Brm Module2

7/29/2019 Brm Module2

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Business ResearchBusiness Research

Module 2Module 2


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Overview of the ResearchOverview of the Research

ProcessProcess

A set ofA set ofsix stepssix steps that defines the tasks tothat defines the tasks to

be accomplished in conducting abe accomplished in conducting a

marketing research study. It includes;marketing research study. It includes;

1.1. Problem DefinitionProblem Definition

2.2. Development of an Approach to theDevelopment of an Approach to the

ProblemProblem

3.3. Research Design FormulationResearch Design Formulation4.4. Field Work or Data CollectionField Work or Data Collection

5.5. Data Preparation and AnalysisData Preparation and Analysis

6.6. Report Preparation and PresentationReport Preparation and Presentation


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The Marketing Research ProcessThe Marketing Research Process

Step 1. Problem Definition:Step 1. Problem Definition: The first step is to define the problem,The first step is to define the problem,

focus on the the purpose and informationfocus on the the purpose and information

of the study.of the study. It involves discussion with the decisionIt involves discussion with the decision

makers, interviews with the industrymakers, interviews with the industry

experts, analysis of the secondary data,experts, analysis of the secondary data,and focus groups.and focus groups. Once the problem is defined preciselyOnce the problem is defined precisely

defined, the research can be designed anddefined, the research can be designed and

condusted properly.condusted properly.


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Step 2. Development of an Approach toStep 2. Development of an Approach to

the Problem.the Problem. It includes formulating an objective or aIt includes formulating an objective or a

theoretical framework, analytical models,theoretical framework, analytical models,research questions, hypoteheses andresearch questions, hypoteheses and

identifying the information needed.identifying the information needed.

It also includes discussions withIt also includes discussions withmanagement and industry experts,management and industry experts,

analysis of the secondary data, qualitativeanalysis of the secondary data, qualitative

research and pragmatic considerations.research and pragmatic considerations.



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Step 3. Research Design Formulation:Step 3. Research Design Formulation: It is a blueprint or a framework forIt is a blueprint or a framework for

conducting the marketing research projectconducting the marketing research project

It details the procedures for obtaining theIt details the procedures for obtaining therequired informationrequired information

Its purpose is to design a study that willIts purpose is to design a study that will

test the hypotheses, determine possibletest the hypotheses, determine possibleanswers and provide information neededanswers and provide information needed

for decision making.for decision making. It also clears how the data should beIt also clears how the data should be

obtained form the respondents.obtained form the respondents.



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Formulating the Research Design involvesFormulating the Research Design involves

the following steps:the following steps: Definition of the information neededDefinition of the information needed Secondary data analysisSecondary data analysis

Qualitative researchQualitative research Method of collecting qualitative dataMethod of collecting qualitative data Measurement and scaling proceduresMeasurement and scaling procedures Questionnaire designQuestionnaire design Sampling process and sample sizeSampling process and sample size Plan of data analysisPlan of data analysis


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Step 4. Fieldwork or Data Collection:Step 4. Fieldwork or Data Collection: Data collection involves a field force orData collection involves a field force or

staff that operates either in the field, as instaff that operates either in the field, as in

the case of personal interview, bythe case of personal interview, bytelephone, through mail etc.telephone, through mail etc.

Proper selection training, supervision andProper selection training, supervision and

evaluation of the field force halp minimizeevaluation of the field force halp minimizedata collection errors.data collection errors.



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Step 5. Data Preparation and Analysis:Step 5. Data Preparation and Analysis: Data preparation includes editing, coding,Data preparation includes editing, coding,

transcription, and verification of data.transcription, and verification of data. Each of the observations orEach of the observations or

questionnaires are inspected, edited, andquestionnaires are inspected, edited, and

corrected if necessary.corrected if necessary.

The data from the questionnaire &The data from the questionnaire &observation is transferred to the computerobservation is transferred to the computer

for data analysisfor data analysis The data is analyzed to derive informationThe data is analyzed to derive information

related to the marketing researchrelated to the marketing research



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Step 6: Report Preparation and Presentation:Step 6: Report Preparation and Presentation:

The entire project is documented into a written reportThe entire project is documented into a written report

that addresses the specific marketing problemthat addresses the specific marketing problem

It describes the approach, the research design, the dataIt describes the approach, the research design, the data

collection, data analysis and the procedures adopted,collection, data analysis and the procedures adopted,and thus the results and major findings.and thus the results and major findings.

