WELCOME TO THE MKTG301

MARKETING RESEARCH COURSE

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A little about me…

Courses taught:
✓ Marketing Management
✓ Consumer Behavior
✓ Marketing Research
✓ Marketing Analytics
✓ Business Statistics

Research Specialty (close to 30 publications; h-

index: 13; 1000 citations):
✓ Innovation, clusters and emerging markets,
✓ Intermediate marketing metrics and social media
marketing,
✓ Financial outcomes of marketing and innovation-
related decisions

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 Some Important Information

Instructor: Nükhet Harmancıoğlu, Ph.D.

Professor of Marketing
Office: CASE 225A
Phone: (338) 1751
E-mail: nharmancioglu@ku.edu.tr
Web: http://portal.ku.edu.tr/~nharmancioglu/

Assistant: Sheikha Alia

E-mail: salia15@ku.edu.tr

POWERPOINT READINGS &

SYLLABUS SLIDES ASSIGNMENTS TEXTBOOKS EXCEL ADD-ON

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Typical Decisions Made by Marketing Managers
The marketing manager faces a bewildering set of challenges….

Managers + Better
Information+ Models Decisions

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 Marketing Research & Course Objectives

• …the process of understanding customers, their needs (and possibly what they are
missing) and guides the business on which path to take

• This process includes, but not limited to:

- How to design research and experiments to test a marketing idea
- How to systematically collect data
- How to prepare and analyze the collected data
- How to infer marketing-based results from the analysis

• By the end of this course, you should be able to:

- Formulate and evaluate marketing research problems
- Review and criticize a research proposal
- Understand the usefulness and limitations of research methods
- Understand and execute sampling procedures
- Execute basic data analysis

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 Course Components & Evaluation
• Midterm exams 1 and 2 50
Course Overview
• Research proposal 15
1. Introduction to Marketing Research
• Questionnaire design 15
2. Marketing Research Problem
• Data analysis assignment 15
3. Research Design and Secondary Data • Excel exercises 5
4. Qualitative Research • Research participation bonus 3
5. Survey and Observation
6. Experimentation and Causal Design ➢ A curve will not be used in determining the letter
grade for the course
7. Measurement and Scaling
➢ Research Proposal (15%): The topic could be a real-life
8. Questionnare Design marketing problem any company may face. E.g.:
9. Sampling Procedure ➢ analyzing student attitudes and usage of the cafeteria
10. Data Collection and Preparation ➢ evaluating advertising & promotions effectiveness for
a current campaign
11. Data Analysis: Frequency Distribution, Cross-Tabulation
➢ evaluating the market potential for a new drink etc.
12. Data Analysis: Differences, Association ➢ Questionnaire Design (15%): Students may continue with
the problem in the proposal, or the instructor can
provide a new problem.
➢ Data Analysis Exercise (15%): Instructor will provide
the data for this exercise.

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 Some important ground rules

• Complete the readings before coming to class! You are responsible for everything discussed or
presented in the class, together with the readings assigned
• Attendance will not be taken during this semester.
• If you miss a class, get the notes from your classmates.
• Do not work on other stuff during course time.
• Each group member must actively participate in all phases of research project. Each member will
get the same grade on all the group-based assignments.
• Approach the instructor only as a last resort.
– Lack of complaints will be assumed to convey no serious issues.

• Late assignments (submitted after the due date and time) will be penalized by deducting
20% of the mark per day overdue.

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The Marketing Concept

▪ Focus on finding (or influencing) consumer needs

and satisfying them--not
– Just producing—no guarantee that anyone will buy
– Aggressive selling—there is too much competition
around

▪ “People don’t buy a quarter-inch drill bit, they buy a

quarter-inch hole. You’ve got to study the hole, not the
drill. The drill is just the solution for it.”
– Ted Levitt

▪ “There will always, one can assume, be need for some

selling. But the aim of marketing is to make selling
superfluous. The aim of marketing is to know and
understand the customer so well that the product or service
fits him and sells itself.”
– Peter Drucker

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 What is Market Orientation?

It refers to an organizational culture that most effectively and efficiently

creates the necessary behaviors for the creation of superior value for buyers
and, thus, continuous superior performance (Narver and Slater).

