Marketing Research Process

MARKETING RESEARCH PROCESS 1. 2. 3. 4.

Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan – collecting and analyzing the data Interpreting and reporting the findings

Defining the Problem and Research Objectives A marketing research project can have one of three types of objectives: 1. Exploratory Research - To gather preliminary information that will help define the problem and suggest hypotheses 2. Descriptive Research - To describe the size and composition of the market 3. Causal Research - To test hypotheses about cause-and-effect relationships Developing the Research Plan 1. Determining Specific Information Needs 2. Gather Secondary Information Secondary data – consist of information already in existence somewhere, having been collected for the specific purpose at hand. Primary data – consist of information collected for the specific purpose at hand. 3. Planning Primary Data Collection a. Research Approaches • Observational research – is gathering of primary data by observing relevant people, actions, and situations; can yield information that people are normally unwilling or unable to provide. • Survey research – the approach best suited to gathering descriptive information. -structured surveys – use formal lists of questions asked of all respondents in the same way -unstructured surveys – let the interviewer probe respondents and guide the interview according to their answers -direct approach – researchers asks direct questions about behavior or thoughts -indirect approach – it may suggest factors of which the consumer is not consciously aware • Experimental Research – best suited for gathering causal information. b. Contact Methods • Mail questionnaires Advantages: - Can be used to collect large amounts of information at a low cost per respondent - Respondents may give more honest answers to personal questions than they would to an unknown interviewer in person or over the phone

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No interviewer is involved to bias respondents’ answers Convenient for respondents, who can answer the survey when they have time - A good way to reach people who often travel, such as meeting planners Disadvantages: - Are not very flexible, they require simple and clearly worded questions, all respondents answer the same questions in a fixed order, and the researcher cannot adapt the questionnaire based on earlier answers. - Usually take longer to complete; response rate is low - The researcher has little control over who answers the questionnaire in the household or office Telephone Advantages: - Quick in gathering information - Offers greater flexibility than mail questionnaires - Interviewers can explain questions that are not understood - Allows greater sample control - Response rates ten d to be higher than with mail questionnaires Disadvantages: - Cost per respondent is higher than mail questionnaires - Some people may not want to discuss personal questions with an interviewer - Introduces interviewer bias Personal interviewing *Individual/Intercept methods – involves talking with people in their homes, offices, on the street, or in shopping malls; generally involve the use of judgmental sampling Advantage: - allows the research sponsor to reach known visitors in a short period of time Disadvantages: - interviewer’s bias - interviewers may be uncomfortable talking to certain ethnic or age groups - high cost, usually small sample size to keep time and costs down *In-depth methods – qualitative methods; individual interviews using open-ended questions. Internet surveying Advantages: - Available to a global sample - Software packages are available that enable the survey responses to be tabulated as the respondent is entering them - Speed and low cost Disadvantage: - Not accessible to everyone

Focus group – interviews are usually conducted by inviting six to ten people to gather for a few hours with a trained moderator to talk about a product, service, or organization. c. Sampling Plan sample – a segment of the population selected to represent the population as a whole - Who will be surveyed? - How many people should be surveyed? - How should the sample be chosen? - When will the survey be given? Types of samples Probability samples - Simple random sample – equal chance of selection - Stratified random sample – division into mutually exclusive groups, and random samples are drawn from each group - Cluster (area) sample – division into mutually exclusive groups, draws a sample of the groups to interview Nonprobability samples - Convenience sample – easiest population members from which to obtain information - Judgment sample – uses judgment to select population members who are good prospects for accurate information - Quota sample – finds and interviews a prescribed number of people in each several categories d. Research Instruments • Questionnaires – the most common survey instrument; what questions to ask, what form the questions should take, and how to word and sequence the questions Open-ended questions – allow respondents to answer in their own words; often reveal more because respondents are not limited in their answers; are especially useful in exploratory research where the researcher is trying to find out how people think rather than measuring how many people think in a certain way Close-ended questions – include all possible answers, and subjects are asked to choose among them; provide answer that are easier to interpret and tabulate 4. Presenting the Research Plan Implementing the Research Plan - Collecting-the most expensive and the most subject to error, processing, and analyzing the information-to pull out important information findings Interpreting and Reporting the Findings

Research Problem Areas 1. Making assumptions 2. Lack of qualitative information 3. Failing to look at segments within a sample 4. Improper use of sophisticated statistical analysis 5. Failure to have the sample representative of the population