MKT 352 Exam 1

What does it mean to be a qualified research professional? (2.5)

Professionalism has been improved through: •Professional Researcher Certification (PRC) •Continuing education programs

What are 3 major challenges facing Marketing Research? (2.4)

Three major challenges are: •New and evolving sources of data and methodologies •Need for the effective communication of results •Need for talented and skilled employees

Marketing Research (1.2)

a process used by businesses to collect, analyze, and interpret information used to make sound business decisions and successfully manage the business.

What is the Marketing Concept?(1.1)

business philosophy that holds that the key to achieving organizational goals consists of the company's being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.

What is Marketing Strategy?(1.1)

consists of selecting a segment of the market as the company's target market and designing the proper "mix" of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.

What is Marketing? (1.1)

is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

data mining

is the name for software that helps managers make sense out of seemingly senseless masses of information contained in databases

What is Marketing Research's function? (1.2)

links the consumer to the marketer by providing info that can be used in making marketing decisions.

Market Research (1.2)

process used to define the size, location, and/or makeup of the market for a product or service

Micromarketing

refers to using a differentiated marketing mix for specific customer segments, sometimes fine-tuned for the individual shopper.

What is Marketing Information System (MIS)? (1.4)

structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

AMA Definition of Marketing Research... (1.2)

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; and improve the understanding of marketing as a process

What is Marketing Research? (1.2)

the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

Who is Charles Coolidge Parlin? (2.1)

• known as the "father of marketing research", conducted the first continuous marketing research in the early 1900s for the Curtis Publishing Company. •The purpose of Parlin's research was to increase advertising for Saturday Evening Post magazine.

A Well-Defined Problem is Half the Solution...

•A good rule of thumb in the research design phase is "go slow to go fast". •It is worth spending time in the beginning gaining clarity and alignment on the true problem and questions in order to facilitate meaningful learning that ultimately illuminates the path forward and enables better, faster decisions.

Step 8: Determine Sample Plan and Size (The Marketing Research Process)

•A sample is drawn from an entire group or population. The sample plan describes how each sample element, or unit, is to be drawn from the total population. Gives you representativeness! •Sample size refers to determining how many elements of the population should be included in the sample. Gives you accuracy!

What is Concern for Society? (Marketing Research Codes of Conduct) (2.5)

•Research released for public information will contain information to ensure transparency. •Researchers will not abuse public confidence in research. •Researchers will not represent a non-research activity to be research for the purpose of gaining respondent cooperation.

Developing a Research Objective (Hypothesis)

-Using a hypothesis •Hypotheses are statements that are taken as true for the purposes of argument or investigation. •In making assumptions about the consequences of decision alternatives, managers are making hypotheses.

Pros and Cons of Test Marketing

Advantages: •Test marketing allows for the most accurate method of forecasting future sales, and it allows firms the opportunity to pretest marketing-mix variables. Disadvantages: •Test markets do not yield infallible results. •Competitors may intentionally try to sabotage test markets. •Test markets bring about exposure of the product to the competition. •Test markets may create ethical problems (a tendency to only report positive results).

How Valid Are Experiments?

An experiment is valid if: •The observed change in the dependent variable is due to the independent variable; •The results of the experiment apply to the "real world" outside the experimental setting. Two forms of validity are used to assess the validity of an experiment: •Internal validity is concerned with the extent to which the change in the dependent variable is actually due to the change in the independent variable. •External validity refers to the extent that the relationship observed between the independent and dependent variables during the experiment is generalizable to the "real world."

What is Client-side research? (2.2)

Client-side research: organizations that supply their own marketing research information. •Internal suppliers: Formal departments or individuals conduct research internally. •DYI research: facilitated by Internet, firms have access to secondary data, online survey platforms and better knowledge of data analysis software such as SPSS.

