MKT20019: Marketing Research and Analytics

Week 2
Defining research problems
Research Designs

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Last week
Marketing research is a
systematic and objective process
of gathering info to aid decisions
There are six steps in the
marketing research process

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 1. DEFINING THE RESEARCH
PROBLEM

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Remember…
Marketing Research

Problem-Identification Research Problem-Solving Research

It’s all about the

problem!
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Defining the problem
Sometimes the problem is clear, often
(most times) it is not
Ambiguous problem definitions can lead
to incorrect decisions:

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New Coke

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#marketingfails

How do so many fails happen?

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The Iceberg Principle

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Symptoms v Problems
Symptoms
– What marketers/ managers can observe
– E.g. declining sales
Problems
– The underlying cause of the symptoms
– Often not directly observable
– E.g. the price is too high or lack of advertising
Solving the problem removes the
symptoms
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Symptoms v Problems
Observed Symptom Possible Problems
(Underlying Causes)

Decline in demand, new competitor,

Loss of market share
marketing mix.

Customer service, product fault, false

Low customer satisfaction
advertising

Product faults, branding, competitor

Negative WOM
sabotage?

Pricing, product quality, communication

Complaints about price of value

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Example: 3 Mobile UK
Symptom:
– Consumer’s don’t use much mobile roaming
data

Problem:
– Consumer’s don’t want to use their phones
overseas?
– OR, roaming charges are too expensive!

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 https://www.youtube.com/watch?v=Wz7YbGCeWPA

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 PROBLEM DEFINITION PROCESS

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 How can we define problems in
a better way that we do not end
up solving wrong problem?

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Problem Definition Process
The problem definition should:
– Specify decisions to be made (problem to be solved)
– Identify research objectives
– Define research questions
The process:

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1. Ascertain DMs objectives
A crucial first step is identifying the key decision
makers in the organisation (stakeholders)
– Marketing Manager? CEO? CMO?

Then, what are each of their objectives from the

research? What are they trying to achieve?
– It is useful to present possible outcomes
– Different stakeholders may have different objectives!

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2. Problem Background
It is critical to conduct a thorough
background review (“situation analysis”)
Benefits:
– Clearer definition of the problem
– Identify relevant existing research
– Identify potential roadblocks/ challenges
Should include a literature review AND
analysis of secondary data.
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 If you know the enemy and know
yourself you need not fear the
results of a hundred battles.
Sun Tzu

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Things to consider
Internal situation
– Company history, Current situation (customer
base, resources etc.), Existing knowledge
External situation
– Competitors, market forces, consumer trends etc.
Ways to do it (depending on information)
– SWOT, Porter’s Five Forces, PESTL, 5C’s
This impacts how we do the research and
the type of recommendations we make

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3. Isolate the problem
Remember the iceberg principle!
Exploratory research may be required

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Marketing Problem v Research
Problem
Marketing Problem = The problem/
decision that the marketers face
– E.g. Should I change the price of my product?
Research Problem = the information
that needs to be gathered to help face the
problem or make the decision
– E.g. Identify the impact of price on sales

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Marketing Problem v Research
Problem
Marketing Problem Research Problem

Asks about a decision Asks what information is

marketers need to make required to make the
decision
Action oriented Information oriented

Focuses on symptoms Focuses on underlying

causes

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 Marketing Problem v Research
Problem examples
Marketing Problem Research Problem

Determine preferences and

Should our company
purchase intention of old vs
introduce a new product?
new products?
Determine effectiveness of
Should we change our
current advertising
advertising campaign?
campaign

Should the price of our Investigate the impact of

product be increased? price increase on sales

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Marketing Problem (M) / Research
Problem (R)?
Should Apple sell iPhone X at less than $1000? M R
What are the key strengths and weaknesses of the
M R
Mazda CX-5 compared to other cars in its class?
How can we increase the adoption of Instagram for
M R
people aged 60 or older?
What are the main differences between men and
M R
women in their usage of tinder?
How often should Lady Gaga tour Australia? M R
What are the main reasons for tourists to visit Melbourne? M R

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4. Unit of Analysis
The focal point of the research – the “what
or who”
Could be individuals, groups, companies
etc.
Research Topic Unit of Analysis
Grocery consumption/ purchasing Household OR Main grocery
buyer
Student Satisfaction Students OR Units
B2B Relationships Senior Managers OR Companies
Website browsing behaviour Website visits OR Consumers
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5. Relevant variables
Variable = anything that changes or varies
(or could)
Independent v Dependent
Categorical v Continuous
Independent Dependent
Categorical Gender, Course Pass (Y/N)

Continuous Age (in years) Satisfaction

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Example Variables
• Age
• Gender
Demographics • Income
• Location
• Education
• Innovativeness
Psychographics • Price Consciousness
• Shopping Style
• Awareness
Thoughts • Attitudes
• Preferences
• Frequency
Behaviours • Recency
• Quantity
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6. Research Objectives, Questions,
and Hypotheses
Research objectives, questions, and hypotheses
add clarity to the statement of the marketing
problem.
Research objectives (ROs) define specific
components of the problem from a research
standpoint
Research questions (RQs) are refined questions
related to each objective.
A hypothesis (H) is an unproven statement or
proposition about a factor or phenomenon that is
of interest to the researcher. Often, a hypothesis is
a possible answer to the research question.

