Transcript Welcome to SALES MANAGEMENT

The Marketing Research
Process
MKTG3342
Fall 2008
Professor Edward Fox
The Marketing Research Process
Research Process - Key Questions
1. Why should we do research?
 Management Decision Problem
2. What research should be done?
 Research Objective
3. Is it worth doing the project ?
 Value of Information
Research Purpose
Key Questions (cont.)....
4. How should research be conducted?

Research Design
5. How should data be collected?

Sampling and Data Collection
6. What will we do with the data?

Data Analysis and Interpretation
7. How do we communicate the results?

Report Writing and Presentation
Step 1 - Problem/Opportunity
Identification
The research process begins with the
recognition of a marketing problem or
opportunity
 As changes occur in the firm’s external
environment, marketing managers are
faced with the fundamental questions,
“Should we change the current marketing
mix?” and, “If so, how?”

Problem Definition

Translating the Management Decision Problem
into Research Objectives
Management Decision Problem
 Manager’s version of the problem for which
decisions is to be made. The management
decision problem is action oriented.

e.g., How can I increase sales? What product
features should I add? Should I increase my
advertising? Who should I target for coupon
distribution?
Role of the Marketing Researcher

Once a problem or opportunity has been
identified, the marketing researcher comes
into the picture.
 The
first responsibility of the researcher is to
work with the marketing manager to clearly
articulate the management decision
problem(s) whose symptoms have been
observed and then to precisely define the
marketing research problem.
Definition of Research Objectives

The culmination of the problem/
opportunity formulation process is a
statement of research objectives
 These
objectives are stated in terms of the
precise information necessary to address the
marketing research problem
 Objectives must be as specific and
unambiguous as possible. All subsequent
efforts will be geared toward achieving the
research objectives
Some wrong formulations …
Symptoms vs. Problems
(the Iceberg Principle)
Management Decision Problem
Sales were falling below quotas.
What should we do?
Research Objective
Find ways to motivate salesforce
Some wrong formulations
Management Decision Problem
A major soft drink competitor is gaining market
share.
In blind tests, this competitor’s product is
considered better by majority of consumers.
Research Objective
Determine whether new product formulations
are preferred to the competitor’s product.
Research Objectives
Research objectives can be stated as
 Questions
 Researchable statements
 Hypotheses
A
hypothesis is a conjectural statement about
a relationship between two or more variables
that can be tested with empirical data.
Example of Problem Formulation -
Ford SUV

A recent report suggests that middleclass families with children are taking
more frequent and longer road trips for
vacations. Ford wants to exploit this
opportunity and add features to their
next-generation sport utility vehicle
(SUV) in order to make it more
attractive to potential buyers.
Management Decision Problem -
Ford SUV

To identify features that could be added
to the SUV in order to increase its
attractiveness to potential buyers taking
long trips. In particular, the following
features are under consideration:
built-in TV/Video system, food warmer,
refrigerator …
Research Objectives – Question Form
Ford SUV
Consider the following research objectives:





What is the likely consumer demand for an SUV
with an in-built refrigerator?
With a built-in refrigerator, would consumers need
additional cup holders in the SUV? If so, what
locations in the vehicle would be most convenient?
What is the likely consumer demand for an SUV
with Video/TV system at different price points: (i)
$1500, (ii) $2000 or (iii) $2500.
What are the characteristics of consumers who
would buy the video system?
…
Research Objectives – Statement Form
Ford SUV
Consider the following research objectives:





Estimate consumer demand for an SUV with an in-
built refrigerator.
Determine whether, with a built-in refrigerator in
the SUV, consumers would need additional cup
holders; if so, identify the most convenient
locations in the vehicle.
Estimate consumer demand for an SUV with Video/TV
system at different price points: (i) $1500, (ii)
$2000 or (iii) $2500.
Identify the characteristics of consumers who would
buy the video system.
…
Research Objectives – Hypothesis Form
Ford SUV
Consider the following research objectives:




Demand for SUVs with built-in refrigerators will be
higher in Sun Belt states (e.g., Florida, Texas) than
in other states.
Customers who would buy an SUV with a built-in
refrigerator would also prefer that the vehicle have
more cupholders.
Demand for SUVs with video/TV systems will be
highest among families with young children 1-6
years of age, compared to families with older
children or no children.
…
Points to Take Away

Problem Definition is the first and very important
phase of marketing research.

Problem Definition step involves translation of
Management Decision Problem into Research
Objectives.

Research Objectives are generally framed in terms
of questions, researchable statements or
hypotheses.

Clearer and more specific Research Objectives are
easier to design and implement research.

There are no hard and fast rules for defining the
problem. However, doing so requires interacting
with managers and getting pertinent information.