Step 2: Understand the Background of the Problem (Defining the Problem)

Conduct a Situation Analysis •A situation analysis is a form of exploratory research undertaken to gather background information and data that may be helpful in properly defining the problem decision. •The primary method of conducting a situation analysis is to review both internal and external secondary data. •Other methods include conducting experience surveys, case analysis, pilot studies, and focus groups. Clarify the Symptoms •Symptoms are sometimes confused with problems. •Symptoms are not problems; their role is to alert managers to recognize problems. •The researcher acts much like a detective. Determine the Probable Causes of the Symptom •When the manager and researcher are in agreement about which symptom(s) are in need of attention, it is time to determine what could possibly cause the symptom(s). •At this stage it is important to determine as many causes as possible. Determine Alternative Decisions •An important task in defining the problem is to determine what decisions managers need to make as a result of the problem.

Cross-sectional Studies (Descriptive Research)

Cross-sectional studies measure units from a sample of the population at only one point in time (or "snapshot"). •Sample surveys are cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population. •These studies are usually presented with a margin of error.

Step 10 : Analyze Data (The Marketing Research Process)

Data analysis involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests

External databases and examples

External databases are databases supplied by organizations outside the firm: •Published sources - are those sources of information that are prepared for public distribution and are normally found in libraries and online. • •Official data - contain information published by public organizations, including government institutions and international associations. Since the passage in 2013 of the Open Data Policy, the United States, by federal law, makes all data collected by the government "open by default", except for personal information or data related to national security. • •Data aggregators - are services or vendors that organize and package information on focused topics.

What is Supply-side research? (2.2)

External suppliers hired to fulfill a company's marketing research needs. •Supplier or agency: firm specializing in marketing research that offers its services to buyers needing information to make more informed decisions.

What are the types of experiments?

Laboratory experiments - are those in which the independent variable is manipulated and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling the many possible extraneous variables that may affect the dependent variable. •Advantages include (1) researchers can control effects of extraneous variables, and (2) compared to field experiments, lab experiments can be conducted quickly and with less expense. •Disadvantage is that lab experiments lack natural setting and therefore, there is concern that the findings do not generalize to the real world. Field experiments- are those in which the independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting. •Many marketing experiments are conducted in natural settings, such as supermarkets, malls, retail stores and customers' homes.

Step 3: Establish Objectives (The Marketing Research Process)

•Research objectives state what the researchers must do. •Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2.

Step 3: Determine What Decisions Need to be Made (Defining the Problem)

Specify Decision Alternatives •Possible decision alternatives are all marketing action that the manager thinks may resolve the problem. •Common examples are price changes, product modification or improvement, promotion of any kind, and adjustments in channels of distribution. Weigh the Alternatives •Consequences are the results of marketing actions. •To evaluate decision alternatives, managers must speculate as to the consequences of selecting each alternative. •If we know the consequence, there is no need for marketing research. •If we do not know the consequence, research on each alternative under consideration will help determine which alternative is the best choice. •Decision makers make assumptions when they assign consequences to decision alternatives. •Assumptions are assertions that certain conditions exist or that certain reactions will take place if the considered alternatives are implemented. •Assumptions are the "glue" that holds the decision process together. •Managers assume certain causes are at fault, and they further assume that, by taking corrective actions (alternatives), the problem will be resolved and the symptoms will disappear. •The manager and researcher must determine if they have adequate information on hand to make these assumptions. •If they feel that they do not have adequate information to support the assumptions, then new information is gathered by conducting marketing research.

What are the different types of test markets?

Standard test market: is one in which the firm tests the product or marketing mix variables through the company's normal distribution channels. - disadvantage of this type of test market is that competitors are immediately aware of the new product or service. -Standard test markets are good indicators as to how the product will actually perform because they are conducted in real settings. Controlled test markets: are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. -Disadvantage is that the distribution network may or may not properly represent the company's actual distribution system. Electronic test markets: are those in which a panel of consumers has agreed to carry identification cards that each consumer presents when buying goods and services. - The advantage of the card is that as consumers buy (or do not buy) the test product, demographic information on the consumers is automatically recorded. - The disadvantage is that the test market is one more step removed from the real market. Simulated test markets (STMs): are those in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume. - An advantage is they are much faster and only cost 5% to 10% of the cost of standard test market. - A disadvantage is that they are not as accurate as a full-scale test market.

What is test marketing?

