Explaining the Marketing Research Process

1. Marketing Research | Chapter 2 Explaining the Marketing Research Process Professor Yu Hongyan Sun Yat-Sen Business School, SYSU 15 October 2014

2. Sale go down Invitation marketing research agency Proposal Case of Beer Marketing Research

3. The Marketing Research Process

4. Marketing Research Process Steps 1 Establish Need 2 Define Problem 3 Research Objectives 4 Determine Design 5 Identify Information Sources 6 Decide Data Collection Method 7 Design Questionnaire 8 Determine Sample Plan & Size 9 Collect Data 10 Analyze Data 11 Write and Present Report Figure out what to research (Chapters 2 & 4) Design the way to do the research (Chapters 5-13) Not always presented as an 11-step process Gather data from respondents (Chapter 14) Generate findings and interpret them (Chapters 15-20)

5. 1: Establish the Need for MR • Is there a real need for marketing research? • Research takes time and costs money. • Value of information v. Cost of information? • Marketing research is not always needed. • We often have the information

6. Information already available Situations Decisions must be made now Cannot afford research Costs outweigh value 1: Establish the Need for MR • When is marketing research NOT needed?

7. Value Should Exceed Estimated Costs Costs Value • Research expenditures • Delay of marketing decision and possible disclosure of information to rivals • Possible erroneous research results • Decreased uncertainty • Increased likelihood of a correct decision • Improved marketing performance and resulting higher profits

8. Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs Information already on hand inadequate? Does the information value exceed the research cost? Is the decision of strategic or tactical importance? Conduct Marketing Research Is sufficient time available? Yes Yes Yes Yes No No No No Do Not Conduct Marketing Research

9. 2: Define the Problem • If the problem is incorrectly defined, all else is wasted effort. “The formulation of the problem is often more essential than its solution.” Albert Einstein

10. 2: Define the Problem • Problems stem from • gaps between what is supposed to happen and what did happen • gaps between what did happen and what could be happening. Revenue or CL

11. Obvious Measurable Symptoms Real Business Decision Problems 2-11

12. 3: Establish Objectives • Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2. • Research objectives state what the researchers must do.

13. 4: Determine Research Design • Exploratory Research: • Collecting information in an unstructured and informal manner. • Descriptive Research • refers to a set of methods and procedures describing marketing variables. • Causal Research (experiments): • allows isolation of causes and effects.

14. 6: Determine Methods of Accessing Data • Secondary information: • Information already collected • Relatively easy to access; primary data is more complex. • Primary information: • information collected specifically for the problem at hand • Three main choices for primary data: • Have a person ask questions • Use computer-assisted or direct questioning • Allow respondents to answer questions themselves without computer assistance

15. 7: Design Data Collection Forms • Questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents. • Software programs are available to assist marketing researchers in preparing forms. • http://www.sojump.com/jq/2189069.aspx

16. 8: Determine Sample Plan and Size • Sample plan refers to the process used to select units from the population to be included in the sample. • Gives you representativeness! • Sample size refers to determining how many elements of the population should be included in the sample. • Gives you accuracy!

17. 9: Collect Data • Data collection is very important because, regardless of the data analysis methods used, data analysis cannot fix bad data. • Nonsampling errors may occur during data collection. • Data collection errors may be attributed to field workers or respondents. • Researchers must know the sources of these errors and the controls to minimize them.

18. 10: Analyze Data • Data analysis involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests. • Data cleaning is a process by which raw data are checked to verify that the data have been correctly inputted from the data collection form to the computer software program.

19. 11: Prepare and Present the Final Research Report • The last step is one of the most important phases of marketing research. • Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client.