The Marketing Research Process

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation SlidesChapter ThreeThe Marketing Research Process2Marketing Research 12th Edition Overview of Marketing Research ProcessWhy should we do research? What research should be done? Is it worth doing the research? How should the research be designed to achieve the research objectives?What will we do with the research? 3MR Process Evolves From Answers to Five Key Questions:Marketing Research 12th Edition 4Marketing Research ProcessMarketing Research 12th Edition Step 1- Research PurposeProblem or opportunity analysisWhich problems or opportunities are anticipated?What is the scope of the problems and the possible reasons?Evaluation of decision alternativesWhat are the alternatives being studied?What are the criteria for choosing among the alternatives?What is the timing or importance of the decision?Users of Research resultsWho are the decision makers?Are there any covert purposes?5Marketing Research 12th Edition Problem or Opportunity AnalysisWhat Do Today’s Buyers Want?Today’s Buyers are:SkepticalCautiousTired of selling and sales pressureBusyConfused6Marketing Research 12th Edition SOURCE: findmorebuyers.com/page.cfm/11, January 2003.Decision AlternativesFor research to be effective, it must be associated with a decision.A most useful way to clarify the decision motivating the research is to ask:What alternative actions are being considered?What actions would be taken, given the various feasible outcomes of the research?The researcher and decision maker need to discuss all possible criteria in advance, and choose those that are appropriate.Timing and importance are always pivotal issues in the research process.7Marketing Research 12th Edition Research Users—Decision MakersThe major benefit from making an effort to reach all the decision makers is;To get the research purpose specified more adequately. To absorb a good deal about the resources that are available to deal with the problem. 8Marketing Research 12th Edition Step 2 - Research ObjectiveA statement of what information is neededResearch objective should be framed to ensure information obtained will satisfy research purpose9Components of research objectives: Research Question Development of Hypotheses Research Scope / BoundariesMarketing Research 12th Edition Research QuestionAsks what specific information is required to achieve the research purpose10Sample questions to determine if a specific advertisement should be run: Will the advertisement be noticed? Will it be interpreted accurately? Will it influence attitudes?Marketing Research 12th Edition Hypothesis DevelopmentA hypothesis is a possible answer to a research question.Generating a hypothesisDraw on previous research effortsBorrow from other disciplines such as:PsychologySociologyMarketingEconomicsManager’s experience with related problems, coupled with knowledge and the use of judgment11Marketing Research 12th Edition 12Research Objective Theory Management experience Exploratory researchResearch QuestionResearch PurposeResearch DesignSourceHypothesis Development (Contd.)HypothesisMarketing Research 12th Edition Step 3 - Estimating the Value of InformationValue depends on:Importance of decisionUncertainty that surrounds itInfluence of research information on the decision13Marketing Research 12th Edition 14Case BCase A$ 1 million-$ 2.5 millionSuccessFailureIntroduceIntroduceDo not introduceDo not introduceIllustrative Decision Models$0$0$ 1 million-$ 2.5 millionSuccessFailureFailureIntroduceIntroduceDo not introduceDo not introduce$0$0$ 4 million$ 4 millionMarketing Research 12th Edition 0.60.40.60.4The International Marketing Research ProcessMarketing research process is consistent for both domestic and international marketsVariety of market environments affect international marketing research process Major Environmental Forces Influencing International MarketingResearch Process:Economic Environment Social-cultural EnvironmentPolitical and Legal Environment Technological, Multimedia and Infrastructural Facilities 15Marketing Research 12th Edition The International Marketing Research Process (Contd.)To avoid mistakes:Profile your target customers and clientsInterview target segments to assess how well they match your preconceived ideasHire local researchers Use a variety of methods (Qualitative and quantitative methods) to get a well-rounded pictureLook at the findings and analyze what must be done differently, abroad or internationally, in comparison with current domestic marketing activities16Marketing Research 12th Edition Framing Research Questions in an International EnvironmentPossible questions an international marketing researcher might ask to gather information on questions that will help management narrow the possibilities for international marketing activities;Do opportunities exist for entry into foreign markets?Which foreign markets warrant detailed investigation?What are the major economic, political, legal, and other environmental facts in each potential country?What mode of entry does the company plan to adopt?What is the market potential in these countries?Who are the firm’s present and potential customers?What is the nature of competition in the foreign market?What kind of marketing strategy should the firm adopt?17Marketing Research 12th Edition 18End of Chapter Three