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Chapter 1: The Role of Marketing Research Learning Outcomes
- Know what marketing research is and what it does for business
- Understand the difference between basic and applied marketing research
- Understand how the role of marketing research changes with the orientation of the firm
- Be able to integrate marketing research results into the strategic planning process
- Know when marketing research should and should not be conducted
- Appreciate the way technology and internationalization are changing marketing research What Is Marketing Research? ● Key questions in business and marketing research ○ What do we sell? ○ How do consumers view our company? ■ How do your consumers feel, what thoughts do you provoke and how do they relate to it? ■ Who thinks what about your product? ○ What does our company/product mean? ○ What do consumers desire? ○ How does our brand touch consumers? ● When brands don’t pretest their messages that’s where problems arise Marketing Research Defined ● Marketing Research is the application of the scientific method in searching for the truth about marketing phenomena ● The process includes: ( Theory first - Classic approach) ○ Idea and theory development ○ Problem definition : What is the problem? Is there a need/can you create a need? Who can you serve best? How will your customer base respond to the ad? ○ Information gathering ○ Analyzing data ○ Model building ○ Communicating the findings and their implications : speak the language of people you are talking to ● Empirics first: we dive into the comments, we have to explore the problem then define it. ● Moderating variable : sometimes slightly changing a condition will produce a very different outcome. It influences the relationship between an independent and a dependent variable. It doesn't simply affect one variable or the other, but rather changes the strength or direction of the relationship between them. ● This definition suggest that marketing research information is: ○ Not accidental or haphazardly gathered ○ Accurate and objective ○ Relevant to all aspects of the marketing mix ○ Limited by one’s definition of marketing: AMA - create and deliver value ● We explore marketing research as it applies to all organizations and institutions engaging in some form of marketing activity
Digital Marketing ● Digital Marketing is a term used to capture all of the various communicative technologies through which marketing enterprises (suppliers, manufacturers, retailers, etc.) work together with customers toward enhancing value from interaction, including exchange and relationships. ● Goal of marketing is to create and deliver value ● Negativity bias: going to social media with negativity (negative effect) ○ Generates more engagement which results in more money
Applied Marketing Research ● Applied Marketing Research is conducted to address a specific marketing decision for a specific firm or organization ● Ex: Should Green Mountain Coffee add cola to its array of pod-based beverages? Basic Marketing Research ● Basic Marketing Research is conducted without a specific decision in mind and usually does not address the needs of a specific organization ○ Attempts to expand the limits of marketing knowledge in general ○ Not aimed at solving a pragmatic problem ● Can test the validity of a general marketing theory (one that applies to all of marketing) or can be used to learn more about some market phenomenon, social networking
Keeping Customers and Building Relationships ● Relationship marketing is the idea that a major goal of marketing is to build long-term relationships with the customers contributing to their success ● Views a sale not as the end of a process but as the start of the organization’s relationship with a customer—marketers want customers for life ○ Satisfied customers will return to a company that has treated them well Marketing Research: A means for Implementing the Marketing Concept ● Tracking trends ● Analysis of existing data ○ Use sales data to offer customers product suggestions Marketing Research and Strategic Marketing Management ● Developing and implementing a marketing strategy involves four stages: ○ Identifying and evaluating market opportunities ○ Analyzing market segments and selecting target markets ○ Planning and implementing a marketing mix that will provide value to customers and meet organizational objectives ○ Analyzing firm performance Stage 1: Identifying and Evaluating Opportunities ● Monitoring the competitive environment for signals indicating a business opportunity ○ Helps managers recognize problems and identify opportunities for enriching marketing efforts ○ Motivates a firm to take action to address consumer desires in a way that is beneficial to both the customers and to the firm ○ Estimates of market sales potential allow managers to evaluate the profitability of various opportunities Stage 2: Analyzing and Selecting Target Markets ● Geo-demographics is information describing the demographic profile of consumers in a particular geographic region ● Once the company knows the geo-demographics of a market segment, it can effectively communicate with those customers by choosing media that reach that particular profile Stage 3: Planning and Implementing a Marketing Mix ● Marketing research can be used to support specific decisions about aspects of the marketing mix ● It is essential that an overall research plan involves all elements of marketing strategy
Types of Marketing Mix Research: Product Research ● Designed to evaluate and develop new products and to learn how to adapt existing product lines ○ Concept testing ○ Product testing ○ Brand-name evaluation ○ Package testing
