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Market Research - MBA Lecture Notes Presentation - 1

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XMBA564 – Marketing

Research

Part I
Necessary, accurate, reliable, up-to-date information

Marketing
manager
(decision maker)

Why marketing research is important?


Assoc. Prof. Dr. Tuğba Tuğrul
Why is marketing research important to
marketing executives?
Marketing research is important to marketing executives because it gives them
additional information on which to make decisions. Some of that information
includes:

• It discovers trends in the market.


• It measures customer attitudes toward products, services, and advertising.
• It explains what effect changing an element of the marketing mix would have on sales.
• It predicts the results of a planned marketing decision.
• It determines the level of services that customers desire at a given price.

Assoc. Prof. Dr. Tuğba Tuğrul


Descriptive
The gathering and presenting of
The Three statements of fact
females are the primary users of a
particular service

Critical Roles of Diagnostic


The explanation of data or actions
Marketing females prefer certain service features and
are not concerned with the other features

Research Predictive
The specification of how to use descriptive
and diagnostic information to predict the
results of a planned marketing decision
forecast the demand for a product that will
more specifically meet the demands of its
most important constituency, females
Assoc. Prof. Dr. Tuğba Tuğrul
What is Marketing Research?
Assoc. Prof. Dr. Tuğba Tuğrul
Marketing Research is the systematic and objective identification,
collection, analysis and dissemination and use of information for the
purpose of assisting management in decision making related to the
identification and solution of problems in marketing

What is the problem?

How the data should be obtained, from whom


and when?

How the date should be analyzed?

How the findings should be discussed and


presented?

What is Marketing Research?


Assoc. Prof. Dr. Tuğba Tuğrul
Identification of the
problem and statement
of research objectives

Creation of the research


design

Choice of method of
research Marketing Research Process

Selection of the sampling


procedure

Collecting and analyzing


the data

Assoc. Prof. Dr. Tuğba Tuğrul


Market Research versus Marketing Research

Market research is used to collect the information


Marketing
Research Types about the market statistics (eg., current and potential
customers, competitor and sales statistics). Covers only
Market
one of the 4P –place- measures to identify and
research understand consumer preferences.

Advertising
research
Marketing research (eg., advertising effectiveness,
distribution channel partner relations, competitive
Sales
research
strategies). Covers all 4P measures to identify and
understand consumer preferences.
Pricing
research Which one is a branch of the other one?

Distribution
channel research
Assoc. Prof. Dr. Tuğba Tuğrul
Marketing Research versus Marketing Information
Systems
Marketing
Information
System Sources

Marketing
Internal Sources External Sources
Research
Marketing Information System is a system that
analyzes and assesses marketing information,
Market
research gathered continuously from sources inside and
outside an organization.
Advertising
research
Timely marketing information provides basis for
decisions such as product development or
Sales
research improvement, pricing,

Pricing
No need for problem identification and solution
research

Distribution
channel research
Assoc. Prof. Dr. Tuğba Tuğrul
Marketing Research versus Marketing Information
Systems
Marketing
Information
System Sources

Marketing
Internal Sources External Sources
Research

Market
research

Turning data Turning


Gathering into processed
Advertising information
research data data to
periodically (processed ready-to-use
data) data
Sales
research

Pricing
research

Distribution
channel research
Assoc. Prof. Dr. Tuğba Tuğrul
Types of Marketing Research

Usage Aims Technique Time

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research- Usage

BASIC RESEARCH
APPLIED RESEARCH
Expands the frontiers of
knowledge Research aimed at
solving a specific,
For example, to validate pragmatic problem
an existing theory or
learn more about a For example, to
concept or phenomenon determine changes in
the market or to better
understand results of a
decision

How you are going to use research results?


Assoc. Prof. Dr. Tuğba Tuğrul
Applied Research Types

Research conducted to develop marketing


Programmatic options through market segmentation, market
opportunity analyses, or consumer attitude and
product usage studies. Need to review the market
periodically

Some questions that programmatic researchers ask:

• Has the target market changed? How?


• Does the market exhibit any new segmentation opportunities?
• Do some segments appear to be more likely candidates than others for
the firm’s marketing efforts?
• What new product or service opportunities lie in the various segments?

Assoc. Prof. Dr. Tuğba Tuğrul


Applied Research Types
Selective Research used to test decision alternatives. When
multiple opportunities exist, selective research can help
managers make the best decision.

• Testing concepts for new products


• Advertising copy testing

Assoc. Prof. Dr. Tuğba Tuğrul


Applied Research Types

Evaluative Research used to assess program performance.


