Chapter 5

ANALYSIS OF MARKET OPPORTUNITIES

Marketing Research

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 1

 ANALYSIS OF MARKET OPPORTUNITIES

Marketing Research
Warm up:
Do you agree with the following statement:’
To manage a business well is to manage the future, and
to manage the future is to manage information?

Many managers receive too much information. How

can organizations ensure that the right information
gets to the right people at the right time?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA

2
 Customer Information
• Comment cards
• Registration-membership
• Disguised/mystery shoppers
• Company records
• Exit interviews
• Follow up phone calls

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 3

 The Marketing Research Process

Implementing
Defining the Developing the Interpreting
the research
problem and research plan and reporting
plan -- collecting
research for collecting the findings
and analyzing
objectives information
the data

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 4

 Marketing Research Process
Step 1. Defining the Problem &
Research Objectives
•Gathers preliminary information
Exploratory that will help define the problem
Research and suggest hypotheses.

•Describes things as market

Descriptive potential for a product or the
Research demographics and consumers’
attitudes.

Causal •Test hypotheses about cause-

Research and-effect relationships.

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 5

 Marketing Research Process
Step 2. Develop the Research Plan
• Research plan development follows these
steps:
– Determining Specific Information Needs

– Gathering Secondary information

– Planning Primary Data Collection

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 6

Step 2. Develop the Research Plan
a.Gathering Secondary Information
Both Must
Be:
Information That
Already Exists Relevant Information
Somewhere. Collected for the
Accurate Specific Purpose
+ Obtained More at Hand.
Quickly, Lower Cost. Current
- Might Not be Impartial
Usable Data.

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 7

 Step 2. Develop the Research Plan
b. Planning Primary Data Collection
Contact Methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of Good Fair Excellent Good
Data Collected
Control of Excellent Fair Poor Fair
Interviewer
Control of Fair Excellent Fair Poor
Sample
Speed of Data Poor Excellent Good Excellent
Collection
Response Rate Fair Good Good Good
Cost Good Fair Poor Excellent

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 8

 Step 2. Develop the Research Plan
Planning Primary Data Collection

Observational Research Approaches

Research
Survey
Gathering data Research
by observing
people, Asking
Experimental
actions and individuals Research
situations about attitudes,
(Exploratory) preferences or Using groups of
buying people to
behaviors determine
(Descriptive) cause-and-effect
relationships
(Causal)

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 9

Develop the Research Plan
Planning Primary Data Collection
Probability or Sampling Who is to be
Plans surveyed?
Non-probability
(What Sampling
sampling?
Sample - Unit?)
representative
segment of the
population
How should the How many
sample be should be
chosen? surveyed?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 10

 Step 2 . Developing research plan
(cont)
 Research instruments
 questionnaire ( most

Pham khac Thong, MBA

Chapter5.MARKET RESEARCH-
common)
What question; form; open/close; multiple
choice; true/false.
Mechanical – galvanometer
(using small electric current) measure
interests, emotion etc.

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 Marketing Research Process
Step 3. Implementing the Research Plan

Collecting the
Data

Processing the
Data Research Plan

Analyzing the
Data

Chapter5.MARKET 12
RESEARCH- Pham
 Marketing Research Process
Step 4. Interpreting and Reporting
Findings
Researcher Should Present Important Findings that are Useful in the
Major Decisions Faced by Management.

Step 1. Interpret the Findings

Step 2. Draw Conclusions

Step 3. Report to Management

Chapter5.MARKET 13
RESEARCH- Pham
 Research Problem Areas
• 1. Making assumptions
• 2. Lack of Qualitative information
• 3. Failing to look at segments within a
sample
• 4. Improper use of sophisticated statistical
analysis
• 5. Sample is not representative of the
population
• 6. Using biased questions in surveys

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 14

 Development of questions
1. Every question should focus on a topic
and measure what you want it to
measure.
• Wrong: Which restaurant do you like the
best?
• Right: Which of these restaurants you be
most likely to choose for a casual dinner?
• Wrong: When do you usually go to work?
• Right: What time do you ordinarily leave
home for work?
Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 15
 2. Questions should be brief
• Wrong: Can you tell
me how many
children you have,
whether they are
girls or boys, and
how old they are?
• Right: What is the
age and gender of
your children?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 16

 3. Use vocabulary the respondent
will understand
• Wrong: Are you an
exurbanite?

• Right: What is your

zip code?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 17

 4. Question must be applicable to the
respondent
• Wrong: How long does it take you to find a
parking place after you arrive at the restaurant?
• Right: If you drive to the restaurant, how long
does it take you to find a parking place after you
arrive at the restaurant?
• Might use a screening question first - Do you
usually drive to the restaurant. Yes___ No____, If
Yes …….
Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 18
 5. Avoid using examples that can
introduce bias
• Wrong: Do you eat pork
ribs, even thought they
contain a lot of fat?

• Right: How likely are you to

order pork ribs when you dine
out? Perhaps use this with a 7
point scale.
Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 19
 6. Make sure the respondent can
answer the question
• Wrong: How many times did you
dine out last year?

• Right: How many times did you

dine out at a fast food
restaurant during the last 2
weeks?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 20

 7. Avoid ambiguous words

• Wrong: About what time do you

ordinarily eat dinner?
• Right: About what time do you dine in
the evening?
• Avoid; sometimes, frequently, usually

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 21

 8. Avoid double barreled questions

• Wrong: Do you dine out regularly

because it is as cheap as eating at
home?
• Right: Do you dine out regularly? Why
or why not?

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 22

 Marketing Research Process
Step 3. Implementing the Research Plan

Collecting the
Data

Processing the
Data Research Plan

Analyzing the
Data

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 23

 Marketing Research Process
Step 4. Interpreting and Reporting
Findings
Researcher Should Present Important Findings that are Useful in the
Major Decisions Faced by Management.

Step 1. Interpret the Findings

Step 2. Draw Conclusions

Step 3. Report to Management

Chapter5.MARKET RESEARCH- Pham khac Thong, MBA 24