastes, preferences

We should also want to keep an eye on competition (e.g., benchmarking)

This information will help us making strategic marketing decisions (e.g., 4 P’s)

To sum up, the function of marketing research is to provide managers with information

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Marketing Research

Problem /OpportunityIdentification Research

Problem-Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation ResearchProduct ResearchPricing ResearchPromotion ResearchDistribution Research

Users of Market Research

Fortune-500 Firms e.g., Product tweeks, shelf location

Entrepreneurs e.g., Market size, growth potential, viability

And everyone in-between…

Marketing research can tell us…

How our customer service is perceived by our customers and what particular areas we can improve on or emphasize

How customers shop and how we can adjust our atmospherics to maximize sales

What new products or new product features do customers want How customers perceive us in relation to our key competitor (or

do they even recognize us as a key player in the industry) Who our most loyal customers are and how do we cater to this

important segment Who our prototypical customer is How can we segment the market in more manageable groups What marketing communications are most effective at reaching

various segments of the market What is going to be the demand for a new product or an existing

product in a new market Where should we build our next retail location At what price point we can maximize profitability and maintain

consumer demand Which media vehicles will be most effective to communicate our

advertising message Etc.

Project vs. Info Systems

Information Systems Approach (MIS—Marketing Information System) “Ongoing” decision tool Interactive / Non-technical models Database Marketing e.g., Retail Link

Project-Based (the focus of this discussion)

Research $$ are spent on…

THE RESEARCH PROCESS

Leading Online Market Research Company in Vietnam

Just to reemphasize…

Marketing research is the marketer’s link to understanding the consumer and the external environment

The SOLE purpose of marketing research is to inform decisions

Every research project is different...

Step 1: Problem Formulation

A well-defined study begins with a clearly defined objective“The formulation of a problem is often more essential than

its solution” - Albert Einstein The problem is rarely clear-cut Slight variations in research questions can

lead to substantial changes in the research process (so be careful) Drives decisions related to research design,

measurement, sampling, analysis, etc.


Stage in the Process

Typical Questions

Formulate problem • What is the purpose of the study (i.e., to solve a problem? Identify an opportunity?) • Is additional background information necessary? • What are specific research questions and what information is needed to make the decision? • How will the information be utilized?• Has a decision already been made? • Should research be conducted?


Formulate Problem Obesity is the 2nd leading cause of preventable death in

the US What can be done? Can the provision of nutrition information help

consumers make better (healthier) food consumption decisions? (decision problem)

How good (accurate) are consumers at estimating the nutritional content of restaurant foods? and Can providing objective nutrient information improve food evaluation and choice (research problems)

State hypotheses to be tested based on theory Based on Expectancy disconfirmation theory:

H3a: When objective nutrition information is less favorable than consumers’ expect, nutrition information provision will have a greater negative influence on product attitudes and purchase intentions and a greater positive influence on perceived likelihood of weight gain and heart disease.

Step 2: Determine Research Design

Dictated by the problem or research question

Exploratory Research “Discovery”

Descriptive Research “Relationships”

Causal Research Experiments



Typical Questions

Determine research design

• How much is already known?

• Can a hypothesis be formulated?

• What types of questions need to be answered?

• What type of study will best address the research questions?


Determine Research Design Two research problems (questions) require two

designs How good (accurate) are consumers at

estimating the nutritional content of restaurant foods? Simple survey that asks participants to estimate

nutritional content of common restaurant foods Can providing objective nutrient information

improve food evaluation and choice Between-subjects experiment

Step 3: Design Data Collection & Forms

Secondary research – not necessary

Survey Research Lots of ways to collect data

Measurement Constructs / Variables


Stage in the Process Typical Questions

Determine data collection method and forms

Can existing data be used to advantage?

What is to be measured? How?

What is the source of the data?

Can objective answers be obtained by asking people?

How should people be questioned?

Should the questionnaires be administered in person, over the phone, or through the mail?

Should electronic or mechanical means be used to make the observations?

Should structure or unstructured items be used to collect the data?

Should the purpose of the study be made known to the respondents?

Should rating scales be used in the questionnaire?


Design Data Collection and Forms Quantitative data needed Questionnaires with estimations, multi-item

attitudinal/risk/intentions variables

Step 4: Design Sample and Collect Data

Determine your “target market” Determine necessary sample

size Sampling Methodology Logistics Cost Ethics


Stage in the Process Typical Questions

Design sample and collect the data

• Who is the target population?

• Is a list of population elements available?

• Is a sample necessary?

• Is a probability sample desirable?

• How large should the sample be?

• How should the sample be selected?

• Who will gather the data?

• How much supervision is needed?

• What operational procedures will be followed?

• What methods will be used to ensure the quality of the data collected?


Design Sample and Collect Data Adult Sample

Recruited by undergrads Mail panel

Step 5: Analyze and Interpret the Data

Edit / clean / code the data

Analyze

Interprete



Typical Questions

Analyze and interpret the data

• Who will handle the editing of the data?

• How will the data be coded?

• Who will supervise the coding and keypunching?

• What tabulations / statistical tests / analysis techniques will be used?


Analyze and interpret the data Crosstabs and other simple computations ANOVA / MANOVA / Chi-Square Results show that most consumers are

unaware of high levels of calories, fat, saturated fat, and sodium found in many menu items. Provision of nutrition information on restaurant menus could potentially have a positive impact on public health by reducing the consumption of less healthful foods


Know your audience

Sell your findings

Step 7: Prepare Research Report


Typical Questions

Prepare the research report

• Who will read the report?

• What is their technical level of sophistication?

• Are managerial recommendations called for?

• What will be the format of the written report?

• Is an oral report necessary?

• How should the oral report be structured?

Step 7: Prepare Research Report

Prepare Research Report Manuscript prepared for journal submission

Thank you

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importance, definition and process of market research

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