MARKETING RESEARCH:

1
CHAPTER 2

• MARKETING RESEARCH
• PROCESS AND SYSTEMS FOR
• DECISION MAKING

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Benefit of Research

• Assist to decision making
• Information from market/customer
• Help to improve performance
• The Benefit Formula
• V(dr) - V(d) gt C(r) where
• V(dr) decision with benefit
• V(d) decision without benefit
• C(r) cost of research

3
Marketing Information System

• There are more information than they are needed
• There are more wrong kind than the right
  information.
• Information is disperse and great effort is
  needed to locate simple facts.
• Vital information often arrives too late.
• Information gathered may not be accurate.

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The Marketing Intelligence System

• Computerized data base
• Information gathering in a controlled an
  coordinated fashion(MIS) Data, information,
  intelligence(interpretation).
• System structure-right information at the right
  time

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Secondary data

• Libraries
• Directories and newsletters-trade association
• Commercial information providers-Dun Bradstreet
• Databases-Internet and Web pages
• Trade association-Retailing Association, American
  Marketing Association

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Evaluating Secondary Data Sources and Quality

• Source quality-who collected, how it is collected
• Data quality-accuracy, reliability and
  timeliness data collection methods-daily,
  weekly, monthly and yearly.
• Data compatibility and comparability

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Primary Marketing Research

• Suppliers of primary research (1) syndicated
  research firms-A.C. Nielsen, SAMI store audit,
  home audit, diary method. omnibus surveys,
  (2)custom research-specific research task

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Marketing Decision Support System

• The purpose is that the right information is
  available at the right time for the right
  decision maker.
• Environment and market
• Internal and external
• Marketing information center
• Computerized data gathered internally and
  externally
• Marketing decision making
• Problem solving approach

9
The Marketing Research Process

• Defining the objectives-problem identification
• Determining the level exploratory
  (insufficient), descriptive(more popular), or
  causal(time-consuming).
• Determining the research approach
• (1) Qualitative-observation, in-depth
  interviews, focus group,

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The Marketing Research Process (Cont.)

• (2) Quantitative research-experimental
  research(before-and-after design)
• Questionnaire design(survey research) They must
  be (a)comprehensive (b)simple, clear and not too
  long.
• Sample size determination and selection
  selection-probability and non-probability

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Marketing Research Process (Cont.)

• Purpose-problem identification
• Plan of the research
• Performance of the research
• pre-testing and validation
• Processing research data
• Coding and editing
• Research report

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Research Process (cont.)

• Collecting the data Mail, telephone, personal
  interviews
• Analyzing the data-multivariate analysis
• Report writing and presentation
• 1. Relevance to specific need
• 2. Reliability of findings
• 3. Accuracy of recommendation
• 4. Bias(free from distortion)

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Problems of the Research Process

• Representation improperly selected.
• Sample selection and size are not properly
  formulated.
• Pre-testing is not completed.
• Questionnaires are not tested before they are
  used in the research.
• Market test is too short before it is determined
  that consumers like it