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TRANSCRIPT
Essentials of
Marketing Research
MALHOTRA
HALL
SHAW
OPPENHEIM
AN
APPLIED
ORIENTATION
PowerPoint to accompany
1- 1
1- 2 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
PART ONE
Chapter 1
The Marketing Research
Process
1-3 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Chapter Objectives
After reading this chapter, you should be able to:
Understand the nature and scope of marketing research.
Explain the role of marketing research in business management decision-making.
Discuss the types and roles of research suppliers.
Explain the importance of ethical behaviour
Appreciate the components of the marketing research process.
Learn about the process used for defining the marketing research problem.
Discuss the background and environmental factors affecting the definition of the research problem.
Clarify the distinction between the management decision
problem and the marketing research problem.
1-4 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Chapter Objectives (cont’d)
Understand the link between the research problem and
the research design.
Understand the importance of clearly specifying the
information required from research.
Define the elements of the research brief.
Understand the relationship between the research brief
and the research proposal.
1-5 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
History of Market Research
19th Century The Birth
1900-1930s Childhood
1930-1950s Adolescence
1950-1960’s Teenage
1960-1970s Young Adult
1970-1980s New Executive
1980-1990s Professional
1990-2000 Maturity
2000 onwards Wisdom (or Second Childhood?)
1-6 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Marketing Research (MR) is the systematic and
objective identification, collection, analysis, and
dissemination of information for the purpose of
assisting management in decision- making
related to the identification and solution of
problems and opportunities in marketing.
Definition
1-7 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MR and Decision Making
MR should produce information that is:
Relevant
Accurate
Reliable
Valid
Timely
1-8 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.2 The Central Role of Marketing Research
1-9 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.3 A Typology of Business Decision Making
1-10 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Classification of MR
Problem Identification
Research
Identifies problems
not yet apparent
Often undertaken for
survival and long
term growth of the
company
Problem Solving
Research
Used once the
problem has been
identified
Used in making
decisions to solve
problems
1-11 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Examples of Problem Identification Research
Market potential research
Market share research
Image research
Market characteristics research
Sales analysis research
Forecasting research
Business trends research
1-12 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Examples of Problem Solving Research
Segmentation research
[lifestyle, demographics]
Product research
[concepts, packaging]
Pricing research
[price elasticity, price line pricing]
Promotion research
[advertising effectiveness, sales promotion]
Distribution research
[location of retail outlets]
1-13 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MMIS and DSS
Marketing Management Information System
A formalised set of procedures for generating, analysing, storing, and distributing information to marketing decision makers on an ongoing basis.
[invoices, annual reports, previous research]
Decision Support Systems
Integrated system including hardware, communications network, database, model base, software base and the DSS user that collects and interprets information for decision making.
1-14 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MMIS vs DSS
Marketing Management
Information System
Structured problems
Use of reports
Rigid structure
Information displaying
restricted
Can improve decision
making by clarifying
raw data
Decision Support Systems
Unstructured problems
Use of models
User-friendly interaction
Adaptability
Can improve decision
making by using “what
if” analysis
1-15 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.6 Market Research Suppliers and Services
1-16 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Some Australian Research Companies
AC Nielsen
amrinteractive
Australian Fieldwork Solutions
BIS Shrapnel
Chant Link & Associates
Colmar Brunton
Fieldforce
FieldWorks
Lynx
Millward Brown Australia
Quantum Market Research
Roy Morgan Research
Sweeney Research
Wallis
1-17 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MR Job advertisement
FMCG - Market Research role
Reporting to the MR Manager you will be required to undertake and
manage market research projects, ensuring these results are objectively
analysed and interpreted. You will prepare summaries and develop
independent conclusions and recommendations so that consumer
understanding is integrated into key strategies and brand development
activities. In addition, you will be responsible for ensuring that
presentations are timely, relevant and address key business issues.
A clear thinker and strategist, you will have tertiary qualifications in
marketing, psychology and/or statistics. Experience as a market research
supplier or buyer is essential for this position.
Conceptual and analytical skills combined with influential communication
skills are essential. An insight and understanding of marketing principles
is desired.
1-18 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Skills and Knowledge required by
Market Researchers
Knowledge of marketing, psychology and consumer behaviour
The ability to understand and interpret secondary data
The ability to complete projects on time
Presentation skills
Foreign-language competency
Negotiation skills
Computer proficiency
Interpersonal skills
Statistical skills
Think creatively
1-19 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Marketing Research Process
Marketing or business definition problem or opportunity
Development of an approach and specifying research objectives
Research design formulation
Field work or data collection
Data preparation and analysis
Report preparation and presentation
1-20 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Ethics in Marketing Research
Address whether action is right or wrong, good
or bad
Most ethical decisions have extended or long
term effects
Ethical decisions are rarely black and white
Alternatives have both positive and negative
outcomes
1-21 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Stakeholders in MR
Public Respondents
Client Researcher
1-22 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices
Problem definition
Using surveys as a guise for selling or fundraising
Following personal agendas of the researcher or client
Conducting unnecessary research
Approach to the problem
Soliciting proposals to gain research expertise without pay
Using findings and models for specific clients or projects for other projects
1-23 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices cont.
