introduction to marketing research.ppt

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Introduction to Marketing Research



CHAPTER 1

Introduction to Marketing

Research



Definition of Marketing Research

Marketing research is the systematic and objective

identification,

collection,

analysis,

dissemination, and

use of information

for the purpose of improving decision making related to the

identification and

solution of problems and opportunities in marketing.



Classification of Marketing Research

Problem Identification Research Research undertaken to help identify problems which are not

necessarily apparent on the surface and yet exist or are likely

to arise in the future. Examples: market potential, marketshare, image, market characteristics, sales analysis, forecasting, and trends research.

Problem Solving Research Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing, promotion, and distribution research.



Problem

Identification

Research

• Market Potential Research

• Market Share Research• Image Research

• Market Characteristics

Research

• Forecasting Research

• Business Trends Research

Marketing

Research

Figu re 1.3 A Classif ic ation of Marketing Research

Problem

Solving

Research

•Segmentation

Research

•Product Research

•Pricing Research

•Promotion Research

•Distribution Research



Figu re 1.4 The Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report



Table 1.1

Honomichl Global Top 25

TOP 25 GLOBAL RESEARCH ORGANIZATIONS

002

Organization Headquarters

Parent

country Website

No. of countries

with subsidiaries

branch offices1

Global research

revenue2

(U.S. $ millions)

Percent of

global revenue

from outside

home country1 VNU N.V. Haarlem Netherlands www.vnu.com 81 $3,048.3 99.0%* – Taylor Nelson Sofres plc London U.K. www.tns-global.com 70 1,565.1 83.54 Taylor Nelson Sofres London U.K. www.tns-global.com 54 1,050.5 78.68 NFO WorldGroup Inc. Greenwich, Conn. U.K. www.tns-global.com 40 514.6 93.52 IMS Health Inc. Fairfield, Conn. U.S. imshealth.com 75 1,381.8 61.13 The Kantar Group Fairfield, Conn. U.K. www.kantargroup.com 61 1002.1 66.1*

6 GfK Group Nuremberg Germany www.gfk.com 48 673.6 62.87 Ipsos Group S.A. Paris France www.ipsos.com 36 644.6 84.15 Information Resources Inc. Chicago U.S. www.infores.com 18 554.3 30.09 Westat Inc. Rockville, Md. U.S. www.westat.com 1 381.6 NA

11 Synovate London U.K. www.synovate.com 46 357.7 91.310 NOP World London U.K. www.nopworld.com 6 335.6 80.512 Arbitron Inc. New York U.S. arbitron.com 3 273.6 2.913 Maritz Research St. Louis U.S. maritzresearch.com 4 188.8 34.914 Video Research Ltd.3 Tokyo Japan www.videor.co.jp 4 166.7 1.116 J.D. Power and Associates Agoura Hills, Calif. U.S. jdpower.com 6 144.8 17.817 Harris Interactive Inc. Rochester, N.Y. U.S. harrisinteractive.com 4 137.0 19.015 Opinion Research Corp. Princeton, N.J. U.S. opinionresearch.com 6 131.2 35.4184 INTAGE Inc.3 Tokyo Japan www.intage.co.jp 2 122.3 1.0194 The NPD Group Inc. Port Washington, N.Y. U.S. npd.com 11 117.6 17.721 AGB Group Milan Italy agb.com 19 81.6 79.023 Market & Opinion Research Int’l London U.K. www.mori.com 2 64.4 2.825 Lieberman Research Worldwide Los Angeles U.S. Irwonline.com 1 63.2 8.720 Dentsu Research Inc. Tokyo Japan www.dentsuresearch.co.jp 1 57.0 1.123 Abt Associates Inc. Cambridge, Mass. U.S. abtassociates.com 3 54.0 4.3 – Nikkei Research Inc. Tokyo Japan nikkeiresearch.com 4 52.1 3.522 Wirthlin Worldwide McLean, Va U.S. Wirthlin.com 4 52.0 22.9

TOTAL $11,651.0 67.3%

by Top 25 1 Includes countries that have subsidiaries with an equity interest or branch offices, or both. 2 Total revenue that includes nonresearch activities for some companies are significantly higher. This information is given in the individualofiless 3For fiscal year ending March 2004 4Reranked based on corrected revenue of the NPD Group Inc. See NPD’s profile for details.

Drawn from Marketing News with permission from the American Marketing Association.



Criteria for Selecting a Research Supplier

What is the reputation of the supplier? Do they complete projects on schedule?

Are they known for maintaining ethical standards?

Are they flexible?

Are their research projects of high quality? What kind and how much experience does the supplier

have? Has the firm had experience with projects similar tothis one?

