Problem Definition,Exploratory Research,

and the Research Process

Chapter Two

Chapter Two

Chapter Two ObjectivesChapter Two Objectives

• Understand the problem definition process

• Learn the steps involved in the marketing research process

• Understand the components of the research request

• Become familiar with the three basic research methods

• Learn how the marketing research process is initiated

Chapter Two

The Problem Definition ProcessRecognize the problem or opportunity

Find out why the information is sought

Understand the decision-making environment

Use the symptoms to help clarify the problem

Translate mgt. problem to marketing research problem

Determine whether the information already exists

Determine whether the question can be answered

State the research objectives

Can the problem become an opportunity?

Any suspect motives?

Examine cultural &bureaucracy issues

Determine cause &effect relationships

Mgt. support is key

Have you researchedother research?

Are the objectivesdoable / realistic?

Include timetable andresponsible party

Chapter Two

The Decision-Making Environment

Chapter Two

1. Situation Analysis

2. Exploratory Research• Experience Surveys Analysis• Secondary Data Analysis• Case Analysis• Focus Groups• Intranets

The Decision-Making Environment

Chapter Two

1.Use Symptoms to Clarify the Problem

2.Translate the Management Problem into a Marketing Research Problem

3.Determine if the Information Already Exists• Avoid the “Nice-to-Know Syndrome”

4.Determine Whether Questions Can Be Answered

State the Research Objectives

Chapter Two

1. Research Objectives as Hypotheses

2. Clarity of Research Objectives

3. Research Objectives Are End Results

The Marketing Research Process

Chapter Two

Creating the Research Design

Chapter Two

Descriptive Studies:• Answer the what, where, when and how• To gain better understanding of the market

• Determine trends, brand loyalty, customer profiles

Methods:• Surveys• Secondary Data• Statistical Data Analysis

Creating the Research Design

Chapter Two

Causal Research• Confirms theories• Identifies cause and effect•Shows clear relationships between independent and dependent variables

Methods:• Experiments• Test Markets

Dependent Variable•Concept expected to be explained or influenced by the independent variable•Change in the dependent variable occurs by manipulating independent variables

Independent Variable:•Concept over which the researcher has control and which is hypothesized to cause or influence the dependent variable

Creating the Research Design

Chapter Two

• Concomitant Variation• Temporal Sequence• Spurious Association

Choosing the Research Method

Survey Research:Interviewer interacts with respondents to obtain facts, opinions, and attitudes

Observation Research:Descriptive research that monitors respondents’ actions

Experiments:Measures causality, in which the researcher changes one or more variables and observes the effect of the changes on another variable

Other Qualitative Research:Focus groups, interviews, secondary research data analysis, and case studies

Chapter Two

Selecting a Sampling Procedure

Probability Sampling:• Sample a subset of the population • Assumed to be a representative cross-section• Every element in the population has a known chance of being selected

Non-probability Sampling:• A subset of the population•Chances of selection for the various elements in the population are unknown• Usually based on convenience

Chapter Two

Complete the Process…

• Collect the Data

• Analyze the Data

• Write and Present Report

• Follow Up with Client

Chapter Two

Managing the Research Process

The Research Request• Describes potential research project• Includes estimated costs

Chapter Two

Request for Proposal• Soliciting suppliers to submit formal proposal• Includes bid for contract

The Marketing Research Proposal

I. Title PageII. Statement of Research ObjectivesIII. Study DesignIV. Areas of Questioning V. Data AnalysisVI. Personnel InvolvedVII. Specifications and AssumptionsVIII. ServicesIX. CostX. Timing/Timeline

Chapter Two

Clients want a marketing research supplier who:1. Maintains client confidentiality2. Is honest3. Is Punctual4. Is flexible5. Delivers against project specifications6. Provides high-quality output7. Is responsive to the client’s needs8. Has high quality-control standards9. Is customer-oriented in client interactions10.Keeps the client informed throughout the project

What Do Clients Want?

Chapter Two