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 Degrees of Marketing Orientation

✓ consists of behaviors that address the latent needs ✓ consists of behaviors that address the
✓ entails balancing marketing and product orientation expressed needs of customers
✓ looks not just at the usage of product, but at the entire
choice – acquisition – use – disposal cycle
✓ redefine customer value, raise expectations beyond
competitors’ reach, build cohesive business systems

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 Customer Feedback,
Focus Groups, Sales Data,
Big Data Analytics,
Interviews Product Returns,
Lead Users,
Observation Warranty Claims
Experiments

Entirely Latent Entirely

Needs Expressed
Needs

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 21st Century Marketing Decisions

• We have too much data of the wrong kind, not enough of the right kind (data and
information have no value by themselves, but generate value through their use)
• Humans are inconsistent, but “creative” information processors (in both
analyzing and synthesizing information)
• Computers/mathematical models are consistent information processors

Managers Better
+ Models Decisions

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21st Century Marketing Decisions

• Mobile penetration is 90% even in

developing countries
• Wearable market is the next to watch
– Cisco estimates 21.7 million wearable devices
in 2013
– Vs. 1 billion smart phones sold in 2013
Source: Ericsson mobility report, June
2014

• New data is produced at an

exponential rate
– The data volume is projected to
increase 50 times between 2010 - 2020

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 21st Century Marketing Decisions

• Global 1000 companies will invest

more than $120 billion by 2015 on
research, analytics, hardware, software
and services
• Research & analytics for the blueprint
of success
– 60% of firms which are leaders in their
industry have analytics capabilities
– 80% of the leaders measure the impact of
analytics investments

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 Global CMO Survey

Ready for Analytics?

Source: IBM CMO C-Suite Studies, From Stretched to Strengthened, 2011

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 Why Research & Analytics?

“I think marketing is the new finance. In the 1960s and 1970s [we] got interesting
data, and a lot of analytic fire power focused on that data; Bob Merton and Fischer
Black, the whole team of people that developed modern finance. So we saw huge
gains in understanding performance in the finance industry. I think marketing is in
the same place: now we’re getting a lot of really good data, we have tools, we have
methods, we have smart people working on it.”
- Hal Varian, Chief Economist, Google

1. Marketing is at a tipping point

2. A skill which marketing students need to succeed

3. Because it is the future!!

4. The sexiest job of the 21st century

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 How do Managers Make Decisions?

Marketing Resource Allocation: Moving From Research/Analytics to Action

"Three essentials of good managerial decisions are benchmarks, heuristics and

statistics. We need them all but how we combine them depends on many factors."
Eric Schmidt, Senior Manager, Marketing Strategy and Insights,
The Coca-Cola Company

"…The optimal spending is constant but if we spend constant there's no way we can
learn how well we are doing."
Eli Chan, Marketing Sciences Director, Dell Inc.

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 What is Marketing Research?

• Marketing research specifies the information needed for decision making and
links the information to actionable decisions

• It links the market to the firm through information

• It is a set of techniques and principles for systematically collecting, recording,

analyzing, and interpreting data that can aid decision makers who are involved
with marketing goods, services, or ideas

• It is based on sound scientific methods and procedures

short def: … is the function that links the

environment to the marketer through info

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 Why Marketing Research?

Marketing is all about “value”

Demographic (create value and capture part of it)

Company
Cultural Economic
Publics Suppliers

Marketing

Competitors Intermediaries
Political Natural

Customers

Technological

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 Examples

• Introduction of USA Today

• Micro-marketing using scanner data
• Barbie in Japan

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 Product Positioning

In planning positioning and

differentiation marketers often use
Perceptual Maps that show consumer
perceptions of brands on important
buying dimensions
• Brands that are perceived as similar
are located close to each other
• Brands that are perceived as
dissimilar are further apart

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 Marketing Research Process

Step 2: Developing an
Step 1: Defining the
Approach to the
Problem
Problem

Step 4: Doing Field

Step 3: Formulating a
Work or Collecting
Research Design
Data

Step 5: Preparing and Step 6: Preparing and

Analyzing Data Presenting the Report

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 Why a Systematic Approach?

• Individuals have poor intuitions about:

• when information would be helpful in making decisions
• how to gather it when they feel it is helpful
• and how to use it once it is gathered
• Individuals have biases (false consensus , overconfidence , etc.)
 marketing research helps listen to the customer without
the distortions created by natural human biases

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 e.g. False Consensus Bias

▪ Which one do you like, chocolate

ice cream vs. vanilla ?
Individuals tend to think that their
choices, beliefs etc. are relatively
more common (shared by others)

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 Trivia Quiz (An Illustration for…)

For each of the following ten items, Low High

provide a low and high guess such
1. Princess Diana’s age at death _______ _______
that you are 90% sure the correct
answer falls between the two. Your 2. Length of the Nile River (kilometers) _______ _______
challenge is to be neither too narrow
3. Number of countries that are members of _______ _______
nor too wide. If you successfully OPEC
meet this challenge you should have 4. % of the B-to-B e-commerce wrt overall e- _______ _______
10% misses-that is exactly one miss. commerce
5. Diameter of the moon in kilometers _______ _______

6. Weight of an empty Boeing 747-400 “Jumbo _______ _______

Jet” in tons
7. Year in which Wolfgang Amadeus Mozart was _______ _______
born
8. Pregnancy period (in days) of an Asian _______ _______
elephant
9. Air distance from London to Tokyo (km) _______ _______

1 Deepest known point in the oceans (in meters) _______ _______

0.