Test marketing: is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting. Main uses of test markets: •To test sales potential for a new product or service •To test variations in the marketing mix for a product or service

Things that happened 20th Century that led to a Mature Industry... (2.1)

The 1900s saw the birth of firms and methods •A.C. Nielsen and Gallup •Alfred Politz - statistical sampling theory •Robert Merton - focus groups Computers revolutionized the industry beginning in the 1950s •Data analysis •Tracking data •Online services

The internet of Things

The Internet of Things (IoT) is defined as the network of physical objects that are embedded with software or sensors that allow them to gather and distribute data. •Passive data are information that is collected without overt consumer activity. •Wearables, or wearable technology, are clothing or accessories that are equipped with computer technology or sensors that allow the collection and sharing of data. •IoT raises concerns related to privacy and security that will need to be addressed. •Since the data from the IoT generally lacks context, pairing passive data with qualitative data will be important.

Step 5: Formulate the Problem Statement (Defining the Problem)

The problem statement is a concise description of the problem or opportunity that management is facing that requires research to make a decision. Having defined the problem, the next step is to determine exactly what information is needed to solve the problem.

What is Fair Dealings with Clients and Subcontractors? (Marketing Research Codes of Conduct) (2.5)

•All information obtained from clients shall remain confidential. •All research will be carried out according to the agreement with the client. •Client identity will not be revealed without proper authorization. •Secondary research will not be presented to the client as primary research. Research results are the sole property of the client and will never be shared with other clients. •Researchers will not collect information for more than one client at the same time without explicit permission from the clients involved. •Clients will be provided the opportunity to monitor studies in progress to ensure research integrity. •Researchers will not ask subcontractors to engage in any activity that does not adhere to professional codes, applicable laws, or regulations.

What is Causal Research?

•Causal research is used to measure causality in relationships, such as "if x, then y". •Causality is a condition in which one or more variables affect one or more other variables. •Causal relationships are often determined by the use of experiments.

What is Marketing Research Integrity? (Marketing Research Codes of Conduct) (2.5)

•Data will never be falsified or omitted. •Research results will be reported accurately and honestly. •Researchers will not misrepresent the impact of the sampling method and its impact on sample data.

Defining the problem?

•Defining the problem is the most important step in the marketing research process. •The success of a marketing research project depends on properly pinpointing a problem to formulate a problem statement. •If a problem is defined incorrectly, the rest of the steps in the research process will be fundamentally flawed. •All of the time and money spent conducting the marketing research will be wasted. •Problems are situations calling for managers to make choices among decision alternatives. •When managers make decisions, they do so to solve a problem. •The marketing research process begins when a managerial problem or opportunity exists that demands action, but there is not enough information to know how to respond to the problem.

What are industry initiatives to solve the top 3 marketing problems? (2.5)

•Establishing "best practices" •Maintaining public credibility of research •Monitoring industry trends •Improving ethical conduct

Three types of research designs

•Exploratory •Descriptive •Causal

Step 4: Determine Research Design (The Marketing Research Process)

•Exploratory Research: collecting information in an unstructured and informal manner. •Descriptive research: research that describes the phenomena of interest. •Causal studies: attempt to uncover what factor or factors cause some event.

Uses of Exploratory Research

•Gain background information - when very little is known about the problem or when the problem has not been clearly formulated. •Define terms - helps to define terms and concepts. •Clarify problems and hypothesis - allows researchers to define the problem more precisely and to generate hypotheses for the upcoming study. •Establish research priorities - can help a company prioritize research topics.

List the components of MIS ... (1.4)

•Internal Reports System •Marketing Intelligence System •Marketing Decision Support System (DSS) •Marketing Research System

Step 1: Establish the Need for Marketing Research (The Marketing Research Process)

•Is there a real need for marketing research? •Research takes time and costs money •Cost of information may outweigh value of information. Is there a real need for marketing research? •Marketing research is not always needed. •We often have the information

What is Marketing Research System? (1.4)

•It gathers info for a specific situation -- not gathered by the other MIS component subsystems. •Marketing research projects are not continuous -- they have a beginning and an end.

Step 11: Prepare and Present Final Research Report (The Marketing Research Process)

•Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client.

