Marketing Research Process

Its all about the

Information Need!

Harley Davidson Dilemma in 2005!

(www.harleydavidson.com)

To invest in new facilities or not! What is the problem being addressed? Inadequate problem definition is a leading cause of failure of MR projects.

Defining the Problem & Developing an Approach

Understand the background of the problem by analyzing the environmental context. Tasks involved in problem definition: Discussions with decision makers Interviews with industry experts Analysis of secondary data

Steps in Marketing Research Process

Problem Definition Development of an approach to the Problem Research Design Formulation Fieldwork/Data Collection Data Preparation & Analysis Report Preparation & Presentation

Management Decision Problem

Asks what the decision maker needs to do Action oriented Focuses on symptoms

Marketing Research Problem

Asks what information is needed & how it should be obtained Information oriented Focuses on the underlying causes

MDP vs. MRP

MDP: Should a new product be introduced
MRP: to determine consumer preferences & purchase intentions for the proposed new product

MDP: Should the advertising campaign be changed?

MRP: to determine the effectiveness of the current advertising campaign

MDP: Should the price of the brand be increased?

MRP: to determine the price elasticity of demand & the

impact on sales & profits of various level of price changes

Research Design
Broad classifications: Exploratory Research Descriptive Research Conclusive Research Causal Research

Qualitative Research
Techniques: Depth Interview Focus group Projective techniques

Exploratory Research

Clarifying thoughts Forming opinions Crystallizing the problem

Descriptive Research
2-types: Longitudinal Studies
(respondents studied over a period of time)

Cross-sectional Design

(1-shot research study at a given point of time, consists of a sample/cross-section of the population)

Causal Research Design

Seeks to establish causation Whether or not Y is affected by X? Does X cause Y?

Designing the Research Methodology

5-major parts: Research method (Secondary/Primary) Sampling Plan Questionnaire Design Field work plan Analysis plan

Primary Data Collection Methods

Surveys Observation Experimentation Qualitative Techniques Specialized Techniques

(word association/focus group/projective techniques)

(consumer panel/retail audit/TV audience measurements)

Problem definition based on symptoms & true problem

Manager of a 20 yr old neighborhood swimming pool Membership has been declining for years. New water park with wave pool & water slides moved into town a few years ago.

Problem definition based on symptoms & true problem

Chief Manager of a Brewery Sales has been declining for years. Consumers prefer taste of competitors product.

Problem definition based on symptoms & true problem

Producer of a television show We got a problem. The programs ratings are low. We need to learn how to improve our ratings.

Evaluating the statement of Business Problem

The inventor of a tension headache remedy ( a cooling pad that is placed on the forehead for up to 4 hours): The purpose of this research is To identify the market potential for the product To identify what desirable features the product should posess To determine possible advertising strategies/channel strategies for the product.

Evaluating the statement of Business Problem

The military wishes to understand its image from the publics point of view. Define the business problem.

Do-It-Now!
State a problem in your field of interest and list some variables that might be investigated to solve this problem.