MKT500 9/6/2012 3:43:00 PM
Textbook: Basic Marketing Research 1 Canadian Edition
Marketing – A set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders
Some say that your loyal customer base is the most sustainable business
advantage to have. Retaining customers is more profitable than acquiring
Continuous learning is important in marketing because people change.
People‟s opinions and ways of living change based on a variety of influences.
We have to be able to adapt to them.
Marketing is a combination of analytics/metrics, IT, and Marketing Theory.
Marketing research is the process of designing, gathering, analyzing and
reporting information that may used to solve a specific marketing problem.
Determine what the problem is the company is struggling with and what
decision they need to make. Your research needs to be able to help them
fulfill their needs in the most cost effective way.
Research links customers to marketers by way of information.
Speed worked for Scotiabank doing payroll software marketing. It bombed.
Reason was because the segment they picked wasn‟t the right segment.
Know the target market.
We‟re interested in the behaviors of people and figuring out how they think
in order to try and make them behave in a specific way. We want to look at
people. “What features are people looking for in a hybrid vehicle and why”
Milgram‟s Obedience to Authority Experiment: The subject of obedience, he
wanted to see if people would do bad things “because they were told to” The research was deemed to be really unethical because they lied to the
subjects and put them through emotionally disturbing situations.
With research, it‟s important to consider ethics. EG, if there are weaknesses
in the research method, explain them so that the client can understand and
interpret the results on their own.
Ten Core Principles of MKT Research by the MRIA
2) Public Confidence
3) Right to Privacy
4) Accuracy – No misleading or inaccurate research methods or results
5) Ethical Practice
6) Client Rights
10) Professionalism 9/6/2012 3:43:00 PM
Before you begin research:
Establish a need. Pretend you are a representative of a research company
and are trying to gain a contract from a company. When you‟re putting
together a plan, think about: is it worth the time? Is it worth the money?
Decision make should consider: do we have the resources? Can we do this
research properly? Do we already know what we‟re going to do for the sake
of this project?
When to say No to research:
If the information already exists. CRM records information from
your customers. These data bases of information can be useful and
negate the need for additional research.
The timing won‟t work. IE there isn‟t enough time to conduct the
research properly/by the time the research is complete the decision
isn‟t current anymore.
Not enough money is available
See if there‟s a decision that‟s already been made.
What should we do? – Did we do the right thing?
Is there need for research? Yes or No.
If yes, then begin the research process.
P.42 of the book – 11 steps of the market research process.
1. Problem Definition – Research Objectives (what information is needed?)
2. Research Design + Methodology (what type of research methods)
3. Sampling + Data Collection (which people should you use, will they make
a good representation of the market we‟re going after?)
4. Analysis (think about this so that the data that comes back is useful)
5. Prepare and Present Results (make it easy to read, easy to follow, easy to
explain and a good sales pitch. Why they should care about this)
Defining problems accurately is an art. This is the most important step. If the problem is incorrectly defined then all
the research that follows is a waste of time. Problems can be general and
specific. They can also be looking back and looking forward.
Don‟t confuse problems with symptoms. (IE, we‟re losing money and this is
a problem. But that‟s actually a symptom of a bigger problem, like, our
brand image is not current)
Symptoms: Sales are down, complaints are high, inventory is inconsistent,
Think of marketing problems in turns of “what is the decision that has to be
made” ie, should we use THIS campaign over this one? Solve the problem
with research. Should Volvo focus on safety, luxury or performance? What
should we promote and how should we position this ad? Which of these
elements are going to drive sales?
Researchers must define the problem correctly and ensure the right problem
is defined by the client. Ensure strategic issues are identified.
Strategic Issues: Things that could have a major impact on the business.
Company, Collaborators, Customers, Competitors, Climate
PEST – Political, Economic, Sociological, Tech
These study objectives can be articulated in the form of a question.
How will customers respond to a change in our logo?
When you come back with the research, be sure to answer WHY. Why don‟t
people like the logo? How should they change it? Is the logo the issue? You
need actionable information.
Articulated as statements.
The objectives of this study are to:
Determine the proportion of customers who prefer this design change over
the old one. Identify which coupon offer results in the greatest number of new customers
Marketing Problems vs Research Problems.
The Problem: What‟s stopping them from making the decision? Figure out
what they don‟t know and what they need to know in order to make that
decision more effectively.
Turning a MKT problem into a Research Objective:
Researchers should take a neutral approach. IE don‟t go into the problem
trying to find the solution right away, you‟re trying to collect real information
in order to aid the client in making the RIGHT decision.
MKT Problem – What can Ryerson do to increase it‟s non-student gym
memberships in the coming year?
Research Objective – Collect information on awareness of the community.
States the problem/decision
Specifies the research objectives
Details the proposed research methods
Case Assignment: Due at the start of week 6. Hard Copy handed in at
beginning of class, no late submissions. (like to the minute)
Individual, 5 pages single spaced
Complete module 1 readings
QUIZ next week – CH. 1,2,3
Read Nivea case (see week 3 materials)
Begin work on case 9/6/2012 3:43:00 PM
1) Identifying Consumer Views & Product Needs
Start with some secondary research. Nivea found research that was
already done that supported the idea that female deodorant would
be in demand.
