MARKETING RESEARCH: PROCESS AND SYSTEMS FOR DECISION MAKING CHAPTER 2 MARKETING RESEARCH: PROCESS AND SYSTEMS FOR DECISION MAKING

Benefit of Research Assist to decision making Information from market/customer Help to improve performance The Benefit Formula: V(dr) - V(d) > C(r) where V(dr) = decision with benefit V(d) = decision without benefit C(r) = cost of research

Marketing Information System There are more information than they are needed There are more wrong kind than the right information. Information is disperse and great effort is needed to locate simple facts. Vital information often arrives too late. Information gathered may not be accurate.

The Marketing Intelligence System Computerized data base Information gathering in a controlled an coordinated fashion(MIS): Data, information, intelligence(interpretation). System structure-right information at the right time

Secondary data Libraries Directories and newsletters-trade association Commercial information providers-Dun Bradstreet Databases-Internet and Web pages Trade association-Retailing Association, American Marketing Association

Evaluating Secondary Data Sources and Quality Source quality-who collected, how it is collected Data quality-accuracy, reliability and timeliness: data collection methods-daily, weekly, monthly and yearly. Data compatibility and comparability

Primary Marketing Research Suppliers of primary research: (1) syndicated research firms-A.C. Nielsen, SAMI: store audit, home audit, diary method. omnibus surveys, (2)custom research-specific research task

Marketing Decision Support System The purpose is that the right information is available at the right time for the right decision maker. Environment and market Internal and external Marketing information center Computerized data gathered internally and externally Marketing decision making Problem solving approach

The Marketing Research Process Defining the objectives-problem identification Determining the level: exploratory (insufficient), descriptive(more popular), or causal(time-consuming). Determining the research approach: (1) Qualitative-observation, in-depth interviews, focus group,

The Marketing Research Process (Cont.) (2) Quantitative research-experimental research(before-and-after design) Questionnaire design(survey research): They must be (a)comprehensive (b)simple, clear and not too long. Sample size determination and selection selection-probability and non-probability

Marketing Research Process (Cont.) Purpose-problem identification Plan of the research Performance of the research pre-testing and validation Processing research data Coding and editing Research report

Research Process (cont.) Collecting the data: Mail, telephone, personal interviews Analyzing the data-multivariate analysis Report writing and presentation 1. Relevance to specific need 2. Reliability of findings 3. Accuracy of recommendation 4. Bias(free from distortion)

Problems of the Research Process Representation improperly selected. Sample selection and size are not properly formulated. Pre-testing is not completed. Questionnaires are not tested before they are used in the research. Market test is too short before it is determined that consumers like it