The findings should be presented in a comprehensibleThe findings should be presented in a comprehensible

format so that the management can readely use it forformat so that the management can readely use it for

decision making process.decision making process. An oral presentation has to be made to theAn oral presentation has to be made to the

management using tables figures, graphs to enhancemanagement using tables figures, graphs to enhance

clarity and impact.clarity and impact.



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Problem FormulationProblem FormulationA problem well defined is a problem half solved!

Failure to properly identify where you are headed and

why will inevitably lead you to wonder where you are

and how you got there!


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Management Problems vs. Research ProblemsManagement Problems vs. Research Problems

Most marketing research problems manifestMost marketing research problems manifest

themselves asthemselves as Management Decision ProblemsManagement Decision Problems

Situation arises, management needs to make aSituation arises, management needs to make a

decision, requires research, starts the researchdecision, requires research, starts the research

processprocess

No actionable guidanceNo actionable guidance

Simply a statement of the issue that managementSimply a statement of the issue that management

is dealing withis dealing with

Must restatement in research terms.Must restatement in research terms.


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Management Problems vs. Research ProblemsManagement Problems vs. Research Problems

Marketing Research ProblemMarketing Research Problem: a statement: a statementof the information needed by a decisionof the information needed by a decision

maker to help solve a managementmaker to help solve a management

decision problem.decision problem.

Most critical part of the mktg. researchMost critical part of the mktg. research

processprocess

Provides guidance and direction forProvides guidance and direction forresearch processresearch process


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Tips for Accurately DefiningTips for Accurately Defining

Research ProblemsResearch Problems Find out why the information is being sought.Find out why the information is being sought.

Determine whether the information already exists.Determine whether the information already exists.

Determine whether the question really can/shouldDetermine whether the question really can/shouldbe answered.be answered.

Use exploratory research to define background ofUse exploratory research to define background ofthe problemthe problem

Situation analysisSituation analysis

The iceberg principleThe iceberg principleDetermine relevant variablesDetermine relevant variables


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Definition of Research ObjectivesDefinition of Research Objectives

Marketing Research ObjectivesMarketing Research Objectives: the specific bits of knowledge: the specific bits of knowledge

that need to be gathered to close the information gapsthat need to be gathered to close the information gapshighlighted in the research problem.highlighted in the research problem.

Stated in action termsStated in action terms

Serve as a standard to evaluate the quality and value ofServe as a standard to evaluate the quality and value ofthe researchthe research

Objectives should be specific and unambiguousObjectives should be specific and unambiguousExamples:Examples:

To measure the number of college freshmen at the VTUTo measure the number of college freshmen at the VTU

To assess viewer recall of our ad campaignTo assess viewer recall of our ad campaign

To describe the segments of the marketplaceTo describe the segments of the marketplace


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Putting It All TogetherPutting It All Together Management ProblemManagement Problem

Placement office has noticed, while major companies makePlacement office has noticed, while major companies makeannual recruiting visits to campus for engineers, not manyannual recruiting visits to campus for engineers, not many

national or local companies are formally recruiting businessnational or local companies are formally recruiting businessmajors through the placement officemajors through the placement office

Why? How do we address this?Why? How do we address this?

Marketing Research ProblemsMarketing Research Problems

Why are companies not taking advantage of the resources thatWhy are companies not taking advantage of the resources thatthe placement service offers? Are companies going around thethe placement service offers? Are companies going around the

service?service? Are companies aware of the VTU placement service?Are companies aware of the VTU placement service?

Are companies aware of the reputation of the VTU Business School?Are companies aware of the reputation of the VTU Business School? What kind of things might generate more recruiting activity?What kind of things might generate more recruiting activity?

Marketing Research ObjectivesMarketing Research Objectives

To determine to what extent companies are aware of the VTUTo determine to what extent companies are aware of the VTUplacement serviceplacement service

Determine whether companies, especially locals, are aware of theDetermine whether companies, especially locals, are aware of the

strong reputation of the VTUstrong reputation of the VTU

To determine whether a quarterly newsletter highlighting VTU businessTo determine whether a quarterly newsletter highlighting VTU business

programs and students might generate more recruiting activity.programs and students might generate more recruiting activity.


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Another ExampleAnother Example Management ProblemManagement Problem

What price should we charge for our new product?What price should we charge for our new product?

Research ProblemResearch Problem What are our costs of production and marketing (COGS)?What are our costs of production and marketing (COGS)?

What are our pricing objectives and position in the market?What are our pricing objectives and position in the market?

What price does similar types of products sell for?What price does similar types of products sell for?

