Marketing Research

Exam Type Questions

1. Explain the importance of information to the company and its understanding of the marketplace.

2. Outline the steps in the marketing research process.

3. What is meant by primary and secondary data?

Managing Marketing Information

Information needs of organization: customer value & satisfaction

Competitors, resellers, and other forces in the marketplace

Wal-Mart daily data equivalent to 96000 DVDs

Marketers need better information Marketing information system: consists

of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.

Developing Information Internal databases: electronic collection of

consumer and market information obtained from data sources within the company network.

Accounting department keeps detailed records of sales, costs, and cash flows.

Operations department reports on production schedules, shipments, and inventories.

Marketing department furnishes information on customer transactions, demographics, psychographics, and buying behavior.

Pizza Hut database: 40 million US households gleaned from 7,500 restaurants. Coupon offers on the basis of data.

Quickly and easily developed

May be incomplete and not serve specific purpose

Marketing Intelligence

The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment

Marketing Intelligence

Quizzing employees Benchmarking products Researching the internet Trade shows and exhibitions Annual reports Business publications and ads Trash bins routing Microsoft vs Google example

Marketing Research

Formal studies of specific situations Samsung Plasma, Pizza Hut sales Marketing research is the systematic

design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Market potential, market share, formulate marketing mix strategy

Own research department, consultants, research companies (ACNielson)

Marketing Research Process

Involves four steps: defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings.

Defining the Problem and Research Objectives

A difficult ask: the manager may know that something is wrong, without knowing the specific causes.

Once problem defined, research objectives must be set.

Exploratory research: to gather preliminary information that will help define problems and suggest hypotheses.

Descriptive research: to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of customers.

Causal research: to test hypotheses about cause and effect relationship. For example, would 10 % decrease in tuition fee result in an enrollment increase.

Defining the Research Plan

Specific information needsExisting data and spells specific

research approaches, contact methods, sampling plans and instruments to gather data

Campbell soup exampleWritten proposal contains

research costs

Secondary Data

Information that already exists somewhere, having been collected for other purpose.

Internal data bases, buying secondary reports, online data bases (Dialog, ProQuest, LexisNexis)

Can be obtained more quickly at lower cost

Needed information may not exist

Primary Data

Information collected for the specific purpose at hand.

Relevant, accurate, current and unbiased

Collection of primary data may involve research approaches, contact methods, sampling plan, and research instruments.

Research Approaches

Observational research: the gathering of primary data by observing relevant people, actions, and situations.

Example bank (neighborhood conditions, location of competing branches, traffic routes)

Ethnographic Research

A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural habitat” Example Marriot hotel

Survey Research

Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Experimental Research

Gathering primary data by selecting matched groups of subjects giving them different treatments, controlling related factors, and checking differences in groups.

Contact Methods

MailTelephonePersonal InterviewingFocus groups interviewingOnline marketing research

Sampling Plan

Drawing conclusions about large group of customers by studying a small sample of the total consumer population.

Sampling decision for a car

Probability Sample

Simple random sample: every member of the population has a known and equal chance of selection.

Stratified random sample: the population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group

Cluster (area) sample: the population is divided into mutually exclusive groups (such as blocks), and the researchers draws a sample of the groups to interview

Non Probability Sample

Convenience sample: the researcher selects the easiest population members from which to obtain information

Judgment sample: the researcher uses his or her judgment to select population members who are good prospects of accurate information.

Quota sample: the researcher finds and interviews a prescribed number of people in each of several categories

Research Instrument

Questionnaire Mechanical devices

Implementing the Research

Collecting, processing and analyzing information

Isolate important information

Tabulate results

Interpreting and Reporting the Findings

Interpret findings, draw conclusion and report them to management.

Mangers too have to interpret information

Both share responsibility