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  • Internal - Marketing research dept within a firm (eg Cadbury Schweppes, National Australia bank, Toyota) External- Outside firm hired to supply market research data Syndicated services Information provided to subscribers at any time. Roy Morgan – Single source data see www.roymorgan.com Roy Morgan – Values segments Quantum – AustraliaSCAN and YouthScan Standardised services Research conducted in a standard way (eg advertising effectiveness) to different clients Customised Research tailored specifically to clients needs (eg Chant Link & Associates, Quadrant, AMR-Quantum) Field services CATi interviewing facilities (Fieldforce, Fieldworks) Coding and data entry Editing or coding questionnaires, transcribing Analytical services Designing questionnaires, sampling plans and other research designs Data analysis services analysing data, including multivariate data analysis (eg Strategy by design)
  • Management want to symptoms to disappear but may not understand the real cause of the problem, perhaps because they can not be impartial or they do not have they necessary skills.
  • Researcher may be more impartial, objective and are experienced in searching for information to understand why the symptoms have occurred.

Chapter 01 mr process Chapter 01 mr process Presentation Transcript

  • PowerPoint to accompany Essentials of Marketing Research AN APPLIED ORIENTATION MALHOTRA HALL SHAW OPPENHEIM 1- 1
  • PART ONE Chapter 1 T he Mar keting Resear ch ProcessMalhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia 1- 2
  • 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. 1-3Malhotra  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. 1-4Malhotra  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?) 1-5Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Definition  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. 1-6Malhotra  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 1-7Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Figure 1.2 The Central Role of Marketing Research 1-8Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Figure 1.3 A Typology of Business Decision Making 1-9Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Classification of MR Problem Identification Problem Solving Research Research  Identifies problems  Used once the not yet apparent problem has been identified  Often undertaken for  Used in making survival and long decisions to solve term growth of the problems company 1-10Malhotra  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 1-11Malhotra  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] 1-12Malhotra  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. 1-13Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • MMIS vs DSS Marketing Management Decision Support Systems Information System  Structured problems  Unstructured problems  Use of reports  Use of models  Rigid structure  User-friendly interaction  Information displaying  Adaptability restricted  Can improve decision  Can improve decision making by using “what making by clarifying if” analysis raw data 1-14Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Figure 1.6 Market Research Suppliers and Services 1-15Malhotra  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 1-16Malhotra  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. 1-17Malhotra  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 1-18Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Marketing Research ProcessMarketing 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 1-19Malhotra  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 1-20Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Stakeholders in MR Public Respondents Client Researcher 1-21Malhotra  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 1-22Malhotra  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 1-23Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
  • Unethical Practices contFieldwork Increasing the discomfort level of respondents Following unacceptable fieldwork proceduresData 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 recommendationsReport Preparation and Presentation Using incomplete, biased and inaccurate reporting 1-24Malhotra  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 1-25Malhotra  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. 1-26Malhotra  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. 1-27Malhotra  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 1-28Malhotra  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 1-29Malhotra  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 1-30Malhotra  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 1-31Malhotra  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 1-32Malhotra  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 Researcher force 1-33Malhotra  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 Creativity Communication Candour Continuity Closeness 1-34Malhotra  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 1-35Malhotra  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. 1-36Malhotra  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) With Research A EV with $2 x 0.7 = $1.4 million Probability of success 0.7 Difference contributedProject Return (profit) by research (A – B) $2million 1.4 – 0.6 = $0.8million Probability of success 0.3 EV with $2 x 0.3 = $0.6 million B Without research 1-37 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 1-38Malhotra  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 1-39Malhotra  Hall  Shaw  Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia