Ice Breakers

1
Ice Breakers

• Name
• Where you were born
• Most interesting and/or fun thing you did over
  break
• What you like best about WSU/Pullman

2
Discussion Questions

• What is marketing?
• What is marketing research?
• How does marketing research play a role in
  managerial decision-making?
• What are the different steps in a marketing
  research project?

3
Role ofMarketing Researchin Managerial
Decision-MakingChapter 1
4
What is Marketing?

• American Marketing Association Definition
• Marketing is an organizational function and a set
  of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.
• In sum, marketing is about
• meeting needs
• delivering value to all people affected by a
  transaction
• getting the right product to the right folks at
  the right time/place for the right price using an
  appropriate combination of promotional techniques
  (the four Ps)

5
What is Marketing Research?

• American Marketing Association (p. 4 in your
  book)
• the function that links an organization to its
  market through the gathering of information. This
  information allows for the identification and
  definition of market-driven opportunities and
  problems and allows for the generation,
  refinement and evaluation of marketing actions.
  It allows for the monitoring of marketing
  performance and improved understanding of
  marketing as a business process.
• Malhotra Peterson (2006, p. 5)
• the systematic and objective identification,
  collection, analysis, dissemination, and use of
  information that is undertaken to improve
  decision making related to identifying and
  solving problems (also known as opportunities) in
  marketing.
• Feinberg et al. (2008, p. 4)
• the systematic process of using formal research
  and consistent data gathering to improve the
  marketing function within an organization. This
  information is used to identify opportunities and
  problems, monitor performance, and link marketing
  inputs with outputs of interest, such as
  awareness, satisfaction, sales, share and
  profitability.

6
The Marketing Concept

• Need for marketing research based on marketing
  concept
• Idea introduced in 1952, GEs Annual Report
• The (marketing) concept introduces the marketer
  at the beginning rather than at the end of the
  production cycle and integrates marketing into
  each phase of the business. Thus, marketing,
  through its studies and research, will establish
  for the engineer, the designer, and manufacturer,
  what the customer wants in a given product, what
  price he (or she) is willing to pay, and where
  and when it will be wanted. Marketing will have
  authority in product planning, production
  scheduling, and inventory control, as well as in
  sales, distribution, and servicing of the
  product.
• Gave rise to the Marketing System
• Conceptual model linking Independent Variables
  (causes) to Dependent Variables (outcomes)
• Understanding the link between IVs and DVs (and
  reducing uncertainty) is a key function of
  marketing research ?

7
Marketing System
Independent Variables
Dependent Variables
Behavior Awareness Knowledge Liking Preference In
tent to buy Purchase
Understanding relationship between IVs and DVs is
a key function of MR
Marketing Mix (controllable) Pricing Promotion Pr
oduct Distribution
Situational Factors (uncontrollable) Demand Compe
tition Legal/political Economic
climate Technology Gov regulation
Performance Measures Sales Market
share Profit ROI Image
From Feinberg et al. (2008)
8
The Decision-Making Process
1. Recognize a unique marketing problem or
opportunity
2. Clarify the decision (what do we need to know?)
3. Identify alternative courses of action
4. Evaluate the alternatives
5. Select a course of action
6. Implement selected course of action and
monitor results
From Feinberg et al. (2008)
9
Common Questions Addressed by Marketing
Researchers

• Where are new market opportunities (based on
  macroenvironmental trends)?
• How should we segment the market (based on
  customer characteristics)?
• How are we doing (compared to the competition)?
  Are consumers satisfied with our product or
  service? If not, what should we improve?
• How should we position our product (relative to
  the competition)?
• How will people respond to a new product concept?
  Test marketing
• If our product is priced at 100, what will be
  the expected demand?
• How effective is our advertising? Promotions?
  Sales force?
• Whats in store for the future, and how should we
  adapt?

10
Marketing Research ProcessTransforming Data
into InformationChapter 2
11
Overview

• Types of Marketing Research Firms
• When is Marketing Research Needed?
• Decision-Makers vs. Researchers
• Iceberg Principle Symptoms vs. Underlying
  Problems
• Steps in Marketing Research
• Elements in a Marketing Research Proposal
• Unethical Activities in Marketing Research

12
Marketing Research Industry
Research Supplier
Internal
External
Full Service
Limited Service
Customized
Syndicated
Internet
Data Coding and Entry
Field Services
Data Analysis
Synovate
AC Nielsen
Greenfield On-Line
SDR Atlanta
Field Work Chicago
Davis Coding Group
Malhotra Peterson (2006)
13
When is Marketing Research Needed?
Exhibit 2.3
Can decision problem be resolved with subjective
information?
YES
Type of information
Decision Maker
NO
NO
Dont undertake the Info research process
Nature of decision
Is problem of strategic importance?
YES
Is secondary data inadequate for addressing the
problem?
NO
Availability of data
YES
Bring in Marketing Researcher
NO
Time constraints
Is there enough time to collect data for
managerial decision?
YES
NO
Are there enough resources (, people) to carry
out the study?
Resources required
YES
NO
Cost/Benefit Ratio
Does value of research outweigh costs of research?
Do undertake the Info research process
YES
14
When NOT to conduct research

