Principles of MARKETING RESEARCH

1. Winter 2013 Principles ofMARKETING RESEARCH

2. Overviewof Today’s Topics Types of Marketing Research Initiating the Research Process Homework Presentations Homework Assignment for Week 04

3. 1 TYPES OF MARKETING RESEARCH Definitionand Examples

4. TYPES OF MARKETING RESEARCH BASIC Attempts to expand the limits of knowledge, but is not directly involved in the solution to a problem. Example: Do consumers disassociate during low involvement situations?

5. TYPES OF MARKETING RESEARCH APPLIED This type of research is conducted when a Decision must be made about a specific real-life problem Examples?

6. TYPES OF MARKETING RESEARCH APPLIED RESEARCH EXAMPLES Should McDonald’s add Italian pasta to its menu? Should Proctor & Gamble add high priced home teeth bleaching kits to its product line?

7. 2 Initiating the Research Process Necessary to have accurate information to make the correct decisions.

8. What? Initiating the Research Process Defined as the systematic gathering, analyzing, interpreting, and transforming of data into decision-making information. Basically, the goal is to gain knowledge The type of knowledge is what makes this process more difficult.

9. Why? Determining Need How do you know if Market Research is necessary? Need to ask, “Can the problem be solved based on past experience and/or managerial judgment?” Why it might not be needed: Information is already available Insufficient time frames Inadequate resources Costs outweigh value

10. 4 Phases Research Process Phase 1 Determine the Research Problem Phase 2 Select Appropriate Research Design Phase 3 Execute the Research Design Phase 4 Communicate the Research Results The answers to these question can mean the difference between an iPod and a Zune.

11. Phase 1 Determine the Research Problem Step 1 Identify and Clarify information needs This depends on what the problem is. Then you need to determine what information is needed to solve the problem The Iceberg Principle Above the water line are the obvious problems, below and unseen are the problems.

12. Phase 1 Determine the Research Problem Step 2 Define the Research Problem and Questions Most important step is defining the problem What is a problem? Any situation where a gap exists between the actual and desired state. Might not be that something is wrong, could be the desire to improve. Problem definitions can include both existing problems or goals to improve the current situation for the future. Typical Problems: Poor Service, Competition, Conflicts, Lack of Sales

13. Phase 1 Determine the Research Problem Step 3 Specify Research Objectives and Confirm Information Value Need to ask: Can information be collected at all Will the information tell something not already known Will the information provide any significant insight If any of the above questions are answered with a no, then the process ends.

14. Phase 2 Select the Research Design Step 4 Determine the research design and data sources What type will you be using? Exploratory Research Descriptive Research Causal Research Uncertainty can influences the type of research design chosen

15. Phase 2 Select the Research Design Step 4 Determine the research design and data sources Exploratory Research Occurs when you are unaware of what the problem is ie: “Would people be interested in a new product?” Used to clarify and define the nature of the problem Does not provide any conclusive evidence and subsequent research is expected once this type is complete Usually collection of information is more informal and unstructured Types include secondary data (historical data), pilot studies

16. Phase 2 Select the Research Design Step 4 Determine the research design and data sources Descriptive Research Describes characteristics of a population or phenomenon Defines understanding of the nature of the problem Collecting information using methods that describe variables “What kind of people are buying our product? Who buys our competitors products? What features do buyers prefer in our product?” example: Average Weight Watchers customer Woman 40+ Income $50,000+ Some college education Juggling kids and job

17. Phase 2 Select the Research Design Step 4 Determine the research design and data sources Causal Research (Experiments) Conducted to identify cause and effect relationships Difficult to prove causal relationships Some evidence of causality might include: Appropriate causal order of events Two phenomenon vary together Absence of any other plausible explanation

18. Phase 2 Select the Research Design Step 4

19. Phase 2 Select the Research Design Step 4 Determine the research design and data sources Data Sources Secondary Data Sources Internet, library, internal data warehouses Primary Data Sources Telephone, Internet, mail, face to face interviews or observations

20. Phase 2 Select the Research Design Step 4 Determine the research design and data sources Data Types Raw Data Actual responses by asking questions or observing behavior Data Structure Combining raw date into groups either qualitative or quantitative Information/Knowledge Data that is properly interpreted to provide knowledge that is useful

21. Phase 2 Select the Research Design Step 5 Sampling Design and Sampling Size Identify the relevant target population. Develop a probability or non-probability sampling plan. Determine the sample size.

