role of marketing research -management decision making

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Role of MarketingResearch -Management

Decision Making

Prof. Rushen Chahal

Prof. Rushen Chahal



Marketing: ³The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services tocreate exchanges that satisfy individual and organizational objectives.´

The Nature of Marketing

MarketingConcept

Prof. Rushen Chahal



M arketing research is the function of linking the consumer, customer, and public to the

marketer through information.

Also, the planning, collection, and analysisof data relevant to the marketing decisionmaking and the communication of the resultsof this analysis to management.

M arketing research is the function of linking the consumer, customer, and public to the

marketer through information.

Also, the planning, collection, and analysisof data relevant to the marketing decisionmaking and the communication of the resultsof this analysis to management.

Marketing Research Defined

The Marketing Research Association:

Prof. Rushen Chahal



Descriptive:The gathering and presenting of statements of fact;

Diagnostic:The explanation of data or actions;

P redictive:The specification of how to use descriptive and diagnostic research to

predict the results of a planned marketing decision.

The Marketing Research Impact Its Importance to Management - Three Critical Functions

Prof. Rushen Chahal



Return on Quality E nsuring Management¶s Continued Support

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

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

Prof. Rushen Chahal



A plan to guide the long-term use of a firm¶s 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.

M arketing research will enable the firm to determine the best course of action to meet the strategic objectives of the firm.

A plan to guide the long-term use of a firm¶s 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.

M arketing research will enable the firm to determine the best course of action to meet the strategic objectives of the firm.

Marketing Strategy

Prof. Rushen Chahal



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

Research aimed at expanding the frontiersof knowledge rather than for solving aspecific problem . Research done for

research sake. U

niversities, and other grant recipients, often conduct basicresearch . S ometimes called ³pure´research .

Types of Research Studies

Prof. Rushen Chahal



Types of Applied Research Studies

P rogrammatic

S elective

Evaluative

Research conducted to develop marketing options through marketsegmentation, market opportunity analyses, or consumer attitudesand predict usage studies;

Research used to test decision alternatives;

Research done to assess program performance .

Prof. Rushen Chahal



I t¶s not always a good idea ± or in the best interest of the business ± toconduct marketing research . Reconsider conducting marketing researchunder the following circumstances:

The resources are lackingThe research results might not be usefulThe opportunity has passedThe decision has already been madeManagers cannot agree on what they need to know to make a decisionDecision-making information already existsThe research cost outweighs the benefits of the researchYou do not have the time to do the research rightThe research results will likely only be shelved

Decision to Conduct Marketing ResearchW eighing the Pros and Cons

Prof. Rushen Chahal



Enables rapid access to information

Fosters easier executing of follow-up and longitudinal studiesEnables management to respond quickly to customers¶ needsCan dramatically reduce data collection costsOne can quickly publish, report, disseminate research resultsHas transformed secondary data collectionEnables personalization of surveys & increase response rates

Facilitates quick survey response/analysis capabilitiesP roduces higher response ratesAbility to contact the hard-to-reach

The Internet Impact:

The Internet Its Impact on Marketing Research

Prof. Rushen Chahal



Rapid development and real time reportingDramatically reduced costsAbility to personalize and tailor the studyGeneral higher response ratesAbility to reach hard to reachAbility to change the research focus quickly

Results might not be representative of the populationEase of use might lead to over-surveying your audience Not everyone has Internet access or good connection speed

A dvantages/Disadvantagesof Internet Surveys:

The Internet Its Impact on Marketing Research

Prof. Rushen Chahal



Moral principles or values generally governing the conductof an individual or group .

Ethics is not a one-way relationship as all parties areresponsible for maintaining and fostering ethical standardsand conduct .

I f you are concerned about a research supplier, contactresearch associations to vet suppliers .

Click to go the the M arketing Research Association for information on marketingresearch ethics

Marketing Research Ethics

Prof. Rushen Chahal



Low ball pricing;U nderpaying field services;Allowing bias/subjectivity;Abusing respondents;Misleading clients on costs, etc . ;

S elling unnecessary research;Violating client confidentiality .