• Sufficient information for a decision already
  exists
• Insufficient time for research must make an
  immediate decision
• Insufficient resources for research
• When costs of research are greater than its
  benefits

15
Components of the Research Proposal

• Purpose of proposed research plan (problem,
  objectives)
• Type of study (e.g., exploratory, causal,
  primary, secondary etc.)
• Define target population and sample size
• Describe sampling technique and actual data
  collection methods to be used
• Research instruments to be used
• Possible managerial benefits
• Proposed cost of whole project
• Describe primary researchers and research firm
• Proposed tables (how data might be presented)

16
Researchers vs. Decision-Makers

• Researchers

• Decision-Makers

• Want info to confirm decision
• Want quick information
• Less willing to pay for more info
• Dislike reject surprises
• Decision- and results-oriented
• Interested in future performance

• Like to explore new questions
• Can tolerate long investigations
• Not concerned about cost
• Enjoy surprises
• Tentative speak in probabilities
• Interested in past behavior

17
Iceberg Principle Symptoms vs. Problems
18
Four Broad Phases in Information Research
Ten steps ?
19
Ten Steps in Information Research
20
Step 1 Identify and Clarify Information Needs

• The researcher must work with the decision-maker
  (requestor) to
• Understand the reason for the research request
• Help decision maker separate out symptoms (e.g.,
  low sales) from causes (e.g., poor quality
  products)
• Figure out unit of analysis Individuals ?
  Couples? Families?
• Narrow down independent variables (causes) and
  dependent variables (consequences)

21
Step 2 Specify Research Questions and Define
Research Problem

• Most important step, because it influences all
  remaining steps
• Initial research question
• Will Boise support new stadium and a move from
  Single-A to Triple-A?
• Revised research questions
• Your questions?

22
Step 3 Confirm Research Objectives andEvaluate
the Value of the Information

• Building on the research questions, develop
  specific objectives of the research project and
  figure out the value of the information. For
  example, our objective is to find out
• Will Boise residents (and surrounding area)
  support a new stadium?
• How many games would they be willing to attend
  with new stadium?
• Would they attend more games if the Hawks were
  Triple-A?
• How much more are they willing to spend if new
  stadium and Triple-A?

23
Step 4 Determine Research Design and Data
Sources

• Exploratory
• Unstructured or semi-structured data collection
  on a limited group of respondents
• Focus groups, interviews, pilot studies
• Can be used to develop future studies
• Descriptive
• Describes existing characteristics of a target
  population
• Causal
• Manipulate an independent variable (e.g.,
  in-store music) and observe effect on dependent
  variable (e.g., sales)

24
Step 5 Determine Sample Plan and Size

• Census (a survey of all those in the target
  population) vs. a Sample (a smaller group of
  respondents who are representative of the target
  population)

Step 6 Assess Measurement Issues and Scales

• Goal here is to determine what level of
  information is needed and to choose reliable and
  valid measures to assess the constructs of
  interest.

Step 7 Pretest the Questionnaire

• A small group of respondents completes the
  questionnaire and provides feedback on it so any
  adjustments can be made before final sample
  completes it.

25
Step 8 Collect and Prepare the Data

• Interviewer-administered/self-completed
  questionnaires or observation
• Data must be coded (female 1 male 2) and
  cleaned up (look for errors)

Step 9 Analyze the Data (the Fun Part)

• Assess frequencies, relationships, cause and
  effect

Steps 10 11 Transform Data (Results) into
Information Prepare the Final Report

• Interpret what the results mean. Answer the so
  what? question.
• Prepare the final report.

26
Unethical Activities

• by Client (End User)
• Solicit proposals, but choose none. Use proposals
  as a guideline for how to conduct ones own
  study.
• Promise a long-term relationship to get a low
  introductory rate, but then never follow through
  with more projects
• by Researcher
• Unethical pricing promise low price, then jack
  it up
• Fail to provide (promised) incentives to research
  subjects
• Abuse respondents promise short survey that
  turns into an hour pass along information
  without permission collect information without
  permission
• Selling useless research services
• Interviewers make up data (curbstoning or
  rocking chair interviewing)
• Interviewers create phantom data (duplicate
  actual data to boost sample)
• Change or fail to report results in an effort to
  reach a certain conclusion
• by Respondent
• Give misleading responses (can include socially
  desirable responding)