Lecture 1 - Introduction To Business Research

Bus in ess Res ea r ch Met ho ds Fariha Nadir Lecture 1

St udy Re se arch? Why?  The study of research methods provides you with the knowledge and skills you need to solve the problems and meet the challenges of a fast paced decision making environment.  Manager’s increased need for more and better information  Availability of improved techniques and tools to meet this need  Resulting information overload if discipline is not employed in the process

So ?          

More variables to consider in every decision More knowledge exists in every field of mngt. Competition is more vigorous Quality of theories & models to explain results is improving Internet usage has increased the quantity of information available – quality? Stakeholders all want to be part of company’s decision making Data warehousing & data mining methodologies are improving IT has facilitated data analysis Lots of new tools to facilitate increasingly complex business decisions Communication & measurement techniques has enhanced

Ap plic atio n o f this st udy… As a decision maker As a researcher for another executive Buying research from others Evaluating the applicability of prior research for current management dilemma  Becoming a research specialist    

Re search – a d efin ition  The American Marketing Association redefines marketing research as:  “Marketing research is the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions;

Re search – a d efin ition  In the context of marketing research as a tool for providing information needed for marketing decisions, marketing research is defined as:  “The systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making

A r ese archer’ s jo b!    

Reporting Descriptive Explanatory Predictive

A g ood rese arc h would comprise …         

Clearly defined purpose Detailed research process Thoroughly planned research design High ethical standards Frankly highlighted limitations Adequate analysis for decision maker’s need Clear presentation of findings Justified conclusions Researcher’s experience

Ma nager – Rese archer Re la tio nsh ip

Manager

Researcher

Ma nager – Rese archer Co ntr ib utio ns Manager

Researcher

 Specify problems  Adequate background information  Access to company information gatekeepers

A Cla ssi fic atio n o f Ma rketing Rese arch  Marketing Research is classified into problem identification research and problem solving research  Problem identification research is undertaken to help identify the problems that are not necessarily apparent on the surface and yet exist or are likely to arise in future. Research of this type provides information about marketing

Pr oble m Identific atio n Re search  Market Potential Research  A declining market potential indicates that the firm is likely to have a problem achieving its growth targets  A problem exists if the market potential is increasing but the firm is losing its market share

 Image Research  Market Characteristics Research

Pr oble m Identific atio n Re search  Sales Analysis Research  Research performed to analyze certain surges or plunges in sales, potential hot or cold locations, etc.

 Forecasting Research  Research undertaken to make business forecasts

 Business Trends Research  Marketing research that identifies trends in business. Example is IBM’s

Pr oble m Solvin g Re search  Segmentation Research  Determine basis of segmentation  Establish market potential and responsiveness for various segments  Select target markets and create lifestyle profiles, demography, media, and product image characteristics

Pr oble m Solvin g Re search  Product Research  Test concept  Optimal product design  Package tests  Product modification  Brand positioning and repositioning  Test marketing  Control store tests

Pr oble m Solvin g Re search  Pricing Research  Importance of price in brand selection  Pricing policies  Product line pricing  Price elasticity of demand  Response to price changes

Pr oble m Solvin g Re search  Promotional Research        

Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Claim substantiation Evaluation of advertising

Pr oble m Solvin g Re search  Distribution Research Types of distribution Attitudes of channel members Intensity of wholesale and retail coverage  Channel margins  Location of retail and wholesale outlets   

Ma nager – Rese archer Co nflic t  Managers do not have formal training in research methodology or research expertise  Manager depends on the researcher