Marketing

Marketing Research
Research
Process
Process and
and Problem
Problem
Formulation
Formulation
Dr. Sanjay Jain
Associate Professor
Institute of Management Studies
Ghaziabad
 Marketing Research
Process
• MR Process Evolves From Answers to Five
Key Questions
– Why should we do research?
– What research should be done?
– Is it worth doing the research?
– How should the research be designed to
achieve the research objectives?
– What will we do with the research?
 Marketing Research
Process
Step 1: Problem Formulation
– Problem or opportunity analysis (Broad)
– Management problem & Research Problem
– Evaluation of decision alternatives
• What are the alternatives being studied?
• What are the criteria for choosing among the alternatives?
– Research users
• Who are the decision makers?
• What are there purposes?
 Marketing Research
Process (Contd.)
Step 2: Approach to the Problem
• Research Question
• Research Objective
• Hypothesis Development
• Research Boundaries
Marketing Research Process
(Contd.)
Step 3: Research Design
• Type of research
– Exploratory, Descriptive,
Experiment
• Type of Data Required
– Primary & Secondary
• Primary Data Collection
– Questionnaire,
Observation
• Survey Methods
– Personal survey,
Telephonic interview, Mail,
Email, Internet
• Scale variables
– Nominal, Ordinal, Interval,
Ratio
• Testing Instrument
– Pilot study, Reliability,
Validity
• Sample Design
– Size, Procedure, Elements
• Methods of Analysis
– Data Reduction,
Hypothesis Testing ,
Bivariate Analysis,
Multivariate Analysis
Marketing Research Process
(Contd.)
Step 4: Field Work & Data Collection
Step 5: Data Analysis
– Coding, Editing, Entering
– Tabulation, Frequency Distribution
– Bivariate, Multivariate Analysis
Step 6: Findings & Suggestions
Step 7: Report Writing
Problem
Problem Formulation
Formulation
 Problem Formulation
A problem well defined is a problem half solved!

Failure to properly identify where you are headed and

why will inevitably lead you to wonder where you are
and how you got there! Wren
Problem Definition
Tasks Involved

Discussion Interview
with Secondary
with Decision Qualitative
Industry Data
Makers Research
Analysis
Experts

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Specification
Research Research of
Hypothesis
Questions Objectives Information
Needed

Step III: Research Design

Problem Identification - Tasks

1. Discussions with Decision Makers (DM)

• Problem Audit: provides a useful framework
for interacting with the DM and identifying
underlying causes of the problem
• It is a process of comprehensive examination
of a marketing problem
Problem Identification - Tasks
• Issues covered in problem audit
1. History of the problem.
2. Corporate culture as it relates to decision
making.
3. Alternative courses of action available
4. Information needed to answer the DM's
questions.
5. Criteria to evaluate the alternative courses
of action.
6. How the information will be used in making
the decision?
7. Potential actions based on the research
findings.
The 7 Cs of Interaction
• The interaction between the DM and the
researcher should be Characterized by the 7 Cs:
1. Communication
2. Cooperation
3. Confidence
4. Candor (being open & honest)
5. Closeness
6. Continuity
7. Creativity
Problem Identification – Tasks

2. Interviews with Industry Experts

3. Secondary Data Analysis
4. Qualitative Research
• Pilot Surveys
• Focus Groups Interviews
• Depth Interviews
Environmental Context of
the Problem
PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS
 Problem Definition
Management Decision Problems vs. Marketing
Research Problems
•Management Decision Problem
– Simply a statement of the issue/situation
that management is dealing with
– Asks what the decision maker needs to do
– Action oriented
– Focus on symptoms
– Need restatement in research terms.
 Problem Definition
Management Decision Problems vs. Marketing
Research Problems
• Marketing Research Problem
– Asks what information is needed and how it
should be obtained
– Information oriented
– Focuses on the underlying causes
– most critical part of the mktg. research process -
provides guidance and direction for research
process
Management Decision Problem Vs.
Marketing Research Problem
Management Decision Marketing Research
Problem Problem
• Should a new product • To determine consumer
be introduced? preferences and purchase
intentions for the proposed
new product.
• To determine the
• Should the advertising effectiveness of the current
campaign be changed? advertising campaign.
• To determine the price
elasticity of demand and the
• Should the price of the impact on sales and profits of
brand be increased? various levels of price
changes.
 Problem Definition - Exercise
Management Dec. Prob. Marketing Res. Prob.
• Should the in-store • Determine how the various
promotion for an levels of in-store
promotion affect the
existing product line be sales.
increased? • Determine the relationship
• What pricing strategy between price and demand
should be adopted for a for a new product.
new product? • Determine the relation
between alternative
• Should the compensation packages
compensation package and the respective sales
be changed to motivate performance.
the sales force?
 Problem Definition - Exercise
Research problem
• Estimate the sales and market
share of department stores in a
certain area.
• Determine the design features
for a new product that would
result in maximum market share.
• Assess current and proposed
sales territories with respect to
their sales potential and
workload.
• Determine the prices for each
item in a product line so as to
maximize total sales for the
product line.
Decision problem
• Should a new store be opened in
a certain metropolitan area?
• Should a new product be
introduced? If so, what
features should it have?
• How many new sales people have
to be hired?
• How should the various items in
the product line be priced so as
to maximize revenue?
Definition of the Research
Problem

Marketing Research Problem

Broad Statement

Specific Components
Developing an Approach to
the Problem
• Research Question
– Asks what specific information is required
to achieve the research purpose
– E.g. if a company wants to run specific
advertisement, then research question may be:
• Will the advertisement be noticed?
• Will it be interpreted accurately?
• Will it influence attitudes?
 Developing an Approach to
the Problem
• Research Objectives
– A statement, in as precise terminology as
possible, of what information is needed
– the specific bits of knowledge - that close the
information gaps highlighted in the research
problem.
– Should be framed to ensure information
obtained will satisfy research purpose
– Stated in action terms
– Serve as a standard to evaluate the quality and
value of the research
– Objectives should be specific and unambiguous
Developing an Approach to
the Problem
• Hypothesis Development
– is an unproven statement or proposition
about a factor or phenomenon that is of
interest to the researcher.
– A logical conjectured relationship between
two or more variables expressed in the
form of a testable statement.
– A possible answer to a research question.
Example - Problem Definition

• Management Decision Problem

– What price should we charge for our
new product?
• Marketing Research Problem
– Determine the relationship between
price and demand for a new product.
 Example - Problem Definition
Research Questions
• What is the perceived value
of our product in the market
place?
• What are our pricing
objectives and position in the
market?
• What price does similar
types of products sell for?
• What are our costs of
production and marketing
(COGS)?
Research Objectives
• To determine potential
customer reaction to various
prices and their perception of
the benefits of owning the
product
• To determine corporate
objectives and their
implications for pricing
• To examine current prices for
direct and indirect competition
• To assess the costs involved in
producing and selling our
product
 Tips for Accurately Defining
Research Problems
• Find out why the information is being sought.
• Determine whether the information already
exists.
• Determine whether the question really can/should
be answered.
• Use exploratory research to define background
of the problem
– Situation analysis
– The iceberg principle
• Determine relevant variables
 Practice, Practice

• For the following management problems,

identify the underlying research
problems and a couple of research
objectives.
– “Should our retail chain offer online
shopping?”
– “What advertising media should we use to
reach our market?”
– “How do we get more people to attend our
outdoor festival/event?”
 Practice, Practice (cont’d)

– “How can we increase customer

retention?”
– “Should the amount of in-store
promotion for an existing product line
be increased?”
– “Should the compensation package be
changed to better motivate the sales
force?”