Chapter 01 mr process

• 1. PowerPoint to accompanyEssentials ofMarketing ResearchANAPPLIEDORIENTATION MALHOTRA HALL SHAW OPPENHEIM 1- 1

2. PART ONEChapter 1T he Mar keting Resear ch ProcessMalhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 1- 2 3. Chapter Objectives After 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. 1-3Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 4. Chapter Objectives (contd) 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. 1-4Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 5. History of Market Research 19th Century The Birth 1900-1930s Childhood 1930-1950s Adolescence 1950-1960sTeenage 1960-1970s Young Adult 1970-1980s New Executive 1980-1990s Professional 1990-2000Maturity 2000 onwards Wisdom (or Second Childhood?) 1-5Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 6. Definition Marketing Research (MR) is the systematic andobjective identification, collection, analysis, anddissemination of information for the purpose ofassisting management in decision- makingrelated to the identification and solution ofproblems and opportunities in marketing. 1-6Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 7. MR and Decision Making MR should produce information that is: Relevant Accurate Reliable Valid Timely 1-7Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 8. Figure 1.2 The Central Role of Marketing Research 1-8Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 9. Figure 1.3 A Typology of Business Decision Making 1-9Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 10. Classification of MR Problem Identification Problem Solving Research Research Identifies problems Used once the not yet apparent problem has beenidentified Often undertaken for Used in making survival and longdecisions to solve term growth of the problems company 1-10Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11. Examples of Problem Identification Research Market potential research Market share research Image research Market characteristics research Sales analysis research Forecasting research Business trends research 1-11Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 12. 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] 1-12Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 13. 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. 1-13Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 14. MMIS vs DSS Marketing Management Decision Support Systems Information System Structured problems Unstructured problems Use of reports Use of models Rigid structure User-friendly interaction Information displaying Adaptability restricted Can improve decision Can improve decision making by using what making by clarifying if analysis raw data 1-14Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 15. Figure 1.6 Market Research Suppliers and Services 1-15Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 16. 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 1-16Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 17. MR Job advertisementFMCG - Market Research roleReporting to the MR Manager you will be required to undertake andmanage market research projects, ensuring these results are objectivelyanalysed and interpreted. You will prepare summaries and developindependent conclusions and recommendations so that consumerunderstanding is integrated into key strategies and brand developmentactivities. In addition, you will be responsible for ensuring thatpresentations are timely, relevant and address key business issues.A clear thinker and strategist, you will have tertiary qualifications inmarketing, psychology and/or statistics. Experience as a market researchsupplier or buyer is essential for this position.Conceptual and analytical skills combined with influential communicationskills are essential. An insight and understanding of marketing principlesis desired. 1-17Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 18. Skills and Knowledge required byMarket 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 1-18Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 19. Marketing Research ProcessMarketing or business definition problem or opportunity Development of an approach and specifying researchobjectives Research design formulation Field work or data collection Data preparation and analysis Report preparation and presentation 1-19Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 20. 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 1-20Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 21. Stakeholders in MR Public Respondents ClientResearcher 1-21Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 22. 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 1-22Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 23. Unethical Practices cont.Research design Formulating a research design more suited to theresearchers 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 reliabilityand validity Designing overly long questionnaires or sensitivequestions Using inappropriate sampling procedures and samplesize 1-23Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 24. Unethical Practices contFieldwork Increasing the discomfort level of respondents Following unacceptable fieldwork proceduresData Preparation and analysis Identifying and discarding unsatisfactory respondents Using statistical techniques when the underlyingassumptions are violated Interpreting the results and making incorrectconclusions and recommendationsReport Preparation and Presentation Using incomplete, biased and inaccurate reporting 1-24Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 25. 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 1-25Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 26. 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. 1-26Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 27. Case: Where did Coca-Cola go wrong? Coca-Cola conducted blind taste tests in the early 1980s todetermine consumer taste preferences. Results indicated that consumers preferred a sweeter product,similar to Pepsi Cola. Coca-Cola introduced the new tasteCoke and named it New Coke and discontinued the originalCoke. In less than 3 months, New Coke was discontinued aftercustomer outrage that the original Coke was removed. It has been suggested that Coca-Cola narrowly defined theresearch problem. Coca-Cola failed to measure the emotional attachment andloyalty to the existing brand name and its effect on subsequentpurchase and consumption behaviour. Source: Shields, M.J. 1985 Coke Fizzles, Fails to Factor in Customer Loyalty, Adweek, 15 July, p.8. 1-27Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 28. Tasks involved in theProblem 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 1-28Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 29. Collect the Background Information Discussion with decision makers Interviews with industry experts Reviewing existing information Secondary data analysis Exploratory qualitative research 1-29Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 30. Environmental Context of the Problem Past information and forecasts Resources and constraints Organisational and decision makers objectives Buyer behaviour Legal environment Economic environment Marketing and Technological skills 1-30Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 31. 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 1-31Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 32. The Problem or Opportunity Audit (cont)Symptoms Declining sales Decline in profits Losing market share Inability to meet salesforecasts Low traffic Dissatisfied customersManagement 1-32Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 33. The Problem or Opportunity Audit (cont)Possible Causes Low-quality productor service Incorrect pricing Inappropriatedistribution channels Low awareness ofcompany or brands Poor image of thecompany Unmotivated sales Researcher force 1-33Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 34. The Problem or Opportunity Audit (cont)The interaction between the decision maker and theresearcher should be characterised by the 7Cs Co-operationConfidence CreativityCommunicationCandourContinuityCloseness1-34Malhotra Hall Shaw OppenheimEssentials of Marketing Research Copyright 2004 Pearson Education Australia 35. MDP and MRP Management Decision Problem (MDP) What the decision maker needs to do? Action orientedeg. 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 advertisingcampaign 1-35Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 36. 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. 1-36Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 37. Estimating the value of research andsetting a budgetExpected Value (EV) = Probability (Pr) x Value of Outcome (Vr)WithResearch A EV with$2 x 0.7 = $1.4 million Probability of success 0.7Difference contributedProject Return (profit)by research (A B)$2million 1.4 0.6 = $0.8million Probability of success 0.3 EV with $2 x 0.3 = $0.6 millionBWithoutresearch1-37Malhotra Hall Shaw OppenheimEssentials of Marketing Research Copyright 2004 Pearson Education Australia 38. Contents of Marketing Research Brief Executive summary Introduction Background Management decisions - Research Purpose Research Objectives (research information) Scope of the Project Proposed Research Approach 1-38Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 39. Contents of Marketing Research Brief cont. Reporting Requirements Timing Budget Materials Contractual Arrangements Requirements for proposals Project Management 1-39Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia