Marketing 758 Midterm Chapters 1&2

Front 1

Marketing Research

Back 1

The systematic and objective identification, colleciton, analysis, dissemination and use of information that is udertaken to improve decision making related to identifying and solving problems in marketing.

Front 2

Problem-Identification Research

Back 2

-Involves going below the surface to identify the underlying problem that the marketing manager is facing
-Can be designed to analyze market potential, market share, brand or company image, market characteristics and sales.
-Can also be used in short range forecasting, long-range forecasting and undercovering business trends.
-Ex. Ralph Lauren might undertake research to determine the size of hte market for men's shirts, the projected growth rate of this market, and the market share of major brands

Front 3

Problem-Identification Research

Back 3

-market potential research
-market share research
-image research
-market characterisitcs research
-forecasting research
-business trends research

Front 4

Probelm-Solving Research

Back 4

-Research undertaken to help solve specifiv marketing problems
-Addresses many topics, including market segmentation and product pricing, promotion and distribution

Front 5

Problem-Solving Research

Back 5

-segmentation research
-product research
-pricing research
-promotion research
-distribution research

Front 6

The Marketing Research Process

Back 6

A set of six steps that defines the tasks to be accomplished in conducting a marketing research study:
1. problem definition
2. developing an approach to the problem
3. research design formulation
4. field work
5. data preparation and analysis
6. report preparation and presentation

Front 7

1. Defining the Problem

Back 7

The first step in any marketing research project is to define the problem. Researchers accomplish problem defition through discussions with decision makers, interviews with iindustry experts, analysis of secondary data, and some qualitative research, such as focus groups.

Front 8

2. Developing an Approach to the Problem

Back 8

Developing an approach to the problem includes formulating an analytical framework and models, research questions, and hypotheses. This process is guided by the same task sperformed to define the problem.

Front 9

3. Formulating a Research Design

Back 9

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures needed to obtain the required informaiton. A study might be desigend to test hypotheses of interest or to determine possible answers to the research questions, both of which contribute to decison making. Conducting preliminary or exploratory research, defining the variables, and designing appropriate scales to measure them also are part of the research design. The issue of how the data should be obtained from the respondents must be addressed. It also may invovle designing a questionnaire and a sampling plan to select respondents for the study.

Front 10

4. Doing Field Work or Collecting Data

Back 10

Data collections is accomplished using a staff that operates in the field. Fiedl work invovles personal, telephone, mail, or electronic interviewing. Proper selection, training, supervision, and evaluation of the field force are essential to ensure high-quality data collection.

Front 11

5. Preparing and Analyzing Data

Back 11

Data preparation involves data processing steps leading up ot analysis. This includes the editing, coding, and transcribing of collected data. This entire process must then be verified for accuracy. The editing process involves an initial inspecition of quesitonnaires or observatin forms fo rcompleteness and reasonableness of responses. After thjis initial inspection, the respnose to each question is coded to ensure standardized entry into the computer. The data from teh questionnaires are transferred onto storage media and then analyzed using different statistial techniques. These results are then interpreted in order to find condlusions related to the marketing research problem.

Front 12

6. Preparing and Presenting the Report

Back 12

The entire project should be documented in a written report that addresses the specific research questions; describes the approach, the research design, data collection, and data analysis procedures; and presents the results and the major findings. THe written report is ususally accompanied by a formal presentation.

Front 13

The Marketing Research Industry

Back 13

Consists of suppliers who provides marketing research services.
-Research suppliers are both internal and external suppliers

Front 14

Internal Supplier

Back 14

A marketing research department within the firm
-They can be found in large organizations acorss a wide range of industries, including automobile companies (i.e. GM and Ford), consumer product firms (i.e. P&G, Colgate Palmolive, Coca-Cola and Reebok) and banks (i.e. Citigroup and JP Morgan).

