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    Careers in marketing research:

    Some of the positions available in marketing research include vice president of

    marketing research, research director, assistant director of research, project

    manager, field work director, statistician/data processing specialist, senior analyst,analyst, junior analyst and operational supervisor.[9]

    The most common entry-level position in marketing research for people with

    bachelor's degrees (e.g., BBA) is as operational supervisor. These people are

    responsible for supervising a well-defined set of operations, including field work,

    data editing, and coding, and may be involved in programming and data analysis.

    Another entry-level position for BBAs is assistant project manager. An assistant

    project managerwill learn and assist in questionnaire design, review field

    instructions, and monitor timing and costs of studies. In the marketing research

    industry, however, there is a growing preference for people with master's degrees.Those with MBA or equivalent degrees are likely to be employed as project

    managers.[9]

    A small number of business schools also offer a more specialized Master of

    Marketing Research (MMR) degree. An MMR typically prepares students for a

    wide range of research methodologies and focuses on learning both in the

    classroom and the field.

    The typical entry-level position in a business firm would be junior research analyst

    (forBBAs) or research analyst (forMBAs orMMRs). The junior analyst and theresearch analyst learn about the particular industry and receive training from a

    senior staff member, usually the marketing research manager. The junior analyst

    position includes a training program to prepare individuals for the responsibilities

    of a research analyst, including coordinating with the marketing department and

    sales force to develop goals for product exposure. The research analyst

    responsibilities include checking all data for accuracy, comparing and contrasting

    new research with established norms, and analyzing primary and secondary data

    for the purpose of market forecasting.

    As these job titles indicate, people with a variety of backgrounds and skills are

    needed in marketing research. Technical specialists such as statisticians obviously

    need strong backgrounds in statistics and data analysis. Other positions, such as

    research director, call for managing the work of others and require more general

    skills. To prepare for a career in marketing research, students usually:

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    Industry or market research

    is the acquisition of corporate intelligence on a broad range of issues

    including

    y Macroenvironment

    o economy

    o government

    o law

    o technology

    o ecologicaly Market analysis and competitor analysis

    o market definition

    o market size

    o market segmentation

    o industry structure and strategic groupings

    o Porter 5 forces analysis

    o supply chain

    o competition and market share

    o competitors' strengths and weaknesseso market trends

    y Consumer analysis ormarketing research

    o nature of the buying decision

    o participants

    o demographics

    o psychographics

    o buyer motivation and expectations

    o loyalty segments

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    UNIT-I

    Marketing research

    Marketing research is the systematic gathering, recording, and analysis of data

    about issues relating to marketing products and services. The goal of marketing

    research is to identify and assess how changing elements of the marketing mix

    impacts customer behavior. The term is commonly interchanged with market

    research; however, expert practitioners may wish to draw a distinction, in that

    marketresearch is concerned specifically with markets, while marketingresearch

    is concerned specifically about marketing processes.

    Marketing research is often partitioned into two sets of categorical pairs, either by

    target market:

    y Consumer marketing research, and

    y Business-to-business (B2B) marketing research

    Or, alternatively, by methodological approach:

    y Qualitative marketing research, and

    y Quantitative marketing research

    Consumer marketing research is a form of applied sociology that concentrates on

    understanding the preferences, attitudes, and behaviors ofconsumers in a market-

    based economy, and it aims to understand the effects and comparative success of

    marketing campaigns. The field of consumer marketing research as a statistical

    science was pioneered by Arthur Nielsen with the founding of the ACNielsen

    Company in 1923.

    Thus, marketing research may also be described as the systematic and objectiveidentification, 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.

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    Role of marketing research (MR)

    The task of marketing research is to provide management with relevant, accurate,

    reliable, valid, and current information. Competitive marketing environment and

    the ever-increasing costs attributed to poor decision making require that marketingresearch provide sound information. Sound decisions are not based on gut feeling,

    intuition, or even pure judgment.

    Marketing managers make numerous strategic and tactical decisions in the process

    of identifying and satisfying customer needs. They make decisions about potential

    opportunities, target market selection, market segmentation, planning and

    implementing marketing programs, marketing performance, and control. These

    decisions are complicated by interactions between the controllable marketing

    variables of product, pricing, promotion, and distribution. Further complications

    are added by uncontrollable environmental factors such as general economicconditions, technology, public policies and laws, political environment,

    competition, and social and cultural changes. Another factor in this mix is the

    complexity ofconsumers. Marketing research helps the marketing manager link

    the marketing variables with the environment and the consumers. It helps remove

    some of the uncertainty by providing relevant information about the marketing

    variables, environment, and consumers. In the absence of relevant information,

    consumers' response to marketing programs cannot be predicted reliably or

    accurately. Ongoing marketing research programs provide information on

    controllable and non-controllable factors and consumers; this information enhances

    the effectiveness of decisions made by marketing managers.[4]

    Traditionally, marketing researchers were responsible for providing the relevant

    information and marketing decisions were made by the managers. However, the

    roles are changing and marketing researchers are becoming more involved in

    decision making, whereas marketing managers are becoming more involved with

    research. The role of marketing research in managerial decision making is

    explained further using the framework of the "DECIDE" model:

    DDefine the marketing problem

    E

    Enumerate the controllable and uncontrollable decision factors

    C

    Collect relevant information

    I

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    Identify the best alternative

    D

    Develop and implement a marketing plan

    E

    Evaluate the decision and the decision process

    The DECIDE model conceptualizes managerial decision making as a series of six

    steps. The decision process begins by precisely defining the problem or

    opportunity, along with the objectives and constraints.[4]

    Next, the possible

    decision factors that make up the alternative courses of action (controllable factors)

    and uncertainties (uncontrollable factors) are enumerated. Then, relevant

    information on the alternatives and possible outcomes is collected. The next step is

    to select the best alternative based on chosen criteria or measures of success. Then

    a detailed plan to implement the alternative selected is developed and put into

    effect. Last, the outcome of the decision and the decision process itself areevaluated.

    Marketing research characteristics

    First, marketing research is systematic. Thus systematic planning is required at all

    the stages of the marketing research process. The procedures followed at each

    stage are methodologically sound, well documented, and, as much as possible,

    planned in advance. Marketing research uses the scientific method in that data are

    collected and analyzed to test prior notions or hypotheses.

    Marketing research is objective. It attempts to provide accurate information that

    reflects a true state of affairs. It should be conducted impartially. While research is

    always influenced by the researcher's research philosophy, it should be free from

    the personal or political biases of the researcher or the management. Research

    which is motivated by personal or political gain involves a breach of professional

    standards. Such research is deliberately biased so as to result in predetermined

    findings. The motto of every researcher should be, "Find it and tell it like it is."

    The objective nature of marketing research underscores the importance of ethical

    considerations, which are discussed later in the chapter....

    Comparison with other forms of business research

    Other forms of business research include:

    y Market research is broader in scope and examines all aspects of a business

    environment. It asks questions about competitors, market structure,

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    government regulations, economic trends, technological advances, and

    numerous other factors that make up the business environment (see

    environmental scanning). Sometimes the term refers more particularly to the

    financial analysis of companies, industries, orsectors. In this case, financial

    analysts usually carry out the research and provide the results to investment

    advisors and potential investors.

    y Product research - This looks at whatproducts can be produced with

    available technology, and what new product innovations near-future

    technology can develop (see new product development).

    y Advertising research - is a specialized form of marketing research

    conducted to improve the efficacy of advertising. Copy testing, also known

    as "pre-testing," is a form of customized research that predicts in-market

    performance of an ad before it airs, by analyzing audience levels ofattention,brand linkage, motivation, entertainment, and communication, as

    well as breaking down the ads flow of attention and flow of emotion. Pre-

    testing is also used on ads still in rough (ripomatic or animatic) form.

    (Young, p. 213)

    Classification of marketing research

    Organizations engage in marketing research for two reasons: (1) to identify and

    (2) solve marketing problems. This distinction serves as a basis for classifying

    marketing research into problem identification research and problem solvingresearch.

    Problem identification research is undertaken to help identify problems which are,

    perhaps, not apparent on the surface and yet exist or are likely to company image,

    market characteristics, sales analysis, short-range forecasting, long range

    forecasting, andbusiness trends research. Research of this type provides

    information about the marketing environment and helps diagnose a problem. For

    example, The findings of problem solving research are used in making decisions

    which will solve specific marketing problems.

