Marketing Research Prof.
Weon Sang YOO
Marketing Research
Week 2
Professor Weon Sang YOO
Korea University Business School
Week 2
Marketing Research Prof. Weon Sang YOO
Agenda
• What is Marketing Strategy?
• Why Do We Need Marketing Research?
(마케팅 조사의 필요성)
• What is Marketing Research?
(마케팅 조사란 무엇인가?)
Week 2
Marketing Research Prof. Weon Sang YOO
What is Marketing Strategy?
전략적 마케팅 계획이란?
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Marketing Research Prof. Weon Sang YOO
Resources
-> Strategy -> competetive
Skills (Rnd, Production, Mangements, Marketing)
I. The Two Pillars (두 기둥)
External
: environment competitive advantages, customer royalty :
!
Business
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Marketing Research Prof. Weon Sang YOO
The Two Pillars (두 기둥)
Competitive, Dynamic, Global
Internal Orientation External Orientation
Uncertant
Cost Reduction Competition
Quality Control Customers
Productivity Distribution Channel
Labor Relations Strategic Alliance
……. ……
Easier to control
alternative
Doing things right Doing the right thing
What to do is clear : how to do !
Operational Efficiency Strategic Market Orientation
Productivity
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Marketing Research Prof. Weon Sang YOO
The Two Pillars (두 기둥)
Harley-Davidson:
Building on the Two Pillars
Market Share
70% (1973)
28% (1986)
4 !
80% (2001)
Stock Price Good & Cheap vs Unique & Atractive livestyle
$0.33 (1986) Core customer value ->
Efficient machine (x)
$55 (2002) (o)
$62 (2006)
Week 2
Marketing Research Prof. Weon Sang YOO
The Good, The Bad, & The Ugly
II. The Good, The Bad, & The Ugly
Attitudinal (psychological)
!
Loyalty
Behavioral
! !
Week 2
Marketing Research Prof. Weon Sang YOO
The Good, The Bad, & The Ugly
“The goal of marketing is to own the market,
not just to sell the product.”
(Regis McKenna, “Marketing is everything” Harvard Business Review)
Type Focus Short Term Long Term
Attitudal loyalty
Owning the Profitable/
Good Market
Profitable
Unprofitable
Bad Selling to the
Profitable Vulnerable
(mediocre?) Market
maximize behavioral loyalty
WITHOUT Attitudal loyalty
Buying the
Ugly Market
Unprofitable Unprofitable
!
Week 2
Marketing Research Prof. Weon Sang YOO
The Good, The Bad, & The Ugly
Example
Harley Davidson
attitudinal loyalty
market share
(behavioral loyalty)
bad marketing
attitudinal loyalty
’73 ’86 ’02
Hyundai Excel: Best selling import car in US (1987)
Week 2
Marketing Research Prof. Weon Sang YOO
The Good, The Bad, & The Ugly
Reebok vs. Nike
U.S. Market Share Trends
Year Nike Reebok
1979 #1 $400K revenue
1984 31% 3.3%
1987 18.6% 32.2% Rebook Freestyle
1990 , 29% nike loss popularity 21% -> ,
1993 32% 21% Re purchase cycle is too short
1998 47% 16%
2004 45% 11%
1. nike get higher attitudinal loyalty
• 1979: Reebok’s 1st year in the US market Reebok Freestyle white low-top aerobic shoe
2. decrease
• 1984: Reebok “Freestyle”
• 1988: Nike “Just Do It!”
• 2003: LeBron James gets $90 million Nike contract
Week 2
Marketing Research Prof. Weon Sang YOO
Evergreen or Chameleon?
III. Evergreen or Chameleon?
Week 2
Marketing Research Prof. Weon Sang YOO
Core of “Good” Marketing:
Strategic Market Orientation
▪ Strategic Focus keep and protect
Creation of Unique and Valuable Position Nike : core customer value
Consistency, Sustainability
instant image
▪ Market Orientation change somthing
“Today’s marketing is totally different.”
Creativity, Flexibility Nike : tools (ways) to deliver CCV
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Marketing Research Prof. Weon Sang YOO
Evergreen or Chameleon?
Marketing Strategy (전략적 마케팅 계획)
• Mission and Vision (기업 사명과 비전)
• Marketing Objectives/Goals
• Targeting
• Positioning
• Marketing Mix
Product / Pricing / Promotion / Place
It depends!!!
Week 2
Marketing Research Prof. Weon Sang YOO
Evergreen or Chameleon? STRATEGIC OBJECTIVE
Marketing Management
IT DEPENDS
strategic objective
Environment Analysis Marketing Strategy Marketing 4P Mix
Macro Environment Market Product
Micro Environment Segmentation Price
(3 C’s) Place(Distribution)
Competitors
Promotion
Company Targeting Positioning
Customers
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Marketing Research Prof. Weon Sang YOO
MR: Official Definition
Marketing research is the function that 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. Marketing research specifies the
information required to address these issues, designs the
method for collecting information, manages and
implements the data collection process, analyzes, and
communicates the findings and their implications.
American Marketing Association (AMA)
Week 2
Marketing Research Prof. Weon Sang YOO
MR: Unofficial Definition
MR plays an essential role in translating data
into useful information to generate ideas
for a marketing problem or an action
Decision
Action
Company Market
Information Data
MR
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Marketing Research Prof. Weon Sang YOO
Questions You Can Answer by MR
• Product • Consumer
• Price • Competitor
• Place • Company
(Distribution)
• Environment
• Promotion
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Marketing Research Prof. Weon Sang YOO
Role of MR in Decision Making
• Identifying problems (문제) and opportunities (기
회)
– Company
– Industry
– Environment
• Identifying (찾아내고) and evaluating (평가한다)
decision alternatives (의사결정 대안들을 )
• Improve Marketing as a Process (Expanding basic
knowledge about Marketing)
Week 2
Marketing Research Prof. Weon Sang YOO
Who Needs MR?