Front 15

External Suppliers

Back 15

Outside marketing research companies hired to conduct a complete marketing research project or a component of it.
-External suppliers have full-service suppliers and limited-service suppliers

Front 16

Full-Service Suppliers

Back 16

Offer the entire range of marketing reserach srevices, from problem definition, approach development, questionnaire design, smapling, data collection, data analysis, and interpretation to report preparation and presentation.
-The services of these suppliers can be further broken down into syndicated services, customized services, and internet services

Front 17

Syndicated Services

Back 17

Companies that collect and sell common pools of data designed to serve information needs that are shared by a number of clients.
-These data are collected primarily through surveys, purchase and media panels, scanners and audits

Front 18

Customized Services

Back 18

Offer a wide variety of marketing research services customized to suit a client's specific needs.
-Each marketing reserach project is designed to meet the client's unique needs.

Front 19

Internet Services

Back 19

Companies that specialize in conducting marketing research on the Internet
-Ex. Greenfield Online Research Center Inc. offers a braoch range of customized qualitative and quantitative online marketing research for consumer, business-to-business, and professional markets. Using large, propriety databases, studies are conducted within the company's secure Web site.
-Ex. Jupiter Research offers research and consulting services that focus on consumer online behavior and interactive technologies.

Front 20

Limited-Service Suppliers

Back 20

Specialize in one or a few steps of the marketing research process.
-Limited-service suppliers can be broken down into field services, focus groups and qualitative research, technical and analytical services and other services.

Front 21

Field Services

Back 21

Companies whose primary service offering is their expertise in collecting data for research projects
-They may use the full range of data collection methods (i.e. mail, personal, telephone and electronic viewing), or they may specialize in only one method.
-Some field service organizations maintain extensive interviewing facilities across the country for interviewing shoppers in malls.

Front 22

Focus Groups and Qualitative Research Services

Back 22

Provide facilities and recruit respondents for focus groups and other forms of qualitative reserach, such as one-on-one depth interviews.
-Some firms might provide additional services, such as moderators, and prepare focus group reports

Front 23

Technical and Analytical Services

Back 23

Offered by firms that specialize in design issues and computer analysis of quantitative data, such as those obtained in large surveys.

Front 24

Other Services

Back 24

Include branded marketing research prodcuts and services developed to address specific types of marketing research problems.
-Ex. Survey Sampling International specializes in sampling design and distribution.
-Other firms focus on specialized services, such as research in ethnic markets.

Front 25

Internal Suppliers vs. External Suppliers

Back 25

-A firm with an internal marketing research staff will make use of both full- and limited-service suppliers.
-The need for external suppliers arises when the frim does not have the resources or the technical expertise to undertake certain phases of a particular project.
-Conflict of interest issure might also necessitate that a project be conducted by an outside supplier

Front 26

Marketing Information System (MIS) Definition

Back 26

A formalized set of procedures for generalizing, analyzing, storing, and distributing informaiton to marketing decision makers on an ongoing basis.

Front 27

Marketing Information System (MIS) Detailed Description

Back 27

-Such systems are differentiated from marketing research in that they are continuously available.
-They are designed to complement the decision maker's responsibilites, styles, and information needs.
-The power of a MIS is in the access it gives manages to vast amounts of information, combining production, invoice, and billing information with marketing intelligence, including marketing research, into a centralized data warehouse.

Front 28

Decision Support Systems (DSS)
Definition

Back 28

An information system that enables decision makers to interact directly with both databases and analysis models.

Front 29

Decision Support Systems (DSS) Detailed Description

Back 29

-Developed to overcome the limitations of MIS
-The important components of a DSS include hardware, a communications network, a database, a model base, a software base, and the DSS user (decision maker) who collects and interprets information for decision making.