    The Stanford Research Institute, on the other hand, conducts an annual survey of

    consumers that is used to classify persons into homogeneous groups for

    segmentation purposes. TheNational Purchase Diary panel (NPD) maintains the

    largest diary panel in the United States.

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    Standardizedservices are research studies conducted for different client firms but

    in a standard way. For example, procedures for measuring advertising

    effectiveness have been standardized so that the results can be compared across

    studies and evaluative norms can be established. The Starch Readership Survey is

    the most widely used service for evaluating print advertisements; another well-

    known service is the Gallup and Robinson Magazine Impact Studies. These

    services are also sold on a syndicated basis.

    y Customized services offer a wide variety of marketing research services

    customized to suit a client's specific needs. Each marketing research project

    is treated uniquely.

    y Limited-service suppliers specialize in one or a few phases of the

    marketing research project. Services offered by such suppliers are classified

    as field services, coding and data entry, data analysis, analytical services,

    and branded products. Field services collect data through mail, personal, ortelephone interviewing, and firms that specialize in interviewing are called

    field service organizations. These organizations may range from small

    proprietary organizations which operate locally to large multinational

    organizations with WATS line interviewing facilities. Some organizations

    maintain extensive interviewing facilities across the country for interviewing

    shoppers in malls.

    y Coding and data entry services include editing completed questionnaires,

    developing a coding scheme, and transcribing the data on to diskettes or

    magnetic tapes for input into the computer. NRC Data Systems provides

    such services.

    y Analytical services include designing and pretesting questionnaires,

    determining the best means of collecting data, designing sampling plans, and

    other aspects of the research design. Some complex marketing research

    projects require knowledge of sophisticated procedures, including

    specialized experimental designs, and analytical techniques such as conjoint

    analysis and multidimensional scaling. This kind of expertise can be

    obtained from firms and consultants specializing in analytical services.

    y Data analysis services are offered by firms, also known as tab houses, that

    specialize in computer analysis of quantitative data such as those obtained inlarge surveys. Initially most data analysis firms supplied only tabulations

    (frequency counts) and cross tabulations (frequency counts that describe two

    or more variables simultaneously). With the proliferation ofsoftware, many

    firms now have the capability to analyze their own data, but, data analysis

    firms are still in demand.

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    y Branded marketing research products and services are specialized data

    collection and analysis procedures developed to address specific types of

    marketing research problems. These procedures are patented, given brand

    names, and marketed like any other branded product.

    Types of marketing research

    Marketing research techniques come in many forms, including:

    y Ad Tracking periodic or continuous in-market research to monitor a

    brands performance using measures such as brand awareness, brand

    preference, and product usage. (Young, 2005)

    y Advertising Research used to predict copy testing ortrackthe efficacy of

    advertisements for any medium, measured by the ads ability to get

    attention, communicate the message, build the brands image, and motivatethe consumer to purchase the product or service. (Young, 2005)

    y Brand equity research - how favorably do consumers view the brand?

    y Brand association research - what do consumers associate with the brand?

    y Brand attribute research - what are the key traits that describe the brand

    promise?

    y Brand name testing - what do consumers feel about the names of the

    products?

    y Commercial eye tracking research - examine advertisements, package

    designs, websites, etc. by analyzing visual behavior of the consumer

    y Concept testing - to test the acceptance of a concept by target consumersy Coolhunting - to make observations and predictions in changes of new or

    existing cultural trends in areas such as fashion, music, films, television,

    youth culture and lifestyle

    y Buyer decision processes research - to determine what motivates people to

    buy and what decision-making process they use

    y Copy testing predicts in-market performance of an ad before it airs by

    analyzing audience levels ofattention,brand linkage, motivation,

    entertainment, and communication, as well as breaking down the ads flow

    of attention and flow of emotion. (Young, p 213)

    y Customer satisfaction research - quantitative or qualitative studies that

    yields an understanding of a customer's of satisfaction with a transaction

    y Demand estimation - to determine the approximate level of demand for the

    product

    y Distribution channel audits - to assess distributors and retailers attitudes

    toward a product,brand, or company

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    y Internet strategic intelligence - searching for customer opinions in the

    Internet: chats, forums, web pages, blogs... where people express freely

    about their experiences with products, becoming strong "opinion formers"

    y Marketing effectiveness and analytics - Building models and measuring

    results to determine the effectiveness of individual marketing activities.

    y Mystery Consumer or Mystery shopping - An employee or representative

    of the market research firm anonymously contacts a salesperson and

    indicates he or she is shopping for a product. The shopper then records the

    entire experience. This method is often used for quality control or for

    researching competitors' products.

    y Positioning research - how does the target market see thebrand relative to

    competitors? - what does the brand stand for?

    y Price elasticity testing - to determine how sensitive customers are to price

    changes

    y Sales forecasting - to determine the expected level of sales given the levelof demand. With respect to other factors like Advertising expenditure, sales

    promotion etc.

    y Segmentation research - to determine the demographic,psychographic, and

    behavioural characteristics of potential buyers

    y Online panel - a group of individual who accepted to respond to marketing

    research online

    y Store audit - to measure the sales of a product or product line at a

    statistically selected store sample in order to determine market share, or to

    determine whether a retail store provides adequate service

    y Test marketing - a small-scale product launch used to determine the likely

    acceptance of the product when it is introduced into a wider market

    y Viral Marketing Research - refers to marketing research designed to

    estimate the probability that specific communications will be transmitted

    throughout an individuals Social Network. Estimates ofSocial Networking

    Potential (SNP) are combined with estimates of selling effectiveness to

    estimate ROI on specific combinations of messages and media.

    All of these forms of marketing research can be classified as eitherproblem-

    identification research or asproblem-solving research.

    There are two main sources of data - primary and secondary. Primary research is

    conducted from scratch. It is original and collected to solve the problem in hand.

    Secondary research already exists since it has been collected for other purposes.

    It is conducted on data published previously and usually by someone else.

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    Secondary research costs far less than primary research, but seldom comes in a

    form that exactly meets the needs of the researcher.

    A similar distinction exists between exploratory research and conclusive research.

    Exploratory research provides insights into and comprehension of an issue or

    situation. It should draw definitive conclusions only with extreme caution.

    Conclusive research draws conclusions: the results of the study can be

    generalized to the whole population.

    Exploratory research is conducted to explore a problem to get some basic idea

    about the solution at the preliminary stages of research. It may serve as the input to

    conclusive research. Exploratory research information is collected by focus group

    interviews, reviewing literature or books, discussing with experts, etc. This is

    unstructured and qualitative in nature. If a secondary source of data is unable to

    serve the purpose, a convenience sample of small size can be collected. Conclusiveresearch is conducted to draw some conclusion about the problem. It is essentially,

    structured and quantitative research, and the output of this research is the input to

    management information systems (MIS).

    Exploratory research is also conducted to simplify the findings of the conclusive or

    descriptive research, if the findings are very hard to interpret for the marketing

    managers.

    Marketing research methods

    Methodologically, marketing research uses the following types of research designs:

    Based on questioning:

    y Qualitative marketing research - generally used for exploratory

    purposes - small number of respondents - not generalizable to the

    whole population - statistical significance and confidence not

    calculated - examples include focus groups, in-depth interviews, andprojective techniques

    y Quantitative marketing research - generally used to draw

    conclusions - tests a specific hypothesis - uses random sampling

    techniques so as to infer from the sample to the population - involves

    a large number of respondents - examples include surveys and

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    questionnaires. Techniques include choice modelling, maximum

    difference preference scaling, and covariance analysis.

    Based on observations:

    y Ethnographic studies -, by nature qualitative, the researcher observessocial phenomena in their natural setting - observations can occur

    cross-sectionally (observations made at one time) orlongitudinally

    (observations occur over several time-periods) - examples include

    product-use analysis and computer cookie traces. See also

    Ethnography and Observational techniques.

    y Experimental techniques -, by nature quantitative, the researcher

    creates a quasi-artificial environment to try to control spurious factors,

    then manipulates at least one of the variables - examples include

    purchase laboratories and test markets

    Researchers often use more than one research design. They may start with

    secondary research to get background information, then conduct a focus group

    (qualitative research design) to explore the issues. Finally they might do a full

    nation-wide survey (quantitative research design) in order to devise specific

    recommendations for the client.

