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Business research is defined as the systematic and objective process of generating information for aid in making business decisions. - Including financial research, operational research, Marketing research
Business Research Defined
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Business Research Research information is neither
intuitive nor haphazardly gathered. Literally, research (re-search)
-“search again” Business research must be
objective Detached and impersonal rather
than biased It facilitates the managerial
decision process for all aspects of a business.
vddf 5
“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”
Artemus Ward
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Basic Research
Attempts to expand the limits of knowledge.
Not directly involved in the solution to a pragmatic problem.
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Basic Research Example
Is executive success correlated with high need for achievement?
Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?
Do consumers experience cognitive dissonance in low-involvement situations?
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Applied Research Examples
Should McDonalds add Italian pasta dinners to its menu?
Business research told McDonald’s it should not?
Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
Research showed Crest Whitestrips would sell well at a retail price of $44
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Scientific Method
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.
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The Decision-making Process Associated with the Development and Implementation of a Strategy
Identifying problems and opportunities
Diagnosis and assessment Selecting and implementing a
course of action Evaluating the course of action
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Evaluation Research
Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.
1-15Performance-monitoring Research
Research that regularly provides feedback for evaluation and control
Indicates things are or are not going as planned
Research may be required to explain why something “went wrong”
1-16Determining When to Conduct Business Research
Time constraints Availability of data Nature of the decision Benefits versus costs
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Is sufficient time available before
a managerial decision
must be made?
Is the infor-mation already
on handinadequate for making
the decision?
Is the decision of considerable
strategicor tactical
importance?
Does the value of the research
informationexceed the cost of conducting
research?
ConductingBusinessResearch
Do Not Conduct Business Research
Time ConstraintsAvailability of
Data Nature of the DecisionBenefits vs. Costs
Yes YesYesYes
No No No No
Determining When to Conduct Business Research
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Value versus Costs
Potential Value of a Business Research Effort Should Exceed Its Estimated Costs
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Value
•Decreased certainty•Increased likelihood of a correct decision•Improved business performance and resulting higher profits
Costs•Research expenditures•Delay of business decision and possible disclosure of information to rivals•Possible erroneous research results
Value Should Exceed Estimated Costs
1-20Major Topics for Research in Business
General Business Conditions and Corporate Research
Financial and Accounting Research Management and Organizational
Behavior Research Sales and Marketing Research Information Systems Research Corporate Responsibility Research
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Cross-functional Teams
Cross-functional teams are composed of individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.
1-22Business Research in the 21st Century
Increased globalization Growth of the Internet and
other information technologies
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Global Research
Business Research is increasingly global
Market knowledge is essential A.C. Nielsen - more that 67%
international business
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Global Business Research
General information about country - economic conditions and political climate
Cultural and consumer factors Market and competitive
conditions - demand estimation
1-25The Internet Is Transforming Society
Time is collapsing. Distance is no longer an
obstacle. Crossing oceans is only a
mouse click away. People are connected 24 hours
a day, seven days a week. "Instantaneous" has a new
meaning.
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Redefining Marketing Research
The American Marketing Association (AMA) redefined Marketing Research as:
The function which links the consumer, the
customer, and public to the marketer
through INFORMATION
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Used to identify and define market opportunities and problems
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding of marketing as a process
Redefining Marketing Research
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Definition of Marketing Research
Marketing research is the systematic and objective
identification collection analysis dissemination and use of information
for the purpose of improving decision making related to the
identification and solution of problems and opportunities in
marketing.
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Market Research
Specifies the information necessary to address these issues
Manages and implements the data collection process
Analyzes the results Communicates the findings and
their implications
1-32Classification of Marketing Research
Problem Identification Research Research undertaken to help identify problems
which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
Problem Solving Research Research undertaken to help solve specific
marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
1-33A Classification of Marketing Research
Marketing Research
Problem Identification Research
Problem Solving Research
Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
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Problem Solving Research
Determine the basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets
Create lifestyle profiles: demography, media, and product image characteristics
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests
PRODUCT RESEARCH
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Problem Solving Research
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
0.00% APR
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Problem Solving Research
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
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Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
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The Role of Marketing Research
ControllableMarketing
•Product
•Pricing
•Promotion
•Distribution
Variables
Marketing Research
MarketingDecisionMaking
ProvidingInformation
AssessingInformationNeeds
Marketing Managers
• Market Segmentation
• Performance & Control
• Target Market Selection• Marketing Programs
UncontrollableEnvironmentalFactors
•Economy
•Technology
•Laws & Regulations
•Social & Cultural Factors
•Political Factors
Customer Groups
• Employees• Shareholders
Suppliers•
• Consumers