Chapter 10 Marketing Research

Learning Objectives Learning Objective 10.1 Identify the five steps in the marketing research process. Learning Objective 10.2 Describe the various secondary data sources. Learning Objective 10.3 Describe the various primary data collection techniques. Learning Objective 10.4 Summarize the differences between secondary data and primary data. Learning Objective 10.5 Examine the circumstances under which collecting information on consumers is ethical. LO10-1 Identify the five steps in the marketing research process. LO10-2 Describe the various secondary data sources. LO10-3 Describe the various primary data collection techniques. LO10-4 Summarize the differences between secondary data and primary data. LO10-5 Examine the circumstances in which collecting information on consumers is ethical. These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

The Marketing Research Process Defining the objectives and research needs Designing the research Collecting the data Analyzing data and developing insights Developing and implementing an action plan The marketing research process consists of five steps. Although we present the stages of the marketing research process in a step-by-step progression, of course research does not always, or even usually, happen that way. Researchers go back and forth from one step to another as the need arises. 

Step 1: Defining Objectives and Research Needs What information is needed to answer specific research questions? How should that information be obtained? To determine whether to conduct research, two questions must be addressed: What? How?

Step 2: Designing the Research Type of data Type of research In this step, researchers identify the type of data needed and determine the type of research necessary to collect it.

Step 3: Collecting the Data Secondary Data Collected prior to the start of the research project External as well as internal data sources Primary Data Collected to address specific research needs Focus groups, in-depth interviews, surveys After answering why and how, researchers must determine where they can find the data. Discuss how the types of data required determine the methods used to collect them. If you can connect to your college library, look at some of the data sources at your own school. Dabases like mintel, tablebase, ABI inform and Business Source Premier are excellent sources of data. Group activity: As a group, tackle a problem for a company (e.g., local retailer who appears to be losing customers). For this problem, list several research questions that secondary data can answer. Then list several questions that require primary data.

Step 4: Analyzing Data and Developing Insights The problem today is not too little data but, in many instances, too much. Firms are drowning in data, and their challenge is to convert that data into information. Video: Tom Davenport discusses the importance of developing targeted questions to develop effective strategies from Big Data. Video link: https://www.youtube.com/watch?v=CStxyj0tJ6g https://www.youtube.com/watch?v=CStxyj0tJ6g Converting data into information to explain, predict, and/or evaluate a particular situation.

Step 5: Developing and Implementing an Action Plan Executive Summary Body Conclusions Limitations Supplements including tables, figures, appendices A typical marketing research report would start with a two page executive summary. This would highlight the objectives of the study, methodology and key insights. The body of the report would go through the objectives of the study, issues examined, methodology, analysis and results, insights and managerial implications. The report would end with conclusions and any limitations or caveats. Many consultants today provide an executive summary, a PowerPoint presentation of the report, and questionnaire and tabulated study results.

PROGRESS CHECK (1 of 5) What are the steps in the marketing research process? What is the difference between data and information? Define objectives and research needs, designing the research project, deciding on the data collection process and collecting the data. analyze and interpret the data, prepare the findings for presentation Data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers. However, when the data are interpreted, they become information.

External Secondary Data Syndicated Data Secondary data are plentiful and free, whereas syndicated data generally are more detailed but can be very costly. Ask students: Why might firms subscribe to a data service and collect their own primary and secondary data at the same time? Panel Research Scanner Research

Internal Secondary Data Data Warehouse Data Mining Every day, consumers provide wide-ranging data that get stored in increasingly large databases. Ask students: How might firms and organizations collect information about you? Do you always know when you are providing such data? Who uses these data? In the United States, firms use opt-out programs, so when consumers fill out a registration form or application, the firm automatically has permission to market to that customer and share information with its partners, unless consumers explicitly revoke this permission. In contrast, the EU regulations state that customers must opt-in to such information uses.

PROGRESS CHECK (2 of 5) What is the difference between internal and external secondary research? Secondary data might come from free or very inexpensive external sources, such as census data, information from trade associations, and reports published in magazines. Secondary sources can also be accessed through internal sources, including the company’s sales invoices, customer lists, and other reports generated by the company itself.

Qualitative versus Quantitative Data Collection Techniques As its name implies, qualitative research uses broad, open-ended questions to understand the phenomenon of interest. Qualitative research is more informal than quantitative research methods and includes observation, following social media sites, in-depth interviews, and focus groups. Once the firm has gained insights from doing qualitative research, it is likely to engage in quantitative research, which are structured responses that can be statistically tested. Quantitative research provides information needed to confirm insights and hypotheses generated via qualitative research or secondary data. Formal studies such as specific experiments, surveys, scanner and panel data, or some combination of these are quantitative in nature. Jump to Appendix 1 long image description

PROGRESS CHECK (3 of 5) What are the types of qualitative research? Observation, in-depth interviews, focus group interviews, and social media.

Advantages and Disadvantages of Secondary and Primary Data (1 of 2) Type Examples Advantages Disadvantages Secondary Research Census data Sales invoices Internet information Books Journal articles Syndicated data Saves time in collecting data because they are readily available Free or inexpensive (except for syndicated data) May not be precisely relevant to information needs. Information may not be timely. Sources may not be original, and therefore usefulness is an issue. Methodologies for collecting data may not be appropriate A summary of the advantages and disadvantages of each type of research.

Advantages and Disadvantages of Secondary and Primary Data (2 of 2) Type Examples Advantages Disadvantages Primary Research Observed consumer behavior Focus group interviews Surveys Experiments Specific to the immediate Data needs and topic at hand Offers behavioral insights generally not available from secondary research Costly = Time consuming Requires more sophisticated training and experience to design study and collect data. A summary of the advantages and disadvantages of each type of research.

PROGRESS CHECK (4 of 5) What are the types of quantitative research? What are the advantages and disadvantages of primary and secondary research? Experiments, survey, scanner, and panel see Exhibit 10.9

The Ethics of Using Customer Information Strong ethical orientation Adhere to ethical practices A strong ethical orientation must be an integral part of a firm’s marketing strategy and decision making. It is extremely important for marketers to adhere to ethical practices when conducting marketing research.

PROGRESS CHECK (5 of 5) Under what circumstances is it ethical to use consumer information in marketing research? What challenges do technological advances pose for the ethics of marketing research? Many customers demand increasing control over the information that has been collected about them. Companies must disclose their privacy practices to customers before using information. As technology continues to advance though, the potential threats to consumers’ personal information grow in number and intensity.

Glossary

Glossary-1 Data are raw numbers or other factual information that, on their own, have limited value to marketers. Data are raw numbers or other factual information that, on their own, have limited value to marketers. Return to slide 21

Glossary-4 Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time. Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time. Return to slide 22

Glossary-5 Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters. Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters. Return to slide 23

Glossary-7 Syndicated data are data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen. Syndicated data are data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen. Return to slide 24

Image Descriptions Appendix

Appendix 1 Qualitative versus Quantitative Data Collection Techniques Data collection research consists of qualitative research (observation, in-depth interviews, focus groups and social media) and quantitative research (experiments, survey, scanner, and panel). Return to slide

Marketing Chapter 10 The End The End