© 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 5: Marketing Research and Information Michael R. Czinkota and Masaaki Kotabe

© 2000 South-Western College Publishing Slide #2 Chapter Outline l Benefits of Research l Marketing Intelligence System l MIS Structure l Secondary Data l Primary Data l Marketing Research Process

© 2000 South-Western College Publishing Slide #3 The Benefits of Research When is it worthwhile to conduct market research? The Benefits Approach: Value of a decision with research less Value of decision without research Value of a decision with research less Value of decision without research > Cost of research Cost of research

© 2000 South-Western College Publishing Slide #4 Marketing Intelligence System Data Information Intelligence

© 2000 South-Western College Publishing Slide #5 MIS Structure Performance analyses: l l ABC analysis l l Variance analysis Sales reports: l l Retrieval l l Soft data l l Hard information l l Data longevity

© 2000 South-Western College Publishing Slide #6 Secondary Data Secondary data: Already published for another purpose. Sources: Libraries Directories & newsletters Directories & newsletters Commercial information providers Commercial information providers Electronic information services Electronic information services Trade associations Trade associations

© 2000 South-Western College Publishing Slide #7 Evaluating Secondary Data Source quality Data quality Data compatibility Who collected data? What was the original purpose? How was data collected? How relevant is the data? How accurate & reliable is the data? How recent is the data? Is the data compatible with other sources? How comparable is the data with other sources?

© 2000 South-Western College Publishing Slide #8 Primary Data Primary data: Collected from customers on a sample basis. Suppliers: l l Syndicated research l l Retail audits l l Panel research l l Omnibus surveys l l Custom research

© 2000 South-Western College Publishing Slide #9 Marketing Research Process 1. Define the objectives 2. Determine the research level 3. Determine the research approach 4. Collect the data 5. Analyze the results 6. Report the findings 7. Implementation

© 2000 South-Western College Publishing Slide #10 Step 1: Define the Objectives What information do you need? Avoid: l l Errors of commission l l Errors of omission

© 2000 South-Western College Publishing Slide #11 Step 2: Determine Research Level Three possible levels: l l Exploratory l l Identify problems or hypotheses l l Descriptive l l Information about existing market phenomena l l Causal l l Cause-and-effect relationships

© 2000 South-Western College Publishing Slide #12 Usefulness of Different Research ExploratoryDescriptiveCausal Tactical Strategic

© 2000 South-Western College Publishing Slide #13 Step 3: Determine Research Approach Two approaches: l l Qualitative: l l Observation l l In-depth interviews l l Focus groups l l Quantitative: l l Experiments l l Questionnaires

© 2000 South-Western College Publishing Slide #14 Step 4: Collect the Data Methods: l l Mail : : Less expensive - - Low response l l Telephone : : Very fast - - Not visual l l Personal interviews : : Versatile - - Expensive

© 2000 South-Western College Publishing Slide #15 Sampling select every “nth” name from total population Random sample: select every “nth” name from total population l l Variations: l l Cluster sample l l Stratified random sample Quota sample: recruit respondents to match an agreed quota of subsamples.

© 2000 South-Western College Publishing Slide #16 Step 5: Analyze the Results Analytical tools: l l Multiple regression analysis l l Factor analysis l l Cluster analysis l l Conjoint analysis

© 2000 South-Western College Publishing Slide #17 Step 6: Report the Findings Evaluate the report to ensure its: l l Relevance l l Reliability l l Accuracy l l Lack of bias Report