    Business to business market research

    Business to business (B2B) research is inevitably more complicated than consumerresearch. The researchers need to know what type of multi-faceted approach will

    answer the objectives, since seldom is it possible to find the answers using just one

    method. Finding the right respondents is crucial in B2B research since they are

    often busy, and may not want to participate. Encouraging them to open up is yet

    another skill required of the B2B researcher. Last, but not least, most business

    research leads to strategic decisions and this means that the business researcher

    must have expertise in developing strategies that are strongly rooted in the research

    findings and acceptable to the client.

    There are four key factors that make B2B market research special and different toconsumer markets:

    [6]

    y The decision making unit is far more complex in B2B markets than in

    consumer markets

    y B2B products and their applications are more complex than consumer

    products

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    y B2B marketers address a much smaller number of customers who are very

    much larger in their consumption of products than is the case in consumer

    markets

    y Personal relationships are of critical importance in B2B markets.

    Marketing research in small businesses and nonprofit organizations

    Marketing research does not only occur in huge corporations with many employees

    and a large budget. Marketing information can be derived by observing the

    environment of their location and the competitions location. Small scale surveys

    and focus groups are low cost ways to gather information from potential and

    existing customers. Most secondary data (statistics, demographics, etc.) is available

    to the public in libraries or on the internet and can be easily accessed by a small

    business owner.

    Below are some steps that could be done by SME (Small Medium Entreprise) to

    analyze the market[7]

    :

    1. Provide secondary and or primary data (if necessary);2. Analyze Macro & Micro Economic data (e.g. Supply & Demand, GDP,Price

    change, Economic growth, Sales by sector/industries,interest rate, number of

    investment/ divestment, I/O, CPI, Social anlysis,etc.);

    3. Implement the marketing mix concept, which is consist of: Place, Price,Product,Promotion, People, Process, Physical Evidence and also Political &

    social situation to analyze global market situation);4. Analyze market trends, growth, market size, market share, market

    competition (e.g. SWOT analysis, B/C Analysis,channel mapping identities

    of key channels, drivers of customers loyalty and satisfaction, brand

    perception, satisfaction levels, current competitor-channel relationship

    analysis, etc.),etc.;

    5. Determine market segment, market target, market forecast and marketposition;

    6. Formulating market strategy & also investigating the possibility ofpartnership/ collaboration (e.g. Profiling & SWOT analysis of potential

    partners, evaluating business partnership.)

    7. Combine those analysis with the SME's business plan/ business modelanalysis (e.g. Business description, Business process, Business strategy,

    Revenue model, Business expansion, Return of Investment, Financial

    analysis (Company History, Financial assumption, Cost/Benefit Analysis,

    Projected profit & Loss, Cashflow, Balance sheet & business Ratio,etc.).

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    Note as important : Overall analysis is should be based on 6W+1H (What,

    When, Where, Which, Who, Why and How)question.

    International Marketing Research plan

    International Marketing Research follows the same path as domestic research, butthere are a few more problems that may arise. Customers in international markets

    may have very different customs, cultures, and expectations from the same

    company. In this case, secondary information must be collected from each separate

    country and then combined, or compared. This is time consuming and can be

    confusing. International Marketing Research relies more on primary data rather

    than secondary information. Gathering the primary data can be hindered by

    language, literacy and access to technology.

    Commonlyu

    sed marketing research terms

    Market research techniques resemble those used in political polling and social

    science research. Meta-analysis (also called the Schmidt-Hunter technique) refers

    to a statistical method of combining data from multiple studies or from several

    types of studies. Conceptualization means the process of converting vague mental

    images into definable concepts. Operationalization is the process of converting

    concepts into specific observable behaviors that a researcher can measure.

    Precision refers to the exactness of any given measure. Reliability refers to the

    likelihood that a given operationalized construct will yield the same results if re-

    measured. Validity refers to the extent to which a measure provides data thatcaptures the meaning of the operationalized construct as defined in the study. It

    asks, Are we measuring what we intended to measure?

    y Applied research sets out to prove a specific hypothesis of value to the

    clients paying for the research. For example, a cigarette company might

    commission research that attempts to show that cigarettes are good for one's

    health. Many researchers have ethical misgivings about doing applied

    research.

    y Sugging (from "SUG", forselling under the guise of market research) forms

    a sales technique in which sales people pretend to conduct marketing

    research, but with the real purpose of obtaining buyer motivation and buyer

    decision-making information to be used in a subsequent sales call.

    y Frugging comprises the practice of soliciting funds under the pretense of

    being a research organization.

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    Selecting a research supplier

    A firm that cannot conduct an entire marketing research project in-house must

    select an external supplier for one or more phases of the project. The firm should

    compile a list of prospective suppliers from such sources as trade publications,

    professional directories, and word of mouth. When deciding on criteria for

    selecting an outside supplier, a firm should ask itself why it is seeking outside

    marketing research support. For example, a small firm that needs one project

    investigated may find it economically efficient to employ an outside source. Or a

    firm may not have the technical expertise undertake certain phases of a project or

    political conflict-of-interest issues may determine that a project be conducted by an

    outside supplier.[8]

    When developing criteria for selecting an outside supplier, a firm should keep

    some basics in mind. What is the reputation of the supplier? Do they completeprojects 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 to this one? Do the supplier's personnel have both

    technical and nontechnical expertise? In other words, in addition to technical skills,

    are the personnel assigned to the task sensitive to the client's needs and do they

    share the client's research ideology?Can they communicate well with the client?[8]

    The cheapest bid is not always the best one. Competitive bids should be obtainedand compared on the basis of quality as well as price. A good practice is to get a

    written bid or contract before beginning the project. Decisions about marketing

    research suppliers, just like other management decisions, should be based on sound

    information.[8]

    Demographicsordemographic data are the characteristics of a humanpopulation. These types of data are used widely in sociology,public policy, and

    marketing. Commonly used demographics include gender, race, age, income,

    disabilities, mobility (in terms of travel time to work or number of vehicles

    available), educational attainment, home ownership, employment status, and even

    location.Demographic trends describe the changes in demographics in a

    population over time (for example, the average age of a population may increase or

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    decrease over time). Both distributions and trends of values within a demographic

    variable are of interest.

    Demographic profiles in marketing

    Marketers typically combine several variables to define a demographic profile. Ademographic profile (often shortened to "a demographic") provides enough

    information about the typical member of this group to create a mental picture of

    this hypothetical aggregate. For example, a marketer might speak of the single,

    female, middle-class, age 18 to 24, college educated demographic.

    Marketing researchers typically have two objectives in this regard: first to

    determine what segments or subgroups exist in the overall population; and

    secondly to create a clear and complete picture of the characteristics of a typical

    member of each of these segments. Once these profiles are constructed, they can beused to develop a marketing strategy and marketing plan. The five types of

    demographics in marketing are age, gender, income level, race and ethnicity.

    Generational cohorts

    The examples and perspective in this article may not represent a worldwide view

    of the subject. Please improve this article and discuss the issue on the talk page.

    (December 2010)

    A generational cohort has been defined as "the group of individuals (within some

    population definition) who experience the same event within the same time

    interval".[1]

    The notion of a group of people bound together by the sharing of the

    experience of common historical events developed in the early 1920s. Today the

    concept has found its way into popular culture through well known phrases like

    "baby boomer" and "Generation X".

    The United Kingdom has a series of four national birth cohort studies, the first

    three spaced apart by 12 years: the 1946 National Survey of Health andDevelopment, the 1958National Child Development Study,

    [2]the 1970 British Cohort

    Study,[3]

    and the Millennium Cohort Study, begun much more recently in 2000. These

    have followed the lives of samples of people (typically beginning with around

    17,000 in each study) for many years, and are still continuing. As the samples have

    been drawn in a nationally representative way, inferences can be drawn from these

    studies about the differences between four distinct generations of British people in

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    terms of their health, education, attitudes, childbearing and employment patterns.

    The last three are run by the Centre for Longitudinal Studies

    Cohorts in the United States

    A study by William Strauss and Neil Howe, in their books Generations andFourthTurning, looked at generational similarities and differences going back to the 15th

    century and concluded that over 80 year spans, generations proceed through 4

    stages of about 20 years each. The first phase consists of times of relative crisis

    and the people born during this period were called "artists". The next phase was a

    "high" period and those born in this period were called "prophets". The next phase

    was an "awakening period" and people born in this period were called "nomads".

