Planning Process Overview

1. 2. Problem formulation Method of inquiry

3.
4. 5.

Research method
Research design Selection of data collection techniques

6.
7. 8. 9.

Sample design
Data collection Analysis and interpretation of data Research report

The Research Process

First: Second: Third:

1 2 3 4

What is the Problem? Is it worth Investigating? How do we do it?

5

Problem F ormulation

C ost-Value Analysis

Method of Inquiry

Research Design

Data C ollection Design

Sample Design

C ollect Data

Analyze / Interpret

Research Report

Managing Client Expectations

Future State

Problem Formulation Current State

Critical Success Factors for the Future State

Statement of Attainments Strengths Controllable Environmental Relevant Data

Plan of Action Include in the Engagement Letter Who Financial Plan Timeline

Problem Statement
Analysis

Weaknesses Opportunities

Report Normative

Threats

Cost-Value

Communication Protocol

Problem Formulation

Single most important step!

Addressing the wrong problem, no matter how brilliant and thorough you are, wont help you solve their problems

Two steps:
Understand managers need Transform it into a meaningful problem

This Requires Communication!

Marketing research manager must take initiative to determine clients need and fulfill it

Problem Formulation

Components of Problem Formulation

Manager and managers objective Environment and context Nature of the problem Alternative courses of action Consequences, uncontrollable factors Degree of uncertainty

Examples of Problems

Management Problems
Allocate advertising budget among media
Decide whether to keep office open

Research Problems
Estimate awareness generated by each media type
Evaluate use of services on Saturday and determine on Saturday on Saturday whether customers will shift usage to weekdays Design a concept test and assess acceptance and use Design a test-marketing situation such that the effect of the new program can be estimated Measure a products current image

Introduce a new health service Change the marketing program

Increase the sales of a product

Environment of the Problem

Consumer tastes and preferences Level of income and rate of growth in the market area The degree of competition and competitor action and reaction Government regulation (both type and extent) The types of consumers that comprise the potential market The size and location of the market The prospects for growth or contraction of the market over the planning period The buying habits of consumers The current competition of the product The likelihood and timing of entry of new competitive products The current and prospective competitive position of the company with respect to quality, and reputation The marketing and manufacturing capabilities of the company The situation with respect to patents, trademarks, and royalties The situation with respect to codes, trade agreements, taxes, and tariffs

Assessing Bottom Line

How do we sell more of our product?

An answer to this question involves understanding the consumer.

A clear understanding of consumer behavior ensures that relevant data are collected. Consumers make decisions for many products in a purposeful and comparative way. Markets are changing all the time and the need for data is ongoing.

Can the Data Answer Strategic Questions?

Do the data reflect who is purchasing the product or service? Can the data be related to, and offer insight useful for, solving the immediate problem? Do the data include whether a company was in the consumers consideration set? Will the data say why consumers bought from the company or its competitors? Will the data say why the products of the company or its competitors were not purchased?

Can the data speak to the relevance of the target consumer?

Can the data help position the company in the competitive environment? Can the data suggest what kind of consumers the company wants to attract in the future?

Do the data deal with when and why the company was successful?
Do the data address the matter of who is the target of the marketing?

New Coke Versus Original Coke

In the mid-1980s the Coca Cola Company made a decision to introduce a new beverage product (Hartley, 1995, pp. 129145). The company had evidence that taste was the single most important cause of Cokes decline in the market share in the late 1970s an early 1980s.

A new product dubbed New Coke was developed that was sweeter than the originalformula Coke. Almost 200,000 blind product taste tests were conducted in the United States, and more than one-half of the participants favored New Coke over both the original formula and Pepsi. The new product was introduced and the original formula was withdrawn from the market. This turned out to be a big mistake! Eventually, the company reintroduced the original formula as Coke Classic and tried to market the two products. Ultimately, New Coke was withdrawn from the market. What went wrong? Two things stand out.
First, there was a flaw in the market research taste tests that were conducted: They assumed that taste was the deciding factor in consumer purchase behavior. Consumers were not told that only one product would be marketed. Thus, they were not asked whether they would give up the original formula for New Coke. Second, no one realized the symbolic value and emotional involvement people had with the original Coke. The bottom line on this is that relevant variables that would affect the problem solution were not included in the research.

