NATURE OF MARKETING RESEARCH marketing research involves the “systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.” Before data collection, careful planning is required to specify both the kind of information needed and the purpose of such information

A story told by the founder of Bata (the world’s largest shoe company) illustrates this point.Two shoe salesmen from two companies visited the same island and came away with vastly different interpretations of people not wearing shoes there. One was returning home immediately because of a nonexistent marketing opportunity. The other salesman, however, was very enthusiastic since all these potential customers were still without shoes

marketing research is only one part of the equation, and proper analysis and judgmental decisions are required.

MARKETING INFORMATION SOURCES Primary data may be defined as information that is collected firsthand, generated by original research tailor-made to answer specific, current research questions. Secondary data, in contrast, may be defined as information that has already been collected for other purposes and is thus readily available.

SECONDARY RESEARCH PRIMARY RESEARCH Private sources, public library or a university library Public sources, Foreign governments, their embassies and consulates, and trade promotion agencies PRIMARY RESEARCH When secondary data are unavailable, irrelevant, or obsolete, the marketer must turn to primary research.

alternatives available to collect primary information the marketer should subscribe to the newspapers in the competitor’s home country attending trade fairs, the marketer can observe competitors’ display booths and have the opportunity to talk with potential customers and distributors. company should make an attempt to determine the effectiveness of the planned marketing mix. experimental study

test market should possess the following characteristics: (1) representativeness, (2) self-contained media, and (3) self-contained trading area.

McDonald’s first tested its chicken product in Winnipeg by combining it with french fries. Consumers, however, considered chicken to be a diet food and preferred the product without a bun or fries. Subsequently, McDonald’s Chicken and Chips became Chicken McNuggets.

SAMPLING There are several kinds of sampling techniques, with probability and nonprobability

BASIC METHODS OF DATA COLLECTION There are two principal methods for the collection of primary data: (1) observation, and (2) the administration of survey questions.

MEASUREMENT Reliability Validity

MARKETING INFORMATION SYSTEM A marketing information system (MIS) is an integrated network of information designed to provide marketing managers with relevant and useful information at the right time and place for planning, decision making, and control.

example, Benetton’s stores around the world are linked by computer example, Benetton’s stores around the world are linked by computer. When an item is sold, its color is noted. The data collected make it possible for Benetton to determine the shade and amount of fabric to be dyed each day, enabling the firm to respond to color trends very quickly.

System development Development involves the three steps of system analysis, design, and implementation. System analysis involves the investigation of all users’ information needs. System design should be the next major consideration. System design transforms the various information requirements into one or more plans that clearly specify the procedures and programs in obtaining, recording, and analyzing marketing data. system implementation. The chosen system is installed and checked to make certain that it functions as planned.

Subsystems The MIS consists of several systems: internal reporting, marketing research, and marketing intelligence The internal reporting subsystem is vital to the system because a company handles a great deal of information on a daily basis.

the marketing intelligence or environmental scanning subsystem the marketing intelligence or environmental scanning subsystem. The responsibility of this subsystem is to track environmental changes or trends. This subsystem collects data from salespersons, distributors, syndicated research services, government agencies, and from publications about technology, social and cultural norms, the legal and political climate, economic conditions, and competitors’ activities.