2. CASE 1
• MAZDA IS RELEASING A NEW SPORTS
CAR IN THE ASIA – PACIFIC REGION.
WHAT TYPES OF QUESTIONS A
MARKETING RESEARCHER WORKING
FOR MAZDA COULD ASK IN RELATION
TO THE MARKETING MIX.
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3. Question?
• What type of MR would the following
organisations be interested in?
• Hospital
• Manufacturer of breakfast cereal
• A computer software company
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4. The nature of marketing
problems
• Managers usually grasp the general nature of
the objectives they wish to achieve, but often
remain uncertain about the full details of the
problem.
• Ambiguity needs to be cleared up before
making a formal statement of the marketing
problem.
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5. What are some of the business issues that can be addressed by
tracking research?
William Burlace, Director, Media Services
Roy Morgan Research
7. The Importance of the
Problem Definition
• Critical first step in research process
• Can be a problem or an opportunity
• If problem definition is not correct,
research will be wasted regardless of
how well research is conducted
• Often requires some preliminary
research to help define the problem
8. “Can I get a new Coke, please!”
• Coca-Cola conducted blind taste tests in the
early 1980s to determine consumer taste
preferences.
• Results indicated that consumers preferred a
sweeter product, similar to Pepsi Cola. Coca-
Cola introduced the new taste Coke and
named it “New Coke” and discontinued the
original Coke.
• In less than 3 months, New Coke was
discontinued after customer outrage over the
removal of the original Coke.
• It has been suggested that Coca-Cola narrowly
defined the research problem.
• Coca-Cola failed to measure the emotional
attachment and loyalty to the existing brand
name and its effect on subsequent purchase
and consumption behaviour.
9. In using tracking monitors, what are clients
generally tracking?
William Burlace
Director, Media Services
Roy Morgan Research
10. Steps in Defining the Problem
Identify the Background Issues
Define the Management Problem
Define the MR question
Estimate the value of information
11. Identify the
Background Issues
• Past information and forecasts
• Resources and constraints
• Objectives
• Buyer behaviour
• Legal environment
• Economic environment
What are the background
issues that are relevant to
your research project?
12. How has market research been used to
maximise the success of
The Story Bridge Adventure Climb?
Bruce White
Director of Marketing
Story Bridge Adventure Climb
13. Identify the Background
Issues cont.
• In summary:
–How and why has the problem
come to notice?
–What are the symptoms? see
ice-berg diagram
–Often requires some preliminary
research, particularly secondary
data
15. Example: OPSM
• OPSM is the leading provider of
eyecare/wear in Australia and New
Zealand.
• The company has over 300 stores in
Australia and New Zealand
• In recent times the company has notice
a decline in sales.
• What are some possible
background issues that may have
affected sales?
16. The use of market research at Virgin Blue.
Darren Wright, National Marketing Manager Virgin Blue
Australia
17. MMIS and DSS
• Marketing Management Information
System
– A formalised set of procedures for
generating, analysing, storing, and
distributing information to marketing
decision makers on an ongoing basis.
• Decision Support Systems
– Integrated system including hardware,
communications network, database,
model base, software base
18. Marketing Management
Information System
th
Source: Kotler, P., Armstrong, G., Brown, L., and Adam, S (1998) Marketing, 4 ed., Prentice Hall, Sydney, p.147
19. MMIS vs. DSS
Marketing Decision Support
Management
Information System Systems
•Structured problems •Unstructured
•Use of reports problems
•Rigid structure •Use of models
•Information displaying •User-friendly
restricted interaction
•Can improve decision
making by clarifying •Adaptability
raw data •Can improve decision
making by using “what
if” analysis
20. Define the Management Problem
• How does management define the
problem?
– In management terms
– Stated as a question to ensure focus is on a
decision
Decision alternatives
• What is the decision to be made?
– If there is no decision or the decision has
already been made - don’t do research!
– Understand how the information will be
used
21. Define the
Management Problem cont.
Criteria for choosing among alternatives
• How will the decision be made?
– clarify criteria
Timing
• When does the decision need to be
made? Is there time for research?
Users
• Who will make the decision?
Overt & covert purposes
• Is the research being conducted for the
right reasons?
22. Questions to Ask the Marketing
Manager
• Symptoms
– What has changed that is causing you
concern?
• Background
– What is the recent history of the brand,
service, company or market involved?
• Decision-makers situation
– How are these changes impacting your
objectives? What resources do you have
at your disposal? What is the time frame
for required action?
23. Questions to Ask
the Marketing Manager cont.
• Information
– What do you know about the circumstances
of these changes?
• Suspected causes
– Why have these changes come about?
• Possible solutions
– What can you change?
• Anticipated consequences
– What will result from changes made?
• Assumptions
– Why do you anticipate these responses to
actions?
