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Problem Definition and The Research Process. Critical Importance of Correctly Defining the Problem. Recognize the Problem/Opportunity. Changes occur in the firm’s external environment: Should we change the existing marketing mix? If so, How?
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Recognize the Problem/Opportunity • Changes occur in the firm’s external environment: • Should we change the existing marketing mix? • If so, How? • Marketing research may be used to evaluate the products and services, promotion, distribution, and pricing alternatives. • In addition it may be used to find and evaluate new opportunities, in the process called “opportunity identification”
Example of Opportunity Identification • In 1990, there have been over 30 million babies born in the United States. They represent the largest generation since baby boomers. • Because of that increase in single-parent and dual earner households, kids are making shopping decisions once left to mom. • With their allowance, earnings, and gifts, children 14 and under will spend an estimated $20 billion a year, and they will influence another $200 billion in purchases.
Example of Opportunity Identification • These statistics represent an opportunity. • Walt Disney, for example, launched a 24-hour kids’ radio network based on its marketing research. • General Motors did an analysis on backseat consumers that is children between 5-15 years. GM purchased the inside cover of Sports Illustrated for Kids (a mag. targeted to boys from 8-14 years) for the ad on the Chevy Venture minivan.
Recognize Problem • Managers may want to know: • Why are we losing marketing share? • What should we do about our competitor lowering its prices by 10 percent? • In this instances, marketing researchers can help managers solve problems
Find Out Why the Information Is Being Sought • Managers may not have a clear idea of what they want, therefore marketing researchers often find the following helpful: • Discuss what the info. will be used for and what decisions might be made as a result of the research. • Try to get the client/manager to prioritize their questions. • Create sample data and ask if such a data would help answer the questions. Simulate the decision process.
Understand the Decision-Making Environment • The better the marketing researcher understands the decision-making environment, including the industry, the firm, its products or services, and the target market, the more likely it is that the problem will be defined correctly. • This step may be referred to as conducting a situation analysis. That is studying the decision-making environment within which the marketing research will take place.
Understand the Decision-Making Environment • Sometimes informed discussions with managers and suppliers and on-site visits aren’t enough. • Exploratory research which is a preliminary research may be conducted to obtain greater understanding of a concept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied. It can take several forms: pilot studies, experience surveys, secondary data analysis, and case analysis.
Exploratory Research • Pilot studies: surveys using a limited number of respondents and often employing less rigorous sampling techniques than are employed in large, quantitative studies. • Experience surveys: discussions with knowledgeable individuals, both inside and outside the organization, who may provide insights into the problem. (not with the formal questionnaire) • Case analysis: reviewing info. from situations that are similar to the current one.
Use of the Symptoms to Clarify the Problem • A symptomis a phenomenon that occurs because of existence of something else. • Example: problem of poor sales, declining profits, increased customer complaints, or defecting customers. each of these is a symptom of a deeper problem. That is , something is causing a company’s customers to leave.
Use of the Symptoms to Clarify the Problem • Focusing on symptoms and not the true problem is often referred to as the iceberg principle. • Approx. 10% of iceberg rises out of the ocean; the remaining 90% is below the surface. • Preoccupied with the obstacle they can see, managers may fail to comprehend and confront the deeper problem, which remain submerged.
Translate the Management Problem into a Marketing Research Problem • Management decision problem: a statement specifying the type of managerial action required to solve the problem. • Once it has been identified, it must be converted into a marketing research problem. • The marketing research problem specifies what info. is needed to solve the problem and how that info. can be obtained efficiently and effectively.
Determine Whether the Information Already Exists • Using existing data can save managers time and money if such data can answer the research question.
Determine Whether the Question Can Be Answered • When marketing researchers promise more than they can deliver, they hurt the credibility of marketing research. • It is extremely important for the researchers to avoid being impelled into an effort that they know has a limited probability of success.
State the Research Objectives • The climax of the problem definition is a statement of the research objectives. • These are stated in terms of the precise info. necessary to address the marketing research problem/opportunity. • Research objectives must be specific and unambiguous as possible.