Front 30

Marketing Information Systems vs. Decision Support Systems

Back 30

MIS:
-Structured problems
-Use of reports
-Information displaying restricted
-Can improve decision making by clarifying new data

Front 31

Marketing Information Systems vs. Decision Support Systems

Back 31

DSS:
-Unstructured problems
-Use of models
-Adaptability
-Can improve decision making by using "what-if" analysis

Front 32

The Development of MIS and DSS

Back 32

Internal Billing Production and Other Records + External Market Information = Marketing Information Systems =>> Decision Support Systems =>> Expert Systems

Front 33

Expert Systems

Back 33

-An advanced form of DSS
-Uses artificial intelligence procedures to incorporate expert judgement
-In addition to crunching numbers and storing and retrieving information, these systems are programmed to reason and make inferences.
-Can lead to decisions recommending certain courses of action to the management

Front 34

Problem Definition

Back 34

Involves stating the general problem and identifying the specific components of the marketing research problem

Front 35

The Problem Definition Process

Back 35

To define a research problem correctly, the researcher must perform a number of tasks. The researcher must discuss the probelm wiht the decison makers in the client organization, interview industry experts and other knowledgeable individuals, analyze secondary data, and sometimes conduct qualitative research. This informal data collection helps the researcher understand the context or environment wihtin which the probelm has arisen.

Front 36

The Problem Definition Process Continued

Back 36

A clear understanding of the marketing enviroinment also provides a framework for identifying the management-decison problem: What should the management do? The management decision problem is then translated into a marketing research problem, the problem that the researcher must investigate. Based on the defintion of the marketing research problem, the researcher develops an appropriate approach. Further explanation of the problem-definition process follows, with a discussion of the tasks involved.

Front 37

Problem Audit

Back 37

Helps the decision maker identify the underlying causes of the problem.
-It is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.

Front 38

Conducting a Problem Audit

Back 38

1. The History of the Problem
2. Alternative Courses of Action Available to the Decision Maker
3. Criteria for Evaluating Alternative Courses
4. Nature of Potential Actions Based on Research
5. Information Needed to Answer the Decision Maker's Questions
6. How Will Each Item of Information Be Used by the Decision Maker?
7. Corporate Decision Making Culture

Front 39

1. The History of the Problem

Back 39

This includes an analysis of the events that have led to the decision to act.

Front 40

2. Alternative Courses of Action Available to the Decision Maker

Back 40

The set of alternatives might be incomplete at this stage, and qualitative research might be needed to identify the more innovative courses of action.

Front 41

3. Criteria for Evaluating Alternative Courses

Back 41

For Example, new product offerings might be evaluated on the basis of sales, market share, profitability, return on investment, and so forth.

Front 42

4. Nature of Potential Actions Based on Research

Back 42

The reserach findings will likely call for a strategic marketing response by M&Ms.

Front 43

5. Information Needed to Answer the Decison Maker's Questions

Back 43

The informaiton needed includes a comparison of Hershey's and M&Ms/Mars on all the elements of the marketing mix (product, pricing, promotion, distribution) in order to determine relative strengths and weaknesses.

Front 44

6. How Will Each Item of Information Be Used By the Decision Maker?

Back 44

The key decision makers will devise a strategy for M&Ms based on the research findings and their intuition and judgement.

Front 45

7. Corporate Decision-Making Culture

Back 45

In some firms, the decision-making process is dominant; in othres ,the personality of the decision maker is important. A sensitivity to corporate culture in order to identify the individuals who are either responsible for the decision or who have a significant influence over the decision process is essential.

Front 46

Interviews with Industry Experts

Back 46

In addition to discussions with decision makers, interviews with industry experts (individuals knowledgeable about the firm and the industry) can help researchers formulate the marketing research problem. Experts can be found both inside and outside the firm. If the notion of experts is broadened to include people knowledgeable about the general topic being investigated, then teh interview also is referred to as an *experience survey or as the *key-informant technique. Another variation of this in a technological context is the *lead-user survey, which involves obtaining infromation from the lead users of the technology.

Front 47

Experience Survey

Back 47

Interviews with people knowledgeable about the general topic being investigated.

Front 48

Key-Informant Technique

Back 48

Interviews with people knowledgeable about the general topic being investigated.

Front 49

Lead-User Survey

Back 49

Surveys that involve obtaining information from the lead users of the technology

Front 50

Primary Data

Back 50

Orginated by the researcher for the specific problem under study, such as survey data.