Do the supplier's personnel have both technical and non-

technical expertise? Can they communicate well with the client?

Competitive bids should be obtained and compared on the

basis of quality as well as price.



Careers in Marketing Research

Career opportunities are available with marketing research firms(e.g., AC Nielsen, Burke, Inc., M/A/R/C)

Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble,Coca-Cola, AT & T, the Federal Trade Commission, United StatesCensus Bureau)

Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J.Walter Thompson, Young & Rubicam)

Positions: vice president of marketing research, research director,assistant director of research, project manager, field work director,statistician/data processing specialist, senior analyst, analyst, junioranalyst, and operational supervisor.



Selected Marketing Research Career Descriptions

Vice President of Marketing

Research

• Part of company’s top

management team

• Directs company’s entire market

research operation

• Sets the goals & objectives of the

marketing research department

Research Director

• Also part of seniormanagement

• Heads the development

and execution of all

research projects

Assistant Director of Research

•Administrative assistant to director

•Supervises research staff members

Senior Project Manager• Responsible for design, implementation, &

research projects



Analyst• Handles details in execution of

project

• Designs & pretests questionnaires

• Conducts preliminary analysis ofdata

Junior Analyst• Secondary data analysis

• Edits and codes questionnaires

• Conducts preliminary analysis of data

Fieldwork Director• Handles selection, training,

supervision, and evaluation ofinterviewers and field workers

Senior Analyst• Participates in the development of projects

• Carries out execution of assigned projects

• Coordinates the efforts of analyst, junior analyst, & other personnel in the

development of research design and data collection

• Prepares final report

Statistician/Data Processing• Serves as expert on theory and

application on statistical techniques

• Oversees experimental design, data

processing, and analysis

Selected Marketing Research Career Descriptions



Preparation for a Career in Marketing Research

Take all the marketing courses you can.

Take courses in statistics and quantitative methods.

Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.

Take courses in psychology and consumer behavior.

Acquire effective written and verbal communicationskills.

Think creatively. Creativity and common sensecommand a premium in marketing research.



Domestic

AAPOR: American Association for Public Opinion Research

(www.aapor.org)

AMA: American Marketing Association (www.ama.org)

ARF: The Advertising Research Foundation (www.amic.com/arf)

CASRO: The Council of American Survey Research Organizations

(www.casro.org)

MRA: Marketing Research Association (www.mra-net.org)

QRCA: Qualitative Research Consultants Association

(www.qrca.org)

RIC: Research Industry Coalition (www.research industry.org)

Marketing Research Associations Online



CHAPTER 2

Defining the MarketingResearch Problems and

Developing an Approach



History of the Problem

Alternative Courses of Action Available to DM

Criteria for Evaluating Alternative Courses

Nature of Potential Actions Based on Research

Information Needed to Answer the DM’s Questions

How Will Each Item of Information Be Used by the DM?

Corporate Decision-Making Culture

Figure 2.4 Conducting a Problem Audit

Table2.1ManagementDecisionProblemVersustheMarketingResearchProblem



TABLE 2.1

Management Decision Problem Versus the Marketing Research Problem

______________________________________________________________

Management Decision Problem Marketing Research Problem ______________________________________________________________

Asks what the decision maker Asks what information is neededneeds to do and how it should be obtained

Action oriented Information oriented

Focuses on symptoms Focuses on the underlying causes ______________________________________________________________



Management Decision Problem Vs.

Marketing Research Problem

Management Decision Problem Marketing Research Problem

Should a new product be To determine consumerintroduced? preferences and purchase

intentions for the proposed new

product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact onsales and profits of various levelsof price changes.



Common

Errors

Figure 2.7 Errors in Defining the Market Research Problem

Figure2.7ErrorsinDefiningtheMarketResearchProblem

Problem Definition

is too Broad

• Does Not Provide

Guidelines for

Subsequent Steps

• e.g., Improving the

Company’s Image

Problem Definition

is too Narrow

• May Miss Some

Important Componentsof the Problem

• e.g. Changing Prices

in Response to a

Competitor’s Price

Change.



Research Questions and Hypotheses

Research questions (RQs) are refined statements ofthe specific components of the problem.

A hypothesis (H) is an unproven statement orproposition about a factor or phenomenon that is ofinterest to the researcher. Often, a hypothesis is a

possible answer to the research question.



Pop Quiz



Question 1.

Marketing research is the systematic and objectiveidentification, collection, analysis, dissemination, and

use of information…

for the purpose of improving decision making related toproblem:

(1)____________________

(2)____________________

Question 2



Question 2.

WHAT GOES HERE?









Answer 1.