Need arises when the effectiveness and efficiency of
marketing programs must be evaluated.

• Tracking advertising recall


• Conducting organizational image studies
• Examining customer attitudes on a brand’s quality of service

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research
Exploratory Research

Objective: Discover ideas and insights into and


comprehension of the problem situation confronting
the researcher. Preliminary research.
Aim
Purposes;
Define a problem more precisely
Explore Describe Explain Identify alternative courses of actions
Gain insights for developing an approach to the
problem
Establish priorities for further research

Methods: secondary data qualitative analysis, focus


groups, in-depth interviews, and other qualitative
research

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research
Descriptive research

Objective: describe something-usually market


characteristics or functions. Descriptive research studies
answer the who, what, where, when, and how questions.
Aim
Purposes;
Develop a profile of “heavy users”, market segmentation
Explore Describe Explain Determine the perceptions of product characteristics
Determine the degree to which marketing variables are
related
Make predictions

Methods: secondary data quantitative analysis, survey,


observation

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research
Causal Research

Objective: Obtain evidence of cause-and-effect


(causal) relationships
Aim
Purposes;
Determine which variables are the cause
(independent variables) and which variables are
Explore Describe Explain effect (dependent variables) of a phenomenon
Determine the nature of relationships between the
causal variables and the effect to be predicted

Methods: Experiments

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research

Qualitative Research

Unstructured, exploratory research based


Data collection techniques

on small samples that provides insights


and understanding of the problem setting.
Qualitative
Small number of unrepresentative cases

Quantitative Qualitative Research Methods

1. Focus group
2. In-depth interview
3. Projective techniques

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research

Quantitative Research

A research methodology that seeks to


Data collection techniques

quantify the data and, typically, applies


some form of statistical analysis
Qualitative
Large number of representative cases –
generalize the results from sample to the
Quantitative population of interest

Quantitative Research Methods

1. Survey
2. Observation
3. Experiment
Assoc. Prof. Dr. Tuğba Tuğrul
Types of Marketing Research
Marketing
Research Data
Data collection techniques

Secondary
Primary Data
Data

Qualitative
Qualitative Quantitative

Quantitative
Descriptive Causal

Observational Experimental
Survey data
and other data data

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research

Cross Sectional Designs involve the


collection of information from any given
Time sample of population elements only once

 In single cross sectional design, only


Cross Sectional Longitudinal
one sample is drawn from the target
Design Design pollution, and information is obtained
from this sample only once.

Single Cross Multiple Cross  In multiple cross sectional design,


Sectional Design Sectional Design
there are two or more samples, and
information from each sample is
obtained at only once.

Assoc. Prof. Dr. Tuğba Tuğrul


Types of Marketing Research

Longitudinal Designs involves the


collection of information from a fixed
Time sample (samples) at different points in
time.

Cross Sectional Longitudinal


Detect trends and changes
Design Design Large amount of data collection

Single Cross Multiple Cross


Sectional Design Sectional Design

Assoc. Prof. Dr. Tuğba Tuğrul


Marketing Research Process
Identification of
the problem and
statement of PROBLEM: Why our market share is decreasing?
research
objectives
OBJECTIVE: To know why this is happening
Creation of the
research design Research design: Exploratory research

Research method: Qualitative research such as focus group


Choice of method of
research Product manager, brand manager, other employees
customers, marketing intermediaries

Selection of the
sampling procedure

Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Translate management problem to marketing research problem
Making the Transition

A statement specifying the type


of managerial action required
to solve the problem.
Management
Decision A goal statement defining
Problem the specific information
needed to solve the
marketing research
Marketing problem.
Marketing
Research
Research
Problem
Problem
Marketing
Research
Objective
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.

2-9
Marketing Research Process
Identification of
the problem and
statement of PROBLEM: Our product’s market share is decreasing. We
research
objectives think that this is happening because our customers want the
latest technology products. Thus, we want to develop a new
product, and want to know what should be the features of this
Creation of the
research design product?

Translate management problem to marketing research


Choice of method of
problem
research
OBJECTIVE : Determine the key factors that impact
customers purchase decisions in that product category
Selection of the
sampling procedure
Research design: Descriptive research

Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Use the symptoms to help clarify the problem

A symptom is a phenomenon that occurs


because of the existing of something else.

Declining sales revenue may be an outward symptom of


1) poor positioning strategy,
2) possible pricing problem,
3) a promotional strategy error, or
4) a product/service that is not competitive.

