MKT 421
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MKT421Week2SolvingtheProblemFive-StepMarketingResearchApproachPresentation2.pptx
tHe 5-step marketing Research approach
Nicholas Ibis
MKT/421
Janruary 20, 2020
I will be going over the 5 step marketing research Approach and providing examples.
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Five step marketing research approach
Defined: “Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.” (Kerin & Hartley, 2017)
Five-Step Marketing Research Approach
Marketing research is not a perfect system. Although one can analyze trends fairly accurately, it is difficult to predict the impact of a marketing approach, and how effective it will be.
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Five step marketing research approach
Defined: The Five-Step Approach:
Five-Step Marketing Research Approach
Our text defines the five steps as: define the problem, develop the research plan, collect relevant information, develop findings, and take marketing action.
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Five step marketing research approach
Step 1: Define the Problem
As the marketing manager for a local nonprofit charity whose funding is based on membership fees, I've noticed a severe drop in new memberships and a decline in repeat memberships, which is threatening our organization's ability to survive and grow.
Five-Step Marketing Research Approach
Reduction in membership, new and repeat will limit the amount of funds available to the charity, therefore resulting in a reduction in ability to support the needs of the charity.
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Five step marketing research approach
Step 1: Define the Problem
What is the reason for the decrease in new membership?
Why are repeat memberships decreasing?
“In setting research objectives, marketers have to be clear on the purpose of the research that leads to marketing actions.” (Kerin & Hartley, 2017) In this scenario it is critical to research and define reasons why the organization is no longer receiving support.
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Five step marketing research approach
Step 1: Define the Problem
Economic? Are dues too high for the current market?
Transparency? Do members understand the charitable spending plan and how contributions are allocated?
Ethical? Do current/future members agree with the way funds are spent and allocated? Was there a recent scandal? What is the current public opinion surrounding the organization?
Leadership Ideals? Do members agree with the organization cabinet members and their philosophy regarding the future of the organization?
“Effective decision makers develop specific measures of success, which are criteria or standards used in evaluating proposed solutions to the problem. Different research outcomes, based on the measure of success, lead to different marketing actions.” (Kerin & Hartley, 2017)
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Five step marketing research approach
Step 2: Develop the Research Plan
What is the most effective way to collect RELEVANT data?
Five-Step Marketing Research Approach
Specify constraints, identify data needed for marketing actions, and determine how to collect data. In this particular scenario the best option may be to poll existing members on organizational climate, contact and inquire with previous members that recently left as to why, and query potential members about what they expect from the organization.
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Five step marketing research approach
Step 2: Develop the Research Plan
Population Sampling: poll existing members, previous contributors, and potential contributors
Utilize statistical inference to determine overall health and future potential of the organization
Statistical inference may not be accurate in this scenario, however it is important to utilize the information as a gauge of the overall heath and potential of the organization. Results will show morale and culture within the remaining members of the organization.
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Five step marketing research approach
Step 3: Collect Relevant Information
Five-Step Marketing Research Approach
Collecting relevant information may be the most difficult part of the process.
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Five step marketing research approach
Step 3: Collect Relevant Information
Secondary Data
Research shows that returning membership is declining and new membership and there is a severe decline in new membership
Five-Step Marketing Research Approach
Collecting relevant information may be the most difficult part of the process.
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Five step marketing research approach
Step 3: Collect Relevant Information
Primary Data
Five-Step Marketing Research Approach
Polling results show that the biggest deterrence to membership was inability to support financially due to current economic trends. Secondary deterrence was time available to support, while few previous members indicated that their values no longer lined up with the direction that organization was heading.
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Reasons for Decline in Membership
Sales Economic/Available Capital Available Time Ethical Indicators 9 2 0 0.2
Five step marketing research approach
Step 4: Develop Findings
Recent polling of the intended audience showed Economic Factors as the primary deterrence to membership. Previous, current, and future members have indicated that the price of dues are too high to continue to support the organization given the current economic climate and the way they wish to allocate spending in their households.
Secondary factor to decline in membership indicated time available to support the organization.
Five-Step Marketing Research Approach
Analyze data, present findings,
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Five step marketing research approach
Step 5: Take Marketing Actions
Create a campaign to reinforce the importance of the organization to the community
Develop marketing strategy to continually attract new members
Five-Step Marketing Research Approach
Evaluate results and implement action recommendations. You can attempt to reduce the price of dues, however the organization and it’s beneficiaries could suffer. Develop marketing campaign to reinforce the importance of the organization to the community, and develop a marketing strategy that will continually attract new members through innovation.
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Five step marketing research approach
Types Research Data:
Primary
Pro: Real-time facts about the current state of affairs for a given scenario
Con: Must collect relevant data
Secondary
Pro: Facts that are already known
Con: Facts may be antiquated or out dated; may not accurately reflect the current state of affairs
Five-Step Marketing Research Approach
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Alternative methods of conducting Market research
Five-Step Marketing Research Approach
Secondary Research is known facts, however primary research can include employing a variety of methods to garner the information necessary to achieving desired results for an organization.
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Differentiation
Changes typically appear in a product or service the development stage.
“To help differentiate a company’s brand from competitors, an improved version or new features are added to the original design, and product proliferation occurs.” (Kerin & Hartley, 2017)
Five-Step Marketing Research Approach
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Differentiation
How can our organization differentiate itself from other non-profit organizations to attract future members and retain current members?
Make our mission, intentions, and achievements widely known through strategic marketing campaigns.
Change culture of thought from “Dues” to “Contributions”
Reach out to other organizations to foster teamwork to achieve community support goals (i.e. military organizations, Boy Scouts, Girl Scouts, Red Cross, etc.)
Produce a quarterly newsletter clearly identifying how contributions are being allocated
Five-Step Marketing Research Approach
The term “dues” often lends itself to the negative connotation associated with the term “fees” , whereas the term contributions feels more positive, therefore lending people to be more apt to contribute.
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References
Kerin, R. A., & Hartley, S. W. (2017). Marketing (13th ed.). : McGraw Hill Education
Guy, M. R., Guy, M. R., says:, A., says:, M. R. G., says:, T., Says:, V., … Zaman, A. (2019, August 12). Market Research Methods. Retrieved January 20, 2020, from http://www.mymarketresearchmethods.com/an-overview-of-market-research-methods/
Five-Step Marketing Research Approach
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