Marketing Research

Marketing Research
The process of planning, collecting, and analyzing data relevant to a marketing decision.

Roles of Marketing Research

Descriptive
Gathering and presenting factual statements

Diagnostic

Explaining data
Attempting to estimate the results of a planned marketing decision
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Predictive

Management Uses of Marketing Research

Improve the quality of decision making
Trace problems

Focus on keeping existing customers

Understand the ever-changing marketplace

Marketing Research Problem

Determining what information is needed and how that information can be obtained efficiently and effectively

Secondary Data

Data previously collected for any purpose other

than the one at hand.

Sources of Secondary Data

Internal Corporate Information
Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications

News Media
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Advantages of Secondary Data

Saves time and money if on target
Aids in determining direction for primary data collection Serves as a basis of comparison for other data

Disadvantages of Secondary Data

May not be on target with the research problem Quality and accuracy of data may pose a problem

The New Age of Secondary Information: The Internet

Search Engines and Directories Sites of Interest to Marketing Researchers (AMA, FTC, American Demographics, etc.) Discussion Groups Periodical, Newspaper, and Book Databases
www

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Research Design
Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

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Primary Data
Information collected for the first time. Can be used for solving the particular problem under investigation.

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Advantages of Primary Data

Answers a specific research question
Data are current

Source of data is known

Secrecy can be maintained

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Disadvantages of Primary Data

Expensive Quality declines if interviews / questionnaires are lengthy Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data!
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Survey Research
The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

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Forms of Survey Research

In-Home Interviews

Mail Surveys

Mall Intercept Interviews

Executive Interviews

Telephone Interviews

Focus Groups

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Focus Group
Seven to ten people who participate in a group discussion led by a moderator.

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Advantages of On-Line Focus Groups

Speed

Cost-effectiveness
Broad geographic scope Accessibility Honesty

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Questionnaire Design
Open-Ended Question
An interview question that encourages an answer phrased in respondents own words.

An interview question that asks Closed-Ended the respondent to make a selection Question from a limited list of responses.

ScaledResponse Question

A closed-ended question designed to measure the intensity of a respondents answer.

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Types of Questions in Questionnaire Design

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Questionnaire Design
Clear and Concise

No Ambiguous Language Qualities of Good Questionnaires

Unbiased

Reasonable Terminology
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Observation Research
A research method that relies on three types of observation:
people people

watching people watching an activity watching people

machines

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Observation Research
People Watching People
Mystery Shoppers One-Way Mirrors

Types of Observation Research

People Watching an Activity Machines Watching People

Audits

Traffic Counters

Passive People Meter

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Mystery Shoppers
Researchers posing as customers who gather observational data about a store and collect data about customer-employee interactions.

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Experiment

A method a researcher uses to gather primary data in which one or more variables are altered to determine their affect on another variable.

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Sampling Procedure
Sample Universe
A subset from a large population. The population from which a sample will be drawn.

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Sampling Procedure

Universe

Sample
Probability Samples

Non-Probability Samples

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Probability Samples
Probability Sample Random Sample
A sample in which every element in the population has a known statistical likelihood of being selected. A sample arranged so that every element of the population has an equal chance of being selected.

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Nonprobability Samples
Nonprobability Sample Convenience Sample
Any sample in which little or no attempt is made to get a representative cross-section of the population. A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.

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Types of Errors
Measurement Error Sampling Error Frame Error Random Error
Error when there is a difference between the information desired and the information provided by research
Error when a sample somehow does not represent the target population. Error when a sample drawn from a population differs from the target population. Error because the selected sample is an imperfect representation of the overall population.
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Field Service Firm

A firm that specializes in interviewing respondents on a subcontracted basis.

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Field Service Firms

Provide:
Focus group facilities Mall intercept locations

Test product storage

Kitchen facilities

Retail audits

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Data Analysis
One-Way Frequency Counts

Record responses to a question

Cross-Tabulation

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Cross-Tabulation
A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.

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Preparing and Presenting the Report

Concise statement of the research objectives Explanation of research design Summary of major findings

Conclusion with recommendations

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Following Up
Were the recommendations followed? Was sufficient decision-making information included in the report? What could have been done to make the report more useful to management?

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Impact of the Internet

Allows better and faster decision making
Improves ability to respond quickly to customer needs and market shifts

Makes follow-up studies and research easier

Slashes labor- and time-intensive research activities
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Advantages of Internet Surveys

Rapid development, Real-time reporting Reduced costs Personalized questions and data Improved respondent participation Contact with the hard-to-reach
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Internet Samples
Unrestricted Internet Sample
Screened Internet Sample Recruited Internet Sample
A survey in which anyone with a computer and modem can fill out the questionnaire. An Internet sample with quotas based on desired sample characteristics. A sample in which respondents are prerecruited and must qualify to participate.
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Sales Forecasting
Companies also use market research in order to predict future sales. Look at historical data, sales analysis and predict what sales will be in the future. **Important always but, even more so if your company is launching a new product or installing a new marketing plan based on research factors.
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