Marketing research is the systematic and objectiveidentification, collection, analysis, dissemination, and

use of information

for the purpose of improving decision making related tothe:

identification and

solution of problems and opportunities in

marketing.

Answer 2



Answer 2.

History of the Problem









CHAPTER 3

Research Design



Research Design

Exploratory Research

Design

Causal

Research

Conclusive Research

Design

Cross-Sectional

Design

Descriptive

Research

Longitudinal

Design

Figu re 3.4. A Class if icatio n o f Market Research DesignsFigure3.4AClassificationofMarketResearchDesigns



TABLE 3.2

A COMPARISON OF BASIC RESEARCH DESIGNS

Causal Exploratory Descriptive

Objective: Discovery of Describe market Determine

ideas and characteristics cause and effect

insights. or functions. relationships.

Character- Flexible. Marked by the Manipulation of

istics: Versatile. prior formula- one or more

Often the tion of specific independent

front end of hypotheses. variables.

total research Preplanned and Control of other design. structured mediating

design. variables.



TABLE 3.2 (Cont.)

A COMPARISON OF BASIC RESEARCH DESIGNS

Exploratory Descriptive Causal

Expert surveys Secondary data Experiments

Pilot surveys Surveys

Case Studies Panels.Secondary data Observational and other data.

(qualitative)

Qualitative Research.

TABLE 3 3



Table3.1DifferencesBetweenExploratoryandConclusiveResearch

TABLE 3.3

RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL

AND CROSS-SECTIONAL DESIGNS

Evaluation Cross-Sectional LongitudinalCriteria Design Design

Detecting change - +

Large amount of data

collection - +

Accuracy - +

Representative

sampling + -

Response bias + -

Note: A + indicates a relative advantage over the other design whereas

a - indicates a relative disadvantage.



Uses of Exploratory Research

Formulate a problem or define a problem moreprecisely

Identify alternative courses of action Develop hypotheses

Isolate key variables and relationships for furtherexamination

Gain insights for developing an approach to theproblem

Establish priorities for further research



Methods of Exploratory Research

Survey of experts (discussed in Chapter 2)

Pilot surveys (discussed in Chapter 2)

Secondary data analyzed in a qualitative way(discussed in Chapter 4)

Qualitative research (discussed in Chapter 5)



Use of Descriptive Research

To describe the characteristics of relevant groups,such as consumers, salespeople, organizations, ormarket areas.

To estimate the percentage of units in a specifiedpopulation exhibiting a certain behavior

To determine the perceptions of productcharacteristics

To determine the degree to which marketing variablesare associated

To make specific predictions



Methods of Descriptive Research

Secondary data analyzed in a quantitative asopposed to a qualitative manner (discussed inChapter 4)

Surveys (Chapter 6)

Panels (Chapters 4 and 6)

Observational and other data (Chapter 6)



Figure 3.5. Major Types of Desc rip t ive Stud ies

DescriptiveStudies

Consumer

PerceptionAnd Behavior

Studies

• Image

• Product Usage

• Advertising

• Pricing

Market

CharacteristicStudies

• Distribution

• Competitive Analysis

Figure3.5MajorTypesofDescriptiveStudies

• Market Potential

• Market Share

• Sales Analysis

Sales Studies



Cross-sectional and Longitudinal

Designs

A cross-sectional design involves the collection ofinformation from any given sample of populationelements only once.

In a longitudinal design, a fixed sample (or samples)of population elements is measured repeatedly onthe same variables

A longitudinal design differs from a cross-sectionaldesign in that the sample or samples remain thesame over time



SampleSurveyed at

T1

Sample

Surveyed at

T1

Same

Sample also

Surveyed at

T2

T1 T2

CrossSectional

Design

Longi tud inal

Design

Time

Figure 3.6. Cross Sect ion al vs. Long itudin al Design s

Figure3.6CrossSectionalvs.LongitudinalDesigns



Uses of Casual Research

To understand which variables are the cause(independent variables) and which variables are the

effect (dependent variables) of a phenomenon

To determine the nature of the relationship betweenthe causal variables and the effect to be predicted

METHOD: Experiments



Pop Quiz

1. What are the three research designs we

discussed in lecture today?

2. Define what each design does.

3. Provide an example for each of the three.



Answer.

What are the three research designs we

discussed in lecture today?

Exploratory

Descriptive

Causal



CHAPTER 4

Exploratory Research Design

Focus: Secondary Data

i d



Primary vs. Secondary Data

Primary data are originated by a researcher for thespecific purpose of addressing the problem at hand. The

collection of primary data involves all six steps of themarketing research process (Chapter 1).

