Marketing ResearchMarketing ResearchUnit 7Unit 7

Marketing Information Marketing Information ManagementManagement

How are decisions made to introduce How are decisions made to introduce new products and delete old ones?new products and delete old ones?

Unit 7 VocabularyUnit 7 Vocabulary

Attitude ResearchAttitude Research Data AnalysisData Analysis Database MarketingDatabase Marketing DatabaseDatabase Experimental MethodExperimental Method Forced-choice QuestionsForced-choice Questions Market IntelligenceMarket Intelligence Marketing ResearchMarketing Research Marketing Information Marketing Information

SystemSystem Media ResearchMedia Research Observation MethodObservation Method

Open-ended QuestionsOpen-ended Questions Point-of-sale ResearchPoint-of-sale Research Primary DataPrimary Data Problem DefinitionProblem Definition Product ResearchProduct Research Quantitative ResearchQuantitative Research Qualitative ResearchQualitative Research ReliabilityReliability SampleSample Secondary DataSecondary Data Survey MethodSurvey Method ValidityValidity

Unit 7 EssentialUnit 7 EssentialQuestionQuestion

How does marketing How does marketing information and research affect information and research affect business and marketing business and marketing decisions? decisions?

What is the need for marketing What is the need for marketing information management?information management?

Essential Question 1 Essential Question 1 Marketing ResearchMarketing Research

What is Marketing Research?What is Marketing Research?

Obtaining information about the Obtaining information about the preferences, opinions, habits, trends, preferences, opinions, habits, trends, and plans of potential customers.and plans of potential customers.

Helps to determine what customers Helps to determine what customers want and need.want and need.

Why is Research Important?Why is Research Important?

Businesses that do not pay attention Businesses that do not pay attention to what consumers are buying, are to what consumers are buying, are likely to make costly mistakes.likely to make costly mistakes.

Information obtained from research Information obtained from research helps businesses to plan for the helps businesses to plan for the future.future.

Why is Research Important?Why is Research Important?

Helps to anticipate or solve problems Helps to anticipate or solve problems in the marketplace.in the marketplace.

Helps a company keep track of what Helps a company keep track of what is happening in its markets.is happening in its markets.

What is the nature and scope of the What is the nature and scope of the marketing information management marketing information management function?function?

Essential Question 2 Essential Question 2 Marketing ResearchMarketing Research

Marketing ResearchMarketing Research Marketing research is used to:Marketing research is used to:

Determine consumers’ attitudes and preferencesDetermine consumers’ attitudes and preferences Test product featuresTest product features Determine market size and growth potentialDetermine market size and growth potential Learn about competitive productsLearn about competitive products Determine buying cyclesDetermine buying cycles Understand how the company is perceived by Understand how the company is perceived by

the publicthe public

Consequences of poor ResearchConsequences of poor Research

http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/?photo=2

What are the different types of What are the different types of research (advertising, product, research (advertising, product, market, and sales) and the difference market, and sales) and the difference between qualitative and quantitative between qualitative and quantitative data?data?

Essential Question 3 Essential Question 3 Marketing ResearchMarketing Research

Types of Marketing ResearchTypes of Marketing Research

Focuses on the Focuses on the effectiveness of the effectiveness of the advertising message advertising message and the effectiveness and the effectiveness of media placement.of media placement.

Advertising ResearchAdvertising Research

Types of Marketing ResearchTypes of Marketing Research

Product ResearchProduct Research Used to evaluate product Used to evaluate product

design and acceptance, design and acceptance, competitive products, competitive products, package design, and package design, and product usage.product usage.

Types of Marketing ResearchTypes of Marketing Research

Market ResearchMarket Research Studies customer behavior (customer Studies customer behavior (customer

analysis) to gather information about analysis) to gather information about customer attitudes.customer attitudes.

Types of Marketing ResearchTypes of Marketing Research

Market ResearchMarket Research Studies the behavior of a consumer Studies the behavior of a consumer

market (market analysis) to market (market analysis) to investigate the potential markets for a investigate the potential markets for a product and to define the target product and to define the target market.market.

Types of Marketing ResearchTypes of Marketing Research

Sales ResearchSales Research The study of sales data to determine The study of sales data to determine

the potential sales for a product and the potential sales for a product and to solve problems related to future to solve problems related to future sales.sales.

Qualitative vs QuantitativeQualitative vs Quantitative

Qualitative ResearchQualitative Research:: Aims to Aims to gather an in-depth understanding of gather an in-depth understanding of human behavior and the reasons that human behavior and the reasons that govern such behavior. Investigates govern such behavior. Investigates the why and how of decision making, the why and how of decision making, not just what, where, when. Usually not just what, where, when. Usually uses smaller, focused samples.uses smaller, focused samples.

Qualitative vs QuantitativeQualitative vs Quantitative

Quantitative ResearchQuantitative Research:: The The systematic empirical investigation of systematic empirical investigation of social phenomena via statistical, social phenomena via statistical, mathematical or computational mathematical or computational techniques. Quantitative data is any techniques. Quantitative data is any data that is in numerical form such as data that is in numerical form such as statistics, percentages, etc.statistics, percentages, etc.

What is the nature of marketing What is the nature of marketing research?research?

Essential Question 4 Essential Question 4 Marketing ResearchMarketing Research

The Marketing Research The Marketing Research ProcessProcess

Step 1 - Defining the ProblemStep 1 - Defining the Problem

Identify and clearly state what the Identify and clearly state what the problem is and what can be done to problem is and what can be done to solve the problem.solve the problem.