24. Differences between
Managers and Researchers
Attribute differences Decision makers Researchers
Research motivation To make symptoms disappear To discover facts and
relationships
Disposition to Want answers to questions Want to ask question
knowledge
Orientation Pragmatic, subjective Scientific, objective
Responsibility To make profit To generate information
Use of the research Political Non-political
Level of involvement Highly involved, emotional Detached, analytical
Training General decision making Scientific/technique
25. Management Decision
Problem
• What the decision maker needs to
do?
– What does the company need to do to
increase its market share?
– Should the product be changed or a
new one introduced?
– Should we increase or change
promotion?
– Should the market be segmented
differently?
26. The importance of proper
problem definition
The right answer to the wrong question may be
worthless or even harmful.
– RJ Reynolds and Real cigarettes
– Coca–Cola and new Coke formula.
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27. The process of defining the
problem
• Problem definition indicates a specific
marketing decision to be clarified or problem
to be solved.
• It specifies research questions to be
answered and the objectives of the research.
• It involves several interrelated steps.
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29. Ascertain the decision–maker’s
objectives
• Researcher must attempt to satisfy decision–
maker’s objectives.
• Managerial goals should be expressed in
measurable terms.
• The iceberg principle: the dangerous part of
many marketing problems is neither visible to
nor understood by marketing managers.
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30. Understand the background of
the problem
• Exercising managerial judgement
• Situation analysis: informal gathering of
background information to familiarise
researchers or managers with the decision
area.
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31. Isolate and identify the problems,
not the symptoms
• Symptoms can be confusing.
– Certain occurrences that appear to be the
problem may be only symptoms of a
deeper problem.
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33. Determine the unit of analysis
• Individuals, households, organisations, etc.,
• In many studies, the family rather than the
individual, is the appropriate unit of analysis.
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34. Determine the relevant variable
• Variable is anything that varies in value.
– For example, attitudes toward airlines may be a
variable ranging from positive to negative.
• Categorical/classificatory: limited number of distinct
values
• Continuous: infinite number of values
• Dependent: variable that is to be predicted or
explained
• Independent: variable that is expected to influence
the dependent variable.
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35. State the research questions and
research objectives
• Written statement of research questions and
research objectives that clarifies any
ambiguity about what the research hopes to
accomplish.
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36. Clarity in research questions and
hypotheses
• Research questions and hypotheses add clarity to
the statement of the marketing problem.
• A hypothesis is an unproven proposition or a possible
solution to a problem.
– For example, if consumers’ attitudes toward a
product are changed in a positive direction,
consumption of the product will increase.
• A hypothesis should provide information that will be
useful in decision–making.
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37. Marketing Research Question
• What information is needed and
how that information can be
obtained effectively and efficiently?
– To determine the effectiveness of the
current advertising campaign.
– To determine consumer preferences
and purchase intentions for a new
product.
– To determine whether children
influence their parents purchase
habits of environmentally friendly
products.
– To identify consumer attitudes
towards the company image.
38. How do you assist the client in clearly defining the problem?
Michael Sparks, Director
Intuitive Solutions
39. Potential Errors of
Marketing Research Questions
• Too broad
• Too narrow
Solution!
• Broad statement
• Specific components
40. Example: Research Objectives
• Broad statement (i.e., research
question)
– To understand the decision making process
of potential university students in their
choice of university .
• Specific components (i.e., research
objectives)
– To determine the factors potential students
consider to be important in selecting a
university.
– To determine when decisions regarding
university selection are made.
– To determine sources of information and
people who influence potential students
decision regarding choice of university.
41. Research Objectives cont.
• Should be:
– Precise
– Detailed What variales are required to meet the
– Clear
research objectives?
– Operational
e.g. Compare the demographic
profiles of buyers and non-buyers
using age, sex, education and annual
family income
42. Example: Research objectives
Management Problem
• How can consumer attitudes towards our company
be improved? Should advertisement X be run?
Research Problem/question
• To determine the effectiveness of the current ad.
Research objectives
• To determine whether consumers can recall the
advertisement
• To identify whether the advertisement will be
interpreted accurately
• To evaluate the influence of the advertisement on
attitudes towards the product.
43. Objective and Theoretical
Foundation
• Research should be based on objective
evidence and supported by theory
– e.g., books, journals and monographs
• Helps determine which variables should
be investigated and how they should be
measured
Literature Review Background – Required for Phase
1 of Assessment
44. Decision–oriented research
objectives
• The research objective is the researcher’s
version of the marketing problem.
– Explains the purpose of the research in
measurable terms
– Defines standards for what the research
should accomplish
– Also influences decisions about the
research design.
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46. Decision–oriented research
objectives
• Statement of a marketing problem influences
the research objectives, which in turn,
becomes the basis for the research design.
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47. Research proposal
• A written statement of the research design
that includes a statement explaining the
purpose of the study.
• Detailed outline of procedures associated
with a particular methodology.
• All ambiguities about why and how the
research will be conducted must be clarified
before the proposal is complete.
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48. Research proposal(2)
• A mechanism that allows managers to evaluate
the details of the proposed research design and
determine if alterations are necessary.