    The final stage was the "unraveling period" and people born in this period were

    called "heroes". The most recent "high period" occurred in the 50s and 60s (hence

    baby boomers are the most recent crop of "prophets").

    The most definitive recent study of the US generational cohorts was done by

    Schuman and Scott (1989) in 1985 in which a broad sample of adults of all ages

    were asked, "What world events are especially important to you?"[4]

    They found

    that 33 events were mentioned with great frequency. When the ages of the

    respondents were correlated with the expressed importance rankings, seven distinct

    cohorts became evident. Today the following descriptors are frequently used for

    these cohorts:

    y Depression cohort (born from 1912 to 1921)o Memorable events: The Great Depression, high levels ofunemployment,

    poverty, lack of creature comforts, financial uncertainty

    o Key characteristics: strive for financial security, risk averse, waste-

    not-want-not attitude, strive for comfort

    y Pre 'World War II cohort'(born from 1922 to 1927)

    o Memorable events: men leaving to go to war and many not

    returning, the personal experience of the war, women working in

    factories, focus on defeating a common enemy

    o Key characteristics: the nobility of sacrifice for the common good,patriotism, team player

    y World War II cohort (born from 1928 to 1945)

    o Memorable events: sustained economic growth, social tranquility,

    The Cold War, McCarthyism, drug culture

    o Key characteristics: conformity, conservatism, traditional family values

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    y Baby Boomer cohort #1[citation needed] (born from 1946 to 1953)

    o Memorable events: assassinations ofJFK, Robert Kennedy, and Martin

    Luther King, political unrest, walk on the moon, Vietnam War, anti-war

    protests, social experimentation, sexual freedom, civil rights movement,

    environmental movement, women's movement, protests and riots,experimentation with various intoxicating recreational substances

    o Key characteristics: experimental, individualism, free spirited, social

    cause oriented

    y Boomer cohort #2 - "Generation Jones," born 1954-1965

    o Memorable events: Watergate, Nixon resigns, the cold war, the oil

    embargo, raging inflation, Disco, gasoline shortages

    o Key characteristics: less optimistic, pragmatic, general cynicism

    y Generation X cohort (born from 1965 to 1980)

    o Memorable events: Challengerexplosion, Iran-Contra, Reaganomics,AIDS, Star Wars, MTV, the home computer, safe sex, divorce, single

    parent families, end of cold war-fall of berlin wall, desert storm

    o Key characteristics: quest for emotional security, independent,

    informality, entrepreneurial

    y Millennial Generation cohort also called Generation Y (born from 1981 to

    2010)

    o Memorable events: rise of the internet, September 11 attacks, cultural

    diversity, two wars in Iraq, Global financial crisis of 20082009

    o Key characteristics: acceptance of change, technically savvy,environmental issues

    U.S. Demographic birth cohorts

    Main article: Demographics of the United States

    The US Census Bureau generally[weasel words]

    considers the following demographic

    birth cohorts. Based on birth rate, which is statistically measurable:

    y Classics (born from 1900 to 1920)

    o (the last American cohort in which the population pyramid takes on the

    standard "step" form for males and females)

    y Baby Bust (I) (born from 1921 to 1945)

    o early cohort (born from 1921 to 1933)

    o late cohort (born from 1934 to 1946)

    y Baby Boomers (born from 1946 to 1964)

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    o Boomer Cohort #1 (born from 1946 to 1957)

    o Boomer Cohort #2 (born from 1957 to 1964)

    y GenX/Baby Bust (II) (born from 1964 to 1976)

    y Echo Boomers (born from 1976 to 1994)

    o Leading Edge (born from 1977 to 1990)o Trailing Edge (born from 1990 to 1994)

    Subdivided groups are present when peak boom years or inverted peak bust years

    are present, and may be represented by a normal orinverted bell-shaped curve (rather

    than a straight curve). The boom subdivided cohorts may be considered as "pre-

    peak" (including peak year) and "post-peak". The year1957 was the baby boom

    peak with 4.3 million births and 122.7 fertility rate. Although post-peak births

    (such as trailing edge boomers) are in decline, and sometimes referred to as a

    "bust", there are still a relative large number of births. The dearth-in-birth bust

    cohorts include those up to the valley birth year, and those including and beyond,leading up to the subsequent normal birth rate.

    From the decline in birth rates starting in 1958 and the introduction of the birth

    control pill in 1960, the Baby Boomer normal distribution curve is negatively

    skewed. The trend in birth rates from 1958 to 1961 show a tendency to end late inthe decade at approximately 1969, thus returning to pre-WWII levels, with 12

    years of rising and 12 years of declining birth rates. Pre-war birth rates were

    defined as anywhere between 1939 and 1941 by demographers such as the

    Taeuber's, Philip M. Hauser and William Fielding Ogburn. [1] From 1962 to 1964,

    trend analysis points to 1965 as being the first year to return to baseline birth rates,

    possibly referring to this cohort as "Generation X".

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    Criticisms and qualifications of demographic profiling

    Demographic profiling is essentially an exercise in making generalizations about

    groups of people. As with all such generalizations many individuals within these

    groups will not conform to the profile - demographic information is aggregate and

    probabilistic information about groups, not about specific individuals. Critics of

    demographic profiling argue that such broad-brush generalizations can only offer

    such limited insight and that their practical usefulness is debatable. However, if the

    conclusions drawn are statistically valid and reproducible, these criticisms are not

    as well founded.

    Most demographic information is also culturally based. The generational cohort

    information above, for example, applies primarily to North America (and to a

    lesser extent to Western Europe) and it may be unfruitful to generalize conclusions

    more widely as different nations face different situations and potentialchallenges.

    [5]

    Psychographic

    In the field ofmarketing, demographics, opinion research, and social research in general,

    psychographic variables are any attributes relating to personality, values,

    attitudes, interests, or lifestyles. They are also called IAO variables (for Interests,

    Activities, and Opinions). They can be contrasted with demographic variables

    (such as age and gender), behavioral variables (such as usage rate or loyalty), andfirmographic variables (such as industry, seniority and functional area).

    Psychographics should not be confused with demographics. For example, historical

    generations are defined by psychographic variables like attitudes, personality

    formation, and cultural touchstones. The traditional definition of the "Baby Boom

    Generation" has been the subject of much criticism[by whom?] because it is based on

    demographic variables where it should be based on psychographic variables[citation

    needed]. While all other generations are defined by psychographic variables, the

    Boomer definition is based on a demographic variable: the fertility rates of its

    members' parents.

    When a relatively complete profile of a person or group's psychographic make-up

    is constructed, this is called a "psychographic profile". Psychographic profiles are

    used in market segmentation as well as in advertising.

    Some categories of psychographic factors used in market segmentation include:

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    y Activity, Interest, Opinion (AIOs)

    y Attitudesy Values

    Psychographics can also be seen as an equivalent of the concept of "culture" as

    used most commonly in national segmentation. "Psychographics is the study of

    personality, values, attitudes, interests, and lifestyles"[1]

    SOMEMORE NOTES

    Market research and marketing research are often confused. 'Market' research

    is simply research into a specific market. It is a very narrow concept. 'Marketing'

    research is much broader. It not only includes 'market' research, but also areas such

    as research into new products, or modes of distribution such as via the Internet.

    Here are a couple of definitions:

    "Marketing research is the function that links the consumer, customer, and

    public to the marketer through information - information used to identify and

    define marketing opportunities and problems; generate, refine, and evaluate

    marketing actions; monitor marketing performance; and improve

    understanding of marketing as a process. Marketing research specifies the

    information required to address these issues, designs the methods for collecting

    information, manages and implements the data collection process, analyzes, andcommunicates the findings and their implications."

    American Marketing Association (AMA) - Official Definition of Marketing

    Research

    Obviously, this is a very long and involved definition of marketing research.

    "Marketing research is about researching the whole of a company's marketing

    process."

    Palmer (2000).

    This explanation is far more straightforward i.e. marketing research into the

    elements of the marketing mix, competitors, markets, and everything to do with the

    customers.

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    The Marketing research Process.

    Marketing research is gathered using a systematic approach. An example of one

    follows:

    1. Define the problem. Never conduct research for things that you would 'like' toknow. Make sure that you really 'need' to know something. The problem then

    becomes the focus of the research. For example, why are sales falling in New

    Zealand?

    2. How will you collect the data that you will analyze to solve your problem? Do

    we conduct a telephone survey, or do we arrange a focus group? The methods of

    data collection will be discussed in more detail later.

