Define the five-step marketing research approach and discuss the importance of research in marketing

Define the five-step marketing research approach and discuss the importance of research in marketing

nDefinition

nThe five-step marketing research approach refers to process of leading a successful research in marketing which include problem definition, research plan development, data gathering, data interpretation, and problem solving.

nImportance

nThe five-step marketing research approach is important because it helps the business to identify problems in different areas. In addition, it provides an effective way to comprehend the customers needs and the reasons they select certain services as opposed to its competitors. More importantly, this form of marketing research is imperative since they facilitate making informed choices about particular services. it can also assure the effectiveness of the marketing campaign since it assist in identification of new commercial opportunities. The FSMA provide a better process of minimizing loss in the firm. In so doing, the business can eliminate the chances of loss because it uses facts-based decision-making. The data collected is analyzed and interpreted to introduce new items that can assist in discovering loopholes and design plans to reduce losses.

nDescribe each step of FSMA – goals, example

nProblem Definition

nThe first step of the marketing research approach involves problem definition and establishment of the research objectives. The step is very crucial to the business because the marketing researcher must pay close attention the purpose of the research, the appropriate background data, what information is needed and ways it can be applied in decision making. Furthermore, problem definition encompasses dialoguewith the decision makers, discussion with industy professionals, review of secondary data. After the problem has been specifically defined, the researcher must develop the research objectives

nResearch Plan and Project design

nThe second step involves formulation of a plan to the existing problem. In addition, it also entails identification of factors or characteristics that can affect the research design. The process is conducted with industry experts and management, simulations and case studies, secondary data analysis, pragmatic considerations and qualitative research. Most importantly, the research should identify constraints, specify data required for marketing actions, and state the process of data collection. The investigator must also specify the sampling strategies, data collection instruments and techniques

nData collection

nA successful marketing research ensures that data is properly collected. More importantly, the researcher must make decision to collect primary or secondary data. The collection of primary data comprises a staff or field force that functions in the field through interviewing or from an workplace by telephone interviewing or email. Howe proper supervision, training, selection, and evaluation of data collection experts in the field assist in reduction of data collection mistakes. Primary data is collected through questionnaires. Secondary data is conducted through desktop research from previous researches.

nData analysis and interpretation

nPrior to data analysis, the researcher must prepare data through editing, transcription, coding, and verification. data analysis is used to determine the meaning of the information collected. Precisely, univariate and multivariate methods are utilized for analysing information when there is a single dimension of every element in the sample. Subsequently, interpretation of the findings should be done using based on the research objectives. Additionallly, findings must be presented in a understandable format.

nMaking marketing decision or actions

nThe final step encompasses making actions based on the recommendations of the research. The researcher should also implement actions suggested in the study and evaluate the outcomes of those actions.

nDefine two types of research data this process gathers and their pros and cons – examples

nPrimary data

nThe primary data is the kind of information that has been gathered by the researcher with a particular purpose. For instance, they include figures and facts newly gathered for the marketing project. Primary data can be acquired through questionnaires, observational checklist, or other sources such as experiments and panels, social media, and data mining. On the contrary secondary data is the data gathered by another individual apart from the user. For instance, they comprise figures and facts already documented before the marketing project. Secondary data can be obtained from internal data or external data. Internal data is generated from inside the organizations and include expenses and budgets, customer communications, actual sales or sales call reports. External data is attained from outside the organization such as UK census reports, web-based reports, business periodicals, magazines, and trade association trainings.

nSecondary data

nAdvantages of secondary data

nIt helps to save on resources and efforts hence it is economical. It is also less time consuming. It assists to design collection of prmary data be more focused and specific because secondary data enables identification of deficiencies and gaps and the kind of extra information should be gathered. It enhances the problem understanding and delivers foundation for comparison for information that is gathered by researcher.

nDisadvantages

nIt rarely fits in the marketing research framework. Moreover, it is prone to inaccuracies and researcher may not be prone. Finally, most of the information may be out-of-date.

nPrimary Data

nAdvantages

nPrimary data is reliable since the investigator can repeat the procedure to determine the outcome of the results. Primary data is more problem specific. It also provide up-to-data information hence deliver trustworthy solutions which can solve new challenges. It guarantees data quality since information is gathered directly from the population.

nDisadvantage

nIt is subject to a wide range of biases since the researcher attempts to collect data that fits their hypothesis. It also requires a huge sample to guarantee its credibility and ability to generalize. It is quite expensive and it require a lot of time in data collection since it demands direct and personal intervention.

nCompare and contrast the FSMA with two alternative methods for conducting marketing research – pros and cons

nObservation market research methods involve observational study of customers behaviours. it is intended to assess the real shopping patterns and usage habits of the customer. It is similar to the five-step marketing research approach since they both involve collection of data. Additionally, both research methods encompasses interactions between the researcher and respondent. However, observation and the five-step marketing research approach differs because in observational approach does not emphasize on the procedure prior to evidence-based decision making. Similarly, the five-step research approach does not measure the actions or conducts of patient during purchasing since it depends on customer reporting.

nPros

nIt helps to watch the actions of the customers without interaction hence it offer information that could not be obtained through customer reporting. Tracking of customers action can be used to optimize or redesign marketing strategies. it is robust on validity.

nCons

nObsersational marketing research sometimes infringes on the ethical principles of an individual and may also consume a lot of time. It also prone to subjective bias since it depends on the observer.

nField trials

nit is a marketing research that embroils the placement of a certain product in a particular store to assess the responses of the customer. Its intentions is to assist in prices adjustments, product modification, and enhance packaging. Field trials and five-step marketing are similar since they involves determination of the factors involving choice of a certain product. However, field trials has a comparison group as opposed to the five-step marketing research approach. Field trial enable the researcher to control the environment or settings relative to the five-step market research approach.

nPros

nIt asssit in optimizing the marketing process and can identify the reactions of the customers on real-life circumstances. Field trials guarantees objectivity since opinions and views of the researcher do not influence the study findings.

nCons

nIt is expensive to conduct since requires a lot of resources. Field trials are easily affected human errors due to unprecedented factors and errors with the trials.

nDefine what it means to differentiate a service

nService differentiation refers to a fundamental marketing and business strategy where a firm concentrates on distinctive differences in its customer offerings. In so doing, it acts as the foundation for creating a competitive advantage. For instance, businesses in the service-based industry use quality differentiation as an approach to entice and maintain customer. A local non-profit charity can use service differentiation to raise target market. for instance, it can achieve service differentiation by utilizing a service performance by offering services to its clients, delivering and promising constant high-quality service. It can use a customer-oriented and friendly approach. Ensure completed projects satisfy the feelings of the customers

nImportance of differentiation in the organization

nDiffe