Secondary data are data which have already beencollected for purposes other than the problem at hand.

These data can be located quickly and inexpensively.



TABLE 4.1

A Comparison of Primary and Secondary Data

_____________________________________________________________

PRIMARY DATA SECONDARY DATA

____________________________________________________________

Collection purpose For problem at hand For other problems

Collection process Very involved Rapid and easy

Collection cost High Relatively low

Collection time Long Short

_____________________________________________________________

Table4.1AComparisonofPrimaryandSecondaryData



Criteria for Evaluating Secondary

Data

Specifications: Methodology Used to Collectthe Data

Error: Accuracy of the Data

Currency: When the Data Were Collected

Objective(s): The Purpose for Which the

Data Were Collected

Nature: The Content of the Data

Dependability: Overall, How Dependable Are

the Data



Table4.2CriteriaforEvaluatingSecondaryData

TABLE 4.2

Criteria for Evaluating Secondary Data

Criteria Issues Remarks

_________________________________________________________________

Specifications/ Data collection method Data should be

Methodology Response rate reliable, valid,

Quality of data and generalizable

Sampling technique to the problem

Sample size at hand.Questionnaire design

Field work

Data analysis

Error/ Examine errors in: Assess accuracy by

Accuracy Approach, Research design, comparing data

Sampling, Data collection, from differentData analysis, Reporting sources.

Currency Time lag between collection Census data are

and publication. periodically

Frequency of updates updated by

syndicated firms

TABLE 4 2 (Continued)



TABLE 4.2 (Continued)

Criteria for Evaluating Secondary Data

Criteria Issues Remarks

_________________________________________________________ _______

Objective Why were the data The objective will

collected? determine the

relevance of data.

Nature Definition of key variables Reconfigure the

Units of measurement data to increase

Categories used their usefulness,

Relationships examined if possible.

Dependability Expertise, credibility, Data should be

reputation and obtained from an

trustworthiness of the original rather

source. than an acquired source.



Internal Secondary Data

Department Store ProjectSales were analyzed to obtain:

Sales by product line

Sales by major department (e.g., men's wear, house

wares) Sales by specific stores

Sales by geographical region

Sales by cash versus credit purchases

Sales in specific time periods Sales by size of purchase

Sales trends in many of these classifications were alsoexamined.

I t l S d D t



Retail Link Dataset

Internal Secondary Data

Example

Type of Individual/Household Level




Data Available from Syndicated Firms

I. Demographic Data- Identification (name, address, telephone)

- Sex

- Marital status

- Names of family members

- Age (including ages of family members)

- Income

- Occupation

- Number of children present

- Home ownership

- Length of residence

- Number and make of cars owned



Demographic Data Example

US Census http://www.census.gov/

BLS http://www.bls.gov/


http://www.census.gov/

http://www.bls.gov/

http://www.bls.gov/

http://www.census.gov/




Data Available from Syndicated Firms

II. Psychographic Lifestyle Data

- Interest in golf

- Interest in winter skiing

- Interest in book reading

- Interest in running

- Interest in bicycling

- Interest in pets

- Interest in fishing

- Interest in electronics

- Interest in cable television



Edgars http://www.sec.gov/edgar.shtml

Hoovers http://www.hoovers.com

WRDS http://wrds.wharton.upenn.edu

Other Syndicated Data Example

P bli h d E t l S d D t

http://www.sec.gov/edgar.shtml

http://www.hoovers.com/

http://wrds.wharton.upenn.edu/

http://wrds.wharton.upenn.edu/

http://www.hoovers.com/

http://www.sec.gov/edgar.shtml



Published External Secondary Data

Guides

An excellent source of standard or recurring information

Helpful in identifying other important sources of directories, tradeassociations, and trade publications

One of the first sources a researcher should consult

Directories Helpful for identifying individuals or organizations that collect

specific data

Examples: Consultants and Consulting Organizations Directory,Encyclopedia of Associations, FINDEX: The Directory of MarketResearch Reports, Studies and Surveys, and Research ServicesDirectory

Indices

Helpful in locating information on a particular topic in severaldifferent publications

A Classi f ic at ion o f Compu ter ized Databases



Computerized

Databases

Intranet Internet Offline

Special

PurposeDatabases

Directory

DatabasesFull- Text

Databases

Bibliographic

Databases

Numeric

Databases

A Classi f ic at ion o f Compu ter ized Databases

Figure4.5AClassificationofComputerizedDatabases

i i i i



Classification of Computerized

Databases

Bibliographic databases are composed of citations toarticles.

Numeric databases contain numerical and statistical

information.

Full-text databases contain the complete text of thesource documents comprising the database.

