The Marketing Research Process The Marketing Research Process

The Marketing Research Process

The Marketing Research Process: 11 Steps • Step One: Establishing the Need for Marketing Research • Step Two: Defining the Problem • Step Three: Establishing Research Objectives • Step Four: Determining Research Design • Step Five: Identifying Information Types and Sources • Step Six: Determining Methods of Accessing Data Ch 2 2

The Marketing Research Process: 11 Steps • Step Seven: Designing Data Collection Forms • Step Eight: Determining Sample Plan and Size • Step Nine: Collecting Data • Step Ten: Analyzing Data • Step Eleven: Preparing and Presenting the Final Report Ch 2 3

The Marketing Research Process: 11 Steps Ch 2 4

Steps in the Marketing Research Process Steps 1 Establish Need 2 Define Problem 3 Research Objectives Figure out what to research (Chapters 2 & 4) 4 Determine Design 5 Identify Information Sources 6 Decide Data Collection Method 7 Design Questionnaire 8 Determine Sample Plan & Size Design the way to do the research (Chapters 5 -13) 9 Collect Data Gather data from respondents (Chapter 14) 10 Analyze Data Generate findings and 11 Write and Present Report interpret them (Chapters 15 -20) Ch 2 5

The Marketing Research Process • An 11 -step process: there is nothing magic about 11 steps • Not all studies use all 11 steps • Few studies follow the steps in order Ch 2 6

Step 1: Establish the Need for Marketing Research • Is there a real need for marketing research? • Research takes time and costs money. • Marketing research is not always needed. Ch 2 7

Step 1: Establish the Need for Marketing Research • When is marketing research not needed? – The information is already available. – Decisions must be made now. – We can’t afford research. – Costs outweigh the value of marketing research. Ch 2 8

Step 2: Define the Problem • This is the most important of the 11 steps. • If the problem is incorrectly defined, all else is wasted effort. • Problems may be either specific or general. Ch 2 9

Step 2: Define the Problem • Problems stem from gaps between what is supposed to happen and what did happen and gaps between what did happen and what could be happening. Ch 2 10

Step 2: Define the Problem • Gap 1: What was supposed to happen and what did happen (e. g. failure to meet an objective). – How to close the gap between the objective and the actual performance. • Gap 2: What did happen and what could have happened. – How to take an advantage of an opportunity. – Sales was $X, but could have been $Y had the firm introduced a new product. Ch 2

Step 3: Establish Objectives • Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2. • Research objectives state what the researchers must do. Ch 2 12

Step 3: Establish Objectives • Situation: A local bank is concerned with the need of its customers. • Problems: (1) Are the bank’s services valued by its customers; and (2) which services should be revised? • Objectives: (1) Determine the average importance level of each service; (2) determine the average level of satisfaction for each service. Ch 2 13

Step Four: Determine Research Design • Exploratory Research: collecting information in an unstructured and informal manner. • Descriptive Research refers to a set of methods and procedures describing marketing variables. • Causal Research (experiments): allows isolation of causes and effects. Ch 2 14

Step 5: Identify Information Types and Sources • Primary information: information collected specifically for the problem at hand • Secondary information: information already collected Ch 2 15

Step 6: Determine Methods of Accessing Data • Secondary data is relatively easy to access; primary data is more complex. • Three main choices for primary data: – Have a person ask questions – Use computer assisted or direct questioning – Allow respondents to answer questions themselves without computer assistance Ch 2 16

Step 7: Design Data Collection Forms • Questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents. • Software programs are available to assist marketing researchers in preparing forms. Ch 2 17

Step 8: Determine Sample Plan and Size • Sample plan refers to the process used to select units from the population to be included in the sample. • Sample size refers to determining how many elements of the population should be included in the sample. Ch 2 18

Step 9: Collect Data • Data collection is very important because, regardless of the data analysis methods used, data analysis cannot fix bad data. • Nonsampling errors may occur during data collection. Ch 2 19

Step 9: Collect Data • Data collection errors may be attributed to field workers or respondents. • Researchers must know the sources of these errors and the controls to minimize them. Ch 2 20

Step 10: Analyze Data • Data analysis involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests. • Data cleaning is a process by which raw data are checked to verify that the data have been correctly inputted from the data collection form to the computer software program. Ch 2 21

Step 11: Prepare and Present the Final Research Report • The last step is one of the most important phases of marketing research. • Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client. Ch 2 22