Lecture 01. Introduction to the role of market research презентация

the information required to solve the problem Defining the questions to collect the information

Lecture 1

U.S. Marketing Research Firms

50. U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Total revenue of 150 survey research companies that provide financial information on a confidential basis to CASRO.

then sell to multiple clients on a subscription basis (e.g. TV ratings)
Customized Services: offer services specifically for a client’s needs
Internet Services: Full Service but specialise in conducting research over the internet (can be syndicated or customized services)
Field services: specialize in providing field workers to collect data and perform surveys/interviews
Focus Group Services: specialize in running Focus Groups (see later)
Technical and Analytics services: specialize in data analysis

(www.ama.org)
ARF : The Advertising Research Foundation (www.amic.com/arf)
CASRO : The Council of American Survey Research Organizations (www.casro.org)
MRA : Marketing Research Association (www.mra-net.org)
QRCA : Qualitative Research Consultants Association (www.qrca.org)
RIC : Research Industry Coalition (www.researchindustry.org)

Marketing Research Associations Online

identification
collection
analysis
Dissemination (sharing)
and use of information
For the purpose of improving decision making related to the
Identification(1) and solution (2) of problems and opportunities in marketing

the data collection process
Analyzes the results
Communicates the findings and their implications
Helps managers use this information to make decisions

apparent on the surface or might arise in the future
E.g. mobile phone sales increasing 7% YoY. Is this a problem ? (good if the market is growing 2% but bad if the market is growing at 50%)
What is my brand image?
How sensitive are my customers to price?
What substitute products are in the market place?
What are the technological advances which might effect my market (e.g. CD, DVD, iTunes)
Are there cultural issues which might affect my product acceptance?

maker)

The problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.
1. The events that led to the decision that action is needed,
or the history of the problem (e.g. McDonalds losing market share in 2003 to Burger King, Wendy’s and Subway)
2. The alternative courses of action available to the DM (For MacDonald’s – new sandwiches, reduce prices, more restaurants, special offers, more advertising) which of these alternatives does DM wish to investigate ?
3. The criteria that will be used to evaluate the alternative courses of action (e.g more sales, higher market share, more profit)
4. The potential actions that are likely to be suggested based on the research findings (e.g. strategic investment – DM needs to support necessary actions otherwise research might be waste of time)
5. The information that is needed to answer the DM's questions (comparison of McDonalds with its competitors regarding product, price, promotions, advertising, restaurant locations and numbers)
6. The manner in which the DM will use each item of information in making the decision (DMs will use not only the information provided by the research but also their experience and judgement)

carried out with people with expert knowledge of the company and/or the industry. Can be from within or external. Unstructured personal interviews – however useful to prepare a list of topics to cover. Caution – some eager to participate may not actually have expert knowledge; may be difficult to get help from experts outside the client.

Secondary data – data which was originally collected for some other purpose but is relevant e.g. government, previous similar research. Convenient way to get background information.

Qualitative Research – research undertaken to get a deeper understanding of the problem. QR is unstructured and exploratory, based on small samples such as focus group interviews or in-depth interviews (depth interviews, focus groups)

Research Problem
(action oriented) (information oriented)
 
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product
 
Should the advertising To determine the effectiveness
campaign be changed? of the current advertising
campaign
 
Should the price of the To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels of price changes

losing market share to its competitors (e.g. Saks Fifth Avenue, JCPenny, Kmart, Wal-mart)

DM Problem Definition
After a series of interviews with the DM and other key managers, analysis of secondary data and qualitative research, the Management Decision Problem was identified as
“What should be done to improve the patronage of Sears”

MR Problem Definition (Broad statement)
“Determine the relative strengths and weaknesses of Sears vis-à-vis other major competitors with respect to factors that influence store patronage”

problem definition)
In the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-à-vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.

1. What criteria do households use when selecting department stores? 2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1? 3. Which stores are patronized when shopping for specific product categories? 4. What is the market share of Sears and its competitors for specific product categories? 5. What is the demographic and psychological profile of the customers of Sears? Does it differ from the profile of customers of competing stores?

of the specific components of the problem. Each component may need to be broken down into several RQs.
A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

exhibit store loyalty?
RQ2: Are they heavy users of credit?
RQ3: Are they more conscious of personal appearance than customers of competing stores?
RQ4: Do they combine shopping with eating out?

Relating to the 5th component of the Research Problem for Sears – the psychological characteristics of Sears customers:

exhibit store loyalty?
H1: Customers of Sears are loyal.
H2: Customers who are store-loyal are less knowledgeable about the shopping environment
H3: Store-loyal customers are more risk-averse than are non-loyal customers.
(Hypothesis guide as to what information to be collected and analyzed)

the following factors as part of the choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection.
Component 2
The researcher identified nine department stores as competitors to Sears based on discussions with management. The respondents should be asked to evaluate Sears and its nine competitors on the eight choice criteria factors. 

including women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the 10 stores for each of the 16 product categories.
Component 4
No additional information needs to be obtained from the respondents.

standard demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.

We will look at the Sears questionnaire and the survey data gathered in more detail later in the course
 

varied and up-to-date food.”
The following research questions and hypotheses may be posed.
RQ1 How important is food for airline customers?
H1: Food is an important factor for airline travelers.
H2: Travelers value branded food.
H3: Travelers prefer larger food portions, but with consistent quality.
H4: Travelers prefer exotic food.

At United, Food Is Uniting the Airline with Travelers