“What caused this to occur?


Marketing Research Process
Identification of
the problem and
statement of PROBLEM: Our product’s market share is decreasing
research
objectives
Researcher: Why do you think this is happening?

Creation of the Manager: Our customers prefer new technologies and our products technology
research design is relatively old

Researcher: Why your customers prefer the latest technology products?

Choice of method of Manager: They are more easy-to-use


research
Researcher : Are your products difficult to use?

Manager : I don’t think so.


Selection of the
sampling procedure Researcher : Is there any customers feedback about the difficulty of your
products usage?

Manager : No but they generally say that the quality level is getting lower
Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Marketing Research Process
Identification of
the problem and
statement of
research
objectives PROBLEM: Our product’s market share is decreasing.

OBJECTIVE: Why our customers think that our products’


Creation of the
research design quality is decreasing?

Research design: Exploratory research


Choice of method of
research

Selection of the
sampling procedure

Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


applying the concepts #1

Assoc. Prof. Dr. Tuğba Örten Tuğrul


Marketing Research Process
Identification of
the problem and
statement of
research
objectives
Primary data, new data gathered to help solve the particular
problem under investigation.
Creation of the
research design
Secondary data, information that has already been gathered
and might be relevant to the problem at hand.
Choice of method of
research Internal databases and external databases

Selection of the
sampling procedure

Data
Sources
Collecting and
analyzing the data
Secondary
Primary Data
Data
Assoc. Prof. Dr. Tuğba Tuğrul
Marketing Research Process
Identification of
the problem and
statement of
research
objectives
Internal Sources External Sources

Creation of the
research design
• annual reports, • federal, state, and local
• reports to stockholders, departments and agencies
product testing results, • trade and industry
• house periodicals associations
Choice of method of
research • customer reviews and • business periodicals and
feedbacks other news media
• previous marketing research • academic and other
reports companies’ research results
Selection of the
sampling procedure
Information developed from Information developed from
data within the organization data ouside the organization
Collecting and
analyzing the data
Secondary Data Sources
Assoc. Prof. Dr. Tuğba Tuğrul
Marketing Research Process
Identification of
the problem and
statement of
research
objectives

Creation of the
research design
Advantages of
Choice of method of
research
Secondary Data
Selection of the
sampling procedure

Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Marketing Research Process
Identification of
the problem and Advantages of Secondary Data
statement of
research
objectives
 Usually less expensive and faster to gather
 Clarify or redefine the issue or problem during the
Creation of the
research design exploratory research process
 Might provide a solution to a research problem (finding
profitable international markets)
Choice of method of  Might provide primary data research alternatives
research
(adopting well-designed scales- making comparisons of
results)
 Can alert the researcher to other problems (high refusal
Selection of the
sampling procedure rate in a telephone survey and switch to a mail
questionnaire to increase response rate)
 May provide the sampling frame (customer list from a
Collecting and database)
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Marketing Research Process
Identification of
the problem and
statement of
research
objectives

Creation of the
research design
Disadvantages
Choice of method of
research
of Secondary
Selection of the
sampling procedure Data
Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


Marketing Research Process
Identification of
the problem and Disadvantages of Secondary Data
statement of
research
objectives
• Lack of Availability
• Might not be any available data on your topic
Creation of the
research design (e.g., reactions to a new car design-prototypes)

• Lack of Relevance
Choice of method of • Data might be outdated
research (e.g., store location-population size)

• Insufficiency
Selection of the
sampling procedure • Not enough information exists
(e.g., store location-population size-income levels)

Collecting and •Inaccuracy


analyzing the data • Might be biased--intentionally or unintentionally
•Assoc.Questionable source
Prof. Dr. Tuğba Tuğrul
Marketing Research Process
Identification of
the problem and I. Who gathered the data?
statement of trade associations, governmental organizations,
research
objectives large commercial marketing research firms
I. What was the purpose of the study?
Creation of the Chamber of commerce-new projects,
research design advertising agencies-own programs
I. What information was collected and from whom?
Voters-only democrats
Choice of method of I. When was the information collected?
research
Telephone survey btw 9 am to 5 pm-working people
I. How was the information collected?
Mail, telephone, internet, personal interviews and mail survey
Selection of the (1% response rate)
sampling procedure
I. Is the information consistent with other information?
Variations in different studies- sampling or questionnaire
structure problem
Collecting and
analyzing the data

Assoc. Prof. Dr. Tuğba Tuğrul


applying the concepts #2

Assoc. Prof. Dr. Tuğba Örten Tuğrul

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