Method of Inquiry in Marketing Research

Quantitative
Objectivist-based

Qualitative
Subjectivist based

Phenomenology
No hypothesisjust strict observations

Method of Inquiry

Based on the scientific method

Observation
Identify a problem

Hypothesis formation
An hypothesis is a generalization about reality that permits predictions of outcomes

Predictions
Implication of the hypothesis

Testing the hypothesis

Data gathering and analysis, proving or disproving the hypothesis

General Approaches to Research Methodology

Experimental research
All variables are controlled and manipulated by the researcher

Non-experimental research
Researcher just measures variables, and doesnt manipulate them

General Data Collection Procedures

Communication
Asking questions and receiving responses Can be done in person, by telephone, mail, email, or the internet

Observation
Past or present
Past behavior visible through secondary sources (existing published material) or physical traces

Sample Design

Sampling
Surveying an entire population is practically impossible or too expensive

Instead, researchers measure a subset of the population and assume the sample represents the whole population

Issues in Sample Design

Researchers control three things Where the sample will be selected

The process of selection

Sample size

Rules for Data Collection

Doesnt begin until all prior stages are completed Usually outsourced to a data collection agency Online data collection is easy

Data Analysis

Data not presented in form collected

Coded into a computer file Edited so invalid responses are left out

Formal analyses, usually statistical tests

Research Report

Summary report
Main conclusions

Full report
Contains all the boring details

Presentation
Face-to-face meetings allow for questions, increasing clients understanding

Scientific Method

In structure, if not always in application, the scientific method is simple and consists of the following steps: 1. Observation. This is the problem-awareness phase, which involves observing a set of significant factors that relate to the problem situation. 2. Formulation of hypotheses. In this stage, a hypothesis (i.e., a generalization about reality that permit prediction) is formed that postulates a connection between seemingly unrelated facts. In a sense, the hypothesis suggests an explanation of what has been observed. 3. Prediction of the future. After hypotheses are formulated, their logical implications are deduced. This stage uses the hypotheses to predict what will happen. 4. Testing the hypotheses. This is the evidence collection and evaluation stage. From a research project perspective this is the design and implementation of the main study.

Scientific Method Example

Conclusions are stated based on the data collected and evaluated. Example: Assume a researcher is performing a marketing research project for a manufacturer of mens shirts: 1. Observation: The researcher notices some competitors sales are increasing and that many competitors have shifted to a new plastic wrapping.

2. Formulation of hypotheses: The researcher assumes his clients products are of similar quality and that the plastic wrapping is the sole cause of increased competitors sales.
3. Prediction of the future: The hypothesis predicts that sales will increase if the manufacturer shifts to the new wrapping. 4. Testing the hypotheses: The client produces some shirts in the new packaging and market-tests them.

Research Proposal Outline

Prepared by client to outline project for outside vendors

Statement of the problem Statement of research objectives Research methods Nature of the report Timing and costs Special information

Outline of a Research Plan

Objectives State the primary and secondary objectives of the study, including operational objectives and more general aims. Problem Analysis Present a statement of the research problems and questions and the hypothesis or hypotheses relevant to the stated problem (i.e., testable hypotheses). Show the relationship of the objectives to the problem at hand. Research Design The design of a research project includes four components: 1. Research methodology. Describe how the investigation is to be made in general terms. Justify selection of the methodology to be used. 2. Research techniques. Describe the methods and procedures to be used in collecting the data in some depth. Who is to be solicited, how contact is to be made, special techniques to be used, and so on are to be covered. Discuss forms to be used to collect data and, if already developed, include with the plan.

Outline of a Research Plan

Research Design (continued) 3. Sample design and selection. State the size of the total sample and any proposed subsamples. Describe in detail the procedure to be used to ensure a representative (or other appropriate) sample of survey respondents or experimental subjects. Include any technical notes as to how the sample size was determined in an appendix. 4. Proposed analysis. Describe general tabulation procedures, any cross-analysis tabulations, and the reasons for such tabulations. Include discussion of proposed methods of statistical analysis together with reasons why such analyses will be used. If possible, show dummy tables with the stubs that will be used. Personnel Requirements List all personnel who will be involved with the project, the exact assignment of each person,the time to be spent, and the pay for each. Time and Cost Requirements Present a budget and time schedule for the major activities involved in conducting the study.

Make or Buy Decision

Internal
Centralized research division, or experts within each division or function

External
Saves money by not carrying staff between projects