What is the perceived value of our product in theWhat is the perceived value of our product in themarketplace?marketplace?

Are there any norms or conventional practices in theAre there any norms or conventional practices in themarketplace (e.g., customary prices, continualmarketplace (e.g., customary prices, continualdiscounting)discounting)

Research ObjectivesResearch Objectives

To assess the costs involved in producing and selling ourTo assess the costs involved in producing and selling our

productproduct To determine corporate objectives and their implicationsTo determine corporate objectives and their implicationsfor pricingfor pricing

To examine current prices for direct and indirectTo examine current prices for direct and indirectcompetitioncompetition

To determine potential customer reaction to various pricesTo determine potential customer reaction to various prices

and their perception of the benefits of owning the productand their perception of the benefits of owning the product


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Practice, PracticePractice, Practice

For the following management problems,For the following management problems,identify the underlying research problems and aidentify the underlying research problems and a

couple of research objectives.couple of research objectives.

Should our retail chain offer onlineShould our retail chain offer online

shopping?shopping?What advertising media should we use toWhat advertising media should we use to

reach our market?reach our market?

How do we get more people to attend ourHow do we get more people to attend our

outdoor festival/event?outdoor festival/event?Should we build a new warehouse to storeShould we build a new warehouse to store

our excess inventory?our excess inventory?


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Practice, PracticePractice, Practice (contd)(contd)

For the following management problems,For the following management problems,identify the underlying research problemsidentify the underlying research problems

and a couple of research objectives.and a couple of research objectives.

How can we increase customerHow can we increase customerretention?retention?

Should the amount of in-storeShould the amount of in-store

promotion for an existing product linepromotion for an existing product line

be increased?be increased?Should the compensation package beShould the compensation package be

changed to better motivate the saleschanged to better motivate the sales

force?force?


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Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection of

exploratory researchtechnique

Selection ofbasic research

method

Experiment SurveyObservation

SecondaryData StudyLaboratory Field Interview Questionnaire

Selection ofexploratory research

technique

Sampling

Probability No probability

Collection ofdata

(fieldwork)

Editing and

codingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusions

and Report

Research Design

Problem Discoveryand Definition

U i I fl h T fU t i t I fl th T f


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COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences the Type ofUncertainty Influences the Type of

ResearchResearch


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Problem Discovery and DefinitionProblem Discovery and Definition

First stepFirst step

Problem, opportunity, or monitorProblem, opportunity, or monitor

operationsoperations

Discovery before definitionDiscovery before definition

Problem means management problemProblem means management problem


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The formulation of the problem isThe formulation of the problem is

often more essential than itsoften more essential than itssolution.solution.


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Problem DefinitionProblem Definition

The indication of a specific businessThe indication of a specific businessdecision area that will be clarified bydecision area that will be clarified byanswering some research questions.answering some research questions.

It should interest the researcherIt should interest the researcher It should be researchableIt should be researchable

It must have uniqueness / noveltyIt must have uniqueness / novelty

It must be feasibleIt must be feasible

Social relevanceSocial relevanceProblem definition allows a researcher to set theProblem definition allows a researcher to set the

proper research objectives.proper research objectives.

Th P f


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The Process of

Problem Definition

Ascertain thedecision makersobjectives

Understandbackground of theproblem

Isolate/identify theproblem, not thesymptoms

Determine unit ofanalysis

Determinerelevant variables

State researchquestions andobjectives

1 A t i th D i i M k 1 Ascertain the Decision Makers


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1.Ascertain the Decision Makers1.Ascertain the Decision Makers

ObjectivesObjectives

Decision makers objectivesDecision makers objectives

Managerial goals expressed inManagerial goals expressed in

measurable termsmeasurable terms..


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The Iceberg PrincipleThe Iceberg Principle

The principle indicating that theThe principle indicating that the

dangerous part of many businessdangerous part of many business

problems is neither visible to norproblems is neither visible to nor

understood by managers.understood by managers.

2 Understand the Background of2 Understand the Background of


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2.Understand the Background of2.Understand the Background of

the Problemthe Problem

Exercising judgmentExercising judgment

Situation analysis - The informalSituation analysis - The informal

gathering of background informationgathering of background information

to familiarize researchers orto familiarize researchers ormanagers with the decision area.managers with the decision area.

3 Isolate and Identify the3 Isolate and Identify the


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3. Isolate and Identify the3. Isolate and Identify the

Problems, Not the SymptomsProblems, Not the Symptoms

Symptoms can be confusingSymptoms can be confusing


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4.Determine the Unit of Analysis4.Determine the Unit of Analysis

Individuals, households, EntireIndividuals, households, Entire

organizations, Departments, Groupsorganizations, Departments, Groups

etc.etc.

