Marketing Essentials

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Marketing Essentials
n Chapter 29 Conducting Marketing Research
Section 29.1 Marketing Research
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SECTION 29.1
Marketing Research
What You'll Learn

• The steps in conducting marketing research
• The difference between primary and secondary data
• The various methods used to collect primary and
  secondary data

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SECTION 29.1
Marketing Research
Why It's Important
Businesses that want to increase their customer
base must have information about the attitudes
and behaviors of customers and prospective
customers. Marketing research can provide
information for strategies that will increase
sales and profits.
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SECTION 29.1
Marketing Research
Key Terms

• observation method
• point-of-sale research
• experimental method
• data analysis

• problem definition
• primary data
• secondary data
• survey method
• sample

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SECTION 29.1
Marketing Research
The Marketing Research Process
The five steps that a business follows when
conducting marketing research are 1. Defining
the problem. 2. Obtaining data. 3. Analyzing
the data. 4. Recommending solutions. 5.
Applying the results.
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SECTION 29.1
Marketing Research
Step 1 Defining the Problem
The most difficult step in the marketing research
process is defining the problem. Problem
definition occurs when a business clearly
identifies a problem or research issue and the
information that is necessary to solve it.
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SECTION 29.1
Marketing Research
Step 2 Obtaining Data

• In obtaining data, companies collect and examine
  data (facts) in terms of the problem or problems
  being studied. There are two types of data used
  in marketing research
• primary data
• secondary data

Slide 1 of 2
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SECTION 29.1
Marketing Research
Step 2 Obtaining Data
Primary data are data obtained for the first time
and used specifically for the particular problem
or issue under study. Secondary data have
already been collected for some purpose other
than the current study. Secondary data are less
expensive to collect than primary data.
Slide 2 of 2
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SECTION 29.1
Marketing Research
How Secondary Data are Obtained

• Secondary data are obtained from both internal
  sources (within the company) and external sources
  (outside the company). Sources of secondary data
  include
• A businesss own marketing information system.
• The Internetdigital dossiers provide company
  profiles, income statements, and balance sheets.

Slide 1 of 2
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SECTION 29.1
Marketing Research
How Secondary Data are Obtained

• U.S. government sources, such as the Small
  Business Administration, Department of Commerce,
  Census Bureau, and Securities and Exchange
  Commission.
• Consumer and business information companies.
• Business and trade publications.

Slide 2 of 2
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SECTION 29.1
Marketing Research
Advantages of Secondary Data
Secondary data can be obtained easily, since the
data are either on the Internet, in corporate,
public, and college libraries, or can quickly be
purchased from syndicated services.
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SECTION 29.1
Marketing Research
Disadvantages of Secondary Data

• There are two major disadvantages associated with
  secondary data
• The existing data may not be suitable or
  available for the problem under study.
• The data may not be accurate.

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SECTION 29.1
Marketing Research
How Primary Data Are Obtained

• When marketing researchers cannot find the
  information they need from secondary data, they
  collect primary data. Primary data may be
  collected using three methods
• the survey method
• the observation method
• the experimental method

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SECTION 29.1
Marketing Research
The Survey Method
The survey method, the most frequently used
method, is a research technique in which
information is gathered from people through the
use of surveys or questionnaires. In a census,
researchers survey the entire target
population. More common is the use of a sample, a
part of the target population that is assumed to
represent the entire population.
Slide 1 of 3
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SECTION 29.1
Marketing Research
The Survey Method
Surveys can be conducted in person, by phone, by
mail, or by using Internet technologies. The
personal interview involves questioning people
face-to-face, often in central locations such as
shopping malls (a mall intercept interview). A
focus group interview involves 8 to 12 people
brought together to evaluate a specific product,
service, or idea.
Slide 2 of 3
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SECTION 29.1
Marketing Research
The Survey Method
Less expensive than personal interviews are
phone, mail, and Internet surveys. Phone
interviews often have low response rates. Mail
surveys have better, but still low, response
rates. Internet survey methods are increasing in
popularity. They are quick they eliminate data
entry and they allow real-time data collection.
Slide 3 of 3
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SECTION 29.1
Marketing Research
Rating Quality of Service
Charts such as this one are typically included in
a research report. Why are charts often included?
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SECTION 29.1
Marketing Research
The Observation Method
The observation method is a research technique in
which the actions of people are watched and
recorded either by cameras or observers. Properly
performed and recorded observations supply better
results than survey techniques provide. Mystery
shoppers are researchers posing as customers in
retail stores to evaluate salespeople.
Slide 1 of 3
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SECTION 29.1
Marketing Research
The Observation Method

• The observation technique may use either
  contrived or natural situations.
• The researcher sets up contrived observations.
• Example Allowing children to play with
  selected toys to determine which is most
  popular.
• In natural observation, customers or employees
  are viewed as they would normally act in a given
  situation.
• Example Hidden cameras, traffic counts.

Slide 2 of 3
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SECTION 29.1
Marketing Research
The Observation Method
Point-of-sale researchers observe shoppers to
decide which ones to choose as research
subjectsshoppers buying a specific type of
product, product brand, or shoppers who inspect a
product but do not buy it. After observation,
researchers approach the selected shoppers and
ask them questions.
Slide 3 of 3
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SECTION 29.1
Marketing Research
The Experimental Method
The experimental method, the least-often used
method, is a research technique in which a
researcher observes the results of changing one
or more marketing variables while keeping certain
other variables constant under controlled
conditions.
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SECTION 29.1
Marketing Research
Step 3 Analyzing the Data
Data analysis is the compiling, analyzing, and
interpreting of the results of primary and
secondary data collection.
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SECTION 29.1
Marketing Research
Step 4 Recommending Solutions to the Problem
Successful research results in information that
helps businesses make decisions on how to solve a
problem. The conclusions drawn from the research
usually are presented in an organized and
well-written report.
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SECTION 29.1
Marketing Research
Step 5 Applying the Results
Managers use the research report to make
decisions about marketing strategies in relation
to the researched problem or issue. In evaluating
the research, managers may find that the research
was inconclusive, additional research may be
needed, or the research suggests specific courses
of action.
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ASSESSMENT
29.1
Reviewing Key Terms and Concepts
1. What are the five steps for designing and
conducting a research study? 2. Explain the
difference between primary and secondary
data. 3. Name the methods used most frequently to
collect secondary data. 4. Name the methods used
most frequently to collect primary data. 5. What
is meant by data analysis?
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ASSESSMENT
29.1
Thinking Critically
Many retail stores now ask customers after each
sale to give their phone number or ZIP code. Do
you support this type of data collection? Why or
why not?
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29.1
Graphic Organizer
The Marketing Research Process
Define the problem
Obtain Data
Analyze Data
Recommend Solutions
Apply Results
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Marketing Essentials
End of Section 29.1