22. Phase 2 Select the Research Design Step 7 Design and Pretest Questionnaire Decide issues such as: Question Type Sequence and Format Pretest This is critical because bad questionnaires produce inaccurate data.

23. Phase 3Execute the Research Design Step 8 Collect and Prepare Data Step 9 Analyze Data Data Cleaning: checked for inaccurate entry, etc. Data Analysis: Run statistical test to determine relationships Univariate Bivariate Multivariate

24. Phase 3Execute the Research Design Step 9 Analyze Data Be aware of Outliers An observation or response that is substantially different from the others Example: INDIVIDUAL NET WORTH Bill Gates 56.0 Billion Jeff Bezos 4.4 Billion Craig McCaw 2.1 Billion Number of Households in Medina, Washington: 1206 Average net worth (1206 Households): $52, 048,652 Average net worth (minus Bill Gates): $5,618,817 Average net worth (minus top three): $235,521

25. Phase 4 Communicate Research Results Step 11 Prepare and Prepare final report Executive Summary Introduction Problem Definition & Objectives Methodology Results, Findings, Limitations of Study This last step is one of the most important because it communicates results directly to the client.

26. 3 HomeworkWeek 03/04

27. In Class Assignment / Homework Week 03 IN CLASS ASSIGNMENT You will be conducting a survey on one of the following topics: Gun Control Immigration Abortion Fiscal Cliff Intelligent Design Once you’ve chosen your topic, come up with the following: Target Demographic Expected Outcomes Take that information and go to the street—ASK THEM! Once you’ve questioned at least 20 people in your target. Collate the information and provide the following for homework week 2.

28. Homework Week 03 STREET ANALYSIS For week 2 I would like you to provide a written analysis of the information you collected. Provide your original field notes, an informational graph that gives a visual representation of your outcomes and an analysis of the information and your conclusions. Initially I would recommend providing some background on your topic and the target demographic and expected outcomes you originally assumed. Make sure to note if they were correct and did the information back you up or not. Explain why you believe it did or didn’t. Your analysis should be typewritten, MLA format and make sure to SPELL CHECK. I will collect them at the beginning of next week’s class.

29. FINAL PROJECT • Specs • The final project is the culminating academic endeavor of the class’s research over the quarter. • It will provide you with the opportunity to explore a problem or issue of particular personal or professional interest and to address it in a thorough focused study and applied research. • This project should demonstrate your ability to synthesize and apply the knowledge and skills acquired through the class, and it should not only exemplify your ability to think critically, but should utilize the variety of research methods introduced to come to a cohesive and logical conclusion.

30. FINAL PROJECT • Sections • Executive Summary • Industry Analysis • Marketing Research • SWOTT Analysis • Hypothesis/Problem Statement/Purpose • Research Objectives • Limitations • Methodology • Sample Questionnaire • Data Analysis • Conclusions

31. FINAL PROJECT • Requirements • You will be required to provide all of your questionnaires in the final document along with your tabulation of the data provided by those forms. In addition, you will include the secondary research sources in print form along with a full bibliography of the sources utilized. • A final oral presentation will be given in class utilizing presentation software that will detail your process and findings. • After the final presentations you will provide the instructor with the following in an envelope or folder: • Written paper • Print out of Oral Presentation • DVD/CD with written and oral presentation

32. HOMEWORK WEEK 04 • Requirements • Develop an initial proposal for your final project. Include information about the Problem Statement (question you want answered), background about the industry and why you believe this will work for this project. • Provide a one page written summary and be prepared to discuss in detail during class next week. • Make sure to check the website at: • ddemooy.weebly.com • For this week’s slide lecture and other helpful resources.