Research design
Formulating a research design more suited to the researcher’s rather than the clients needs
Using secondary data that are not applicable
Disguising the purpose of the research
Not maintaining anonymity of respondents
Disrespecting privacy of respondents
Misleading questions
Embarrassing or putting stress on respondents
Using measurement scales of questionable reliability and validity
Designing overly long questionnaires or sensitive questions
Using inappropriate sampling procedures and sample size
1-24 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices cont
Fieldwork
Increasing the discomfort level of respondents
Following unacceptable fieldwork procedures
Data Preparation and analysis
Identifying and discarding unsatisfactory respondents
Using statistical techniques when the underlying assumptions are violated
Interpreting the results and making incorrect conclusions and recommendations
Report Preparation and Presentation
Using incomplete, biased and inaccurate reporting
1-25 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Code of Professional Behaviour
Market Research Society of Australia
www.mrsa.com.au
Code of Professional Behaviour covers:
Responsibilities to respondents
Researchers’ professional responsibilities
Researchers’ and Clients mutual rights and
responsibilities
1-26 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Importance of Defining the Problem
Problem definition involves stating the general
problem and identifying the specific components
of the marketing research problem.
Critical in setting the directions for all
subsequent phases of the marketing research
process.
Inadequate problem definition is a leading cause
of failure of marketing research projects.
1-27 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Case: Where did Coca-Cola go wrong?
Coca-Cola conducted blind taste tests in the early 1980s to
determine consumer taste preferences.
Results indicated that consumers preferred a sweeter product,
similar to Pepsi Cola. Coca-Cola introduced the new taste
Coke and named it “New Coke” and discontinued the original
Coke.
In less than 3 months, New Coke was discontinued after
customer outrage that the original Coke was removed.
It has been suggested that Coca-Cola narrowly defined the
research problem.
Coca-Cola failed to measure the emotional attachment and
loyalty to the existing brand name and its effect on subsequent
purchase and consumption behaviour.
Source: Shields, M.J. 1985 ‘Coke Fizzles, Fails to Factor in Customer Loyalty’, Adweek, 15 July, p.8.
1-28 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Tasks involved in the
Problem Definition Process
Collect the background information
Consider the environmental context of the problem
Conduct problem or opportunity audit
Step 1: Marketing or Business Problem Definition
Specify the Management Decision Problem
State the Purpose of the project
Define the Marketing Research Problem
Prepare the Marketing Research Brief
1-29 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Collect the Background Information
Discussion with decision makers
Interviews with industry experts
Reviewing existing information
Secondary data analysis
Exploratory qualitative research
1-30 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Environmental Context of the Problem
Past information and forecasts
Resources and constraints
Organisational and decision maker’s objectives
Buyer behaviour
Legal environment
Economic environment
Marketing and Technological skills
1-31 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit
Management decision problems and marketing
research problems encompass both problems
and opportunities.
Conduct a problem audit to understanding the
origin and nature of the problem. Discussion
with decision maker should uncover:
Symptoms
Alternative course of action
Background information
Suspected causes and possible solutions
Anticipated consequences
Corporate culture of the organisation
1-32 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
Symptoms
Declining sales
Decline in profits
Losing market share
Inability to meet sales
forecasts
Low traffic
Dissatisfied customers
Management
1-33 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
Possible Causes
Low-quality product or service
Incorrect pricing
Inappropriate distribution channels
Low awareness of company or brands
Poor image of the company
Unmotivated sales force Researcher
1-34 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
The interaction between the decision maker and the
researcher should be characterised by the 7Cs
Co-operation
Confidence
Candour
Closeness
Continuity
Creativity
Communication
1-35 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MDP and MRP
Management Decision Problem (MDP)
What the decision maker needs to do?
Action oriented
eg. Should the advertising campaign be changed?
Marketing Research Problem (MRP)
What information is needed and how that information can be obtained effectively and efficiently?
Information oriented
eg. To determine the effectiveness of the current advertising campaign
1-36 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Defining the MRP
Broad statement
To understand the decision making process of potential
university students in their choice of university .
Specifically,
To determine the factors potential students consider to be
important in selecting a university.
To determine when decisions regarding university
selection are made.
To determine sources of information and people who
influence potential students decision regarding choice of
university.
1-37 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Estimating the value of research and
setting a budget
Expected Value (EV) = Probability (Pr) x Value of Outcome (Vr)
Project Return (profit)
$2million
EV with
$2 x 0.7 = $1.4 million
EV with
$2 x 0.3 = $0.6 million
Difference contributed
by research (A – B)
1.4 – 0.6 = $0.8million
A
B
With
Research
Without
research
Probability of success 0.3
Probability of success 0.7
1-38 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Contents of Marketing Research Brief
Executive summary
Introduction
Background
Management decisions - Research Purpose
Research Objectives (research information)
Scope of the Project
Proposed Research Approach
1-39 Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Contents of Marketing Research Brief cont.
Reporting Requirements
Timing
Budget
Materials
Contractual Arrangements
Requirements for proposals
Project Management