Step 4: Identify What Additional Info is needed (Defining the Problem)

•Managers and researchers must identify if additional information is needed. •The research must assess the existing information state, which is the quantity and quality of evidence the manager possesses for each of their assumptions. •The researcher seeks to identify information gaps, which are discrepancies between the current information level and the desired level of information at which the manager feels comfortable resolving the problem. •Information gaps are the basis for establishing research objectives.

Step 1: Recognize the Problem (Defining the Problem)

•Managers encounter a problem when they encounter a situation that is negative or potentially positive for the organization. •The two sources of problems can be stated as... - the failure to meet an objective -the identification of an opportunity.

Step 9: Collect Data (The Marketing Research Process)

•Non-sampling errors in data collection will occur, so researchers must know the sources of these errors and implement controls to minimize them. •Researchers aim to minimize this possibility by undertaking a control referred to as validation. •Companies that specialize in data collection are referred to as field service firms.

What are some Caveats to the Step-by-Step Marketing Research Process?

•Not always presented as an 11-step process •Not all studies use all 11 steps •Few studies follow the steps in order

What is Fair Dealings with Respondents? (Marketing Research Codes of Conduct) (2.5)

•Participation is always voluntary •Respondent confidentiality must be maintained •Respondents will be treated professionally. •Respondents will not be given dishonest statements to secure their cooperation •Special provisions are required for doing research on minors

Step 5: Identify Information Types and Sources (The Marketing Research Process)

•Primary information: information collected specifically for the problem at hand •Secondary information: information already collected

How do you select test-market cities?

•Representativeness •Degree of isolation •Ability to control distribution and promotion

Exploratory Research Methods

•Secondary Data Analysis: the process of searching for and interpreting existing information relevant to the research topic. - Analyzing secondary data is almost always an important part of a research project. - Secondary information is widespread and readily available. •Experience Surveys: refers to gathering information from those knowledgeable on the issues relevant to the research problem. - Also known as the key-informant technique. - Lead-user survey: used to acquire information from lead users of a new technology •Case Analysis: a review of available information about a former situation(s) that has some similarities to the current research problem. - Case analysis can be a particularly useful technique for developing strategies to prevent and manage crisis. - Toyota example. •Focus Groups: small groups brought together and guided by a moderator through an unstructured, spontaneous discussion for the purpose of gaining information relevant to the research problem. -Focus groups are one of the most widely used exploratory techniques to gain greater understanding of a current problem or to develop preliminary knowledge to guide in the design of descriptive or causal research.

Uses of Secondary Data

•Secondary data has many uses in marketing research and sometimes the entire research project may depend on the use of secondary data. •Applications of secondary data include economic-trend forecasting, corporate intelligence, international data, public opinion, and historical data. •A wealth of secondary data is available concerning the lifestyles and purchasing habits of demographic groups. •Because the people in these demographic groups tend to make similar purchases and have similar attitudes, they have been scrutinized by marketers. •One important means of analyzing people is by age.

Step 6: Determine Methods of Accessing Data (The Marketing Research Process)

•Secondary data is relatively easy to access •Primary data is more complex

Classification of Secondary Data

•Secondary data may be broadly classified as either internal or external. •Internal secondary data are data that have been collected within the firm, such as sales records, purchase requisitions, and invoices. •Internal secondary data is used for database marketing. •Database marketing: is the process of building, maintaining customer (internal) databases and other (internal) databases for the purpose of contacting, transacting, and building relationships. Example: data mining. •Internal databases: consist of information gathered by a company, typically during the normal course of business transactions. •Companies use their internal databases for purposes of direct marketing and to strengthen relationships with customers, which is referred to as customer relationship management (CRM)

What is included in a Marketing Research Proposal?

•Statement of the problem •The research objectives •The research method •Statement of deliverables •Costs •Timetable

What led to industry growth? (2.1)

•The Industrial Revolution led to manufacturers producing goods for distant markets. •Manufacturers needed to know about faraway consumers, which led to the growing need for marketing research.

Step 1: When is Marketing research NOT needed?

•The information is already available •The timing is wrong to conduct marketing research •Funds are not available for marketing research •Costs outweigh the value of marketing research

Step 2: Define the Problem (The Marketing Research Process)

•The need to make a decision requires decision alternatives. If there are no alternatives, no decision is necessary.

