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Transcript of Market Research
Essentials of Essentials of Marketing ResearchMarketing Research
MALHOTRAHALLSHAW OPPENHEIM
AN APPLIED ORIENTATION
PowerPoint to accompany
1- 1
1- 2Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
PART ONE
Chapter 1
The Marketing Research The Marketing Research ProcessProcess
1-3Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Chapter ObjectivesAfter reading this chapter, you should be able to:
Understand the nature and scope of marketing research. Explain the role of marketing research in business
management decision-making. Discuss the types and roles of research suppliers. Explain the importance of ethical behaviour Appreciate the components of the marketing research
process. Learn about the process used for defining the marketing
research problem. Discuss the background and environmental factors
affecting the definition of the research problem. Clarify the distinction between the management decision
problem and the marketing research problem.
1-4Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Chapter Objectives (cont’d)
Understand the link between the research problem and the research design.
Understand the importance of clearly specifying the information required from research.
Define the elements of the research brief. Understand the relationship between the research brief
and the research proposal.
1-5Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
History of Market Research
19th Century The Birth
1900-1930s Childhood
1930-1950s Adolescence
1950-1960’s Teenage
1960-1970s Young Adult
1970-1980s New Executive
1980-1990s Professional
1990-2000 Maturity
2000 onwards Wisdom (or Second Childhood?)
1-6Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Marketing Research (MR) is the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision- making related to the identification and solution of problems and opportunities in marketing.
Definition
1-7Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MR and Decision Making
MR should produce information that is: Relevant
Accurate
Reliable
Valid
Timely
1-8Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.2 The Central Role of Marketing Research
1-9Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.3 A Typology of Business Decision Making
1-10Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Classification of MR
Problem Identification Research
Identifies problems not yet apparent
Often undertaken for survival and long term growth of the company
Problem Solving Research
Used once the problem has been identified
Used in making decisions to solve problems
1-11Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Examples of Problem Identification Research
Market potential research Market share research Image research Market characteristics research Sales analysis research Forecasting research Business trends research
1-12Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Examples of Problem Solving Research
Segmentation research
[lifestyle, demographics]
Product research
[concepts, packaging]
Pricing research
[price elasticity, price line pricing]
Promotion research
[advertising effectiveness, sales promotion] Distribution research
[location of retail outlets]
1-13Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MMIS and DSS
Marketing Management Information System A formalised set of procedures for generating,
analysing, storing, and distributing information to marketing decision makers on an ongoing basis.[invoices, annual reports, previous research]
Decision Support Systems Integrated system including hardware,
communications network, database, model base, software base and the DSS user that collects and interprets information for decision making.
1-14Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MMIS vs DSS
Marketing Management Information System
Structured problems Use of reports Rigid structure Information displaying
restricted Can improve decision
making by clarifying raw data
Decision Support Systems
Unstructured problems Use of models User-friendly interaction Adaptability Can improve decision
making by using “what if” analysis
1-15Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Figure 1.6 Market Research Suppliers and Services
1-16Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Some Australian Research Companies
AC Nielsen amrinteractive Australian Fieldwork Solutions BIS Shrapnel Chant Link & Associates Colmar Brunton Fieldforce FieldWorks Lynx Millward Brown Australia Quantum Market Research Roy Morgan Research Sweeney Research Wallis
1-17Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MR Job advertisement
FMCG - Market Research role
Reporting to the MR Manager you will be required to undertake and manage market research projects, ensuring these results are objectively analysed and interpreted. You will prepare summaries and develop independent conclusions and recommendations so that consumer understanding is integrated into key strategies and brand development activities. In addition, you will be responsible for ensuring that presentations are timely, relevant and address key business issues.
A clear thinker and strategist, you will have tertiary qualifications in marketing, psychology and/or statistics. Experience as a market research supplier or buyer is essential for this position.
Conceptual and analytical skills combined with influential communication skills are essential. An insight and understanding of marketing principles is desired.
1-18Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Skills and Knowledge required by Market Researchers
Knowledge of marketing, psychology and consumer behaviour
The ability to understand and interpret secondary data
The ability to complete projects on time Presentation skills Foreign-language competency Negotiation skills Computer proficiency Interpersonal skills Statistical skills Think creatively
1-19Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Marketing Research Process
Marketing or business definition problem or opportunity
Development of an approach and specifying research objectives
Research design formulation
Field work or data collection
Data preparation and analysis
Report preparation and presentation
1-20Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Ethics in Marketing Research
Address whether action is right or wrong, good or bad
Most ethical decisions have extended or long term effects
Ethical decisions are rarely black and white
Alternatives have both positive and negative outcomes
1-21Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Stakeholders in MR
Public Respondents
Client Researcher
1-22Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices
Problem definition Using surveys as a guise for selling or fundraising Following personal agendas of the researcher or client Conducting unnecessary research
Approach to the problem Soliciting proposals to gain research expertise without
pay Using findings and models for specific clients or
projects for other projects
1-23Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices cont.
