Chapter 3 - Marketing Research

Marketing Research 8th Edition Marketing Research 8th Edition Aaker, Kumar, Day Aaker, Kumar, Day

Marketing ResearchMarketing Research

Aaker, Kumar, DayAaker, Kumar, Day

Eighth EditionEighth Edition

Instructor’s Presentation SlidesInstructor’s Presentation Slides


Chapter ThreeChapter Three

The Marketing Research The Marketing Research ProcessProcess


Overview of Marketing Research Overview of Marketing Research ProcessProcess

MR Process Evolves From Answers to Five MR Process Evolves From Answers to Five Key QuestionsKey Questions

WhyWhy should we do research? should we do research?

WhatWhat research should be done? research should be done?

Is itIs it worthworth doing the research? doing the research?

HowHow should the research be designed to achieve the should the research be designed to achieve the research objectives?research objectives?

WhatWhat will we do with the research? will we do with the research?


Marketing Research ProcessMarketing Research Process


MARKETING PLANNING AND INFORMATION SYSTEM

Planning system

• Strategic plans

• Tactical plans

Information system

• Databases

• DSS

1. AGREE ON RESEARCH PROCESS

• Problems or opportunities

• Decision alternatives

• Research users


2. ESTABLISH RESEARCH OBJECTIVES



• Research users

Estimate the value of information

Is benefit > cost

Do not conduct marketing research

NO


2. ESTABLISH RESEARCH OBJECTIVES



• Research users

YES

5. COLLECT THE DATA

7. REPORT THE RESEARCH RESULTS AND PROVIDE STRATEGIC RECOMMENDATIONS

6. PREPARE AND ANALYZE THE DATA


The International Marketing Research The International Marketing Research ProcessProcess

Marketing research process is consistent for Marketing research process is consistent for both domestic and international marketsboth domestic and international markets

Variety of market environments affect Variety of market environments affect international marketing research processinternational marketing research process


Major Environmental Forces Major Environmental Forces Influencing International Marketing Influencing International Marketing

Research ProcessResearch Process Economic Environment Economic Environment

Social-cultural EnvironmentSocial-cultural Environment

Political and Legal Environment Political and Legal Environment

Technological, Multimedia and Infrastructural Technological, Multimedia and Infrastructural Facilities Facilities


The Marketing Research ProcessThe Marketing Research Process

Step 1Step 1

Research PurposeResearch Purpose Problem or opportunity analysisProblem or opportunity analysis

Which problems or opportunities are anticipatedWhich problems or opportunities are anticipated

What is the scope of the problems and the possible reasons?What is the scope of the problems and the possible reasons?

Evaluation of decision alternativesEvaluation of decision alternatives What are the alternatives being studied?What are the alternatives being studied?

What are the criteria for choosing among the alternatives?What are the criteria for choosing among the alternatives?

Research usersResearch users Who are the decision makers?Who are the decision makers?

Are there any covert purposes?Are there any covert purposes?


Kroger Opens Signature StoreKroger Opens Signature Store Kroger Co. is adding five new Signature stores in Kroger Co. is adding five new Signature stores in

Houston. More than 1,000 questionnaires were Houston. More than 1,000 questionnaires were sent to targeted area residents asking what kind of sent to targeted area residents asking what kind of features the respondents (or future customers) features the respondents (or future customers) would like to see included in a new supermarket would like to see included in a new supermarket in their neighborhood. Based on the surveys, in their neighborhood. Based on the surveys, Kroger added several variations:Kroger added several variations:

A larger selection of winesA larger selection of wines A sit-down coffee barA sit-down coffee bar The largest all-natural food sectionThe largest all-natural food section U-Scan Express aislesU-Scan Express aisles


The Marketing Research Process The Marketing Research Process (Contd.)(Contd.)