Types of Marketing Mix Research: Pricing Research ● Pricing research represents typical marketing research ● Pricing strategy involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints ● Pricing research by its nature also involves consumer quality perceptions Types of Marketing Mix Research: Distribution Research ● Studies aimed at selecting retail sites or warehouse locations that will physically distribute products. ● Needed to gain knowledge about retailers’ and wholesalers’ operations and to learn their reactions ● Used to examine the effect of just-in-time ordering systems or exclusive distribution on product quality Types of Marketing Mix Research: Promotion Research ● Promotion is the communication function of the firm responsible for informing and persuading buyers ● Promotion research investigates the effectiveness of advertising, premiums, coupons, sampling, discounts, public relations, and other sales promotions ● Firms spend more time, money, and effort on advertising research The Integrated Marketing Mix ● Integrated marketing communication is all promotional efforts (advertising, public relations, personal selling, event marketing, and so forth) are coordinated to communicate a consistent image. ● Research suggests firms with a consumer orientation are particularly oriented toward integrating all aspects of their marketing into a single message. ● Integration means sending a consistent message. Stage 4: Analyzing Marketing Performance ● Total value managemen t is trying to manage and monitor the entire process by which consumers receive benefits from a company ● Performance-monitoring research refers to research that regularly, sometimes routinely, provides feedback for evaluation and control of marketing activity ○ Most common forms: market-share analysis and sales analysis ● Marketing metrics refer to quantitative ways of monitoring and measuring marketing performance ○ Allows the firm to assess the return on investment (ROI) associated with marketing activities When is Marketing Research Needed? ● The determination of the need for marketing research centers on: ○ Time constraints ■ Systematic research takes time ○ The availability of data ■ If the data cannot be obtained or obtained in a timely fashion, the research project should not be conducted ○ The nature of the decision
● Data quality ○ Reflects how accurately the gathered data actually match reality ○ High quality data are valid and reliable ○ Not all data are equal in quality ○ How to enhance data quality ■ Automate data collection and entry when feasible ■ Inspect the data and cleanse for obvious errors ■ Be mindful of the costs and benefits of efforts at improving data quality ● Timeliness ○ Data are current enough to still be relevant ○ Market dynamism represents the rate of change in the environmental and competitive factors ● Global marketplace ○ The potential marketplace is the entire world ○ Large companies use technology to keep track of business details globally Decision Support Systems ● Marketing research serves four possible functions ○ Foundational – answers basic questions such as what consumer segments should be served and with what types of products ○ Testing – addresses items such as new product concepts or promotional ideas, and their effectiveness ○ Issues – examines how specific broad issues impact the firm, such as organizational structure ○ Performance – monitors specific metrics that feed into automated decision-making systems and/or trigger reports ● A marketing decision support system (DSS) helps decision makers confront problems through direct interaction with computerized databases and analytical software programs. ○ Store data and transform them into organized information that is easily accessible to marketing managers ○ Facilitate customer relationship management (CRM) systems that characterize interactions between the firm and its customers Databases and Data Warehousing ● Database is a collection of raw data arranged logically and organized in a form that can be stored and processed by a computer ● Data warehousing is the process allowing important day-to-day operational data to be stored and organized for simplified access ● Data warehouse is the multi-tiered computer storehouse of current and historical data ● Cloud Storage data are stored on devices that make the files directly available via the Internet Input Management ● Input ○ All numerical, text, voice, behavioral, and image data entered into the decision support system
● Major sources of input ○ Internal records ○ Proprietary marketing research ○ Salesperson input ○ Behavioral tracking ○ Web tracking ○ Outside vendors and external distributors of data
Chapter 3: The Marketing Research Process Introduction - Contribution to Decision Making ● Key ways in which researchers contribute to decision making ○ 1. Helping to better define the organization's current situation ○ 2. Identifying useful decision statements and related research questions ○ 3. Defining the firm’s meaning – how consumers, competitors, and employees view the firm ○ 4. Providing ideas for product improvements or possible new product development ○ 5. Testing ideas that will assist in implementing marketing strategy including innovations ○ 6. Examining how well a marketing theory describes marketing reality Decision Making and Marketing Research ● Decision making is the process of developing and deciding among alternative ways of resolving a problem or choosing from among alternative opportunities ● Research’s role in the decision making process ○ Recognizing the nature of the problem or opportunity ○ Identifying how much information is currently available and how reliable it is ○ Determining what information is needed to better deal with the situation Classifying a Decision Making Situation: A Problem or an Opportunity? ● Market opportunity is a situation that makes some potential competitive advantage possible ● Market problem is a situation that makes some significant negative consequence more likely ○ Problems are inferred from symptoms – observable cues that serve as a signal of a problem because they are caused by that problem Decision Making Situation: Characterized by the Amount of Certainty or Ambiguity ● Certainty means that the decision maker has all the information needed to make an optimal decision ● Uncertainty means that the manager grasps the general nature of desired objectives, but the information about alternatives is incomplete ● Ambiguity is the nature of the problem itself is unclear such that objectives are vague and decision alternatives are difficult to define
