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1、 to accompanyNaresh MalhotraJohn HallMike ShawPeter Oppenheim to accompany0Chapter 1Management Decision Problemsand the Research Process0Chapter ObjectivesAfter reading this chapter you should be able to:Define marketing research from an applied orientationUnderstand the nature and scope of marketin
2、g researchUnderstand the management purpose of using market researchExplain the role of marketing research in business management decision-making0Chapter Objectives (continued)Consider the careers available in the market research industryDefine the seven steps of the marketing research processList t
3、he key outputs in the research processDescribe the activities involved in defining the management decision problemExplain why the management decision problem is the base on which marketing success is built0Chapter OutlineWhat is marketing research?History of marketing researchResearch for management
4、 decision makingCareers in marketing researchMarketing research processDefining the management decision problemInternational marketing researchSummary0TopicWhat is marketing research?History of marketing researchResearch for management decision problemCareers in marketing researchMarketing research
5、processDefining the management decision problemInternational marketing researchSummary What is Marketing Research?Information and knowledge about the market environment are vitalThese are major keys to successMarketing research plays a role in not only marketing decision making but also in the broad
6、er business context 0Defining Marketing ResearchMarketing research is the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision-making related to the identification and solution of problems and opportunitie
7、s in marketing0A Classification of Marketing ResearchThis definition states that organisations conduct marketing research for two reasons:Identify marketing problemsSolve marketing problems0Problem-identification ResearchProblem-identification research is undertaken to help identify the nature of pr
8、oblems or opportunitiesExamples are:Market potentialMarket shareMarket characteristicsBrand or company imageSales analysisShort and long range forecastingBusiness trends0Problem-solving ResearchProblem-solving research is undertaken to derive a solution with the findings used in decision making for
9、specific problemsExamples are:Segmentation researchProduct researchPricing researchPromotional researchDistribution researchRefer to Table 1.1 in the text for further details on each of these research areasDetermine basis for segmentationDetermine optimal product designImportance of price in brand s
10、electionOptimal promotional mixAttitudes of channel members0The Central Role of Marketing ResearchThe scope of marketing research is clearly seen in Fig 1.20Topic What is marketing research?History of marketing researchResearch for management decision problemCareers in marketing researchMarketing re
11、search processDefining the management decision problemInternational marketing researchSummaryHistory of Marketing ResearchEvidence of informal market research processes dates back to the late 1300s1900-1930s saw an ad hoc collection of business and social data1930-1950s saw the emergence of the ques
12、tionnaire, sampling theories and emphasis on economic measures of product demand1950-1960s saw the development and application of further quantitative techniques0History of Marketing Research (continued)1960-1970s saw the development of qualitative research (termed “motivational research) along with
13、 the early application of the computer for data analysis1970-1980s gave rise to more emphasis on consumer behaviour modelling, “new qualitative methods promoted and telephone surveys emerged as an alternative to in-home surveys0History of Marketing Research (continued)1980-1990s was a period in whic
14、h internal and external source of marketing information were integrated and used for marketing decision planning1990-2000 was characterised by advanced technology in measurement activities2001 and beyond belongs to electronic communications development as a means to collect consumer information0Topi
15、cWhat is marketing research?History of marketing researchResearch for management decision problemCareers in marketing researchMarketing research processDefining the management decision problemInternational marketing researchSummary Research for Management Decision MakingMarketing research results ne
16、ed to be:RelevantAccurateReliableValidTimelyEfficientMust address the issue not just be “interestingWithin the budget the information must be correctResilient over time results the same if repeatedInformation must represent measures of what is requiredMust be current & provided in timely mannerPrice
17、d to reflect the information value & cost of collection0Improving Management Decision MakingMarketing researchs contribution to decision making can be thought of as altering the range of possible profit outcomes for a business project0Fig 1.3:Market Research: Changing the Probability of SuccessShade
18、d area represents expected lossesUnshaded area represents expected profitsExpected overall project outcome is combination of the shaded & unshaded areasResearchs contribution seen in how it reduces the probability of a loss0Researchs Role in Business DecisionsBusiness managers make strategic and tac
19、tical decisionsFig 1.4 Marketing researchers are playing an increasingly important role in decision making and managers are more involved with research0Role of Marketing Research in MMIS and DSSInformation obtained through marketing research and sources such as internal records and marketing intelli
20、gence becomes an integral part of the firms management information system (MIS)A Marketing Management Information System (MMIS) is:A formalised set of procedures for generating, analysing, storing, and distributing pertinent information to marketing decision makers on an ongoing basisMMIS design foc
21、uses upon each decision makers responsibilities, style & information needs0Role of Marketing Research in MMIS and DSS (continued)An MMIS can be rigidly structured and not easily manipulatedA Decision Support System (DSS) is:An information system, which enables decision makers to interact directly wi
22、th both databases and analysis modelsDifferences between an MMIS and a DSS are revealed in Fig 1.5 (next slide)0MMIS VS DSSDSSs have evolved into an Executive Information System (EIS) which provides interactive decision-orientated business data directly to management by computer interface Unstructur
23、ed ProblemsUse of ModelsUser Friendly InteractionAdaptabilityCan Improve Decision Making by Using “What if AnalysisStructured ProblemsUse of ReportsRigid StructureInformation Displaying RestrictedCan Improve Decision Making by Clarifying DataMMISDSSFig 1.50Topic What is marketing research?History of