Step 2Step 2

Research ObjectiveResearch Objective A statement, in as precise terminology as possible, of A statement, in as precise terminology as possible, of

what information is neededwhat information is needed Should be framed to ensure information obtained will Should be framed to ensure information obtained will

satisfy research purposesatisfy research purpose Research QuestionResearch Question Hypothesis DevelopmentHypothesis Development Research BoundariesResearch Boundaries



Research QuestionResearch Question Asks what specific information is required to Asks what specific information is required to

achieve the research purposeachieve the research purpose Sample questions to determine if a specific Sample questions to determine if a specific

advertisement should be run:advertisement should be run: Will the advertisement be noticed?Will the advertisement be noticed? Will it be interpreted accurately?Will it be interpreted accurately? Will it influence attitudes?Will it influence attitudes?



Hypothesis DevelopmentHypothesis Development A possible answer to a research question.A possible answer to a research question.

Generating a hypothesisGenerating a hypothesis Draw on previous research effortsDraw on previous research efforts Borrow from other disciplines such as:Borrow from other disciplines such as:

PsychologyPsychology SociologySociology MarketingMarketing EconomicsEconomics

Manager’s experience with related problems, coupled with Manager’s experience with related problems, coupled with knowledge and the use of judgmentknowledge and the use of judgment


Source• Theory

• Management experience

• Exploratory research

Research Question Hypothesis

Research Purpose

Research Design

Research Objective



Step 3Step 3

Estimating the Value of InformationEstimating the Value of Information Value depends on:Value depends on:

Importance of decisionImportance of decision

Uncertainty that surrounds itUncertainty that surrounds it

Influence of research information on the decisionInfluence of research information on the decision


Case B

Case A

$ 4 million

$ 1 million

$ 4 million

-$ 2.5 million

Success

Success

Failure

Failure

Introduce

Introduce

Introduce

Introduce

Do not

Do not

Illustrative Decision Models


What is an HMO?What is an HMO?A health maintenance organization that involves fixed A health maintenance organization that involves fixed monthly payments directly to a group of doctors or a clinic monthly payments directly to a group of doctors or a clinic that is then responsible for all the health needs covered by that is then responsible for all the health needs covered by the plan.the plan.

AdvantagesAdvantages Total annual cost of an HMO to the consumer is lower than for Total annual cost of an HMO to the consumer is lower than for

group insurance plansgroup insurance plans Flat-fee formula discourages doctors from hospitalizing patients Flat-fee formula discourages doctors from hospitalizing patients

for longer than necessaryfor longer than necessary Emphasis on preventative care produces fewer seriously ill Emphasis on preventative care produces fewer seriously ill

patients.patients.

Disadvantages Disadvantages Restriction of the choice of physicians and hospitals to those Restriction of the choice of physicians and hospitals to those

affiliated with the HMOaffiliated with the HMO


The International Marketing Research The International Marketing Research ProcessProcess

Avoid mistakes:Avoid mistakes: Profile you target customers and clientsProfile you target customers and clients Interview target segments to assess how well they match your Interview target segments to assess how well they match your

preconceived ideaspreconceived ideas Hire local researchers Hire local researchers Use a variety of methods to get a well-rounded pictureUse a variety of methods to get a well-rounded picture

Qualitative methodsQualitative methods Quantitative methodsQuantitative methods

Look at the findings and analyze what must be done Look at the findings and analyze what must be done differently, abroad or internationally, in comparison with differently, abroad or internationally, in comparison with current domestic marketing activitiescurrent domestic marketing activities


Framing Research Questions in an Framing Research Questions in an International EnvironmentInternational Environment

Possible questions:Possible questions: Do opportunities exist for entry into foreign markets?Do opportunities exist for entry into foreign markets? Which foreign markets warrant detailed investigation?Which foreign markets warrant detailed investigation? What are the major economic, political, legal, and other What are the major economic, political, legal, and other

environmental facts in each potential country?environmental facts in each potential country? What mode of entry does the company plan to adopt?What mode of entry does the company plan to adopt? What is the market potential in these countries?What is the market potential in these countries? Who are the firm’s present and potential customers?Who are the firm’s present and potential customers? What is the nature of competition in the foreign market?What is the nature of competition in the foreign market? What kind of strategy should the firm adopt?What kind of strategy should the firm adopt?

Chapter 3 - Marketing Research

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