Chapter 2 - The Marketing Research Process

• Research in Action: Palmolive vs. Nevea

• Major Steps in the Marketing Research Process
  Dividing the marketing research process into a series of chronological steps is convenient. In reality the steps are highly interrelated Each step may have an impact on the step(s) preceding or following it.
  Step 1.	Justify the Need for Market Research
  Potential usefulness KFC In Brazil Management Attitudes - Whirlpool Resources available to implement results. Xdisk Research Cost versus Research Benefits determine whether or not to proceed. Determining Research Costs : Quantify the necessary research steps Determine the Benefits: Nature of the uncertainty it will alleviate Projected financial benefits Decision maker intuition Marketing research budgets are extremely limited. Use them prudently! Example 1 Example 2 Research on A Small Budget
  Step 2.	Define the Research Objective
  What we want to find out? Why do we need to know this? Accurately research objective is the key to determining whether to conduct research what the nature should be. Effective Communication is a Must Dialogue is critical for diagnosing any potential research situation Especially important when purpose of research is to explore opportunities The chances that a wrong or nonexistent problem will be researched are greatly when there is no healthy dialog Pack n' Sac McDonalds Arch Deluxe
  Step 3.	Identify Data Needs
  Scrutinize the research purpose Listing the kinds of data required to accomplish that purpose.
  Step 4.	Identify Data Sources
  Ease or difficulty of locating data sources will depend on the nature of the information. Secondary Data. Can obtain much factual information If the objective can be accomplished through secondary data then subsequent stages may not be relevant. Primary Data Not all data may be readily available. Is a source is available for the kinds of data needed in a particular project for a specific time frame
  Step 5.	Choose an Appropriate Research Design (and Method)
  The research design serves as a blueprint for the execution of the project Typically cast in the form of a research proposal. The research design will influence the other tasks to be performed
  Exploratory research Gain some initial insights May pave the way for further research. Conclusive research Verifies insights Points to the appropriate course of action Can be either descriptive or experimental. Descriptive research design A formal, structured survey of individual customers Experimental (Causal) studies Investigation of the effects of one variable on another.
  Step 6.	Design the Data Collection Instrument (or Form)
  Data collection instrument or form is relevant in primary-data collection. Primary data collection methods Interviews Observation Some instrument must be designed to record the data being collected. Designing a data collection form may appear easy Certain aspects of the form can seriously affect the quality and nature of the data.
  Step 7.	Identify the Sample
  Clearly specify who, or what units will provide the needed data. This step may offer some general guidance for designing the sample. For example, the method of choosing individuals depends on whether a probability or a non-probability sampling method is used.
  Probability sample Each element in the population has a known, nonzero chance of inclusion. Non-probability sample Any sample that does not fit into the definition of a probability sample.
  Step 8.	Collect the Data
  Check Data For completeness consistency adherence to prespecified instructions.
  Editing Examining the responses Taking corrective action to ensure high quality Coding Transforming Data into a form that is ready for analysis
  Step 9.	Analyze the Data and Interpret the Results
  The types of analyses used may depend on nature of the data type of data collection method used.
  Step 10.	Present Research Findings to Decision Makers
  Prepare a report that communicates the results of the research. Only through a clear and convincing report can the findings and conclusions reached be implemented.

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• II. Interdependence of Process Steps

  A. New Product Launches at Burger King

  Any research project can be broken into a series of logical steps Start with a determination of the worth of the project End with analysis and interpretation of the findings. In reality few stages are independent of one another. A major challenge for researchers and decision makers is to think ahead. Planning a potentially valuable research project requires a much broader perspective than focusing solely on one step at a time.

  B. Marketing Research for the BK Broiler? Chicken Sandwich

  Step 1. Justify the Need for Market Research

  The BK Broiler? chicken sandwich was suffering from low sales. BK's customers are typically males BK believed it could increase sales by appealing to women with its broiled chicken sandwich. BK needed research to identify and develop a winning positioning strategy that appealed to women. The proposed research project appeared to be worthwhile The results were needed Adequate resources were available to implement the research results

  Step 2. Define the Research Objective

  To find out what would be the best way to position a new broiled chicken sandwich among the target market (women).

  Steps 3 and 4. Identify Data Needs and Data Sources

  Four classes of Data required purchase intention measures Purchase intention Purchase frequency overall product diagnostics Reasons underlying the purchase intention Uniqueness, differentiation attribute diagnostics Data regarding specific Attributes to focus product development respondent profiling variables Demographic information Identify data sources Primary data to collect consumer impressions Secondary data to serve as a benchmark

  Step 5. Choose an Appropriate Research Design (and Data Collection Method)

  Project was conclusive experimental research For Primary Data: Developed by outside agency Descriptive research Collection through mall-intercept Prescreen for fast-food restaurant chicken eaters. Neutral or positive respondents were invited to return to try the product. Four Positionings Choice white meat/chicken breast Backyard BBQ Taste Marinated Special Blend/Homestyle Taste Competitive Claim Taste Tests 9 different combinations of buns and sauce

  Step 6. Develop the Research Instrument or Form

  Well-structured questionnaire to collect the necessary data about the concept and the respondents. Pre-recruit screener questions Concept evaluation questions Taste Test Classification questions

  6. Step 7. Identify the Sample

  People who had eaten chicken in a fast-food restaurant at least once in the past three months.

  7. Step 8. Collect the Data

  interviews 835 consumers prerecruited at malls geographic locations 10 taste tests 150 65% female 35% male 50% ages 18-34, 50% ages 35-54 50% BK consumers 50% non-BK consumers

  8. Step 9. Analyze and Interpret the Data

  The "Choice White Meat/Chicken Breast" positioning generated the highest level of positive interest among the non--Burger King users. Interest product trial was driven by Positive predisposition toward the chicken sandwich How appetizing the product looked. healthfulness---broiled rather than fried---appeared to be a secondary driver. The "Choice White Meat/Chicken Breast" positioning generated the highest level of purchase intent. Consumers rated the product very favorably in the Taste Test Study,

  9. Step 10. Present Research Findings

  BK Consumer Research Group recommended the "Choice White Meat/Chicken Breast" positioning. The sandwich performed well among women (the intended target market) among non-BK users the 35--54 age group. Additional studies were needed to determine Best name Best price.

• II. Ethical Issues in Marketing Research
  A. Codes of Ethics
  The best way to ensure valid information is to garner the trust of the research subjects. Marketing research ethics are the principles of conduct that govern the marketing research profession.
  American Marketing Association (AMA) code of ethics	prohibits selling or fund raising under the guise of conducting research maintains research integrity by avoiding misrepresentation and omission of pertinent research data treats outside clients and suppliers fairly
  B. Ethical Gray Areas: Code of Ethics Limitations
  Nickelodeon There are numerous ethical gray areas in which a researcher will have to make judgment calls. An Ethical Situation?... You Decide The Difficulty of Recognizing Ethical Situations Differing Interpretations of the Codes