M300 1st Edition Lecture 5 Outline of Current Lecture I. What is Marketing Research?II. Who uses Marketing Research?III. Why use Marketing Research?IV. Marketing Research exampleV. Marketing Research processVI. Define the Research objectivesVII. Kinds of DataVIII. Research objectives and designsIX. 3 Requirements to establish CausalityX. Collecting the dataCurrent Lecture I. What is Marketing Research?a. Marketing research is the process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness.II. Who uses Marketing Research?a. Corporationsi. Salespeople, sales managersii. Brand managersiii. Upper level marketing managersiv. Engineers (e.g. new products)v. Human resource managersb. Politiciansc. Non-profit institutionsd. Governmentse. AcademiaIII. Why use Marketing Research?a. Better decision makingb. Better business resultsc. Better serve customersIV. Marketing Research examplea. Jay Leno vs. Conan O ‘Brien: Marketing research pushed NBC to move Leno to the 10pm time slot and moved O’Brien to (Leno’s old) 11:30pm time slot. i. They didn’t understand 10pm viewing habitsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. There was a big difference between scripted programming vs. talk TViii. The time slot difference between 10 to 11:30 had a large impact. V. Marketing Research processa. 1. Define the research objectivesi. What are you trying to accomplish?b. Define the data needed and the data collection instrument.i. What will help me answer that question?c. Collect the datad. Analyze data and seek insightsi. This is a key partii. Many companies have inability to analyze data.e. Act on the insightsVI. Define the Research objectivesa. What do you want to find out?i. Better product design and successii. Better business resultsiii. More satisfied customersiv. More effective advertisingv. Better new productVII. Kinds of Dataa. Qualitative: focused on depth of insighti. Insight: uses only a few subjects but you can spend hours with themii. More in depthiii. Asks the question WHYiv. Use this to understand a phenomenon, or when you don’t yet have an hypothesisb. Quantitative: focused on numerical data that is representative of larger groups.i. Gathered at a distanceii. Asks the question WHATc. Instruments include: surveys, polls, scanner datad. Ethnography: when you follow people around to observe their daily habits and activities. VIII. Research objectives and designsa. Exploratory:i. To clarify problems and develop hypothesesii. To establish research prioritiesiii. To develop questions to be answeredb. Descriptivei. To describe and measure marketing phenomenac. Causali. To determine causality, test hypotheses, to make “if-then” statements, to answer questionsIX. 3 Requirements to establish Causalitya. 1. Co-variationi. Two phenomena vary together (sun rises, rooster crows)b. 2. Temporal sequencei. The appropriate causal order of events (sun rises at 6am, rooster crows at6:10am)c. 3. Nonspurious associationi. An absence of alternative plausible explanations (maybe rooster crows because of the farmers alarm)X. Collecting the dataa. Collecting the data will involve either or bothi. Secondary data: data already collected but for another purpose.ii. Primary data: data collected to address a specific research