Step 7: Design Data Collection Forms (The Marketing Research Process)

•The questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents. •If a focus group is used, a focus group guide must be developed. •If we observe respondents, the form is called an observation form. •Software programs are available to assist marketing researchers in preparing data collection forms.

Objectives of Research Design

•To gain background information and to develop hypotheses. •To measure the state of a variable of interest (for example, level of brand loyalty). •To test hypotheses that specify the relationships between two or more variables (for example, level of advertising and brand loyalty).

What are ways companies use databases?

•To identify prospects, such as sorting through replies to company ads to identify customers who can be targeted with more information. •To decide which customers should receive a particular offer, such as sending a cross-selling suggestion two weeks after a sale. •To deepen customer loyalty, by remembering customer preferences and sending appropriately customized materials reflecting those preferences. •To reactivate customer purchases, such as automatically sending out a birthday card. •To avoid serious customer mistakes, such as charging a fee to one of the company's largest customers.

Developing a Research Objective (Constructs)

•determining what type of information should be measured •When multiple characteristics are used to measure a concept, it is called a construct. •A construct is an abstract idea or concept composed of a set of attitudes or behaviors that are thought to be related. •Sometimes marketing researchers call the constructs they study variables. •Variables are elements of a construct that can be measured and quantified. •Marketing researchers are constantly thinking of constructs as they go through the problem definition process. •It is imperative to measure the right construct. Defining Constructs: What Is the Unit of Measurement? •The research objective should define how the construct being evaluated is measured. •These definitions are referred to as operational definitions. •An operational definition defines a construct, such as intention to buy or satisfaction, in terms of the operations to be carried out for the construct to be measured empirically. •What is critical in the formulation of research objectives is that the proper unit of measurement be used for the construct. •Whatever unit of measurement is used, the researcher and manager must agree on it before defining the research objectives to ensure that the choice among alternatives can be made after the research project. What Is the Proper Frame of Reference? •Researchers realize that when they are formulating their research objectives, the information requested of respondents must be worded using the respondent's frame of reference.

What is a research objective?

•is a goal-oriented statement or question that specifies what information is needed to solve a problem. •Research objectives should be clear, specific, and actionable. •The number of research objectives can be highly variable, depending on the problem statement. •A good rule of thumb is to have three to six research objectives per research project. •The research objectives can be formulated in terms of statements or questions, but they should be structurally consistent (all statements or all questions). •Research objectives should specify from whom the information should be gathered and exactly what information is needed.

What is Research Design?

•is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

What is Descriptive Research?

•is undertaken to describe answers to questions of who, what, where, when, and how. •It is desirable when we wish to project a study's findings to a larger population, if the study's sample is representative.

What is a Marketing Research Proposal?

•serves as the basis of a contract as it documents what the marketing researcher proposes to deliver to the client for some consideration, typically a fee. •When a client first contacts a marketing research supplier to conduct research, the client will generally request a proposal prior to agreeing to work with the firm in a process called an invitation to bid (ITB) or request for proposal (RFP) .

Longitudinal Studies (Descriptive Research)

•studies repeatedly measure the same sample units of a population over a period of time. - Since they involve multiple measurements over time, they are often described as "movies" of the population. - To ensure the success of the longitudinal study, researchers must have access to the same members of a sample, called a panel. - Panels are samples of respondents who have agreed to provide information or answer questions at regular intervals. There are two types of panels: •Continuous panels ask panel members the same questions on each panel measurement. Used in brand switching studies. •Discontinuous panels vary questions from one panel measurement to the next. They represent a group of persons who have made themselves available for research. -Discontinuous panels are demographically matched to some larger entity, implying representativeness. - Discontinuous panels represent sources of information that may be quickly accessed for a wide variety of purposes.

What is Exploratory Research?

•unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. Usually conducted when the researcher does not know much about the problems. •Unstructured - does not have a predetermined set of procedures. The nature of research changes as the researcher gains information. •Informal - there is no formal set of objectives, sample plan or questionnaire. •Ray Kroc example