In many studies, the family ratherIn many studies, the family ratherthan the individual is thethan the individual is the

appropriate unit of analysis.appropriate unit of analysis.


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5.Determine the Relevant Variable5.Determine the Relevant Variable ((change in value)change in value)

Anything that may assume differentAnything that may assume different

numerical valuesnumerical values

A Variables is defined as anythingA Variables is defined as anything

that varies or changes in value,that varies or changes in value,because variable represents abecause variable represents a

quality that can exhibit differencesquality that can exhibit differences

in value or strengthin value or strength


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HypothesisHypothesis

An unproven propositionAn unproven proposition

A possible solution to a problemA possible solution to a problem

GuessGuess


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6.State the research questions6.State the research questionsand research objectivesand research objectives


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Statement ofbusinessproblem

Exploratoryresearch (optional)

Broad researchobjectives

Specific Objective1

Specific Objective2

Specific Objective3

Research DesignResults


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Research ProposalResearch Proposal

A written statement of the researchA written statement of the researchdesign that includes a statementdesign that includes a statement

explaining the purpose of the studyexplaining the purpose of the study

Detailed outline of procedures associatedDetailed outline of procedures associatedwith a particular methodologywith a particular methodology

Basic Questions -Basic Questions -


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Basic Questions Basic Questions

Problem DefinitionProblem Definition

What is the purpose of the study?What is the purpose of the study?

How much is already known?How much is already known?

Is additional background informationIs additional background informationnecessary?necessary?

What is to be measured? How?What is to be measured? How?

Can the data be made available?Can the data be made available?

Should research be conducted?Should research be conducted? Can a hypothesis be formulated?Can a hypothesis be formulated?



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Basic Research DesignBasic Research Design

What types of questions need to beWhat types of questions need to beanswered?answered?

Are descriptive or causal findingsAre descriptive or causal findings

required?required? What is the source of the data?What is the source of the data?



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Basic Research DesignBasic Research Design

Can objective answers be obtained byCan objective answers be obtained byasking people?asking people?

How quickly is the information needed?How quickly is the information needed?

How should survey questions be worded?How should survey questions be worded? How should experimental manipulationsHow should experimental manipulations

be made?be made?



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Selection of SampleSelection of Sample

Who or what is the source of the data?Who or what is the source of the data?

Can the target population be identified?Can the target population be identified?

Is a sample necessary?Is a sample necessary?

How accurate must the sample be?How accurate must the sample be? Is a probability sample necessary?Is a probability sample necessary?

Is a national sample necessary?Is a national sample necessary?

How large a sample is necessary?How large a sample is necessary? How will the sample be selected?How will the sample be selected?



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Data GatheringData Gathering

Who will gather the data?Who will gather the data?

How long will data gathering take?How long will data gathering take?

How much supervision is needed?How much supervision is needed?

What operational procedures need to beWhat operational procedures need to befollowed?followed?



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Basic Questions Q

Data AnalysisData Analysis

Will standardized editing and codingWill standardized editing and coding

procedures be used?procedures be used?

How will the data be categorized?How will the data be categorized?

What statistical software will be used?What statistical software will be used? What is the nature of the data?What is the nature of the data?

What questions need to be answered?What questions need to be answered?

How many variables are to be investigatedHow many variables are to be investigated

simultaneously?simultaneously? Performance criteria for evaluation?Performance criteria for evaluation?



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Q

Type of ReportType of Report

Who will read the report?Who will read the report?

Are managerial recommendationsAre managerial recommendations

requested?requested?

How many presentations are required?How many presentations are required? What will be the format of the writtenWhat will be the format of the written

report?report?



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Q

Overall EvaluationOverall Evaluation

How much will the study cost?How much will the study cost?

Is the time frame acceptable?Is the time frame acceptable?

Is outside help needed?Is outside help needed?

Will this research design attain the statedWill this research design attain the statedresearch objectives?research objectives?

When should the research be scheduledWhen should the research be scheduled

to begin?to begin?


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Anticipating OutcomesAnticipating Outcomes

Dummy tablesDummy tables

Representations of the actual tables thatRepresentations of the actual tables that

will be in the findings section of the finalwill be in the findings section of the final

report; used to gain a betterreport; used to gain a betterunderstanding of what the actualunderstanding of what the actual

outcomes of the research will be.outcomes of the research will be.


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