Marketing Research

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Marketing Research

• 4.04

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Marketing Information Management

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

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4.04 Vocabulary

• Attitude Research
• Data Analysis
• Database Marketing
• Database
• Experimental Method
• Forced-choice Questions
• Market Intelligence
• Marketing Research
• Marketing Information System
• Media Research
• Observation Method

• Open-ended Questions
• Point-of-sale Research
• Primary Data
• Problem Definition
• Product Research
• Quantitative Research
• Qualitative Research
• Reliability
• Sample
• Secondary Data
• Survey Method
• Validity

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4.04 EssentialQuestion

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

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Essential Question 1 Marketing Research

• What is the role of marketing information
  management?

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What is Marketing Research?

• Obtaining information about the preferences,
  opinions, habits, trends, and plans of potential
  customers.
• Helps to determine what customers want and need.

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Marketing Research

• the systematic gathering, recording and
  analysing of data about problems relating to the
  marketing of goods and services
• American Marketing Association

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Why is Research Important?

• Businesses that do not pay attention to what
  consumers are buying, are likely to make costly
  mistakes.
• Information obtained from research helps
  businesses to plan for the future.

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Why is Research Important?

• Helps to anticipate or solve problems in the
  marketplace.
• Helps a company keep track of what is happening
  in its markets.

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Purpose
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Essential Question 2 Marketing Research

• How does each type of research differ from each
  other?

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Types of Marketing Research
Advertising Research

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

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Types of Marketing Research

• Product Research
• Used to evaluate product design and acceptance,
  competitive products, package design, and product
  usage.

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Types of Marketing Research

• Market Research
• Studies customer behavior (customer analysis) to
  gather information about customer attitudes.

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Types of Marketing Research

• Market Research
• Studies the behavior of a consumer market (market
  analysis) to investigate the potential markets
  for a product and to define the target market.

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Types of Marketing Research

• Sales Research
• The study of sales data to determine the
  potential sales for a product and to solve
  problems related to future sales.

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Essential Question 3 Marketing Research

• What are the steps in the marketing research
  process?

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The Marketing Research Process

• Step 1 - Defining the Problem
• Identify and clearly state what the problem is
  and what can be done to solve the problem.
• Determine which problems are the most important
  to solve at a given time.

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The Marketing Research Process

• Step 2 - Obtaining Data
• Collect and examine information in terms of the
  problem being studied.
• Primary data can be used and/or
• Secondary data can be used.

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The Marketing Research Process

• Step 3 - Analyzing the Data
• Compiling, analyzing, and interpreting the
  results of primary and secondary data.
• The results of each question can be clearly read
  and interpreted.

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The Marketing Research Process

• Step 4 - Recommending Solutions to the Problem.
• Solutions are usually presented in a well written
  report.
• Recommendations must be clear and supported by
  the research data.

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The Marketing Research Process

• Step 5 - Applying the Results
• The required form of action is decided upon and
  put into place.

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The Marketing Research Process

1. Set objectives
2. Define research Problem
3. Assess the value of the research
4. Construct a research proposal
5. Specify data collection method
6. Specify techniques of measurement
7. Select the sample
8. Data collection
9. Analysis of results
10. Present in a final report

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Essential Question 4 Marketing Research

• What are the differences in primary and secondary
  data?

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Types of Data

• Primary data Data obtained for the first time
  and used specifically for the particular problem
  or issue under study collected firsthand.
• Secondary data Data already collected for some
  purpose other than the current study already
  exists, desk research.

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Primary Research
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Market Research

• Primary Research
• First hand information
• Expensive to collect, analyse and evaluate
• Can be highly focussed and relevant
• Care needs to be taken with the approach and
  methodology to ensure accuracy
• Types of question closed limited information
  gained open useful information but difficult
  to analyse

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Secondary Research
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Internal Sources

• Company Accounts
• Internal Reports and Analysis
• Stock Analysis
• Retail data - loyalty cards, till data, etc.

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External Sources

• Federal Government Statistics (i.e. census, labor
  dept, etc.)
• Local Chamber of Commerce, Economic Development,
  City County Government, etc.
• Trade publications
• Commercial Data - Gallup, Mintel, etc.
• Household Expenditure Survey
• Magazine surveys
• Other firms research
• Research documents publications, journals, etc.

