THE MARKETING RESEARCH PROCESSPresented By: Alicia Payne & Charita Jordan

MKTG6030 Marketing Research

What is Marketing Research?

European Association of Research Agencies, European Society for Opinion and Marketing Research (ESOMAR) defined it as:

“the key element within the total field of marketing information. It links the consumer, customer and public to the marketer through information which are used to identify and define marketing opportunities and problems; to generate, refine and evaluate marketing activities; and to improve understanding of marketing as a process and the ways through which specific marketing activities can be made more effective.”

ESOMAR Definition: Illustrated

identify & define marketing opportunities and problems

to generate, refine and evaluate marketing activities

to improve understanding of marketing and the ways through which specific marketing activities can be made more effective.”

What is Marketing Research?

According to Kotler & Keller (2009, p. 90) marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.

Answer:

The Traditional View & The Backward View

The Marketing Research Process

Marketing Research Process

Defined:“Systematic, standardized and objective procedure of obtaining information for decision making in marketing” (Murušić, Vranešvić, 2001, p.7)

Marketing Research Process

Burns & Bush (2003): 11 Step Research Process

Traditional View: Simple

Step 1: Define the problem & research objectives Step 2: Develop the research planStep 3: Collect the data

Step 4: Analyze the dataStep 5: Present the findingsStep 6: Make the decision

Step 1: Define the Problem & Research Objectives

The most important step in the research process.Determine if the company is faced with a Marketing Problem or Market Opportunity.Marketing Problem – when the companyrequires a change/shift in their current marketingstrategy to respond to market trends. Thesechanges can help the company maintain orimprove overall performance.

Step 1: Define the Problem & Research Objectives

Market Opportunity – when the company isfaced with a chance to improve performance byeither modifying the existing marketing strategy

or by introducing a new strategy

This may result in problems which are expressedin a very broad sense.

Step 1: Define the Problem & Research Objectives

E.g. Manager at a Hotel: “Find out all you can about the needs of our business related clientele”

Manager & Marketing Researcher:“Will offering complimentary WiFi and international calls create enough incremental preference and profit for XY Business Hotel to justify its cost against other possible investments in service enhancements?”

Step 1: Define the Problem & Research Objectives

Establishing Research ObjectivesResearch objectives are related to and determined by the problem definition.

The researcher must answer the following questions:1. What specific information should the project provide?

2. If more than one type of information will be developed from the study, which is the most important?

3. What are the priorities?

Research objectives provide the necessary information to solve the problem.

Step 1: Illustrated

Step 2: Develop the Research Plan

This step includes selecting research design data sources, research instruments, sampling plan and contact methods

Marketing research can be classified Exploratory Research: collecting information in an

unstructured and informal manner. Descriptive Research: refers to a set of methods

and procedures describing marketing variables. Causal Research (experiments): allows isolation

of causes and effects

Step 2: Develop the Research Plan

This step includes selecting research design data sources, research instruments, sampling plan and contact methods

Marketing research can be classified into one of three categories: Exploratory Research Descriptive Research Causal Research (experiments)

Step 2: Develop the Research Plan

Exploratory Research :The chief purpose of exploratory research is to reach a better understanding of the research problem. Formulates problems more precisely Clarifies concepts Gathering explanations and gaining insights Eliminates impractical ideas Forms hypotheses.Exploratory research is characterised by its flexibility.

Step 2: Develop the Research Plan

Descriptive Research is primarily concerned with describing market characteristics and/or marketing mix characteristics.

Who, What, Where, How, When Specific research questions must have beenformulated. The researcher must have adequate knowledge onthe research problem and is in a position to clearlydefine what he/she wants to measure and how todo it.

Step 2: Develop the Research Plan

Casual Research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments. Who, What, Where, How, When Specific research questions must have beenformulated. The researcher must have adequate knowledge onthe research problem and is in a position to clearlydefine what he/she wants to measure and how todo it.

Step 2: Develop the Research Plan

Step 2: Develop the Research Plan

Data Types & SourcesSecondary Data – data which was collected for another

purpose. E.g industry reports, company documents, other published statistics and studies

Primary Data – data which is freshly gathered for a specific purpose or for specific research project Observation Ethnographic Focus Group Survey Behavioural Data Experimental

Step 2: Develop the Research Plan

Research InstrumentsMarket researchers have a choice of 3 main research

instruments in collecting primary data: Questionnaires Qualitative Measures Technological Devices

Step 2: Develop the Research Plan

Sampling Plan Sampling unit - Who should we survey? Sample size - How many people should we survey?

1% of a population and a credible sampling procedure can provide reliable findings

Sampling procedure – How should we choose the respondents – probability sampling, purposive sampling etc.

Step 2: Develop the Research Plan

Contact Methods Mail Questionnaire Telephone Interview Personal Interview Online Interview

Step 3: Collect the Data

Based on the contact method chosen, the marketresearcher will now actively seek out gatheringthe data from the outlined sample.

N.B Well trained market researchers will try to reduce

interviewer bias and other non-sampling errors during

this phase.

Step 4: Analyze the Data

The main purpose is to interpret and draw conclusions from the data collected.

Appropriate analytic tools should be chosen to match research objectives and information needs. Test of Statistical Significance Factor Analysis Cluster Analysis

Step 5: Present the Findings

The marketing researcher must: Present both oral and written reports Convince the manager that the results are credible and justified by

the data collected Speak in managerial terms rather than in the terminology

understood only by research specialists Reports should outline technical details of the research project

and methods in an appendix, if at all Researchers should spell out their conclusions in clear, concise,

and actionable terms Be open-minded to findings, be willing to refute expectations, and

acknowledge limitations.

Step 6: Make the Decision

Managers must weigh the evidence presented to them through the report of findings to decide on the action.

In some instances, managers use a marketing decision support system (MDSS). This is basically a program which interprets relevant information from a business and the environment and turns it into a basis for marketing action.

Traditional Marketing Research

Problems:

Problems: Traditional MR

Market research has allowed prominent product failures, and wrong predictions

Markets are increasingly becoming micro-segmented so mass market research becomes correspondingly irrelevant

It is helpful for improvements, but less so for radical innovations

Backward Market Research

Overview: Backward Market Research

This approach to the market research process was proposed by Mr. Alan R. Andreasen in 1989. Encourages an involved investigation into the

nature of the research and in turn revealed the true research question.

Overview: Backward Market Research

Andreasen (1989), “the best way to design usable research is to start where the process usually ends and then work backward.”

Why use Backward Research?

It seeks to uncover the true research problem. Encourages the involvement of management

from the inception, increasing the chances of

implementation of results Reduces the chances of unwanted or unanticipated

conclusions and research expenses. It is a useful data gathering tool. It adds value to market research Is specific to the needs of the organization.

Conclusion

As a good researcher, it is without a doubt that marketing research is essential. As a result which approach to marketing research do you think would bring forth the best results in these times?