    3. Select a sampling method. Do we us a random sample, stratified sample, or

    cluster sample?

    4. How will we analyze any data collected? What software will we use? What

    degree of accuracy is required?

    5. Decide upon a budget and a timeframe.

    6. Go back and speak to the managers or clients requesting the research. Make sure

    that you agree on the problem! If you gain approval, then move on to step seven. 7.

    Go ahead and collect the data.

    8. Conduct the analysis of the data.

    9. Check for errors. It is not uncommon to find errors in sampling, data collection

    method, or analytic mistakes.

    10. Write your final report. This will contain charts, tables, and diagrams that will

    communicate the results of the research, and hopefully lead to a solution to your

    problem. Watch out for errors in interpretation.

    Sources of Data - Primary and Secondary

    There are two main sources of data -primary andsecondary. primary research is

    conducted from scratch. It is original and collected to solve the problem in hand.

    secondary research, also known as desk research, already exists since it has been

    collected for other purposes.

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    We have given a general introduction to marketing research. Marketing research is

    a huge topic area and has many processes, procedures, and terminologies that build

    upon the points

    Following are the main limitations of Marketing Research:

    1) Marketing Research (MR) is not an exact science though it usesthe techniques of science. Thus, the results and conclusions drawnupon by using MR are not very accurate.

    2) The results of MR are very vague as MR is carried out onconsumers, suppliers, intermediaries, etc. who are humans. Humanshave a tendency to behave artificially when they know that they arebeing observed. Thus, the consumers and respondents upon whomthe research is carried behave artificially when they are aware thattheir attitudes, beliefs, views, etc are being observed.

    3) MR is not a complete solution to any marketing issue as there aremany dominant variables between research conclusions and marketresponse.

    4) MR is not free from bias. The research conclusions cannot be

    verified. The reproduction of the same project on the same class ofrespondents give different research results.

    5)Inappropriate training to researchers can lead to misapprehensionof questions to be asked for data collection

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    6) Many business executives and researchers have ambiguity aboutthe research problem and its objectives. They have limitedexperience of the notion of the decision-making process. This leadsto carelessness in research and researchers are not able to doanything real.

    7) There is less interaction between the MR department and the mainresearch executives. The research department is in segregation. Thisall makes research ineffective.

    8) MR faces time constraint. The firms are required to maintain abalance between the requirement for having a broader perspective ofcustomer needs and the need for quick decision making so as tohave competitive advantage.

    9) Huge cost is involved in MR as collection and processing of datacan be costly. Many firms do not have the proficiency to carry widesurveys for collecting primary data, and might not also able to hirespecialized market experts and research agencies to collect primarydata. Thus, in that case, they go for obtaining secondary data that ischeaper to obtain.

    10) MR is conducted in open marketplace where numerous variablesact on research settings.

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    Marketing information system

    A Marketing Information System can be defined as 'a system in which marketing

    information is formally gathered, stored, analysed and distributed to managers in

    accordance with their informational needs on a regular basis' (Jobber, 2007)

    The system is created through an understanding of the information needs of

    marketing management. It is available to supply information when, where and how the

    manager requires it. Data is taken from the marketing environment and transferred

    into the information that marketing managers can use in theirdecision-making

    processes.

    Data: Basic form of knowledge. Example. one isolated statistic. Information: A

    combination of Data that provide relevant knowledge.

    A Marketing Information System can be defined as 'People, equipment and

    procedures to gather, sort, analyze, evaluate and distribute needed, timely and

    accurate information to marketing decision makers' (Gray Armstrong, 2008)

    A marketing information system (MIS)consists of people, equipment and

    procedures to gather, sort, analyze, evaluate and distribute needed, timely and

    accurate information to marketing decision makers. The MIS begins and ends with

    marketing managers. First, it interacts with these managers to assess theirinformation needs. Next, it develops the needed information from internal

    company records, marketing intelligence activities and the marketing research

    process. Information analysis processes the information to make it more useful.

    Finally, the MIS distributes information to managers in the right form at the right

    time to help them in marketing planning, implementation and control.

    DEVELOPINGINFORMATION

    The information needed by marketing managers comes from internal company

    records, marketing intelligence and marketing research. The information analysissystem then processes this information to make it more useful for managers.

    Internal Records

    Information gathered from sources within the company to evaluate marketing

    performances and to detect marketing problems and opportunities. Most marketing

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    managers use internal records and reports regularly, especially for making day-to-

    day planning, implementation and control decisions. Internal records information

    consists of information gathered from sources within the company to evaluate

    marketing performance and to detect marketing problems and opportunities.

    Example

    Office World offers shoppers a free membership card when they make their first

    purchase at their store. The card entitles shoppers to discounts on selected items,

    but also provides valuable information to the chain. Since Office World

    encourages customers to use their card with each purchase, it can track what

    customers buy, where and when. Using this information, it can track the

    effectiveness of promotions, trace customers who have defected to other stores and

    keep in touch with them if they relocate.

    Information from internal records is usually quicker and cheaper to get than

    information from other sources, but it also presents some problems. Because

    internal information was for other purposes, it may be incomplete or in the wrong

    form for making marketing decisions. For example, accounting department sales

    and cost data used for preparing financial statements need adapting for use in

    evaluating product, sales force or channel performance.

    Marketing Intelligence

    Everyday information about developments in changing marketing environment thathelps managers prepares marketing plans. The marketing intelligence system

    determines the intelligence needed, collects it by searching the environment and

    delivers it to marketing managers who need it. Marketing intelligence comes from

    many sources. Much intelligence is from the company's personnel - executives,

    engineers and scientists, purchasing agents and the sales force. But company

    people are often busy and fail to pass on important information. The company must

    'sell' its people on their importance as intelligence gatherers, train them to spot new

    developments and urge them to report intelligence hack to the company. The

    company must also persuade suppliers, resellers and customers to pass along

    important intelligence. Some information on competitors conies from what they

    say about themselves in annual reports, speeches, press releases and

    advertisements. The company can also learn about competitors from what others

    say about them in business publications and at trade shows. Or the company can

    watch what competitors do - buying and analyzing competitors' products,

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    monitoring their sales and checking for new patents. Companies also buy

    intelligence information from outside suppliers.

    Some companies set up an office to collect and circulate marketing intelligence.

    The staff scans relevant publications, summarize important news and send news

    bulletins to marketing managers. They develop a file of intelligence information

    and help managers evaluate new information. These services greatly improve the

    quality of information available to marketing managers. The methods used to

    gather competitive information range from the ridiculous to the illegal. Managers

    routinely shred documents because wastepaper baskets can be an information

    source.

    Marketing Research Applications :

    Marketing research uses include: Advertising testing research, branding

    research, customer satisfaction research, pricing research, product

    positioning research, new product assessments, marketing due

    diligence, and segmentation research. We conduct these marketing

    research studies for firms of most sizes from venture funded start ups

    to middle-market and large enterprises.

    Applications of Market Research

    Pricing Research

    We provide pricing strategy consulting backed by strong pricing research capabilities. Our

    perspective is broad when dealing with pricing research and pricing strategy decisions, and

    focus on finding for your business optimum price-product-feature configurations in the context

    of market positioning opportunities.We employ both qualitative and quantitative pricing

    research tools.

    Product Research

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    nd market validation research, or assessing existing product strength and line extension

    potential. We follow the product development cycle integrating research with creative

    positioning and technical product design efforts.

    Concept Testing

    Concept testing research evaluates advertising concepts, ad theme concepts and appeals, new

    product concepts, pricing, brand concepts, brand names, and positioning strategy concepts.

    We select techniques -- qualitative and quantitative -- to both develop concepts, refine, and

    screen to assess market potential.

    Positioning Research

    We offer experienced market positioning and creative branding research capabilities to define

    and go-to-market with a high-impact positioning strategy. First, it requires understanding the

    market positioning concept, your current and potential markets, and the process needed to

    generate brand name impact.

    Marketing Due Diligence

    We support venture investment firms with primary and secondary marketing research in a

    stand alone or component marketing due diligence study.

    Customer Satisfaction Research

    The buzz and interest around customer satisfaction research sometimes deflates if the research

    design does not lead to actionable results. Also, customer expectations generally rise overtime

    as advances in technology in many categories boost the consumer consciousness ofwhat to

    expect.We build into our customer satisfaction study design "action indicators" to point to

    immediate use of customer satisfaction results.