• Hyundai Motors? • Elon Musk?
• E-mart? • Dean of KUBS?
• POSCO? • A Sales Person in
• Korea Univ? Lotte Dept Store ?
• Samsung Hospital? • Yoo Weon Sang?
• Manchester United? • President of Korea?
• Korea Univ. News
Press?
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Marketing Research Prof. Weon Sang YOO
A Cycle of MR
Problem Formulation
Communication Research Design
Data & Sample Design
Analysis and
Interpretation
Data Collection
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Marketing Research Prof. Weon Sang YOO
Before we start: Need MR?
MR is NOT needed WHEN
• Information is already available
• Decisions must be made now
• We cannot afford research
• Costs outweigh the value
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Marketing Research Prof. Weon Sang YOO
Value Should Exceed
Estimated Costs
Costs
Value • Research
•Decreased expenditures
uncertainty • Delay of marketing
•Increased likelihood decision and
of a correct decision possible disclosure
•Improved marketing of information to
performance and rivals
resulting higher • Possible erroneous
profits research results
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Marketing Research Prof. Weon Sang YOO
Problem Formulation (문제 정의)
• Managers and Researchers should have clear
communication to define the marketing
problem
• Symptom (증상) VS. Problem (문제 e.g., Sales
decrease of Xerox)
• Problems or Opportunities arise from three
sources: unplanned change, planned change,
and serendipity or chance ideas
• To determine whether MR can help decision
maker, marketing problems should be
translated into research objectives
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Marketing Research Prof. Weon Sang YOO
Research Objectives (연구 목적)
• When achieved, they provide the information
necessary to solve the problem
• Should be very specific and precise
• Summary: Symptom (증상), Marketing Problem
(마케팅 문제), or Research Objective (연구 목적) ?
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Marketing Research Prof. Weon Sang YOO
Types of Research Design
Exploratory Descriptive Causal
Discover Ideas and Describe Trends or Determine Cause and
Insights Relationships Effect
Our Notebook PC Who buys our Does ad influence
sales decrease. We Notebook PC and who Notebook
don’t know why. buys our PC purchases?
Time competitor’s?
Uncertainty
More specific hypothesis
Qualitative
Week 2
Marketing Research Prof. Weon Sang YOO
Data
• Primary Data (1차 자료)
– Data collected for the specific project you
are doing.
• Secondary Data (2차 자료)
– Data already collected
– Types of Secondary Data: Internal (내부) &
External (외부)
Week 2
Marketing Research Prof. Weon Sang YOO
Data Collection Method
• Specific data collection method
– Explorative (탐색적): Web, Focus group, In-
depth interview
– Descriptive (기술적): Mail survey (all survey
methods are descriptive.)
– Causal (인과적): Lab experiment or Field
experiment
Week 2
Marketing Research Prof. Weon Sang YOO
Questionnaire (설문지) Design
• Responses (응답 양식)
– Open questions (자유응답형)
– Multiple questions (선다형)
– Preference indication (선호 표시형)
• Develop measures (척도) of interest and
measuring instruments (측정 수단)
Week 2
Marketing Research Prof. Weon Sang YOO
Sampling
Selecting a Sample (표본)
Sample: subset
of a larger population, SAMPLE
representing the
population
POPULATION
(모집단)
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Marketing Research Prof. Weon Sang YOO
Sampling (표본 추출)
• Sampling methods: who?
– Probability sampling (확률표본)
– Non-probability sampling (비확률표본)
• Sample size (표본 규모): how many?
– Margin of error (정확도)
– Confidence level (신뢰수준)
– Diversity (or uniformity) of the population
(모집단의 다양성)
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Marketing Research Prof. Weon Sang YOO
Data Analysis (자료 분석)
• Tabulation (집계표)
• Analysis of Variance (분산분석)
• Regression (회귀분석)
• Conjoint Analysis (결합분석)
• Discriminant Analysis (판별분석)
• Factor Analysis (요인분석)
• Cluster Analysis (군집분석)
• Multidimensional Scaling (다차원 척도법)
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Marketing Research Prof. Weon Sang YOO
Research Report
• Table of contents
• Executive summary
• Introduction
• Methodology
• Results
• Limitations
• Recommendation and Conclusions
• Appendix
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Marketing Research Prof. Weon Sang YOO
What is (are) the most important
step(s) in the MR process, and Why?
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Marketing Research Prof. Weon Sang YOO
Topics Covered in This Course
Problem Formulation • Secondary Data
(Week3) • Primary Data
• Measurement and Scaling
Research Design
• Sampling
(Week3)
Data & Sample Design • Tabulation
(Week4~Week6) • Hypothesis Testing
• Analysis of Variance
Data Collection • Regression
(Week4~5) • Conjoint Analysis
• Discriminant Analysis
Analysis and Interpretation
• Factor Analysis
(Week7~Week13)
• Cluster Analysis
Communication • Multidimensional Scaling
(Week14~15)
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Marketing Research Prof. Weon Sang YOO
Next Class: Problem Formulation
• Do managers and researchers think alike?
• How to define marketing problems
• How to formulate research objectives
Week 2