Defining the Research Objectives ● Researched objectives are goals to be achieved by conducting research ● Deliverables are the consulting terms used to describe research objectives to a research client ● Research Proposal is a written statement of the research design emphasizing what the research will accomplish ○ It includes a summary of the managerial decision situation, the research objectives and/or deliverables, and a basic description of the research process. Exploratory Research ● Helps researchers discover and define the decisions themselves ● Progressively narrows the scope of research and helps transform ambiguous problem situations into a more focused project with specific research objectives ● Could involve: ○ Interviews with experts ○ Observation of consumers actually engaged with the product ○ Analysis of online content describing the product ● Techniques for obtaining insights and gaining a clearer idea of the problem ○ Previous research (both quanti/qualitative) ■ Google Scholar (look at other research) ○ Pilot studies (both quanti/qualitative) ○ Case studies (qualitative) can be both ○ Experience surveys (both quanti/qualitative) Previous Research ● Company Archives (Internal research) ○ Check for reports of previous research within the company archives ● Literature Review (External Research) ○ A directed search of previous works in the public domain ○ Reports may discuss theory and/or present empirical results relevant to the research objectives ○ Fundamental requirement of a basic (i.e., marketing) research report Pilot Studies ● Pilot Studies are small-scale research projects that collect data from respondents similar to those to be used in the full study ● Pretest is a small-scale study in which the results are preliminary and only intended to assist in design of a subsequent study ● Focus group is a small group discussion about some research topic led by a moderator who guides discussion among the participants Stating Research Objectives ● Research objectives must be stated formally ○ Delineate the type of research needed ○ Indicate what intelligence may result ● Research objectives drive the rest of the research process
What is a Theory? ● Theory is a formal, logical explanation of some event(s) that includes predictions of how things relate to one another ● The logical explanation helps the researcher know: ○ What variables need to be included in the study ○ How the variables may relate to one another What is Hypothesis? ● Hypothesis is a formal statement, derived from theory, explaining some specific outcome ● Empirical testing is comparing a hypothetical proposition, e.g., a hypothesis, against reality using data ● Possible outcomes of the hypothesis ○ “The hypothesis is supported” (Data is consistent with hypothesis) ○ OR ○ “The hypothesis is not supported” (Data is inconsistent with hypothesis) Selection of the Basic Research Method ● Survey is a research technique in which a sample is interviewed in some form or the behavior of respondents is observed and described ● Observational Techniques collect observations unobtrusively and passively, meaning without a respondent’s direct participation ● Mystery shoppers act like customers while observing and recording data The “Best” Research Approach ● No single best research design fits all situations ● Researchers often have several alternatives that can achieve a stated research objective ● The ability to select the most appropriate way to implement a research project develops with experience ● Inexperienced researchers often jump to the conclusion that a survey methodology is usually the best design because they are most comfortable with this method Planning a Sample ● Sampling involves any procedure that draws conclusions based on measurements of a portion of the entire population ● Sampling decisions ○ Who to sample? - target population ○ What size should the sample be? - probability sampling ○ How to select the sampling units? - examples: random sample, cluster-sample Collecting Data ● Data gathering is the process of gathering or collecting information ● Unobtrusive methods are methods in which research respondents do not have to be disturbed for data to be gathered ● It is important to minimize errors in the data gathering process Editing and Coding ● Editing involves checking the data collection forms for omissions, legibility, and consistency in classification ○ Corrects problems
Chapter 5 Qualitative Research Tools Introduction ● Qualitative research is interested more in qualities than quantities, often extending beyond the obvious Describing Qualitative Research ● Qualitative marketing research ○ Addresses marketing objectives through techniques allowing the researcher to provide elaborate interpretations of market phenomena without depending on numerical measurement ○ Focus on discovering new insights and true inner meanings ● Researcher-dependent ○ Researcher must extract meaning from open-ended responses, e.g., text from a recorded interview of a collage representing the meaning of some experience Uses of Qualitative Research ● Qualitative research is useful when: ○ It is difficult to develop specific and actionable decision statements or research objectives ○ The research objective is to develop a detailed and in-depth understanding of some phenomena ○ The research objective is to learn how consumers use a product in its natural setting or to learn how to express some concept in colloquial terms ○ The behavior the researcher is studying is particularly context-dependent ○ A fresh approach to studying the problem is needed Qualitative vs Quantitative Research
● Qualitative research can accomplish research objectives that quantitative research cannot and vice versa ○ The key to successfully using either is to match the right approach to the right research context