Low ball pricing;U nderpaying field services;Allowing bias/subjectivity;Abusing respondents;Misleading clients on costs, etc . ;

S elling unnecessary research;Violating client confidentiality .


Prof. Rushen Chahal



I ssue a bid when supplier has already been selected;S olicit free advice under the guise of a bid request;Make false promises to the researcher;

I ssue unauthorized requests for proposals;

Withhold information the research supplier needs.

I ssue a bid when supplier has already been selected;S olicit free advice under the guise of a bid request;Make false promises to the researcher;

I ssue unauthorized requests for proposals;

Withhold information the research supplier needs.


Prof. Rushen Chahal



Over report hours worked;Falsify data or analysis;

U se professional respondents;Overlook properly validating the data;

U se others¶ research as original work;Overstate qualifications;

P rovide staged references .

Over report hours worked;Falsify data or analysis;

U se professional respondents;Overlook properly validating the data;

U se others¶ research as original work;Overstate qualifications;

P rovide staged references .


Prof. Rushen Chahal



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 .

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 .

The Respondent Has the Right to:

Respondents¶ Rights

Prof. Rushen Chahal



Issues in Research P rofessionalism

A style of research in which zealous politicalsupporters deride one candidate to lead voters to

support the other candidate.

Biased polling techniquesskew respondents¶ answers .

P rocess by which research can attaining professionalstanding among research authorities as being qualified .

P oll

Prof. Rushen Chahal



P roblem Definition,Exploratory Research, and

the Research P rocess

Prof. Rushen Chahal



The P roblem Definition P rocess

Recognize the problem or opportunity

Find out why the information is sought

U nderstand the decision making environment

U se the symptoms to help clarify the problem

Translate mgt . problem to marketing research problem

Determine whether the information already exists

Determine whether the question can be answered

S tate the research objectives

C an the problembecome opportunity?

Any suspect motives?

Examine cultural &bureaucracy issues

Determine cause &effect relationships

M gt. support is key

Have you researched other research?

Are the objectivesdoable / realistic?

Include timetable and responsible party

Prof. Rushen Chahal



Implementation

S ituation Analysis

S trategy Development

Marketing P rogramDevelopment

K now the environment & market C onduct SWOT analysisAssess the competitive positionReview regulatory issues

Define business scopeEstablish competitive advantages M ap targeted segmentsSet performance objectives

Product & channel discussionsC ommunication decisionsDetermine pricing approachPromotional mix decisions

Performance monitoring Refine approachC hange strategy as necessaryRevamp programs as necessary

U nderstanding the Decision Making Environment

Prof. Rushen Chahal



P ilot S tudiesFocus GroupsCase Analyses

S econdary DataConcept TestingDepth InterviewsTaste TestsExperience S urveys

P u r p o s e

K e y M

e t h o d sDefine TermsClarify P roblemsDevelop Theories

Establish P rioritiesGain General Information

Preliminary research conducted to increase understanding of aconcept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied.

Preliminary research conducted to increase understanding of aconcept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied.

Exploratory S tudies Defined

The Decision Making Environment Ex ploratory Studies

Prof. Rushen Chahal



Making the Transition: Frame the A rgument in Terms of a Marketing Research Problem

Management P roblemBecomes a Marketing

Research P roblem:

MarketingResearchP roblem

MarketingResearchObjective

ManagementDecisionP roblem

A statement specifying the type of information needed by the decisionmaker to help solve the management decision problem and how that information can be obtained efficiently and effectively.

A goal statement defining the specificinformation needed to

solve the marketing research problem.

A statement specifying thetype of managerial actionrequired to solve the problem.

Prof. Rushen Chahal



The Marketing Research P rocess:U nderstanding the Research Design

P roblem definition and statement of objectives

Creation of the research design

Choice of research method

S ampling selection / plan

Data collection

Data analysis

Write and present the research report

Follow-up

Does it involve hypothesisor just a statement?

Exploratory, descriptive, causal, planning, implementing, controlling

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

Probability vs. non- probability, sample size

Telephone, mail, mall intercept, Internet, etc.