24、 marketing researchResearch for management decision problemCareers in marketing researchMarketing research processDefining the management decision problemInternational marketing researchSummary Marketing Research ProcessMarketing research process is:A set of seven steps which defines the tasks to be
25、 accomplished in conducting a marketing research study. These include:Management decision problem definitionMarketing research problem (MRP) definitionSpecification of the research objectivesResearch design formulationFieldwork or data collectionData preparation and analysisReport preparation and pr
26、esentation0Management Decision Problem (or Opportunity) DefinitionResearcher needs to account for:Relevant background informationEnvironmental contextInformation from problem or opportunity auditProject purposeSpecific management decisions to be madeInformation needed to make the decisionsValue of t
27、he projectProject budgetRequires discussions with various stakeholders, review of existing information/secondary data and perhaps exploratory research0Marketing Research Problem DefinitionIncludes:Consideration of the objectives & theoretical foundationsSpecification of appropriate conceptual and an
28、alytical modelsDescription of broad and specific componentsHypotheses delineationFactors that affect scope of research designList of all information requiredClarification of research questionsRequires researchers to use their marketing, social and business theories0Specification of the Research Obje
29、ctivesExact and specific description of information requirementsObjectives contain words such as:To determineTo measureTo establishTo rateTo rankTo compareTo recordResearch objectives are the starting point for formulating who should be the target respondents and the range of questions to be asked0R
30、esearch Design FormulationFramework for conducting the research involving:Target market definitionQualitative and quantitative data collection methodsSampling process and sample sizeMeasurement and scaling proceduresQuestionnaire designData analysis approachAfter formulation costs estimated & compar
31、ed to budget and then compilation of a research proposal0Fieldwork or Data CollectionData collection involves using a field team or collecting via mailSelection, training, supervision, output validation and evaluation vital to fieldworkProcess managed to minimise interviewing errors and maintain qua
32、lity 0Data Preparation and AnalysisIncludes:CheckingEditingCodingTranscriptionVerificationData cleaningData preparation is concerned with having a complete set of valid data whilst data analysis gives meaning to the data 0Report Preparation and PresentationWritten report should include:Research ques
33、tionsDescription of the approachResearch designData collection and analysis proceduresResults and major findingsExecutive summary0Management of the Research Process0Management of the Research Process (continued)Management of the research process and the various activities is a continuous processThe
34、intricacies of this process is illustrated in Figs 1.8 & 1.90The Research Process with Feedback and ClarificationResponsibilities and the Research Process0Research Inputs and Business Outputs Managerial perspective of the outputs from the marketing research process is a major focus of each step in t
35、he research processTwo important out puts are:Research briefResearch proposalDocument describing the business decision problem and the expectations of a research design to collect information to make the decisionOfficial layout of the planned research activity, describing the research problem, the a
36、pproach, the design, and data collection, data analysis and reporting methods0Research Process Inputs and Business OutputsTopic What is marketing research?History of marketing researchResearch for management decision problemCareers in marketing researchMarketing research processDefining the manageme
37、nt decision problemInternational marketing researchSummary Defining the Management Decision ProblemUltimate fulfilment of clients needs depends upon an accurate and adequate definition of the management problemWithout this, money and effort will be wastedWhilst internal views drive this step externa
38、l views can enhance the problem definition processProblem definition process is illustrated in Fig 1.11 (next slide)0Tasks Involved in Defining the ProblemTasks involved include:Collecting background informationExamining the environmental contextConducting a problem/opportunity audit0Collecting Back
39、ground InformationSources of background information:Decision makersIndustry expertsExisting information (in reports)Secondary dataExploratory qualitative researchEnvironmental context 0Examining the Environmental ContextExploratory qualitative research provides understanding of clients business and
40、industry factors needing consideration:Past information and business & industry forecastsFirm resources and constraintsFirms and decision makers objectivesTrends with respect to sales, market share, profitability, technology etcConstraints could be time, client firms personnel, the clients culture e
41、tcConstraints could be time, client firms personnel, the clients culture etc conflicts possible0Examining the Environmental Context (continued)Buyer behaviourLegal environmentEconomic environmentMarketing and technological skillsKnowledge useful in understanding and predicting consumers reaction bas
42、ed on an individuals specific characteristicsRegulatory policies and norms within which organisations must operateConsists of income, prices, savings, credit and general economic conditionsMarketing mix expertise, level of firm technology and technological advances relevant to the firm/industry 0Pro
43、blem/Opportunity AuditDistinction between problem and opportunity not always clear-cut but someone almost always has to make a decisionProblem audit is a comprehensive examination of a marketing problem to understand its origin and natureEntails discussion with decision maker (DM) on, eg :Events/his
44、tory, alternative course of action open to DM, information required, how information is to be used, etc0Problem/Opportunity Audit (continued)Audit vital as DM in many cases only has a vague idea of what the problem isImportant to distinguish between:SymptomsCauses Outcomes related to the marketing p
45、roblem but which disguise the real nature of the underlying problemLoss of market share could be caused by superior promotion by a competitor or inadequate product distribution or a host of other factorsOnly after underlying causes are identified can the problem be successfully addressed0Interaction between the DM and the researcher should be characterised by the seven Cs:CommunicationCooperationConfidenceCandourClosenessContinuityCreativity Problem
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