    Branding Research

    Branding decisions drive branding marketing research strategy. Corporate, product and

    advertising brand development is a mix of creativity and marketing information to uncover

    brand positioning opportunities in cluttered market spaces.

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    Brand Equity Research

    Brand equity research measures the breadth and depth of brand power in your target markets.

    We use both standard and custom tailored brand equity survey measurements. A key to

    research design is the goal of a brand equity measurement study.

    Advertising Research

    Advertising research design is determined by specific advertising goals and the stage of ad

    development, or campaign.We use a broad range of advertising research techniques including

    ad recall surveys, message and theme salience and impact measures, buying motivation and

    associationwith the ad message or positioning theme.We employ both qualitative and

    quantitative pricing research tools.

    Market Segmentation

    Market segmentation research maintains focus and delivers needed marketing information in

    today's moving economy where new markets and new product categories emerge and

    traditional market segments fade away. Market segmentation research is a way to keep 'your

    eye on the ball.' Often we start the market segmentation process with qualitative research to

    the range and breadth of customers. Then we followwith quantitative research using

    appropriate multivariate analysis (cluster, k-means factor, etc) to define meaningful segments.

    Sales Analysis

    Data mining -- finding gems of insight from sophisticated or basic analysis of your internal

    customer and sales and margin trend data -- is a key first step in product and brand analysis.

    Simply put, a marketing analysis data mining effort searches for meaning and insight among the

    stacks of sales data and marketing data already within a sales and marketing organization.

    Through these tools we can better target your best customers, find which advertising and

    promotion methods are most efficient and effective

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    Elements of scientific method:

    Scientific method refers to a body oftechniques for investigatingphenomena,

    acquiring new knowledge, or correcting and integrating previous knowledge.[1]

    To

    be termed scientific, a method of inquiry must be based on gathering observable,empirical and measurable evidence subject to specific principles of reasoning.

    [2]A

    scientific method consists of the collection ofdata through observation and

    experimentation, and the formulation and testing ofhypotheses.[3]

    A linear zed, pragmatic scheme of the four points above is sometimes offered as a

    guideline for proceeding:

    1. Define the question

    2. Gather information and resources (observe)

    3. Form hypothesis

    4. Perform experiment and collect data

    5. Analyze data

    6. Interpret data and draw conclusions that serve as a starting point for new

    hypothesis

    7. Publish results

    8. Retest (frequently done by other scientists)

    The iterative cycle inherent in this step-by-step methodology goes from point 3 to

    6 back to 3 again.

    While this schema outlines a typical hypothesis/testing method,[47]

    it should also be

    noted that a number of philosophers, historians and sociologists of science

    (perhaps most notably Paul Feyerabend) claim that such descriptions of scientific

    method have little relation to the ways science is actually practiced.

    Marketing Research during different phases of the

    Administrative process:

    There is a conceptual framework that can help interested marketing people to learn

    more about the many applications of marketing research. This conceptual

    framework is called the administrative process, and it consists of the four phases

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    managers frequently go through: (1) settings and establishing strategies (2)

    developing marketing plan (3) putting the plan into action, and (4) evaluating the

    effectiveness of the marketing plan.

    Phase 1: Setting Goals and Establishing Strategies: Useful information can be

    obtained on a variety of topics when managers attempt to select a new strategy to

    pursue. Changes in the size or trend of demand or changes in the structure or

    composition of the market may suggest that a new strategy is appropriate. Changes

    in media trends such as the growth of cable television may signal the emergence of

    an opportunity that might be exploited with certain new strategies. Needs, wants

    and/or dissatisfaction in relevant market segments may suggest that a problem

    exists, waiting to be solved, if the right strategy can be identified. After the Gillette

    Company discovered that consumers were dissatisfied with roll on deodorants

    (because they were too wet) the company went on to develop its successful Dry

    idea brand of roll on deodorant. These can be monitored through marketingresearch and the findings of such research often help managers identify new

    strategies to pursue.

    Phase 2: Developing a Marketing Plan: When developing marketing plans,

    managers often use marketing research to identify key market segments. By

    measuring their attitudes and opinions towards the features of available products

    and how these products are used managers can identify important product and

    advertising considerations to include in their plans.

    Marketing research can also be used to test how appealing certain proposedproduct attributes and advertisements are to the target market. The Campbell Soup

    Companys search with children is an example of such an applicable of marketing

    research. Perhaps more marketing research is used in this phase of the

    administrative process than in any other.

    Phase 3: Putting the plan into Action: When a plan is put into action,

    management must monitor the effects of the plan to see if it is achieving its

    objectives. Columbia Pictures use of research to track the awareness level of its

    Star man movie is an example of using marketing research or such an application.

    In these types of application the research is likely to measure (a) if the plan is

    achieving the desired level of retail availability (b) if the target market segments

    are seeing the advertisements (c) if the copy is communicating the intended

    message, (d) if the promotions are achieving the desired trial rates, (e) how much

    consumers are using, and (f) the proportion of buyers who repurchase.

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    An interesting example of research designed to measure effectiveness of a new

    marketing program was that that carried out by the Hanes Company when it

    introduced Leggs hosiery. Hanes used two sets of test markets with one set

    receiving twice as much advertising as the other. Five consumer studies were

    conducted in all of the test markets 6, 13, 18, 26 and 43 weeks after advertising

    had begun. Some information obtained during the studies concerned brand and

    advertising awareness, trial and repeat purchase rates, the average number of units

    bought per purchaser and the average number of units bought per capita. Unit sales

    in each market were obtained from data on store deliveries and from audits by the

    A C Nielsen Company. All information was equally available from both high and

    low advertising markets.

    Phase 4: Evaluating the plans Effectiveness: At the end of the operating period

    management want to reappraise the plan and compare results with the

    objectives. Such a reappraisal will involve an aggregation and compilation of most

    of the information obtained during planning and action phases, with a special

    emphasis on sales, market share, marketing costs, and contribution to profit. It

    will also measure brand awareness, trial rates, repeat purchase rates, preferred

    brands, and other measures of marketing results

    Scientific method in the Physical Sciences and Marketing:

    The scientific method, as a method of reducing uncertainty stemming from a lack

    of information, has been developed primarily in the physical sciences. A centuries

    old tradition of careful problem definition combined with the use of measuring

    instruments proved many tests to accurately measure specific characteristics

    provides validity for most physical science research.

    Much marketing research also has good validity but validity questions can be quite

    subtle. It was pointed out above that the measurement of TV sets turned on is notthe same as the measurement of the number of people watching a given TV show.

    Measuring instruments used in marketing the questionnaire, for example do not

    provide as clear a definition of what is being measured as thermometers or

    balances do. Consumers must interpret questions and find ways to express answers,

    both of which are imprecise and in marketing it is often hard to know whether the

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    sample from which information is collected really represents the universe that the

    researcher desires to study.

    It is in the area if reality however, that the physical sciences appear significantly

    more scientific than marketing. In most physical sciences the reproducible

    experiment is the accepted scientific method. In chemistry for example, an

    experiment is conducted under controlled conditions. Such variables as

    temperatures atmospheric pressure and quantities of chemicals are carefully

    measured and all but one held constant during the experiment. These conditions are

    reported in detail along with the results of the experiment so that others may

    reproduce the same conditions and verify the results.

    In marketing it is difficult, if not impossible, to control all the conditions

    surrounding a research project so that the same researcher can see if his or her

    techniques produce the same results at different times and places or so that otherresearchers can attempt to reproduce the results. Even more important, most

    marketing research projects are done as one time projects by private firms; no

    attempt is made to test the validity or reliability of the results, and the methodology

    is not published so that others can check for these characteristics. Until recent

    years few making research projects could be called experiments much less

    reproducible experiments; and even now only a small portion of all projects are

    real experiments.

    NOTE

    Scientific method approves through EXPERIMENTATION, non-scientific method is

    based upon beliefs and things that were not proofed. The Church used a non-

    scientific method, the religious one, to explain people the universe and

    phenomenons.

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    Three Distinctions between the Scientific and Non-Scientific Methods:

    It is useful to think of the scientific method as a very general method that can be

    adapted to many widely varying situations according to the subject matter and

    specific problem involved. As subject matter and problems vary across the whole

    range of human interest, it is obvious that the specifics of the methods applied will

    vary. Certain criteria, however, distinguish those methods that may be called

    scientific from other methods. Three are differences between the scientific and

    non-scientific methods that affect the reliability and validity of the results are: (1)

    the objectivity of the investigator, (2) the accuracy of measurement and (3) the

    degree to which the investigation is continuing and exhaustive.

