© 2004 McGraw-Hill Companies, Inc., McGraw-Hill RyersonSlide 8-2 TURNING MARKETING INFORMATION INTO ACTION C HAPTER

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson PUT FIGURE FROM PAGE 166 HERE

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Understand the importance of market information to companies, and the challenges and issues with acquiring and implementing a well-functioning information system. Comprehend the use and benefits of a marketing information system and market intelligence.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Describe a step-by-step approach to conducting market research. Explain how secondary and primary data are used in marketing.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Explain the uses of market research instruments such as questionnaires, observations, experiments, and panels. Comprehend alternative methods to forecast sales and use basic methods to generate a simple forecast.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson I. MARKETING INFORMATION REQUIREMENTS AND SYSTEMS MARKETING INFORMATION SYSTEM MARKETING INTELLIGENCE MARKETING RESEARCH COMPETITIVE INTELLIGENCE

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson II. THE ROLE OF MARKETING RESEARCH What is Marketing Research?  Marketing Research Marketing Research Challenges in Marketing Research Types of Research Information Exploratory, Descriptive, Causal Steps in the Marketing Research Approach

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-1 FIGURE 8-1 The basic marketing research process PUT FIGURE 8-1 HERE III. STEPS IN THE MARKETING RESEARCH APPROACH

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 1: DEFINE THE PROBLEM Establish Research Objectives  Objectives Objectives Identify Possible Marketing Actions  Measures of Success Measures of Success

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 2: DESIGN THE RESEARCH PLAN Identify Data Required and Sources of Data Design Methods of Collection  Concepts Concepts  Methods Methods Hypothesis Data Secondary Primary

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-2 FIGURE 8-2 Types of marketing information PUT FIGURE 8-2 HERE

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 3: CONDUCT EXPLORATORY RESEARCH Secondary Data Focus Groups Depth Interviews Moderator Observers Participants

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 3: CONDUCT EXPLORATORY RESEARCH (continued)  Secondary Data: Internal Secondary Data: Internal  Secondary Data: External Secondary Data: External  Advantages and Disadvantages of Secondary Data Advantages and Disadvantages of Secondary Data  Performing a Situation Analysis Performing a Situation Analysis

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 4: COLLECT PRIMARY RESEARCH INFORMATION Primary Data: Observing Behavior  Mechanical and Electronic Observation Mechanical and Electronic Observation Observational Data Observational Data  Personal Observation Personal Observation

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-4 FIGURE 8-4 Nielsen ratings of the top 10 national television programs from January 27, 2003 through February 2, 2003

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 4: COLLECT PRIMARY RESEARCH INFORMATION (cont.) Primary Data: Questioning Consumers Questionnaire Data Questionnaire Data Primary Data: Panels and Experiments Panel Panel Experiment Experiment Test Markets Test Markets Advantages and Disadvantages of Primary Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-5 FIGURE 8-5 Typical problems in wording questions

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-6 FIGURE 8-6 How do the techniques compare? INSERT FIGURE 8-6 FROM PAGE 182

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 5: COMPILE, ANALYZE AND INTERPRET DATA DATA INFORMATION

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson STEP 6: GENERATE REPORT AND RECOMMENDATIONS Presenting the Findings Making Recommendations

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson IV. OTHER CONSIDERATIONS IN MARKETING RESEARCH Sampling The Internet as a Research Tool Making the Most of Internet Technology Probability Probability Non-Probability Non-Probability

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-7 FIGURE 8-7 Today’s marketing managers use information from many marketing factors PUT FIGURE 8-7 FROM PAGE 185 HERE

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson V. SALES FORECASTING TECHNIQUES Sales Forecasting Direct Forecast Judgments of the Decision Maker Lost-Horse Forecast Surveys of Knowledgeable Groups Buyers Intentions Salesforce Survey Statistical Methods Linear Trend Extrapolation

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson FIGURE 8-8 FIGURE 8-8 Linear trend extrapolation of sales revenues of Xerox, made at the start of 1999

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions to improve an organization’s marketing activities.” Marketing Research

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Objectives are specific, measurable goals the decision maker seeks to achieve in solving a problem.” Objectives

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Measures of success are criteria used in evaluating proposed solutions to the problem.” Measures of Success

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Data are the facts and figures related to the problem, and are divided into two main parts: secondary data and primary data.” Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “A focus group is a research technique where a small group of people meet for a few hours with a trained moderator to discuss topics surrounding the marketing research problem.” Focus Group

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Secondary data are the facts and figures that have already been recorded before the project at hand.” Secondary Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Primary data are the facts and figures that are newly collected for a project.” Primary Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave.” Observational Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Questionnaire data are facts and figures obtained by asking people about their attitudes, awareness, intentions, characteristics and behaviors.” Questionnaire Data

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson “Sales forecast refers to the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.” Sales Forecast