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Writing Research Questions
Things to consider:
– Scope; not too narrow, not too broad
– Specific; make the scope clear. What exactly
are you trying to find out?
– Significance; the question should help solve
the Research Problem and Marketing Problem
– Answerable; make sure it can be answered
with research

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Example
Marketing Problem: Should we launch our TV
show on a streaming service (e.g. Netflix) or live
TV?
Research Problem: Determine popularity of
streaming and live TV for different segments
Research Objective: Identify differences in
preferences based on age (or gender, suburb etc.)
RQ: How do consumer preferences for streaming
vs TV differ between <40 and >40?
Hypothesis:
– Consumers aged under 40 will have higher
preferences for streaming than those over 40
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Linking Problems, ROs, RQs and
Hypotheses
Marketing Problem (decision)

Research Problem (Information

Required)

Research Objective(s)

Research
Question(s)

Hypotheses

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One problem – many questions
Marketing
Problem

Research
Problem

Objective Objective

RQ RQ RQ RQ

Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis

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Applied Example (My Survey)
• DM = Me
DM • Objective = Target unit to students, track change throughout the
Objectives course

• Good teaching can lead to increased engagement and satisfaction

Background

• Problem = students think stats and research are boring/ hard

Problem • Objective = compare expectations of this unit among students

Unit of • Students in MKT20019

Analysis

Relevant • Expectations, Experience, Gender, Year of Study

Variables

• RQ: Do expectations differ by year of study?

Research • Hypothesis: Students in later years will have more positive
Questions expectations
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Summary
Defining the research problem is
(arguably) the most important stage of the
research process
It is critical to look beyond the symptoms
to uncover the underlying causes
The marketing problem leads to research
objectives, which inform the research
design

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RESEARCH BRIEFS, PROPOSALS, AND
REPORTS

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Communication with clients

Marketing
Company Researcher Research

Research Report
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Research Brief (Assignment 1)
A document prepared by management upon which
prospective suppliers base their research proposals
Purpose: Communicate the business objectives
Contents of Research Brief:
– Introduction
– Background (company and situation)
– Marketing Problem and Research Problem
– Research Objectives and Research Questions
– Preferred methodology (optional)
– Details about timing and budget

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Who make the inquiry?
CEO or president Chief financial officer
Engineers or product or CFO's,
developers Customer service
Product managers managers
Marketers at the public relations
senior managers
Managerial or Journalists and
associate level, politicians
Market research
analysts

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Why is the inquiry made
Figure out focus on product features
Gain competitive advantages
Get more people to purchase
Check strategic or creative approach
Reverse decaling market share
Clarify problem or what's up with the competition
Uncertainty or missing piece of puzzle
Stuck at a fork in the road
Need additional information to make wise
decision

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Research Proposal (Assignment 2)
A document prepared by the researcher in
response to the research brief
Purpose: Propose how the business objectives
could be met by research – convert marketing
problem into research design
Contents of Research Proposal:
– Introduction
– Background
– Secondary data (including Lit Review)
– Proposed research design
– Proposed timing and costs

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Important!
A research proposal does not need to
keep exactly to the research brief
Remember, underlying problems may not
be apparent to managers
– The researcher’s role is to help uncover and
solve the real problem
BUT, it is important to satisfy the DM
objectives (or someone else will get the
work)

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 RESEARCH DESIGNS

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Research Designs

“How is our “We are losing “If I cut price by

market share market share, which 10%, how many
tracking?” customers have we customers will
lost?” return?”
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Exploratory Research
Initial research conducted to clarify and define
a problem, gain insights and discover new
ideas.
Purpose:
– progressively narrow the scope of the research
topic.
– transform ambiguous problems into well-defined
research objectives.
Subsequent research may be required to
provide conclusive evidence.
Exploratory Research Techniques

Exploratory

Secondary Pilot
Qualitative
Data Studies
Descriptive Research
Purpose is to describe characteristics of a
population.
– Example: Determining who purchases a product,
portraying the size of the market, identifying
competitors’ actions etc.
Seeks to determine the answers to who, what,
when, where and how questions.
– Segmentation and target marketing.
– Revealing the nature of consumer behaviour.
Requires an understanding of the problem
Descriptive Research Techniques

Descriptive

Secondary
Survey Observation
Data

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Causal Research
Main goal is to identify cause-and-effect
relationships among variables.
Identifying causality requires carefully
controlled experiments
– Manipulate one variable while holding all else
constant
– E.g. testing different price points in different
months and measuring demand
Causal Research Example

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So which design is best?
There is no single “best” design
– But some are better than others for each
situation
Things to consider:
– Nature of the problem (clear or ambiguous?)
– Research objectives
– Project scope (budget, time etc.)
Often, a combination of designs is “best”
Example: Combining Approaches
Symptom: Sales are dropping
•Secondary data: Industry demand is increasing.
New competitor has entered
Exploratory •Qualitative Interviews: The new brand is seen
as better value
•Surveys: 75% of our customers
Descriptive now shop at the competitor.
Perceptions of their prices are
better

Causal •Experiments: Test

new pricing structure

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Summary
Research designs can be exploratory,
descriptive, or causal
– Each have relative strengths and weaknesses
– The most appropriate depends on how well
the problem is defined

Often, a combination of methods is

used

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