Research Methods in Marketing (MBA 8641)

1. Research Methods in Marketing(MBA 8641) Jeremy Kees, Ph.D.

2. My Background • MBA, Western Kentucky University • Ph.D., University of Arkansas • (Non-Academic) Work Experience • E-Commerce Manager (MMG) • Associate Consultant • Research http://www85.homepage.villanova.edu/jeremy.kees/vita.pdf

3. Course Overview • Hank’s Project • Team Methodology Presentations • Data Analysis (Output Interpretation) • Exam

4. General Course Outline • Part I: Non-data research issues • Research Process • Problem Identification • Study Design • Sampling • Part II: Data Analysis • Crosstabs / Correlation • Regression / t-tests / ANOVA • Conjoint / Perceptual Mapping

6. Classroom Environment • Lot’s of work, but lots of class time / help from me • COME PREPARED!!!! • Speak Freely • Bring your experiences

7. Review and Overview

8. product price promotion place Review of Marketing Management target market

9. The External Environment Economic Environment Political and Legal Environment Competitive Environment Customer Value and Behavior Marketing Strategy Technological Environment Social Environment Natural Environment

10. Marketing research is the “function which 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 understanding of marketing as a process.” • - American Marketing Association

11. Marketing research is the systematic and objective identification collection analysis dissemination and use of information For the purpose of improving decision making related to the identification of problems and opportunities and solution of problems and opportunities in marketing. Marketing Research Defined 11

12. Used to identify and define market opportunities and problems Information Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process Using Information…. 12

13. The need for information… • MR focuses on the use of information as a source of strategic advantage • As marketers, we should strive for a thorough knowledge of customers, and their attitudes, tastes, preferences • We should also want to keep an eye on competition (e.g., benchmarking) • This information will help us making strategic marketing decisions (e.g., 4 P’s)

14. To sum….the function of marketing research is to provide managers with information

15. Marketing Research Problem /Opportunity Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research 15

16. Users of Market Research • Fortune-500 Firms • e.g., Product tweeks, shelf location • Entrepreneurs • e.g., Market size, growth potential, viability • And everyone in-between…

17. Marketing research can tell us… • How our customer service is perceived by our customers and what particular areas we can improve on or emphasize • How customers shop and how we can adjust our atmospherics to maximize sales • What new products or new product features do customers want • How customers perceive us in relation to our key competitor (or do they even recognize us as a key player in the industry) • Who our most loyal customers are and how do we cater to this important segment • Who our prototypical customer is • How can we segment the market in more manageable groups • What marketing communications are most effective at reaching various segments of the market • What is going to be the demand for a new product or an existing product in a new market • Where should we build our next retail location • At what price point we can maximize profitability and maintain consumer demand • Which media vehicles will be most effective to communicate our advertising message • Etc.

18. Project vs. Info Systems • Information Systems Approach (Ch 2) • “Ongoing” decision tool • Interactive / Non-technical models • e.g., Retail Link • Project-Based (the focus of this course)

19. Research $$ are spent on…

20. How Might Each of These Institutions Use Marketing Research? • An outdoor advertising firm • A local bank • The Los Angeles Lakers • The Food and Drug Administration 20

21. Marketing Research Job Titles and Responsibilities Directors and Managers: Research Director/Vice President of Marketing Research: This is the senior position in research. The Director is responsible for the entire research program of the company. Accepts assignments from superiors or from clients, or may, on own initiative, develop and propose research undertakings to company executives. Employs personnel and exercises general supervision of the research department. Presents research findings to clients or to company executives. Assistant Director of Research: This position usually represents a defined “second in command,” a senior staff member having responsibilities above those of other staff members. 21

22. Marketing Research Job Titles and Responsibilities Analytically Skilled Methodologists: Statistician/Data Processing Specialist: Duties are usually those of an expert consultant on the theory and application of statistical techniques to specific research problems. Usually responsible for experimental design and data processing. Qualitative Specialist: Some firms have a person specifically assigned to oversee interview techniques and focus groups. 22

23. Marketing Research Job Titles and Responsibilities Analysts: Senior Analyst: Usually found in larger research departments. Participates with superior in initial planning of research projects and direct execution of projects assigned. Operates with minimum supervision. Prepares, or works with analysts in preparing, questionnaires. Selects research techniques, makes analyses, and writes final report. Budgetary control over projects and primary responsibility for meeting time schedules rest with the Senior Analyst. Analyst: The Analyst usually handles the bulk of the work required for the execution of research projects. Often works under a Senior Analyst. The Analyst assists in questionnaire preparation, pre-tests them, and makes preliminary analyses of results. Most of the library research or work with company data is handled by the Analyst. 23

24. Marketing Research Job Titles and Responsibilities Data Collection: Field Work Director: Usually only larger departments have a Field Work Director who hires, trains, and supervises field interviewers. Full-time Interviewer: The Interviewer conducts personal interviews and works under direct supervision of the Field Work Director. Few companies employ full-time interviewers. Support Staff: Tabulating & Clerical Help: The routine, day-to-day work of the department is performed by these individuals. Librarian: The Librarian builds and maintains a library of reference sources adequate to the needs of the research department. Clerical Supervisor: In larger departments, the central handling and processing of statistical data are the responsibility of one or more Clerical Supervisors. Duties include work scheduling, and responsibility for accuracy. 24

25. For Next Week…. • Reading: • Skim Chapters 1 and 2 • Read Chapter 3 • Andreasen, Alan R. (1985), “Backward Marketing Research,” HBR, May/June, 176-182. • Think about forming your groups • Think about Hank’s line extension