Marketing Research - Case Study Example

Marketing Research Case Study: SAT-RAD The purpose of this paper is to address two questions pertaining to budget decisions related to finding a representative sample to conduct research on. The format that this paper will utilize is to first identify the question and then provide a short answer. 1. How should you calculate the budget allocation for this project? Solution: I am inclined to agree with the advice given by V. Smith (Media Consultant). James Wiley (the Financial Director) indicated that the overall budget can only be $30,000.

However if the results of the initial pilot sample is un-representative than it may be wise to run a second pilot sample approximately 212 respondents at an approximate cost of $1,272 in a market other than Chicago. If the second sample provides similar results then the remaining funds from the $30,000 can be rolled out across the nation. Some of the strengths of this may be that if it is the case that the initial pilot sample was not representative than a new strategy can be devised, however if the pilot example is representative than we have a good understanding that the expanded study will generate positive results. 2. What could be the ramifications of your budget decisions?

Solution: The ramifications of my budget decision could be described as being low risk modest return. If it is the case that the second pilot study does yield positive results than we know that our approach to gathering information is sound and as such we can roll out our program into different markets. Moreover if we learn that we have generated some sort of false positive in the premier pilot study than it may be that we should have to completely reevaluate the way in which we collect the data.

If the former case holds true we would be rolling out approximately $30,000 and would generate effective information for the company to modify their marketing strategies but we would also be taking company money that could be spent on other internal projects. If the latter case holds true, we would have (More or less) wasted $2,544 of the company money conducting two pilot projects but we would not have wasted the full $30,000.