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Essential Question 5 Marketing Research

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

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Data Collection

• Primary data can be obtained by
• - the survey method
• - the observation method
• - the experimental method
• Secondary data can be obtained by a number of
  agencies.
• - Internet Sources
• - US and Government Sources
• - Specialized Research Companies
• - Business Publications and Trade Organizations

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Essential Question 6 Marketing Research

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

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Data Sampling

• When designing a survey, marketers must determine
  the number of people to include in their survey.
• Population The entire target group of people
  under study.
• Sample Part of the target population that
  represents it accurately.
• Sampling - studying part of a population to
  learn about the whole
• Bias Inaccuracies introduced into the results
  due to errors in measurement, coverage, and
  nonresponsive.
• Error Determined by the sample size with respect
  to the population. The greater the
  sample size, the lower the margin of error.

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Sampling Methods
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Market Research

• Sampling Methods
• Random Samples equal chance of anyone being
  picked
• May select those not in the target group
  indiscriminate
• Sample sizes may need to be large to be
  representative
• Can be very expensive

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Market Research

• Stratified or Segment Random Sampling
• Samples on the basis of a representative strata
  or segment
• Still random but more focussed
• May give more relevant information
• May be more cost effective

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Market Research

• Quota Sampling
• Again by segment
• Not randomly selected
• Specific number on each segment are interviewed,
  etc.
• May not be fully representative
• Cheaper method

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Market Research

• Cluster Sampling
• Primarily based on geographical areas or
  clusters that can be seen as being
  representative of the whole population
• Multi-Stage Sampling
• Sample selected from multi-stage sub-groups
• Snowball Sampling
• Samples developed from contacts of existing
  customers word of mouth type approach!

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Terminology of Marketing Research

• Quantitative research - statistical basis
• Qualitative research - subjective and personal

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Market Research

• Quantitative and Qualitative Information
• Quantitative based on numbers 56 of 18 year
  olds drink alcohol at least four times a week -
  doesnt tell you why, when, how
• Qualitative more detail tells you why, when
  and how!

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Essential Question 7 Marketing Research

• What are techniques are used in marketing
  research?

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Marketing Research Techniques

• Interviews
• face-to-face
• telephone
• postal questionnaire
• Attitude measurement
• cognitive component (know/believe about an
  act/object)
• affective component (feel about an act/object)
• conative component (behave towards an object or
  act)

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• Likert scale
• strongly agree
• agree
• neither agree nor disagree
• disagree
• strongly disagree
• Semantic differential scales - differences
  between words e.g. practical v impractical
• Projective techniques
• sentence completion
• psychodrama (yourself as a product)
• friendly martian (what someone else might do)

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• Group discussion and focus group
• Postal research questionnaires
• Diary panels - sources of continuous data
• In-home scanning - hand-held light pen to scan
  barcodes
• Telephone research
• Observation
• home audit
• direct observation
• In-store testing

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What is MKIS?

• MKIS (MIS) is a set of procedures and methods
  for the regular, planned collection, analysis and
  presentation of information for use in marketing
  decisions
• American Marketing Association

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The components of a computerised MKIS
Data Bank
Statistical Bank
MKIS
Display unit
Marketing Manager
Model Bank
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The components of a computerised MKIS

• Data bank - raw data e.g historical sales data,
  secondary data
• Statistical bank - programmes to carry-out sales
  forecasts, spending projections
• A model bank - stores marketing models e.g
  Ansoffs matrix, Boston Matrix
• Display unit - VDU and keyboard

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Essential Question 8 Marketing Research

• What are the advantages disadvantages of
  marketing research?

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Market Research

• Advantages of Market Research
• Helps focus attention on objectives
• Aids forecasting, planning and strategic
  development
• May help to reduce risk of new product
  development
• Communicates image, vision, etc.
• Globalisation makes market information valuable
  (HSBC adverts!!)

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Market Research

• Disadvantages of Market Research
• Information only as good as the methodology used
• Can be inaccurate or unreliable
• Results may not be what the business wants to
  hear!
• May stifle initiative and gut feeling
• Always a problem that we may never know enough to
  be sure!

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Essential Question 9 Marketing Research

• What are the trends and limitations in marketing
  research?

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Research Trends

• Trends in research
• Global Marketplace
• Due to increased international competition, US
  companies must improve or change products
  frequently to hold on to customers.
• Product quality and customer satisfaction are
  keys to business success and research that
  measures these qualities are the fast form of
  marketing research.
• Business Management
• Many businesses are using internal and external
  information to improve business operations.

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Research Limitations

• Limitations in research
• Money
• Time
• Customers saying one thing and doing another

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Market Research