2. Creating Research Design • Research design: the plan to be followed to answer the marketing research objectives. • There is no single best design. Instead, different designs offer array of choices, with certain advantages and disadvantages. • First, the researchers need to decide whether the research will be descriptive or causal.
Descriptive and Causal Studies • Descriptive studies: research studies that answer the questions who, what, when, where, and how. It primarily describe what is going on/ what exists. • Implicit descriptive research is the fact that management already knows/understands the underlying relationships among the variables in the problem. • Variable: a symbol/concept that can assume any one of a set values.
Descriptive and Causal Studies • Causal studies: research that examine whether the value of one variable causes or determines the value of another variable. • Dependent variable: a symbol/concept expected to be explained or influenced by independent variable. • Independent variable: a symbol/concept over which the researcher has some control and that is hypothesized to cause or influence the dependent variable.
3. Choosing a Basic Method of Research • Survey research: research in which an interviewer interacts with respondents to obtain facts, opinion, and attitudes. • Observation research: descriptive research that monitors respondents’ actions without direct interaction. • Experiment research: research to measure causality, in which the researcher changes one or more variables and observes the effect of the changes on another variable.
4. Selecting the Sampling Procedure • A sample is subset from a larger population. • Several questions must be answered before a sampling procedure is selected. • The population/universe of interest must be defined • Whether to use a probability sample or nonprobability sample (more details will be in the sampling topic)
5. Collecting Data • Interview-based data collection is done by marketing research field services. • To ensure that all subcontractors do everything exactly the same way, detailed field instructions should be developed to every job.
6. Analyzing the Data • The purpose of this analysis is to interpret and draw conclusions from mass of collected data. • The marketing researcher may use a variety of techniques for the analysis.
7. Writing and Presenting the Report • The researcher must prepare the report and communicate the conclusions and recommendations to management in both written and oral reports. • This is a key step in the process because a marketing researcher who wants project conclusions acted on must convince the manager that the results are credible and justified by the data collected.
8. Following Up • It is important that the research finding be used. • Management should determine whether the recommendations were followed and, if not, why not.
Managing Research Process • The Research Request • Request for Proposal • What to Look for in a Marketing Research Supplier
Managing Research Process The Research Request • An internal document used by large organizations that describes a potential research project, its benefits to the organization, and estimated costs; it must be formally approved before a research project can begin.
The Research Request • The sections of a formal research request are as follows: • Action: actions to be taken on the basis of research • Origin: events led to a need for decision • Information: list the questions that needs to have answered to take action • Use: how each piece of info. will be used to help make the actual decision • Target groups and subgroups • Logistics: approximation of the available budget and time • Comments: other comments relevant to the research project
Managing Research Process Request for Proposal (RFP) • A solicitation sent to marketing research suppliers inviting them to submit a formal proposal, including a bid. • A typical RFP provides background data on why a study is to be conducted, outlines the research objectives, describes a methodology, and suggests a time frame. • Most of RFPs also ask for (1) detailed cost breakdown, (2) the supplier’s experience in relevant area, and (3) references
Managing Research Process What to Look for in a Marketing Research Supplier • Top 10 list of desirable qualities in marketing researchers: • Maintains client confidentiality • Is honest • Is punctual • Is flexible • Delivers against project specifications • Provides high-quality output • Is responsive to the client’s needs • Has high quality control standards • Is customer-oriented in interactions with client • Keeps the client informed throughout a project
1st Part of Group Project (10 out of 30 points) • Group of 6 members (8 groups) • Presentation on the selected topic • Start your presentation from next week (1 group/ class) • Exploratory research and qualitative analysis (Tong) • Digital research using secondary data (Kloster) • Survey research (Eyes) • Observation (Pim) • Experimental research and test marketing (Jeerapa) • Measurement (Phitpawee) • Questionnaire design (May) • Sampling: sample design and sample size (Zinn)