Research design Formulating a research design more suited to the
researcher’s rather than the clients needs Using secondary data that are not applicable Disguising the purpose of the research Not maintaining anonymity of respondents Disrespecting privacy of respondents Misleading questions Embarrassing or putting stress on respondents Using measurement scales of questionable reliability
and validity Designing overly long questionnaires or sensitive
questions Using inappropriate sampling procedures and sample
size
1-24Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Unethical Practices cont
Fieldwork Increasing the discomfort level of respondents Following unacceptable fieldwork procedures
Data Preparation and analysis Identifying and discarding unsatisfactory respondents Using statistical techniques when the underlying
assumptions are violated Interpreting the results and making incorrect
conclusions and recommendations
Report Preparation and Presentation Using incomplete, biased and inaccurate reporting
1-25Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Code of Professional Behaviour
Market Research Society of Australia
www.mrsa.com.au
Code of Professional Behaviour covers: Responsibilities to respondents Researchers’ professional responsibilities Researchers’ and Clients mutual rights and
responsibilities
1-26Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Importance of Defining the Problem
Problem definition involves stating the general problem and identifying the specific components of the marketing research problem.
Critical in setting the directions for all subsequent phases of the marketing research process.
Inadequate problem definition is a leading cause of failure of marketing research projects.
1-27Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Case: Where did Coca-Cola go wrong?
Coca-Cola conducted blind taste tests in the early 1980s to determine consumer taste preferences.
Results indicated that consumers preferred a sweeter product, similar to Pepsi Cola. Coca-Cola introduced the new taste Coke and named it “New Coke” and discontinued the original Coke.
In less than 3 months, New Coke was discontinued after customer outrage that the original Coke was removed.
It has been suggested that Coca-Cola narrowly defined the research problem.
Coca-Cola failed to measure the emotional attachment and loyalty to the existing brand name and its effect on subsequent
purchase and consumption behaviour.
Source: Shields, M.J. 1985 ‘Coke Fizzles, Fails to Factor in Customer Loyalty’, Adweek, 15 July, p.8.
1-28Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Tasks involved in the Problem Definition Process
Collect the background information
Consider the environmental context of the problem
Conduct problem or opportunity audit
Step 1: Marketing or Business Problem Definition
Specify the Management Decision Problem
State the Purpose of the project
Define the Marketing Research Problem
Prepare the Marketing Research Brief
1-29Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Collect the Background Information
Discussion with decision makers Interviews with industry experts Reviewing existing information Secondary data analysis Exploratory qualitative research
1-30Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Environmental Context of the Problem
Past information and forecasts Resources and constraints Organisational and decision maker’s objectives Buyer behaviour Legal environment Economic environment Marketing and Technological skills
1-31Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit
Management decision problems and marketing research problems encompass both problems and opportunities.
Conduct a problem audit to understanding the origin and nature of the problem. Discussion with decision maker should uncover: Symptoms Alternative course of action Background information Suspected causes and possible solutions Anticipated consequences Corporate culture of the organisation
1-32Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
Symptoms
Declining sales Decline in profits Losing market share Inability to meet sales
forecasts Low traffic Dissatisfied customers
Management
1-33Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
Possible Causes
Low-quality product or service
Incorrect pricing Inappropriate
distribution channels Low awareness of
company or brands Poor image of the
company Unmotivated sales
force Researcher
1-34Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
The Problem or Opportunity Audit (cont)
The interaction between the decision maker and the researcher should be characterised by the 7Cs
Co-operationConfidence
Candour
Closeness
Continuity
CreativityCommunication
1-35Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
MDP and MRP
Management Decision Problem (MDP) What the decision maker needs to do? Action oriented
eg. Should the advertising campaign be changed?
Marketing Research Problem (MRP) What information is needed and how that
information can be obtained effectively and efficiently?
Information orientedeg. To determine the effectiveness of the current advertising campaign
1-36Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Defining the MRP
Broad statement
To understand the decision making process of potential university students in their choice of university .
Specifically,
To determine the factors potential students consider to be important in selecting a university.
To determine when decisions regarding university selection are made.
To determine sources of information and people who influence potential students decision regarding choice of university.
1-37Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Estimating the value of research and setting a budget
Expected Value (EV) = Probability (Pr) x Value of Outcome (Vr)
Project Return (profit)$2million
EV with$2 x 0.7 = $1.4 million
EV with$2 x 0.3 = $0.6 million
Difference contributed by research (A – B)
1.4 – 0.6 = $0.8million
A
B
With Research
Without research
Probability of success 0.3
Probability of success 0.7
1-38Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Contents of Marketing Research Brief
Executive summary Introduction Background Management decisions - Research Purpose Research Objectives (research information) Scope of the Project Proposed Research Approach
1-39Malhotra Hall Shaw Oppenheim Essentials of Marketing Research © Copyright 2004 Pearson Education Australia
Contents of Marketing Research Brief cont.
Reporting Requirements Timing Budget Materials Contractual Arrangements Requirements for proposals Project Management