● Quantitative marketing research ○ Addresses research objectives through empirical assessments that involve numerical measurement and statistical analysis ● Many good research projects combine both qualitative and quantitative research Contrasting Qualitative with Quantitative Methods ● Qualitative research results are researcher-dependent, or subjective ○ Qualitative researchers are more interested in observing, listening, and interpreting ● Qualitative research usually involves smaller samples than the typical quantitative study ○ Acceptable in discovery-oriented research ○ Smaller sample sizes do not necessarily equate to cost savings Qualitative Research and Exploratory Research Designs ● When researchers have limited experience or knowledge about an issue, exploratory research is useful ● Research is either exploratory or confirmatory ○ Confirmatory research tests hypotheses ○ Exploratory research plays a key role in developing ideas that lead to research hypotheses ● Most exploratory research designs produce qualitative data ● Qualitative data ○ Data that are not characterized by numbers but rather, are textual, visual, or oral ○ Focus on stories, visual portrayals, meaningful characterizations, interpretations, and other expressive descriptions ● Quantitative data ○ Represent phenomena by assigning numbers in an ordered and meaningful way Idea Generation ● Qualitative research can generate ideas for new products, advertising copy, promotional ideas, and product improvements in numerous ways ● Checklist for a creative mindset ○ Quantity leads to quality ○ Wilder is better ○ Do not judge ○ Question assumptions Concept Testing ● Concept testing is a frequently performed type of exploratory research representing many similar research procedures all having the same purpose ○ To screen new, revised, or repositioned ideas ● Concept testing processes work best when they not only identify ideas with the most potential, but also lead to important refinements Qualitative Research Orientations ● Major categories of qualitative research ○ 1. Phenomenology —originating in philosophy and psychology ○ 2. Ethnography —originating in anthropology ○ 3. Grounded theory —originating in sociology
● Focus group interview is an unstructured, free-flowing interview with a small group (6-10 people) led by a moderator who encourages dialogue among respondents ● Advantages ○ Relatively fast ○ Easy to execute ○ Allow respondents to piggyback off each other’s ideas ○ Provide multiple perspectives ○ Flexibility to allow more detailed descriptions ○ High degree of scrutiny Focus Group Respondents ● Respondents are screened based on some relevant characteristic ● Respondents are inappropriate if they are either unwilling to express their views or they are overbearing ● Group composition ○ Six to ten people ○ Relatively homogeneous ○ Similar lifestyles and experiences
The Focus Group Moderator ● Moderator is a person who leads a focus group interview and ensures that everyone gets a chance to speak and contribute to the discussion ● Qualities of a good moderator: ○ Develops rapport with the group ○ Good listener ○ Tries not to interject his/her own personal opinions ○ Directs verbal traffic capably without turning off productive participants Depth Interviews ● Depth interviews are a one-on-one interview between a professional researcher and a research respondent conducted about some relevant business or social topic ● Probing is an interview technique that tries to draw deeper and more elaborate explanations from a respondent ● Probing is useful for the following reasons: ○ Clarification ○ Free-form thinking ○ Pause ○ Contrast ○ Meaning ○ Change ● Laddering is a particular approach to probing that asks respondents to compare differences between brands at different levels Depth Interview Procedure ● Typically an hour or more ● Produces the same amount of text as a focus group
● Interviewer must be aware of what is happening ○ Records both surface reactions and subconscious motivations of the respondent ● Analysis and interpretation is highly subjective ● Particularly advantageous when the focus is on some unique or unusual behavior Conversations ● Conversations are an informal qualitative data-gathering approach in which the researcher engages a respondent in a discussion of the relevant subject matter ● The goal is to have the respondent produce a dialogue about his/her lived experiences ● A conversational approach is advantageous because conducting a single interview is usually inexpensive Social Listening ● Social Listening refers to marketing research using prompted or unprompted social media conversations to gather data. Semi-Structured Interviews ● Semi-structured interviews are written forms that ask respondents for short essay responses to specific open-ended questions ● Semi-structured interviews typically are part of a survey ● The advantages of semi-structured interviews include ○ Can address more specific issues ○ Responses are easier to interpret ○ Can be relatively cost effective without the presence of an interviewer Free-Association and Sentence-Completion Methods ● Free-association techniques record a respondent’s first cognitive reactions (top-of-mind) to some stimulus ○ Allow researchers to map a respondent’s thoughts or memory ● The sentence-completion method is based on free-association principles Observation and Collages ● Observation ○ Field notes are the researcher’s descriptions of what actually happens in the field ○ They become the text from which meaning is extracted ○ Advantageous for gaining insight into things that respondents cannot or will not verbalize ● Collages ○ Respondents prepare a collage to represent their experience with some good, service, or brand ○ Analyzed for meaning Projective Research Techniques ● Projective Research Technique is an indirect means of questioning that enables respondents to project beliefs and feelings onto a third party, an inanimate object, or a task situation ● Encourages respondents to describe a situation in their own words with little prompting by the interviewer ● Particularly useful in studying sensitive issues
