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The Marketing Research Process and Industry

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Page 1: The Marketing Research Process and Industry

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Page 2: The Marketing Research Process and Industry

Growth of the Need for Marketing Research

• The Industrial Revolution led to manufacturers producing goods for distant markets.

• Manufacturers needed to know about faraway consumers.

• This led to the growing need for marketing research.

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Page 3: The Marketing Research Process and Industry

The Marketing Research Process

Steps1 Establish Need2 Define Problem3 Research Objectives

4 Determine Design5 Identify Information Sources6 Decide Data Collection

Method7 Design Questionnaire8 Determine Sample Plan &

Size

9 Collect Data

10 Analyze Data11 Write and Present Report

Figure out what to research (Chapters 2 & 4)

Design the way to do the research (Chapters 5-13)

Gather data from respondents (Chapter 14)

Generate findings and interpret them (Chapters 15-20)

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Page 4: The Marketing Research Process and Industry

Caveats: The Marketing Research Process• Not always presented as an 11-

step process • Not all studies use all 11 steps

Few studies follow the steps in order

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Page 5: The Marketing Research Process and Industry

Step 1: Establish the Need for Marketing Research

• When is marketing research NOT needed?

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Page 6: The Marketing Research Process and Industry

Classifying Firms in the Marketing Research Industry

• Research Suppliers– Internal Suppliers–External Suppliers• Limited Service Suppliers• Full Service Suppliers

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Page 7: The Marketing Research Process and Industry

Industry Structure: Internal Suppliers

• Internal suppliers: an entity within the firm supplies marketing research

• Methods of Organization• Marketing function: ad research,

product research, pricing research, channel…• Research process: data analysis, data

collection…• Area of application: brands,

customers...3-7

Page 8: The Marketing Research Process and Industry

Industry Structure:External Suppliers

• External suppliers: outside firms hired to fulfill a firm’s marketing research needs

• Methods of Organization– Function: data analysis & collection…– Type of research application: ad

research…–Geography: domestic, international…– Types of customers, finance, health–Combination of the above

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Page 9: The Marketing Research Process and Industry

The Marketing Research Industry

Classification of Marketing Research Suppliers

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Page 10: The Marketing Research Process and Industry

ETHICS

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Some Ethical Marketing Research Situations: Class Exercises

Page 11: The Marketing Research Process and Industry

Is this Ethical?

1. A research company decides to leave a message on prospective respondents’ answering machines telling them that if they call back in the next 24 hours, they will receive a valuable prize if they take part in a survey.

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Page 12: The Marketing Research Process and Industry

Is this Ethical?

2. Upon completion of an interview, the respondent is asked to provide the names and telephone numbers of others he or she thinks should take part in the survey.

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Page 13: The Marketing Research Process and Industry

Is this Ethical?

3. A door-to-door salesman finds that by telling people that he is conducting a survey, they are more likely to listen to his sales pitch.

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Page 14: The Marketing Research Process and Industry

Is this Ethical?

4. The cover letter of a mail questionnaire says that it will "only take a few minutes to fill out." But pretests have shown that at least fifteen minutes are needed to fill it out.

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Page 15: The Marketing Research Process and Industry

Is this Ethical?

5. Telephone interviewers are instructed to assure the respondent of confidentiality only if the respondent asks about it.

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Page 16: The Marketing Research Process and Industry

Is this Ethical?

6. A client insists on inspecting the completed questionnaires to assess their validity, but the researcher suspects that the client is really interested in finding out what specific respondents said about the client.

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Page 17: The Marketing Research Process and Industry

Is this Ethical?

7. In the appendix of the final report, the researcher lists the names of all respondents who took part in the survey, and places an asterisk beside the names of those who indicated agreement to be contacted by the client's sales personnel.

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Page 18: The Marketing Research Process and Industry

Ethical Issues with Online Surveys

• Spam surveys…

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Page 19: The Marketing Research Process and Industry

Why are Ethical Issues Problematic?

• Two competing ethical philosophies:– Deontology holds that if an (any)

individual's rights are violated, then the behavior is not ethical.

– Teleology says to judge a given behavior in terms of its benefits and costs to society: if there are individual costs but group benefits, then there are net gains (versus net losses) and the behavior is judged to be ethical.

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Page 20: The Marketing Research Process and Industry

Ethical Issues – Research Integrity

• Sugging – selling under the guise of conducting research

• Frugging – fund-raising under the guise of conducting research

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Page 21: The Marketing Research Process and Industry

Ethical Issues – Research Integrity

• Misrepresentation and omission of pertinent research data– Changing results to suit need–Making up results from scratch

• Treat clients, suppliers, and the public fairly

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Page 22: The Marketing Research Process and Industry

Ethical Issues with Respondents

• Respondent cooperation has been going down

• Marketing researchers should:–Eliminate or keep deception to a

minimum– If promised, guarantee

anonymity or confidentiality–Fight invasions of privacy such as

telemarketing and SPAM3-22

Page 23: The Marketing Research Process and Industry

Panels• Marketing research companies are

making greater use of panels• Recruiting respondents who agree

to participate in future studies• Panel Equity, the value of having

access to a large number of consumers willing to cooperate in studies, will increase in the future

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