They were seeing if there were un-met needs and opportunities
within the deodorant market. IE a deodorant specifically for women
that would “beautify their underarms”
Focus groups showed a positive relationship
2) Product Concept & Packaging Development
Present a number of similar packages and vary elements of the
design to determine which elements resonated with the target
They developed a list of things people care about in order to create
the new product. The deodorant needed to act as a deodorant, but
what was different about it? Things like scent, look and feel,
ingredients, etc. How did these resonate with the target market?
3) Product Testing
Objectives: Make it work, make people like it.
Problem: Does the product live up to the consumer‟s expecations?
De-branded sample given to people, asked to use it everyday for a
week and keep a diary about it. There was a list of questions to do
with the effectiveness of the product and the enjoyment of the
Most consumers said they would switch which is positive.
4) Brand Positioning & Advertising
The research helped to narrow down the brand and create ads.
What makes you want to buy it? Try and identify the specific
elements of the product that people connect with. Which ways of
describing the product are effective at differentiating?
Try to figure out what the best strategy is. 5) Launch & Post Launch
Continuous tracking of the product‟s reception. Interviewing people,
looking at sales, identifying the buyers, were they happy with it
over time? Did they have feedback on how to improve it?
Research Design + Methodology
Exploratory, Descriptive, Causal.
General research, pretty unstructured, questions aren‟t that specific. Figure
out what people are looking for, the qualities that the product should have,
etc. The direction of the research might change depending on what you
learn. It‟s fluid research. You want to define terms and establish research
Trying to answer more specific questions. Who what where when and how.
Describing a group of people. Telling you something about the population.
You know what you‟re looking for, you‟re not looking for new variables,
you‟re just trying to get more information about these specific questions.
Identify the marketing phenomena at a point in time or over a period of
time. The results can sometimes be applied to a larger population –
If/Then – manipulating variables. (complex and expensive)
Within exploratory – Secondary analysis, Qualitative Research, Observation
Company databases (CRM), executive dashboards, old research, syndicated
reports, academic pubs, industry pubs, etc.
Qualitative: Focus Groups (tadtitional and online), Experience surveys (experts in your
Mystery Shoppers: see how people behave in a store. What people do and
what they say they‟re gonna do can vary greatly. How are employees
Ethnography and Netnography – Observing people in their natural habitat.
Focus groups are expensive, so general 2-10 groups are used.
Interviews: 10 – 25.
Simulated Experiments & Field Experiments
Simulated – Laboratory or other contrived setting. Computer simulated test
Field – Consumer test markets (standard vs controlled) Industrial test
Experiments: Pre-Test (01) Manipulation (X) Post-Test (02)
Eg: Show them a product and see if they‟re interested. Then show them an
ad about the product. Now how interested are they?
Control groups are always used. The control group doesn‟t experience the
manipulation. This tries to account for whether there‟s another factor at play
aside from X that we haven‟t noticed yet.
Internal Validity: How much the change to the dependent is actually due to
the manipulation of the independent variable.
External Validity: Refers to the extent that the relationship observed
between the independent and dependent variables during the experiment is
generalizable into the population.
:::SAMPLING::: Sampling Terminology:
A parameter is a measure of the population. Usually in the form of a mean
or median. (eg, the average age of retirement of this population)
Developing a Sampling Plan: (who‟s going into this study)
Who is the population of interest?
How can they be accessed? (Sampling Frame) Is there a list?
How will the sample be drawn? Probability vs non-probability
How large will the sample be?
How many must we approach to get the desired sample size?
(contact vs response rate)
Have we considered representativeness & subgroups for analysis
Unless your sample is the whole population, there‟s gonna be a bit of
variation. The error needs to be accounted for.
There‟s an error in the design of your research study. The questions are
skewed, the respondants make mistakes, your research team sucks, etc.
Total Study Error = Sampling Error + Non Sampling Error
*(homework – what happens if you‟re measuring a probability that you think
is very likely? What happens to your sample size?) 9/6/2012 3:43:00 PM
Research Librarian Demonstration:
Library website/articles/idexes_title/business insight essentials
Business Insights: Good basic information
Factiva: Most up to date, especially on publicly traded companies. Has daily
news updates relating to the company.
News should be used for private companies, though the information can be
skewed based on the opinions of the news source.
Passport GMID: Good for international information about the company.
Lots of extensive information and reports that relate to the company
Social Media: Twitter and Facebook pages can give a representation of how
the company is communicating with its customers.
Peer Reviewed/Scholarly Articles: Peer reviewed are slightly better in
the sense that the research is often stronger and more academically
concrete. ProQuest Business Collection is a good place to start looking for
scholarly and peer reviewed articles. Emerald Library MCB is a good
database with a shitty search engine.
Business APA: An library article specifically for citing business sources
properly in APA formatting.
Week 4 Lecture:
Classifying Secondary Data:
Internal and External Data.
Internal is data from within the company. It could be their billing system or
CRM system. Any data about the sales and customers is useful for market
External is data collected by someone else that you can access.
Pros and Cons:
Fast to collect, relatively cheap, easy to access, can give a „reality check‟ Info needed may not be available, the FIT of the info may not be right,
dated, and not enough information available.
Stats-Can and Industry Can are huge secondary resources.
When evaluating credibility of research sources, Always ask yourself:
Who collected the data?
What was the original study‟s purpose?
What was collected and how?
When was it collected?
Is it consistent with other data sources?
This is how assignments will be evaluated for credibility.