Marketing Research Process, Lecture notes of Marketing Research

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MARKETING RESEARCH

Marketing Research

American Marketing Association formally defines marketing research as the following: ‘ Marketing research is the function that links the consumer, customer, and public to the marketer through information- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; improve understanding of marketing as a process’. For the purpose of our discussion which emphasizes the need for information for decision making, marketing research is defined as follows: ‘ Marketing research is the systematic and objective identification, collection, analysis. Dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing’

When Pepsi expanded their market to China, they launched with the slogan, "Pepsi brings you back to life." What they did not realize is that the phrase translated to “Pepsi brings your ancestors back from the grave.” This may seem like a funny mistake ... but to Pepsi this was a huge mistake, especially when you are trying to build a brand on a global level. Coca-cola also had little success marketing a product in Chile. When the company attempted to introduce a new grape-flavored drink, it soon discovered that the Chileans were not interested. Apparently, the Chileans prefer wine as their grape drink. Warner encountered difficulties when it tried to sell a cinnamon flavored FRESHEN-UP gum in Chile. Because the gum’s taste was unacceptable there, the product fared poorly in the marketplace.

Step 1: Problem definition

 (^) Problem definition involves discussion with decision makers, interviews with industry experts, analysis of secondary data, and perhaps, some qualitative research, such as focus groups.

 Guideline for selecting a problem:

 (^) Subject which is overdone should not be chosen  (^) Too narrow or too vague problems must be avoided  (^) The chosen subject should be familiar and feasible  (^) Cost and time factor must be kept in mind

 Necessity for defining a problem: the problem to be

investigated must be clearly defined in order to

 (^) Discriminate relevant data from irrelevant data  (^) Formulate objectives  (^) Choose an appropriate design

Step 2: Development of an approach to the problem

The components of an approach consists of

 objective/theoretical framework,

 analytical models,

 research questions,

 hypotheses,

 specification of information needed.

 It is necessary that the approach developed be based

on objective or empirical evidence and be grounded in

theory

 The relevant variables and their interrelationships

may be neatly summarized via an analytical model

 The research questions are refined statements of the

specific components of the problem

 Research questions may be further refined into

hypotheses

Step 4: Fieldwork or Data Collection

Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing, from an office by telephone, through mail or electronically through e-mail or internet. Proper selection, training, supervision and evaluation of the field force help minimize data-collection errors.

Step 5:Data preparation and

analysis

Data preparation includes the editing, coding,

transcription, and verification of data

The data from questionnaire are transcribed or

keypunched onto magnetic tape or disks, or

input directly into the computer

The data are analyzed to derive information

related to the components of the marketing

research problem and, thus, to provide input

into the management decision problem.

Case study: Johnson & Johnson Gentleness could not handle pain J&J is considered to be the world’s most broadly based manufacturer of health care products with more than 250 operating companies in 57 countries. Despite its success in the industry, J&J baby products attempt to use its company name on baby aspirin proved to be unsuccessful.  (^) Johnson & Johnson baby products are perceived as gentle, but gentleness is not what people want in a baby aspirin. Although baby aspirin should be safe , gentleness per se is not a desirable feature. Rather, some people perceived that a gentle aspirin might not be effective enough This is an example of what intuitively seemed to be natural move but without proper marketing research turned out to be an incorrect decision.

Power decisions is a market research company focused on marketing strategy. Using market research and decision clarification tolls, they help clients benefit from the right marketing research information for uncovering marketing strategy solutions that work.

Power Decisions Research company  IBM - Data Cap, Custom Research Engagement Customer satisfaction assessment employing online survey tools, data analysis and recommendations  Progressive Insurance , Naming Process & Research Engagement As project partner, conducted primary quantitative research to screen top priority potential corporate & business division naming options.  Maverick Capital VC , Acquisition Research Engagement Employing primary quantitative research, we assessed marketing dynamics of Mavericks name brand target. Multistage survey research and advisory recommendations made to acquisition partners.