    Objectivity of the Investigator:

    Researchers must base judgment on acts, not on preconceived notions or intuition,

    if their work is to be scientific. If an investigator is not completely objective in his

    thinking if he is not just anxious to find his actions supporting one outcome of his

    study as another, it is unlikely his work will be scientific.

    Marketing researchers often report to strong-willed executives who are confident

    they know the markets to which they are selling and want research to support their

    views. They can put pressure on the researcher to find results that confirm their

    views. Marketers also tend to exploit market segments consisting of people with

    whom they feel comfortable. They ignore segments that are different threatening or

    unattractive and since such attractive segments are relatively scarce, they create

    them with catchy names such are influential like silver foxes, baby boomers and

    yuppies. The researcher who cannot remain objective cannot be scientific.

    Scientific& Nonscientific Approaches ToKnowledge:

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    Whatarethe differencesbetweenscientificandnonscientific

    approachesto knowledge? Basically,science isaspecificwayof

    analyzing informationwiththe goaloftesting claims.Whatsets

    scienceapart fromothermodesof knowledgeacquisition isthe

    useofwhat iscommonly knownasthescientificmethod.Giving aprecise definitionofthescientificmethod is difficultas

    there islittleconsensus inthescientificcommunityastowhat

    that definition is. Althoughthescientificcommunityhas been

    slowtoagreeuponaclear definition,thescientificmethod is

    rooted inobservation,experimentation,and knowledge

    acquisitionthroughaprocessofobjectivereasoning andlogic.

    Onenotable descriptionofthescientificmethodcomes from A.

    Aragon (Girth Control 2007,p. 9); he definesthescientific

    methodas: systematicprocess foracquiring new knowledgethatusesthe basicprincipleof deductive (andtoalesserextentinductive) reasoning. Itsconsidered themostrigorouswayto

    elucidatecauseandeffect,aswellas discoverandanalyzeless

    directrelationshipsbetweenagentsandtheirassociated

    phenomena. Ifyouasked apanelofscientiststo definethe

    scientificmethodyouwould receivealargearrayofanswers,

    but I think mostwould agreeonthe basicconcepts. The following

    isanexcerpt fromWhy People BelieveWeird Things (Shermer

    1997,p. 19). Through the scientificmethod, we may formthe following generalizations:

    Hypothesis: A testable statement accounting for a set of

    observations.

    Theory: A well-supportedandwell-tested hypothesis or set

    of hypotheses.

    Fact: A conclusion confirmed to such an extent that itwould be reasonable to offer provisional agreement.

    Whenusing thescientificmethodoneoftheprimary goals is

    objectivity. Properuseofthescientificmethodleadsusto

    rationalism (basing conclusionon intellect,logicandevidence).

    Relying onsciencealsohelpsusavoid dogmatism (adherenceto

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    doctrineoverrationalandenlightened inquiry,or basing

    conclusiononauthorityratherthanevidence). Thenonscientific

    approachto knowledge involves informal kindsofthinking. This

    approachcan bethoughtofasaneverydayunsystematic

    uncriticalwayofthinking. Below I will discussthemajordifferencesbetweenthetwo.

    Comparing Scientific & Nonscientific Approaches to

    Knowledge:

    Scientific Nonscientific

    General Approach Empirical Intuitive

    Observation Controlled Uncontrolled

    Reporting Unbiased BiasedConcepts Clear definitions Ambiguous definitionsInstruments Accurate/precise Inaccurate/imprecise

    Measurement Reliable/repeatableNon-reliable

    Hypotheses Testable Unstestable

    Attitude Critical Uncritical

    General approach

    Thescientificapproachto knowledge isempirical. Theempiricalapproachemphasizes directobservationandexperimentationasawayofanswering questions. Intuitioncanplayarole in idea

    formation, buteventuallythescientist is guided bywhat direct

    observationandexperimentationrevealto betrue. Their findings

    areoftencounterintuitive.

    Manyeveryday judgmentsare based on intuition. Thisusually

    meansthat gut feelingor what feelsright.The Penguin

    Dictionaryof Psychology defines intuitionasamodeofunderstanding or knowing characterized as directand immediate

    andoccurring withoutconsciousthoughtor judgment. Intuitioncan bea valuablecognitiveprocess, but becoming toorelianton

    intuitioncan beaproblem.Whatsright isoftencounterintuitive.

    Our intuitionoften failstorecognizewhat isactuallytrue because

    ourperceptionsmay be distorted bycognitive biasesor because

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    weneglecttoweighevidenceappropriately.Wetend toperceive

    arelationshipbetweeneventswhennoneexists.Wearealso

    likelytonoticeeventsthatareconsistentwithour beliefsand

    ignoreonesthat violatethem.Werememberthehitsand forget

    themisses.

    Below isanexampleofthe differencebetweenthe gut feeling

    approachandtheonepreferred byscientists. Theexcerpt is from

    The Demon-Haunted World (Sagan 1996).

    I am frequentlyasked, Doyou believetheresextraterrestrial

    intelligence?

    I givethestandard arguments-therearealotofplacesoutthere,

    themoleculesoflifeareeverywhere, I usetheword billions,andsoon. Then I say itwould beastonishing tome iftherewerentextraterrestrial intelligence, butofcoursethere isasyetno

    compelling evidence for it. Often I amasked next, What doyou

    reallythink? I say, I justtold youwhat I reallythink. Yes, but

    whatsyour gut feeling?But I trynottothink withmy gut. If Im

    seriousaboutunderstanding theworld,thinking withanything

    besidesmy brain,astempting asthatmight be, islikelyto get

    me introuble. Really, itsokaytoreserve judgmentuntilthe

    evidence is in.

    Observation

    Whenobserving phenomenaascientistlikestoexertaspecific

    levelofcontrol.Whenutilizing control,scientists investigatethe

    effectsof various factorsone byone. A key goal forthescientist

    isto gainaclearerpictureofthose factorsthatactuallyproducea

    phenomenon. Ithas beensuggested thattightcontrol isthe key

    featureofscience.Non-scientificapproachesto knowledgeareoftenmadeunsystematicallyandwithlittlecare. Thenon-

    scientificapproach doesnotattempttocontrolmany factorsthatcould affecttheeventstheyareobserving (donthold

    conditionsconstant). Thislack ofcontrolmakes it difficultto

    determinecause-and-effectrelationships (toomanyconfounds,

    unintended independent variable).

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    The factorsthattheresearchermanipulates inorderto determine

    theireffecton behaviorarecalled the independent variables. In

    itssimplest formthe independent variablehastwolevels. These

    twolevels (orconditions) includetheexperimentalcondition; thecondition inwhichthetreatment ispresentandthecontrol

    condition; thecondition inwhichthetreatment isabsent.

    Themeasuresthatareused toassesstheeffectofthe

    independent variablesarecalled dependent variables

    (Shaughnessy & Zechmeister 1990). Propercontroltechniques

    must beused ifchanges inthe dependent variableareto be

    interpreted asaresultoftheeffectsofthe independent variable.

    Scientists generally dividecontroltechnique intothreetypes:manipulation,holding conditionsconstant,and balancing.Wehavealready discussed manipulationwhenwelooked atthetwo

    levelsofthe independent variable. Holding conditionsconstant

    otherthanthe independent variables isa key factorassociated

    withcontrol. Thishelpseliminatethepossibilityofconfounds

    influencing themeasured outcome.

    Balancing isused tocontrol factorsthatcannot bemanipulated or

    held constant (e.g.subjectscharacteristics). Themostcommonmethodof balancing istoassignsubjectsrandomlytothedifferent groups being tested. Anexampleofarandom

    assignmentwould beputting namesonaslipofpaperand

    drawing them fromahat. This doesnotmeantherewill beno

    differences inthesubjectscharacteristics, butthe differenceswill

    probably beminor,and generallyhavenoeffectontheresults.

