Marketing Research

The Marketing Research Process

Dr. Zafer Erdogan

2

I keep six honest serving men, (they taught me all I knew), their names are

--Rudyard Kipling

what, and why, and when,

and how,and where and

who.”

Information & Decision Making

The key to decision making is;– to recognize the nature of the

problem/opportunity, – to identify how much information is

available,– to recognize what information is needed.

Types Of Research

Marketing research can be classified on the basis of technique or purpose.

– Exploratory

– Descriptive

– Causal

Exploratory Research

• Initial research conducted to clarify and

define the nature of a problem

• Does not provide conclusive evidence

• Subsequent research expected

– Our sales are declining and we don’t know why.

– Would people be interested in our new product

idea?

Descriptive Research

• Describes characteristics of a population or

phenomenon

• Some understanding of the nature of the

problem

– What kind of people are buying our product?

– Who buys our competitor’s product?

– What features do buyers prefer in our product?

Descriptive Research Example

Weight Watchers average customer

– Woman about 40 years old

– Household income of about $50,000

– At least some college education

– Trying to juggle children and a job

Descriptive Research Example

Men’s fragrance market

– 1/3 size of women’s fragrance market

– But growing at a faster pace

– Women buy 80 % of men’s fragrances

Causal Research

• Conducted to identify cause and effect relationships – Will buyers purchase more of our products

in a new package?– Which of two advertising campaigns is

more effective?

?

Identifying Causality

• A causal relationship is impossible to prove.

• Evidence of causality:1. The appropriate causal order of events

2. Concomitant variation--two phenomena vary together

3. An absence of alternative plausible explanations

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Degree of Uncertainty Influences The Type of Research

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Research Stages

• Cyclical process - conclusions generate new ideas

• Stages can overlap chronologically

• Stages are functionally interrelated– Forward linkages– Backward linkages

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation Secondary

Data StudyLaboratory Field Interview Questionnaire

Selection ofSamplingtechniqueSampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

Problem Discovery and Definition

• First step

• Problem, opportunity, or monitor operations

• Discovery before definition

• Problem means management problem

“The formulation of the problem is often more essential than its solution”

Albert Einstein

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State the research questions and research objectives

Make a formal problem statement and the research objectives

To provide a framework for the scope of the study

‘To what extent did the new comm. campaign achieve its objectives’

The best expression of a research objective is a well-formed, testable research hypothesis.– A statement– that can be refuted or supported– by empirical data

If you do not know where you are going,any road will take you there.

Exploratory Research Techniques Two Examples

• Secondary data (historical data)– Previously collected– Census of population– Literature survey

• Pilot study– A number of diverse techniques

Research Design

• Master plan

• Framework for action

• Specifies methods and procedures

Basic Research Methods

• Surveys

• Experiments

• Secondary data

• Observation

There is no one best research design!

POPULATIONPOPULATION

SAMPLESAMPLESample: Sample: subsetsubsetof a larger populationof a larger population..

Selecting a Sample

Sampling

• Who is to be sampled?

• How large a sample?

• How will sample units be selected?

Data Gathering Stage

Data Processing and Analysis

Conclusions And Report Writing

Research Proposal

• A written statement of the research design that includes a statement explaining the purpose of the study.

• Detailed outline of procedures associated with a particular methodology