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 Answers

• 1. Princess Diana’s age at death 36

• 2. Length of the Nile River (kilometers) 6650
• 3. Number of countries that are members of OPEC 15
• 4. % of the B-to-B e-commerce wrt overall e-commerce 65
• 5. Diameter of the moon in kilometers 3476
• 6. Weight of an empty Boeing 747 in tons 180
• 7. Year in which Wolfgang Amadeus Mozart was born 1756
• 8. Pregnancy period (in days) of an Asian elephant 610
• 9. Air distance from London to Tokyo (km) 9588
• 10. Deepest known point in the oceans (in meters) 10994

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 Research Question Examples

• What is our market share?

• Who buys our product?
• Why do they buy our product?
• Where is a good location for a new store?
• How do consumers choose which brand of car to buy?
• How effective are the in-store promotions?
• Which brand name projects the image we want for our product?
• How and when do consumers use our products?
•X What is the per unit profit margin of our product?

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 A Classification of MR (from the textbook)

Marketing
Research

Problem- Problem-
Identification Solving
Research Research

• Market Potential Research • Segmentation Research

• Market Share Research • Product Research
• Image Research
• Pricing Research
• Market Characteristics Research
• Promotion Research
• Forecasting Research
• Business Trends Research • Distribution Research

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Decisions to Conduct MR

• Benefit vs. Cost of research

o is there a need for additional
information?
o has the decision already been made?
• Resources available to conduct research
• (Management) attitude towards research

Conditional reasons to consider conducting research:

1. Will clarify the problem or identify
marketplace changes
2. Help the company acquire a
competitive advantage
3. Help achieve marketing objectives
4. Provides an understanding of future
market conditions

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 Who Conducts Research?

▪ Corporate / Internal

▪ External

• Customized services work with individual clients from beginning to end

• Syndicated services collect and combine data routinely (e.g. scanner data)

• Internet / social media services

• Limited / Special (field, qualitative, technical / analytical)

• Standardized / branded services prespecified and specialized

• Independent consultants

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 Classification of Marketing Research Suppliers

May
Can or may notallbe a
perform
Outside
Can firm hired
perform only
formal department
tomarketing
perform
limited research
some
marketing
functions
sort for the
of marketing
research functions
client
research
for the client

Online research
Standardized serviceservices
firms
Syndicated specialize
Customized
firms in
data service
provide service
providing
firms
firms
collect
syndicated offer services
a variety of
marketing
online.
information
research
research services
that is asthat
services,
madeareavailable
opposed tailored to meet the
to syndicated
multiple
client’s
data, to subscribers.
specific needs.
clients.

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Full-service firm
Syndicated data service firm
Standardized
service firm
Customized service firm
Online research service firm
Limited-service supplier firm
Field service firm
Market segment specialist
Sample design & distribution firm
Specialized data analysis firm
Fall’06 research technique
Specialized
firm
Market Facts, Inc.; Burke, Inc.; ACNielsen; Roper Starch
Worldwide; Yankelovich Partners, Inc.; VNU, Inc.; and
Walker Information; Accenture
ACNielsen; Information Resources Inc.
Burke’s Customer Satisfaction Associates provides the
service of measuring customer satisfaction.
Market Facts, Inc.; Elrick & Lavidge, Inc.; Burke Marketing
Research; and Custom Research, Inc
Affinova; Knowledge Networks; Insight Express; and
Active Group
Eye-testing, mystery shopping, market segment
specialists
Irwin Group; Irwin Research Associated; Opinion One;
Insight Express; Meyers Research Center; Quick Test
Strategy Research Corporation; JRH Marketing Services,
Inc; MedProbe, Inc
Survey Sampling, Inc.
SDR Consulting; SPSSMR; Applied Decision Analysis
LLC
The Pretesting
Harmancioglu Company; Taylor Nelson Sofres 32
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 Branded Service ex. Nielsen BuzzMetrics

offers Brand Association Map (BAM):

analyzes consumer conversations on the
Internet and plots the words that most
closely correlate to the subject.
The closer a word to the center of the
map, the stronger the association or
correlation. Likewise, the proximity of
words on the map connects a
correlation.

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 Market Research Industry

▪ Worldwide revenues $47 billion in 2018

▪ Nielsen, the largest company, has a revenue of $6.5 billion (2018)

▪ Worldwide market research expenditures:

North America ~45%

Asia Pacific ~15%
Europe ~35%
Rest 5%
▪ Turkey around $200 million (2017)
(source: ESOMAR, Statista)

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 The Evolution of the Marketing Research Industry

▪ Charles Coolidge Parlin

is known as the “father
of marketing research.”
– Pre–marketing research era
– Early development era
– Questionnaire era
– Quantitative era
– Organizational acceptance era
– PC technology era
– Globalization–online era

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