Bell Ringer List five reasons why you think that some new businesses have almost immediate success while others fail miserably.

Marketing Information Systems Chapter 28 and 29

Marketing Research What Is the process and methods used to gather information, analyze it, and report findings related to marketing goods and services. Who Small businesses- do not have a specific department dedicated to MR. MR is done informally by owners, managers, employees or hire outside services. Large businesses- have specific research departments or hire outside consulting firms 6.2 billion spent annually on research

Why Marketing Research is Important? Avoid costly marketing mistakes Increase sales and profits Helps manage and make 4P decisions Keep track of what competitors are doing Know what’s going on in the market New trends Consumer preferences Customer satisfaction

How Follow research process 3 main ways to collect primary data- survey, observations, experimental methods Internet is a source of secondary data

Marketing Information Systems Data that is collected, sorted and stored so the results can be put to good use Databases are created with all types of information that is collected 60 minutes data brokers

Types of Marketing Research Qualitative vs. Quantitative Attitude Research Opinion research Determine how people feel Typically a satisfaction survey Focus Groups Market Intelligence Size and location of market Competition Market segmentation Helps define potential target markets Sales forecasting Media Research Advertising research Focuses on issues of media effectiveness, selection, frequency, and ratings Determine which media outlets to advertise in Product Research Evaluating product design, packaging, product usage, and consumer acceptance of new products. Product testing Focus groups

Complete page 241 and 242 in Workbook

Marketing Research Limitations Limited by money and time Personnel needed

Marketing Research Process Define the problem Obtain data Analyze the data Recommend solutions to the problem Apply the results ME Ch. 33

Step 1: Define Problem Problem definition - occurs when a business clearly identifies a problem and state the information needed to solve the problem. Problems can focus on any part of the marketing mix. ME Ch. 33

Step 2: Obtaining Data Data are collected and examined in terms of the problem(s) being studied Primary Data - data obtained for the first time and used specifically for the particular problem under study. Secondary Data - data already collected for some purpose other than the current study. Less expensive than primary data - try to use secondary data first before primary data. ME Ch. 33

Step 2: Obtaining Data Sources of secondary data Internal sources employees business records External sources US government agencies Corporate, public, and university libraries Consumer and business information companies Business publications Trade publications, books, and journals ME Ch. 33

Step 2: Obtaining Data Sources of primary data Individual company research Commercial research organizations ME Ch. 33

3 methods to collect primary data Step 2: Obtaining Data 3 methods to collect primary data Survey method - information is gathered from people directly through the use of interviews or questionnaires. Most frequently used method. Determine sample size - a part of the target population that is assumed to represent the entire population Use personal interviews, focus groups, telephone interviews, mail survey, and online computers. ME Ch. 33

Interviews Questioning people face to face Expensive Originated in shopping malls Focus Group is a type of personal interview Involves 8 to 12 people Lead by a moderator Open discuss with questioning to evaluate advertising, product design, package design, or marketing strategy. ME Ch. 33

Dominos Pizza Marketing Research for Product Improvement http://www.youtube.com/watch?v=AH5R56jILag ME Ch. 33

Step 2: Obtaining Data Observation Method - the actions of people are observed and recorded. Used to get information about customer behavior or preferences. Contrived situations - researchers can control the testing situation Natural situations - customers or employees are viewed as they would normally act in a given situation. Traffic count - count people or cars as they pass the store. Point of sale research - a combination of contrived and natural. Observe shoppers and decide which ones to choose as research subjects. ME Ch. 33

Step 2: Obtaining Data Experimental method - a research observes under controlled conditions the results of changing one or more marketing variables while keeping certain other variables constant. Often used to test new package designs, levels of media usage, and new promotions. ME Ch. 33

Step 3: Analyzing the Data Data analysis - the compiling, analyzing, and interpreting of the results of primary and secondary data collection. ME Ch. 33

Step 4: Recommendations Conclusions are presented in a report. Recommendations must be clear and well supported by the research data. ME Ch. 33

Step 5: Applying Results Use the research report to make decisions about next actions to take regarding the problem. Inconclusive research - research does not help to solve the problem Additional research may be needed Research suggests specific course of action ME Ch. 33

Constructing the Questionnaire Questionnaires should provide data that is valid - data should measure what it was intended to measure. Questionnaires should have reliability - questions should ask the same type of information from all the respondents. ME Ch. 33

Writing Questions Open ended - ask respondents to construct their own response to a question. “How can we serve you better?” Difficult to categorize and tabulate Close Ended - ask respondents to choose answers from possibilities given on a questionnaire. multiple choice, yes/no or rating questions. ME Ch. 33

Writing Questionnaires Formatting have different types of questions clear directions for completing questionnaire excellent visual appearance and design number all sections refer to additional pages if necessary Distribution Mail first class Hand signed cover letter explaining purpose of questionnaire Postage paid return envelope ME Ch. 33