Marketing Research The Marketing Research Process Dr. Zafer Erdogan I keep six honest serving men, (they taught me all I knew), their names are what, and why, and when, and how, and where and who.” --Rudyard Kipling 2 Information & Decision Making The key to decision making is; – to recognize the nature of the problem/opportunity, – to identify how much information is available, – to recognize what information is needed. Types Of Research Marketing research can be classified on the basis of technique or purpose. – Exploratory – Descriptive – Causal Exploratory Research • Initial research conducted to clarify and define the nature of a problem • Does not provide conclusive evidence • Subsequent research expected – Our sales are declining and we don’t know why. – Would people be interested in our new product idea? Descriptive Research • Describes characteristics of a population or phenomenon • Some understanding of the nature of the problem – What kind of people are buying our product? – Who buys our competitor’s product? – What features do buyers prefer in our product? Descriptive Research Example Weight Watchers average customer – Woman about 40 years old – Household income of about $50,000 – At least some college education – Trying to juggle children and a job Descriptive Research Example Men’s fragrance market – 1/3 size of women’s fragrance market – But growing at a faster pace – Women buy 80 % of men’s fragrances Causal Research • Conducted to identify cause and effect relationships – Will buyers purchase more of our products in a new package? – Which of two advertising campaigns is more effective? ? Identifying Causality • A causal relationship is impossible to prove. • Evidence of causality: 1. The appropriate causal order of events 2. Concomitant variation--two phenomena vary together 3. An absence of alternative plausible explanations Degree of Uncertainty Influences The Type of Research CAUSAL OR DESCRIPTIVE COMPLETELY CERTAIN ABSOLUTE AMBIGUITY EXPLORATORY Stages of the Research Process Problem Discovery and Definition Research Design Discovery and Definition and so on Conclusions and Report Sampling Data Processing and Analysis Data Gathering Research Stages • Cyclical process - conclusions generate new ideas • Stages can overlap chronologically • Stages are functionally interrelated – Forward linkages – Backward linkages Problem discovery Problem Discovery and Definition Sampling Selection of exploratory research technique Secondary (historical) data Experience survey Probability Pilot study Case study Data Gathering Data Processing and Analysis Problem definition (statement of research objectives) Experiment Laboratory Conclusions and Report Survey Field Interview Nonprobability Collection of data (fieldwork) Editing and coding data Data processing Selection of basic research method Research Design Selection of Sampling technique Questionnaire Observation Secondary Data Study Interpretation of findings Report Problem Discovery and Definition • First step • Problem, opportunity, or monitor operations • Discovery before definition • Problem means management problem “The formulation of the problem is often more essential than its solution” Albert Einstein State the research questions and research objectives Make a formal problem statement and the research objectives To provide a framework for the scope of the study ‘To what extent did the new comm. campaign achieve its objectives’ The best expression of a research objective is a wellformed, testable research hypothesis. – A statement – that can be refuted or supported – by empirical data 17 If you do not know where you are going, any road will take you there. Exploratory Research Techniques Two Examples • Secondary data (historical data) – Previously collected – Census of population – Literature survey • Pilot study – A number of diverse techniques Research Design • Master plan • Framework for action • Specifies methods and procedures Basic Research Methods • • • • Surveys Experiments Secondary data Observation There is no one best research design! Selecting a Sample Sample: subset of a larger population. SAMPLE POPULATION Sampling • Who is to be sampled? • How large a sample? • How will sample units be selected? Data Gathering Stage Data Processing and Analysis Conclusions And Report Writing Research Proposal • A written statement of the research design that includes a statement explaining the purpose of the study. • Detailed outline of procedures associated with a particular methodology