04.+Marketing+Research+(Stu)

1MarketingManagementTopic4MarketResearch:Gathering,AnalyzingandUsingInformation2MarketingManagement(Spring2010)SomeCommonMisunderstandings…•aboutMarketingResearch–Itisaboutsurveywithquestionnairedevelopmentandcollection–Itisaboutdataanalysiswithstatisticalsoftware,e.g.,SPSS,SAS…–Itisaboutstatisticalinferencefromdata–Onlyquantitativemethodsarescientific–Itissubstituteoftheoryorinsight–Theimplicationsoffindingsareself-evident3MarketingManagement(Spring2010)MarketingResearch:AnOpeningExample•DuettoVisaofStarbucks–Starbucks,BankOne,&Visa–Dualfunctioncard(1)Starbucksprepaidstorevaluecard(2)RegularVisacreditcard•AComprehensivecase–Qualitative&Quantitative–Theresearchprocess–Longitudinal–Effectivenessevaluation–SupportdecisionmakingTVC4MarketingManagement(Spring2010)MarketingResearchQuestions•…ofStarbucks–Wouldcustomersbeconfusedbythedualfunctioncard?–WouldtheyfeeltheDuettoCardvaluable?–Whatmonthlyrewardswouldhavethegreatestappeal?–WouldtheinstantrewardsfromthecardpromptcustomerstouseDuettoCardratherthananothercard?–Whatisthebestwaytodeliverytherewards?5MarketingManagement(Spring2010)WhethertheStudyaSuccess?•MeasuringtheResultsofMR–Perceptionofthebrand–Numberofcardissued–Percentofthecardholderswhousethecardastheirprimarycreditcard–Dollarvalueofthepurchasesmadewiththecard–Ratioofapprovedaccountstoapplications–Marketingcostsofaccountacquisition–Numberofaccountswithactualpurchases–Trendsinmonthlyactivities–Patternsofspendingonanaccountovertime6MarketingManagement(Spring2010)TheChangingViewBuildtrendsintomarketstrategyIdentifytrendsMuchstricterobservanceofprivacyrightsSometimescavalierattitudetoconfidentialityMarketresearchfamiliartomanyofthepublicanddissatisfactionwithmarketers’phonecallsMarketresearchunfamiliartomanyofthepublicCombinationofmultipleresearchmethodologiesOnemajormarketresearchapproachusedSophisticatedanalysis(complexmethods,choicemodels)BasicAnalysis(tabs,X-tabs,regression)WebpanelsandonlinesurveysPencilandpapersurveysStrivetoincreasedatamanagementoflargedatabasesStrivetoincreasesamplesizesCarefulmeasurementtechnologyLoosemeasurementtechnologyObservationalmethodsoftenemployedObservationalmethodsrareProjectivetechniquesDirectelicitationtechniquesEclecticmethodologiesFocusgroupsandone-on-oneinterviewsActionableresultsQuantitativeresultsCausalorientationDescriptiveorientationPurelyinvestigativemorecommonTypicallyinstrumentalResearchonmultipleconstituenciesCustomermarketfocusonlyNewWayOldWay7MarketingManagement(Spring2010)WhyMarketingResearch?•Theprimarypurposeofresearchistoreducethelevelofriskofamarketingdecision–“Withoutresearchacompanyentersamarketlikeablindman.”(PhilipKotler)8MarketingManagement(Spring2010)OverlookedMarketingResearch•Inmostcompanies,spendingonmarketingresearchisconsideredanexpense,notaninvestmentinriskreduction.•Untilwedevelopandcanagreeonmeasuresofreturnonmarketingresearchinvestment,themarketingresearchfunctionwillcontinuetosufferthefateofshortbudgetsandyo-yostaffing.•Marketingresearchprovidesinformationtoguidemarketingdecisions–Surprisingly,morethan50%oftheMBAprogramsintheUSdon’trequireasinglecourseinmarketingresearch.SuggestedReading:Lesh,DawnandDianeSchmalensee(2004),MeasuringReturnsonResearch,MarketingResearch,(Fall),22-27.9MarketingManagement(Spring2010)WhatisMarketingResearch?Systematicdesign,collection,analysis,andreportingofdataandfindingsrelevanttoaspecificmarketingsituationfacingacompany10MarketingManagement(Spring2010)TheMarketingResearchProcessDefineBusinessIssueIdentifyResearchableProblemFormulateObjectivesandHypothesesPreliminaryInvestigation-Sourceofinformation–secondary/primary-Exploratoryresearch?DeveloptheResearchPlan-Selectmethodology-Designquestionnaire-Determinesample-Designanalysisplan-EstimatecostandtimeCollectandAnalyzeData-Implementanalysisplan-InterpretresultsPreparetheReport-Presentfindings-Seekinsights-Identifymanagerialimplications-Recommendactions11MarketingManagement(Spring2010)IllustrationofDefiningtheBusinessIssueWhy?Ourproductdesignprocessisdeficientoncustomerinsight.5Why?Ourproductsdon’treallysatisfytheirneeds.4Why?It’shardtopersuadecustomerstobuyourproducts.3Why?Salespeoplearen’tputtinginenougheffort.2Why?Oursalesperformanceisn’tuptopar.1Question(Cause)ApparentBusinessIssue(Symptom)Round12MarketingManagement(Spring2010)DefiningResearchProblems•Beforesolvingamarketingproblem,marketersandresearchersmustfirstmakesuretheyareworkingontherightproblem–TVC•Definingproblemsisacombinationofdataandjudgmentthatdemandsrealthoughtandeffort•Case:–NewCoke(1985)13MarketingManagement(Spring2010)IdentifyResearchProblemisLikethis14Computersareuseless.Theycanonlygiveyouanswers.-PabloPicasso15MarketingManagement(Spring2010)ExamplesofResearchObjectives•Definingmarkettrendsandcompetitivestructure•Profilingstrengthsandweaknessesofsuppliers•Identifyingprimarybuyers•Identifyingbuyingcriteria•Surveyingpotentialusersforwillingnesstoswitch16MarketingManagement(Spring2010)1.ThemostcommonusesoftheInternetofresidentswhohadaccess2.Averagetimespentonline3.Theirinterestinshoppingonlin