Front 51

Secondary Data

Back 51

Data collected for some purpose other than the problem at hand, such as data available from trade organizations, the Bureau of Census and the Internet.

Front 52

Secondary Data Continued

Back 52

-Include information made available by business and government sources, commercial marketing research firms, and computerized databases.
-Secondary data are an economical and quick source of background information

Front 53

Qualitative Research

Back 53

-Unstructured in that the questions asked are formulated as the research proceeds.
-Exploratory in nature and based on small samples
-Might involve popular qualitative techniques such as focus groups (group interviews) or in-depth interviews (one-on-one interviews that probe the respondents' thoughts in detail).

Front 54

Pilot Surveys

Back 54

Tend to be less structures than large-scale surveys in that they generally contain more open-ended questions and the sample size is much smaller.

Front 55

Case Studies

Back 55

Involve an intensive examination of a few selected cases of the phenomenon of interest.
-The cases could be consumers, stores, firms, or a variety of other units, such as markets, Web sites, and so forth.

Front 56

Environmental Context of the Problem

Back 56

Factors that have an impact on the definition of the marketing research problem.
-These factors consist of past information and forecasts pertaining to the industry adn the firm, the firm's resources snad constraints, decision maker's objectives, buyer behavior, the legal environment, the economic environment, and the firm's marketing and technological skills.

Front 57

Factors to be Considered in the Environmental Context of the Problem

Back 57

1. Past Information and Forecasts
2. Resources and Constraints
3. Objectives of the Decision Maker
4. Buyer Behavior
5. The Legal Environment
6. The Economic Environment
7. Marketing and Technological Skills

Front 58

1. Past Information and Forecasts

Back 58

Past information and forecasts of trends with respect to sales, market share, profitability, technology, population, demographics, and lifestyle are combined to provide the researcher with a fuller picture of the underlying marketing research problem.
--Not only shoudl the firm's performance and projections be analyzed, but the firm's performance relative to the overall industry should be examined as well.

Front 59

1. Past Information and Forecasts Continued

Back 59

--Past information, forecasts and trends can also be valuable in uncovering potential opportunities and problems.
--Past information and forecasts can be especially valuable if resources are limited and there are other constraints on the organization.

Front 60

2. Resources and Contraints

Back 60

To formulate a marketing research problem of appropriate scope, it is necessary to take into account the resources available, such as money, research skills, and operational capabilities, as well as operational and time constraints.

Front 61

3. Objectives of the Decision Maker

Back 61

In formulating the management-decision problem, the researcher must also have a clear understanding of two types of objectives: (1) the organizational objectives (the goals of the organization) and (2) the personal objectives of the decision makers.
--For the project to be successful, it must serve the objectives of the organization and of the decision makers.

Front 62

4. Buyer Behavior

Back 62

Buyer behavior is a central component of the envrionment. It includes the underlying motives, perceptions, attitudes, buying habits, demographics and psychographic (psychological and lifestyle) profiles of buyers and potential buyers.
--Most marketing decisions involve a prediction of the buyers' response to a particular marketing action. An understanding of the udnerlying buyer behavior can provide valuable insights into the problem.

Front 63

5. The Legal Environment

Back 63

The legal envrionment includes public policies, laws, government agencies, and pressure groups that influence and regulate various organizations and individuals in society.
--Important areas of law include patents, trademarks, royalties, trade agreements, taxes and tariffs.
--Federal regulation and deregulation has had a huge impact on the marketing process in many industries, such as airline, banking, and telecommunication industries.
--The legal and regulatory considerations relevant to a business must be taken into account by the researcher.

Front 64

6. The Economic Environment

Back 64

The economic environment is composed of purchasing power, gross income, disposable income, discretionary income, prices, savings, credit availability and general economic conditions.
--The general state of the economy (rapid growth, slow growth, recession, or stagflation) influences the willingness of consumers and businesses to take on credit and spend on big-ticket items.