Level & scope must be determined early

Determine format, font, layout, PPTs, etc.

Were recommendations followed? Ismore research needed ?

Prof. Rushen Chahal



The plan to be followed to answer the

marketing research objectives.

It is the detailed blueprint used to guidethe research study towards its objectives

including what and how you will conduct the research study.

Research Design Defined:

Prof. Rushen Chahal



Research Hypothesis Vs. Research Statement

A Research Hypothesis:

A conjectural statement about a relationship between two or morevariables that can be tested with empirical data . A claim, or argument about your theory of what is causing ³X´ that you willresearch to prove or disprove:

³Sales are declining because of competition´

A Research Statement:

A remark about what the researcher wants to learn ± withoutmaking a claim about what might be causing the issue at hand .

³Sales are declining. We don¶t know why, so let¶s research the problem to find out.´

Prof. Rushen Chahal



Creating the Research Design Descriptive Studies

S econdary DataCross sectional S urveysLongitudinal S urveys

S tatistical Data Analysis

Confirm TheoriesBrand Loyalty Measure

DescribesP

opulationBuild Customer P rofileGain S pecific Information

Descriptive research studies answer the ³what, 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.

Descriptive research studies answer the ³what, 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.

P u r p o s e

K e y M e t h o d s

Prof. Rushen Chahal



Survey TypesCross Sectional and Longitudinal A pproaches

Cross Sectional Surveys :

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

L ongitudinal Surveys:

Identify market trends;Use the same survey & same sample;Use tracking panels & groups.

Prof. Rushen Chahal



Creating the Research DesignCausal Studies

P u r p o s e

K e y M e t h o d s

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

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

Confirm TheoriesIdentify Cause & EffectRelationships Among Variables

S urveysExperimentsTime S equenceS econdary DataS ystematic Elimination

Prof. Rushen Chahal



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 somecontrol and that is hypothesized to cause or influence thedependent variable .


Prof. Rushen Chahal



Concomitant Variation:

The degree to which a presumed cause and a presumed effect occur or varytogether .

Temporal Sequence:

An appropriate causal order of events .

Spurious Association:

A relationship between a presumed cause and a presumed effect that occursas a result of an unexamined variable or set of variables .


Prof. Rushen Chahal



Choosing the Research MethodW hich W ay is Best?

S urvey Research: Research in which aninterviewer interacts withrespondents to obtain facts,opinions, and attitudes.

Observation Research:Typically descriptive

research that monitorsrespondents¶ actions.

Experiments:

Research to measure causality, inwhich the researcher changes one or more variables and observes theeffect 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 DataTwo Key Sampling Types

P robability 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-zerochance of being selected .

Non-probability Sampling:

A subset of the population in which thechances of selection for the various elements inthe population are unknown .

Prof. Rushen Chahal



Maintenance of client confidentiality;Researcher honesty & integrity;

P unctuality - on time with results & meetings;Flexibility - ability to change research direction;Delivering against project specifications;

P rovides high-quality output;I s responsive to the client¶s needs;Has high quality-control standards;

I s customer oriented in client interactions;Keeps the client informed throughout the project;

Maintenance of client confidentiality;Researcher honesty & integrity;

P unctuality - on time with results & meetings;Flexibility - ability to change research direction;Delivering against project specifications;

P rovides high-quality output;I s responsive to the client¶s needs;Has high quality-control standards;

I s customer oriented in client interactions;Keeps the client informed throughout the project;

W hat do Clients W ant?

Prof. Rushen Chahal



Data quality management;Cost management;Keeping the project on time;Client profitability management;Ensuring research process integrity;

S electing the right research suppliers;Customer service - client relations, being responsive .

Managing the Research P rocess

Prof. Rushen Chahal



Expand sampling;Change the screening criteria;

I ncrease incentives;Retrain research staff;Redo research steps;

U pgrade secondary data analysis;Adjust the interview schedules;I ncrease the budget;Hire expert consultants to follow project .

Managing the Research P rocess

Prof. Rushen Chahal

role of marketing research -management decision making

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