1 Chapter 4 MARKETING RESEARCH

2 WHAT IS MARKETING RESEARCH?  Systematic collection, analysis, and interpretation of information used to develop a marketing strategy or to solve a marketing problem

3 TYPES OF DECISIONS Intuitive Decision: based on feelings and prior knowledge, made automatically and instinctively Hard Data: information based on supportable facts

4 WHY IS MARKET RESEARCH NEEDED? Makes marketing efforts more successful Helps to identify market opportunities, location, and consumer wants and needs

5 TYPES OF DATA 1. Secondary 2. Primary

6 1. SECONDARY DATA Definition: marketing research information that has been collected and published by others for the public to use

7 SOURCES OF SECONDARY DATA Books Periodicals (magazines, newspapers, journals, reports) Indexes (articles over period of time) Databases (provide lists of information organized by category, very specific or very broad) Internet Consultants Marketing research professionals

8 WHY USE SECONDARY DATA? To develop marketing strategy Assist in decision making and problem solving Gather data concerning changes in segments over time

Primary Data Primary data is the unanalyzed, current information collected by a researcher for a specific purpose. Two types

Types of Primary Data Qualitative research Used to measure people’s reactions, responses, or feelings towards a given subject or problem. Opinion pools, blind taste tests ect. Quantitative research Primarily involves collecting data by surveying a representative sample of a target-market. Use results to make predictions of behaviors and opinions.

Sources of Primary Data Test Markets Internal Information Sales Records Inventory Records Promotional and Advertising Records Production Records Surveys (see pg. 138) Observations Focus-Groups & Interviews