Front 65

7. Marketing and Technological Skills

Back 65

A firm's marketing and technological skills greatly influence which marketing programs and strategies can be implemented.
--A company's expertise with each element of the marketing mix, as well as its general levels of marketing and production skills, affect the nature and scope of the marketing research project.
--However, if the company is able to capitalize on its marketing and technological skills its products and new introductions are more likely to succeed.

Front 66

The Marketing-Decision Problem

Back 66

The problem confronting the decision maker. It asks what the decision maker needs to do.
--It is action-oriented
--It is framed from the perspective of what should be done (i.e. How should the loss of market share be arrested? Should the market be segmented differently? Should a new product be introduced? Should the promotional budget be increased?)
--It focuses on the symptoms

Front 67

The Marketing Research Problem

Back 67

The marketing research problem asks what information is needed and how it can best be obtained.
--It is information-oriented
--Research is directed at providing the information necessary to make a sound decision.
--It is concerned with the underlying causes

Front 68

A Conceptual Map

Back 68

A way to link the broad statement of the marketing research problem with the management-decision problem

Front 69

3 Components of a Conceptual Map

Back 69

A conceptual map involves the following three components:
--Management wants to (take an action).
--Therefore, we should study (topic).
--So that we can explain (question).

Front 70

Errors in Defining the Market Research Problem

Back 70

1. Problem definition is too broad
--Does not provide guidelines for subsequent steps
--Ex. Improving the company's image
2. Problem definition is too narrow
--Might miss some important components of the problem
--Ex. Changing prices in response to a competitor's price change

Front 71

1. The Broad Statement of the Problem (Problem Definition is Too Broad)

Back 71

The initial statement of hte marketing research problem that provides an appropriate perspective on problem and acts as a safeguard against committing the second type of error.

Front 72

2. The Specific Components of the Problem (Problem Definition is Too Narrow)

Back 72

The second part of the marketing research problem definition that focuses on the key apsects of the problem and provides clear guidelines on how to proceed further, avoiding the first type of error.

Front 73

Objective Evidence

Back 73

Evidence that is unbiased and supported by empirical findings
--It is gathered by compiling relevant findings from secondary sources

Front 74

A Theory

Back 74

A conceptual framework based on foundational statements, called axioms, which are assumed to be true.
--It guides the collections of the empirical finidings
*Theory may come from academic literature contained in books, journals and monographs

Front 75

Relevant Theory

Back 75

Provides insight regarding which variables should be investigated and which should be treated as dependent variables (those whose values depend on the values of other variables) and which should be treated as independent variables (those whose values affect the values of other variables)

Front 76

Analytical Models

Back 76

An explicit specification of a set of variables and their interrelationships designed to represent some real system or process in whole or in part.

Front 77

Verbal Models

Back 77

Analytical models that provide a *written representation* of the relationships between variables
--These models often are a summary or restatement of the main points of the theory

Front 78

Graphical Models

Back 78

Analytical models that provide a *visual picture* of the relationships between variables
--They used to isolate variables and to suggest directions of the relationships; however, they are not designed to provide numerical results
--They are logical, preliminary steps to developing mathematical models

Front 79

Mathematical Models

Back 79

Analytical models that explicitly describe the relationships between variables, usually in equation form

Front 80

Research Questions

Back 80

Refined statements of the specific components of the prolem
--A problem component might break into several research questions
--Research questions are designed to ask teh specific information required to address each problem component
--Research questions that successfully address the problem components will provide valuable information for the decision maker.

Front 81

Hypothesis

Back 81

An unproven statement or proposition about a factor or phenomenon that is of interest to the researcher.
--It may be a tentative statement about the relationships discussed in the theoretical framework or represented in teh analytic model.
--The hypothesis can be stated as a possible answer to the research question
--Hypotheses are statements about proposed relationships rather than merely questions to be answered.
**They reflect the researcher's expectation and can be tested empirically
--Hypotheses also play an important role of suggesting variables to be included in the research design