• Helps managers decide if proper information will
be obtained to accomplish what is desired.
• The format follows the six stages in the research
process outlined in Exhibit 1.2.
– Basic questions asked when planning
research design.
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49. Stage one — problem definition
• What is the purpose of the study?
• How much is already known?
• Is additional background information
necessary?
• What is to be measured? How?
• Can the data be made available?
• Should research be conducted?
• Can a hypothesis be formulated?
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50. Stage two — selection of basic
research design
• What types of questions need to be
answered?
• Are descriptive or causal findings required?
• What is the source of the data?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?
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51. Stage three — selection of sample
• Who or what is the source of the data?
• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?
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52. Stage four — data gathering
• Who will gather the data?
• How long will data gathering take?
• How much supervision is needed?
• What operational procedures need to be
followed?
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53. Stage five — data analysis and
evaluation
• Will standardised editing and coding
procedures be used?
• How will the data be categorised?
• Will computer or hand tabulation be used?
• What is the nature of the data?
• What questions need to be answered?
• How many variables are to be investigated
simultaneously?
• Performance criteria for evaluation?
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54. Stage six — type of report
• Who will read the report?
• Are managerial recommendations requested?
• How many presentations are required?
• What will be the format of the written report?
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55. Overall evaluation of the research
design
• How much will the study cost?
• Is the time frame acceptable?
• Is outside help needed?
• Will this research design attain the stated
research objectives?
• When should the research begin?
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56. Anticipating outcomes
• The anticipation of statistical findings is often
lacking in research proposals.
• Use of a dummy table helps manager gain a
better understanding of the actual outcome.
• Dummy tables: representations of the actual
tables that will be in the findings section of
the final report.
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57. What is the strategic value of a single
source monitor?
William Burlace
Roy Morgan Research
58. Explain the use of market research for Sofitel
Hotels.
Neil Paterson
Director of Sales and Marketing
Sofitel Hotel, Gold Coast
59. What types of marketing issues do clients
generally want researched?
Peter Kenny
Managing Director
Colmar Brunton
60. How does a small research company
compete against the big players?
Michael Sparks
Director - Intuitive Solutions
Hinweis der Redaktion
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In using tracking monitors, what are clients generally tracking? Click on the media player to view the video clip. Key points raised in the video clip: Track market share, awareness of brand, ad recall, customer satisfaction, etc. Can also track their competitors’ market shares, the likelihood of their competitors’ customers switching, etc.
Click on the media player to hear the thoughts of our real world guest speaker. The Story Bridge Adventure Climb is a most spectacular way to discover Brisbane and its surrounding natural beauty. It is a start-up venture, commencing operations in late 2005. One of only 3 bridge climbs in the world, it offers: A 2 ½ hr soft adventure experience Spectacular, uninterrupted 360° views Interesting & factual commentary provided by experienced climb leaders Morning, day and night climbs It’s challenging but safe; unique but affordable. http://www.storybridgeadventureclimb.com.au/home.html
The introduction of a new competitor into the Australian market, namely Specsavers. Perhaps there is a decline in sales as a result in changes to technology (e.g., laser eye surgery as opposed to eyewear). consumers have become price sensitive, possibly because of economic conditions.
What is the strategic value of a single source monitor? Click on the media player to view the video clip. Key points raised in the video clip: The strategic value comes from having the answers from one group of people (there is no data fusion). So users of the data can examine the relationship between responses to any questions on the monitor.
Click on the media player to hear the guest speaker. Sofitel Hotels are owned by the Accor Group. Accor is the world's largest hotel and tourism group with more than 3,500 hotels and resorts in 90 countries. Accor is mentioned in the video clip. The Sofitel Gold Coast is a five-star luxury hotel in Broadbeach, Queensland. It has recently undergone a $20 million upgrade. All its 293 hotel rooms have been extensively renovated and feature contemporary furnishings and fittings, LCD televisions, digital telephones and the latest IT communication services. http://www.sofitelgoldcoast.com.au/explore.html
What types of marketing issues do clients generally want researched? Click on the media player to view the commercial. Key points raised in the video clip: Clients are sector specific. Most of Colmar Brunton’s clients are from FMCG and manufacturing based clients. Types of marketing issues are concerned with how to grow the business: - New product development - Brand and advertising tracking - Customer satisfaction with retail trade (to lesser extent) - Purchase driver analysis (investigating decision making at the point of purchase).
How does a small research company compete against the big players? Click on the media player to view the video clip. Key points raised in the video clip: Intuitive Solutions is a small marketing research agency. They differentiate themselves from larger research providers by trying to build strong relationships with their clients. They do this by investing time in understanding each client’s business; by having only senior staff working on the research; by providing their clients with tailored solutions rather than ‘off-the-shelf’ solutions; by being prepared to extend their involvement into areas of their business beyond traditional marketing research. As a result they deepen the relationship with clients, their businesses and their marketing environments. In summary, they position themselves as being highly experienced experts in the area that work directly with their clients.