Marketing Information, Research, and Understanding the Target Market Chapter Two Marketing Information, Research, and Understanding the Target Market Key Words/ Outline Marketing research, Primary data, Secondary data, Observational research, Survey research, Experimental research, Mathematical modeling, Cardinal rule, Qualitative research, Quantities research, Test marketing © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management, 8e

Role of Market Research Market research aids decision making but does not substitute for it they MMs should use their knowledge and experienc Often, research reports become the final answer to problems

Role of Market Research

Marketing Research Process Purpose of the research: Mangers & Researchers should agree on: current situation involving problem to be researched, Nature of problem and specific questions the research is designed Plan of research :The nature of research to be conducted includes an explanations of such thing as sample ,data collection types design measures and analysis techniques. Performance of the research :preparing for the data collection and it depend on the types of research. Processing of research data: preparation for the data analysis Preparation of the research report: Conclusions & Recommendation

Plan of the Research Three critical issues that influence research plan Whether primary or secondary data are needed Whether qualitative or quantitative data are needed Whether the company would conduct its own research or contract with a marketing research specialist

Research Plan Basics Primary versus Secondary data Primary data: Data collected for the specific problem under investigation Secondary data: Previously collected data which could be used for the problem in hand

Research Plan Basics Qualitative vs. Quantitative Data Qualitative: Face-to-face interviews like focus groups, and long interviews, without mathematical concern Quantitative: Systematic procedures to obtain data like observational research, surveys, experiments (testing Prices between two stores)and mathematical modeling

Conducting Research A cardinal rule of collecting data: Obtain and record the maximal amount of useful data, subject to the constraints of time, money and respondent privacy Processing research data includes preparation of data for analysis and analysis

Conducting Research Assess research results by identifying relationships among variables or differences between groups Prepare the research report by making it clear and unambiguous, with strategic recommendations

Research Limitations Test market areas do not represent the full marketplace Sample size and design have been formulated incorrectly because of budget constraints Pretest measurements of competitive brand sales have been not made or made inaccurately Test stores do not give complete support for the study prices not constant last period

Research Limitations Test market products are offered at unprofitable levels Researchers ignore factors that influence sales seasons ,whether ,competitive retaliation. The test marketing is too short to determine whether the customer repurchase the product

Ethical Responsibilities Responsibility to respondents Preserving respondent anonymity Avoiding mental stress for respondents Avoiding questions detrimental to respondents Avoiding use of dangerous equipment or techniques Avoiding deception of respondents Avoiding coercion of respondents

Ethical Responsibilities Responsibility to clients Providing confidentiality Providing technical integrity efficient studies Providing administrative integrity fair price for work Providing guidance on research usage correct finding

Ethical Responsibilities Responsibility to employees Creating ethical work environment Avoiding opportunities for unethical behavior

Marketing Information Systems (MIS) Database management software: For sorting and retrieving data Model base management software: For manipulating data Dialog system: Allows for exploration of data and produces information for decision making

Quantitative Research Table 2-1 Qualitative Research Quantitative Research Study Purpose Provide insights about ideas Exploratory research before quantitative study Describe target market Results for strategic marketing decisions Types of Questions Open-ended Unstructured Close-ended Structured Data Collection Methods Projective techniques Depth interviews Focus groups Observation Experimentation Questionnaires

Quantitative Research Table 2-1 (continued) Qualitative Research Quantitative Research Sampling Methods Small Nonprobability samples Large Probability samples Data Analysis Analyzed by researchers who collected data Look for “key words” Subjective Coded, tabulated, and entered into database Use of statistical methods

The Consumer Research Process Figure 2.1