    Reporting

    Howcantwopeoplewitnessthesameevent butsee different

    things? Thisoftenoccurs duetopersonal biasesandsubjectiveimpressions. Thesecharacteristicsarecommontraitsamong

    non-scientists. Theirreportsoften go beyond whathas just been

    observed and involvespeculation. Inthe book Research Methods

    in Psychology (Shaughnessy & Zechmeister 1990) anexcellent

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    example is given demonstrating the differencebetween

    scientificandnon-scientificreporting. An illustration is

    provided showing twopeoplerunning along thestreetwithone

    personrunning in frontoftheother. Thescientistwould report it

    intheway itwas just described. Thenon-scientistmaytake itastep furtherandreportoneperson ischasing theotherorthey

    areracing. This isnotobjective information butspeculation.

    Scientificreporting attemptsto beobjectiveandunbiased. One

    waytolessenthechanceof biased reporting ischecking tosee if

    other independentobserversreportthesame findings. Evenwhen

    using thischeckpointthepossibilityof bias isstillpresent.

    Following strict guidelinestoprevent biasreporting decreasesthe

    chancesof itoccurring. Although I would say 100% unbiasedreportsrarely, ifever,occur.

    Concepts

    It isnotunusual forpeople ineverydayconversationto discuss

    conceptstheyreally dontunderstand. Manysubjectsare

    discussed onaroutine basiseventhoughneitherparty knows

    exactlywhatthesubjectmeans. Theymayhavean ideaofwhat

    theyare discussing (eventhoughtheir ideasmay betotallyopposite). Althoughtheycannotprecisely definetheconceptstheyaretalking about. Inmyopinionthisleadstoa bunchof

    jibber-jabber (dead-end conversation).

    Thescientistattachesanoperational definition (a definition based

    onthesetofoperationsthatproduced thething defined) to

    concepts. Anexampleofanoperational definition follows: hunger

    aphysiologicalneed for food; theconsequenceof food

    deprivation. Onceanoperational definitionhas beenestablishedcommunicationcanmove forward.

    Instruments

    Ineverydaylifenumerous instrumentsareused tomeasure

    events. Common instruments include gas gauges,weightscales,

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    andtimers. These instrumentsarenot veryprecisecompared to

    themoreexact instrumentsused withthescientificapproach.

    Whenyoulook atyour gas gaugewhile driving wouldnt it benice

    to knowhowmanymilesyoucantravelon tank (orwhatever

    the gas gaugeregisters). Your bathroomscaleweighsyou inpounds.What ifyouweigh 100lbsand 2 oz?What ifyour friend

    weighs 100 lbsand 6 oz? Your friend isheavier butthe bathroom

    scalesaysyouweighthesame. A common deviceused by

    coachesandathletestomeasuresprinttimesarehand held

    timers. Thesetimersarehighly inaccurateandread tothetenths

    place. Inthe Olympicswinnersandlosersareoftenseparated by

    hundredthsofasecond. The instrumentswe generally depend on

    ineverydaylife giveusapproximations,notexactmeasurements.

    Measurement

    An instrumentcanprovideaccuracyandpreciseness butstilllack

    value ifthemeasurement isnon-valid.When determining the

    validityofthemeasurementonemustask doesthemeasurement

    reallymeasuretheconcept inquestion?We discussed thisaspect

    ofmeasurementearlierwhenwespokeaboutoperational

    definitions. Inthe fitness industryacommonmeasurementof

    overall flexibility isthesit-and-reachtest. Thistest isconductedwhilesitting withyourlegsextended straight in frontofyou. Thenextstep isextending yourarmsasyoureachtowardsthetoes.

    Thistest isapoor indicatorofoverall flexibility. Flexibility is joint-

    specific,speed-specific,andplaneofmovement-specific. A

    batteryoftestsneedsto beconducted toaddresseachofthese

    characteristicsto validlymeasure flexibility.

    Another importantaspectofmeasurement isreliability. A

    measurement isreliablewhen itoccursconsistently. Inthecontextofscience it is important formeasurementsto bereliable.

    Thenon-scientist gets bywithlessemphasisonreliability.

    Validityandreliabilityare independentqualities. A measurement

    can be valid whilenot being reliable. A measurementcanalso be

    reliableandlack validity. In general, it iseasiertoshowthata

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    measurement isreliablethan it istoshow its validity. Bothof

    thesequalitiesare importantto good measurement.

    Hypotheses

    A hypothesis isatentativeexplanation foraphenomenon. It

    oftenattemptstotheanswerthequestions HowandWhy?

    Almosteveryonehas formed theirownhypothesesthatexplain

    someelementsofhuman behavior.Why dopeoplesteal?What

    causespeopletotake drugs?Why dosomepeople do better

    sociallythanothers? Thescientistproposeshypothesesthatare

    testable. Thenon-scientistsuggestshypothesesthatareun-

    testable.

    Hypothesesarenottestable iftheconceptstheyrefertoarenotaccurately defined (i.e.,conceptualization). Tosaysomeoneuses

    drugs becausetheyare mentallyweak isnottestable. There is

    nouniversaloperational definitionthat definesmentallyweak. To

    saysomeoneuses drugs becausetheyhaveaspecificchemical

    imbalanceorneurological disorder isusuallytestable.

    Circularhypothesesarenottestable. Ifyousaysomeonetakes

    drugs becausetheyenjoytaking drugsyouareusing acircularhypothesis. Liking andenjoying something meansthesamething. Thishypothesis isnontestableas itleads back to itsown

    beginning.

    A hypothesis isuntestable if it isoutsideoftherealmofscience.

    Tosuggestsomeonesteals becausetheyarepossessed bythe

    devil isnonscientific. The devil is beyond therealmofscientific

    analysis becausethisconceptcannot bescientificallystudied,

    analyzed,orexplained.

    Attitude

    The keyattributeofscientists isskepticism. Scientistsquestion

    everything (almosteverything). Theywanttoseeproofandmore

    proof. Theyunderstand all knowledge istentative. Many factors

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    can interactandsuggestcauses foraspecificevent. It is

    importanttorecognizethese factorsand distinguishcausative

    factors fromcorrelation factors. It isalso importanttorealizeall

    humansare fallible. Thescientisthastheattitudethatthereare

    noabsolutecertainties. R.A Lyttletonsuggestsusing the beadmodeloftruth (Duncan R &Weston-Smith M 1977). Thismodel

    depictsa bead onahorizontalwirethatcanmoveleftorright. A

    0 appearsonthe farleftend anda 1 appearsonthe farright

    end. The 0 correspondswithtotal disbeliefandthe 1 corresponds

    withtotal belief (absolutecertainty). Lyttletonsuggeststhatthe

    bead should neverreachthe farleftorrightend. Themorethat

    theevidencesuggeststhe belief istruethecloserthe bead

    should beto 1. Themoreunlikelythe belief isto betruethe

    closerthe bead should beto 0.

    Thenon-scientist isreadytoacceptexplanationsthatare based

    on insufficientevidenceorsometimesnoevidence. Theyheard it

    on CNN ortheirteachersaid itso itmust betrue (logical fallacy

    ofan Appealto Authority). Theyrejectnotions becausetheycant

    understand themor becausethey dontrespecttheperson

    making theclaim. Thescientist investigatestheclaimand

    criticallyevaluatestheevidence.

    Eventhoughthescientist isskeptical, it isnotpracticalto beskepticalallthetime. Imaginethateverytimesomeonetellsyou

    something youask forevidencetosupporthisorherclaim. You

    would have very few friendsandyouwould get verylittle

    accomplished.

    Science ornon-science:

    I preferthescientificapproachto knowledge. Theapproach isnotperfect, but it isthe bestmethodwehave. Science issubject

    tochange,andthis isoneof its bestqualities. Thepossibilityalwaysremainsthat futureevidencewillcauseascientific

    theoryto bechanged.Scientifictheoriesareprovisional.

    Insciencetheword theory isused differentlythan it is in

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    everydaylanguage (Johnson GB 2000). Toascientist,theword

    theoryrepresentsthatofwhichheorshe ismostcertain; in

    everydaylanguagetheword impliesa guess (notsure). This

    oftencausesconfusion forthoseunfamiliarwithscience. This

    confusionleadstothecommonstatement Itsonlyatheory.

    Inconclusion,sciencecannotexplainhowandwhyeverything

    happens. Science islimited toobjective interpretationsof

    observableoccurrences. Most individuals incorporatesome

    degreeofscienceaswellasnon-science intotheireveryday

    lives. Science findssolutionstoproblemswhensolutionsare

    possible. Somethingsthatcannot beexplained presentlywill be

    explained inthe future. Ontheotherhand wemustrecognizethe

    factwewillpr