Marketing Research in the Era of Big Data CHAPTER 10 Marketing Research in the Era of Big Data

MARKETING RESEARCH FUNCTION Focus on determining: market potential market share market characteristics

Classification of market research companies Syndicated services: give info to all customers Full service suppliers: performs all research Limited service suppliers: parts of research

MIS: Marketing Information Systems MDSS (Marketing Decision Support System) computer software that helps users obtain & use info to help make marketing decisions

6 Steps in Marketing Research 1. PROBLEM DEFINITION is it a symptom or a problem? Ex. Our sales are down. “Well Defined Problem is Half Solved” 2. EXPLORATORY RESEARCH Investigate 3. FORMULATE HYPOTHESIS tentative explanation for some event

4. RESEARCH DESIGN 5. DATA COLLECTION Master plan to get a direct test of the hypothesis 5. DATA COLLECTION Secondary Data: less time and money but could be obsolete or irrelevant http://www.census.gov/prod/www/statistical-abstract-us.html Primary Data: detailed, exact, valid but costly and time consuming

How to Collect Primary Data 1. Observational method: watch people 2. Survey method Telephone interviews: cheap & convenient bias to people who have phones Mail surveys: cost effective & anonymous but returns are very low Fax surveys Personal interviews: good method most time consuming & expensive mall intercepts good alternative

Focus group interviews Computer interviews faster gathering & analysis of data respondents may be more truthful than face to face very biased to computer users Focus group interviews 8 to 12 people brought together to discuss a subject of interest

SAMPLING TECHNIQUES one of the most important aspects of marketing research, if sample wrong - results will be wrong

CLASSIFICATION OF SAMPLES 1. Probability Sample each member has an equal chance of being selected 2. Nonprobability Sample arbitrary ones not subject to statistical tests Quota Sample Mall Intercept

6. Interpretation and Presentation clear, concise reports directed to management, not other researchers

SALES FORECASTING (Chapter 11) Covering this topic early SALES FORECASTING (Chapter 11) Covering this topic early!! *2 broad categories of forecasting QUALITATIVE FORECASTING subjective sales forecasts - based on opinions not historical fact

4. SURVEY OF BUYER INTENTIONS 1. JURY OF EXECUTIVE OPINION -combines & avg outlooks of top company executives 2. DELPHI TECHNIQUE seeks opinion of experts outside the firm & used to predict long-term issues 3. SALESFORCE COMPOSITE what do the salesforce believe (Bottom up approach) 4. SURVEY OF BUYER INTENTIONS mail in questionaires, telephone polls, & personal interviews

QUANTITATIVE FORECASTING *More scientific approach 1. MARKET TESTS gauge consumer responses to a new product 2. TREND ANALYSIS analyze historical relationship btw sales & time 3. EXPONENTIAL SMOOTHING more sophisticated trend analysis that assigns a weight factor to each year of sales data