Directory databases provide information on individuals,organizations, and services.

Special-purpose databases provide specializedinformation.



ChapterFour

What is the difference between

primary and secondary datasources?

Pop Quiz



CHAPTER 5

Exploratory Research Design

Syndicated Sources of

Secondary Data



Syndicated Services

Companies that collect and sell common pools of data ofknown commercial value designed to serve a number ofclients

Syndicated sources can be classified based on the unit ofmeasurement (households/consumers or institutions).

Household/consumer data may be obtained from surveys,panels, or electronic scanner services.

Institutional data may be obtained from retailers,wholesalers, or industrial firms.



Unit of Measurement

Households/

Consumers Institutions

Figure 5.3 A Classi f icat ion of Syndicated Services

Figure5.3AClassificationofSyndicatedServices

Figure 5 4 A Class i f icat ion of Syndicated Services:



Household/Consumers

Surveys

Consumer Panels

Electronic

Scanner Services

Psychographic

& Lifestyles

General

Advertising

Evaluation

Media

Purchase

Scanner

Panels

Volume

TrackingData

Scanner

Panels with

Cable TV

Figure 5.4 A Class i f icat ion of Syndicated Services:

Household/ConsumersFigure5.4AClassificationofSyndicatedServices:Household/Consumers

Figu re 5 5 Class i f icat ion of Syndicated Survey Research



Surveys by Syndicated Firms

Periodic Panel Shared

Psychographic

and LifestylesGeneral

Advertising

Evaluation

Figu re 5.5 Class i f icat ion of Syndicated Survey Research

Figure5.5ClassificationofSyndicatedSurveyResearch

Fi 5 6 Cl i f i t i f S di t d S i



Figure 5.6 Classi f ic at ion o f Syndicated Services :

Inst i tut ions

Institutions

Retailers WholesalersIndustrial

Firms

AuditsDirect

Inquiries

Clipping

Services

Corporate

Reports

Figure5.6ClassificationofSyndicatedServices:Institutions

Table 5.1: Overview of Syndicated Services



Type Characteristics Advantages Disadvantages Uses

Surveys Surveys conducted atregular intervals

Most flexible way ofobtaining data;

information onunderlying motives

Interviewer errors;respondent errors

Marketsegmentation,

advertising themeselection, andadvertisingeffectiveness

Purchase Panels Households provide

specific informationregularly over anextended period oftime; respondentsasked to recordspecific behaviors asthey occur

Recorded purchase

behavior can belinked to thedemographic/ psychographiccharacteristics

Lack of

representativeness;response bias;maturation

Forecasting sales,

market share, andtrends; establishingconsumer profiles, brand loyalty andswitching;evaluating testmarkets, advertising,

and distribution

Media Panels Electronic devicesautomaticallyrecording behavior,supplemented by a

diary

Same as purchase panel

Same as purchase panel

Establishingadvertising rates;selecting media program or air time;

establishing viewer profiles

Table 5.1: Overview of Syndicated Services (Cont.)



Scanner DiaryPanels with

Cable TV

Scanner panels ofhouseholds that

subscribe to cable

TV

Data reflect actual purchases; sample

control; ability to

link panel data to

household

characteristics

Data may not berepresentative;

quality of data

limited

Promotional mixanalyses; copy

testing; new-

product testing;

positioning

Audit Services Verification of

product movement by examining

physical records or

performing

inventory analysis

Relatively precise

information at theretail and wholesale

levels

Coverage may be

incomplete;matching of data on

competitive activity

may be difficult

Measurement of

consumer sales andmarket share;

competitive

activity; analyzing

distribution

patterns; tracking of

new products

Industrial ProductSyndicated Services

Data banks onindustrial

establishments

created through

direct inquiries of

companies, clipping

services, and

corporate reports

Important source ofinformation in

industrial firms;

particularly useful

in initial phases of

the projects

Data is lacking interms of content,

quantity, and quality

Determining market potential by

geographic area;

defining sales

territories;

allocating

advertising budget

y ( )

Type Characteristics Advantages Disadvantages Uses

Table5.1OverviewofSyndicatedServices(Cont.)

i l



Single-Source Data

Single-source data provide integrated information on

household variables, including media consumption and

purchases, and marketing variables, such as product

sales, price, advertising, promotion, and in-store

marketing effort.

Recruit a test panel of households and meter eachhome's TV sets.

Survey households periodically on what they read.

Grocery purchases are tracked by UPC scanners.

Track retail data, such as sales, advertising, andpromotion.

i



Review

Primary vs. Secondary

Demographic vs. Psychographic

Institutional vs. Consumer/Household

introduction to marketing research.ppt

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