Determine which problems are the Determine which problems are the most important to solve at a given time.most important to solve at a given time.

The Marketing Research The Marketing Research ProcessProcess

Step 2 - Obtaining DataStep 2 - Obtaining Data Collect and examine information in Collect and examine information in

terms of the problem being studied.terms of the problem being studied. Primary data can be used and/orPrimary data can be used and/or Secondary data can be used.Secondary data can be used.

The Marketing Research The Marketing Research ProcessProcess

Step 3 - Analyzing the DataStep 3 - Analyzing the Data Compiling, analyzing, and Compiling, analyzing, and

interpreting the results of primary interpreting the results of primary and secondary data.and secondary data.

The results of each question can be The results of each question can be clearly read and interpreted.clearly read and interpreted.

The Marketing Research The Marketing Research ProcessProcess

Step 4 - Recommending Solutions Step 4 - Recommending Solutions to the Problem.to the Problem.

Solutions are usually presented in a Solutions are usually presented in a well written report.well written report.

Recommendations must be clear and Recommendations must be clear and supported by the research data.supported by the research data.

The Marketing Research The Marketing Research ProcessProcess

Step 5 - Applying the ResultsStep 5 - Applying the Results The required form of action is The required form of action is

decided upon and put into place.decided upon and put into place.

What are the differences in What are the differences in primary and secondary dataprimary and secondary data??

Essential Question 5 Essential Question 5 Marketing ResearchMarketing Research

Types of DataTypes of Data

Primary dataPrimary data:: Data obtained for the Data obtained for the first time and used specifically for first time and used specifically for the particular problem or issue under the particular problem or issue under study.study.

Secondary dataSecondary data:: Data already Data already collected for some purpose other than collected for some purpose other than the current study.the current study.

What methods are used to collect What methods are used to collect primary and secondary data?primary and secondary data?

Essential Question 6 Essential Question 6 Marketing ResearchMarketing Research

Data CollectionData Collection Primary dataPrimary data can be obtained by: can be obtained by:

- the survey method- the survey method- the observation method- the observation method

- the experimental method- the experimental method

Secondary dataSecondary data can be obtained by a can be obtained by a number of agencies.number of agencies.

- Internet Sources- Internet Sources- US and Government Sources- US and Government Sources

- Specialized Research Companies- Specialized Research Companies- Business Publications and Trade Organizations- Business Publications and Trade Organizations

What data is monitored for What data is monitored for marketing decision making?marketing decision making?

Essential Question 7 Essential Question 7 Marketing ResearchMarketing Research

Marketing Information Marketing Information System (MIS)System (MIS)

Marketing Information System (MIS)Marketing Information System (MIS):: A continuing and interacting structure of A continuing and interacting structure of people, equipment and procedures to people, equipment and procedures to gather, sort, analyze, evaluate, and gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate distribute pertinent, timely and accurate information for use by marketing decision information for use by marketing decision makers to improve their marketing makers to improve their marketing planning, implementation, and control.planning, implementation, and control.

Marketing Information Marketing Information System (MIS)System (MIS)

External data includes: Markets Channels Competitors Political Legal Economic Technology

Marketing Information Marketing Information System (MIS)System (MIS)

Internal data includes: Financial Production Manpower Marketing Stockholding Logistical Orders received Sales invoices

How are population, sample, bias, How are population, sample, bias, error, validity, and reliability used error, validity, and reliability used in marketing research?in marketing research?

Essential Question 8 Essential Question 8 Marketing ResearchMarketing Research

Data SamplingData Sampling When designing a survey, marketers must

consider several factors:• Population: Population: The entire target group of people under study.The entire target group of people under study.• SampleSample: : Part of the target population that represents it Part of the target population that represents it

accurately.accurately.• Bias: Bias: Inaccuracies introduced into the results due to errors Inaccuracies introduced into the results due to errors

in measurement, coverage, and nonresponsive.in measurement, coverage, and nonresponsive.• Error: Error: Determined by the sample size with respect Determined by the sample size with respect to to

the population. The greater the sample size,the population. The greater the sample size, the lower the lower the margin of error.the margin of error.

Data SamplingData Sampling When designing a survey, marketers must

consider several factors:• Reliability: Reliability: Determines how consistently an instrument

yields similar results under varying conditions. If a measure has high reliability, it yields consistent results.

• Validity: Validity: The degree to which the instrument measures what it’s supposed to measure. If an instrument is not reliable over time, it cannot be valid. An instrument can be neither reliable nor valid, reliable and not valid or both reliable and valid. However, an instrument must

be reliable in order to be valid.

What are the trends and limitations What are the trends and limitations in marketing research?in marketing research?

Essential Question 9 Essential Question 9 Marketing ResearchMarketing Research

Research TrendsResearch Trends Trends in research:

• Global MarketplaceGlobal Marketplace- Due to increased international competition, US Due to increased international competition, US

companies must improve or change products frequently companies must improve or change products frequently to hold on to customers.to hold on to customers.

- Product quality and customer satisfaction are keys to Product quality and customer satisfaction are keys to business success and research that measures these business success and research that measures these qualities are the fast form of marketing research.qualities are the fast form of marketing research.

• Business ManagementBusiness Management- Many businesses are using internal and external Many businesses are using internal and external

information to improve business operations.information to improve business operations.

Research LimitationsResearch Limitations Limitations in research:

• MoneyMoney• TimeTime• Customers saying one thing and doing Customers saying one thing and doing

anotheranother