MARKETING RESEARCH: FROM INFORMATION TO ACTION C HAPTER

Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision.

Reasons to use Marketing Research  Improve the quality of decision making  Trace problems  Focus on keeping existing customers  Understand the ever-changing marketplace

Why Good Marketing Research is Difficult –Dishonesty –Intention mismatched to behavior –Newness has no comparative basis Marketing Research

The Marketing Research Process CollectDataCollectData SpecifySamplingProcedureSpecifySamplingProcedure Plan Design/ Primary Data Plan Design/ Primary Data DefineProblemDefineProblem AnalyzeDataAnalyzeData Prepare/PresentReportPrepare/PresentReport Follow Up

Secondary Data Data previously collected for any purpose other than the one at hand. ALWAYS USE THIS FIRST

Sources of Secondary Data Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media Internal Corporate Information

Advantages of Secondary Data  Saves time and money if on target  Aids in determining direction for primary data collection  Pinpoints the kinds of people to approach  Serves as a basis of comparison for other data

Disadvantages of Secondary Data  May not answer the exact question of your research problem  Quality-Don’t know who gathered it and how the data was gotten  Accuracy of data may pose a problem-Don’t know age of the info and how biased the survey was

Primary Data  Information collected for the first time.  ALWAYS USE THIS LAST

Advantages of Primary Data  Answers a specific research question  Data are current  Source of data is known  Secrecy can be maintained

Disadvantages of Primary Data  Expensive  Quality declines if interviews are lengthy  Reluctance to participate in lengthy interviews

Types of Primary Data Gathering  1. Survey Research  2. Observational Research

Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

Forms of Survey Research Focus Groups people who participate in a group discussion led by a moderator Focus Groups people who participate in a group discussion led by a moderator “Cool Hunters” Mail Surveys Telephone Interviews Mall Intercept Interviews Internet surveys

Comparison of three kinds of surveys COMPARISON OF SURVEY TECHNIQUES

Questionnaire Design Open-Ended Question Open-Ended Question Closed-Ended Question Closed-Ended Question Scaled- Response Question Scaled- Response Question An interview question that encourages an answer phrased in respondent’s own words. An interview question that asks the respondent to make a selection from a limited list of responses. An interview question that asks the respondent to make a selection from a limited list of responses. A closed-ended question designed to measure the intensity of a respondent’s answer. A closed-ended question designed to measure the intensity of a respondent’s answer.

Typical problems in wording questions TYPICAL PROBLEMS IN WORDING QUESTIONS

Observation Research A research method that does not involve personal interaction between interviewer and subject.

Observation Research Mystery Shoppers One-Way Mirrors Types of Observation Research Audits Machines Watching People People Watching People People Watching an Activity Traffic Counters Passive People Meter

Observational Research Advantages 1.Eliminates bias from the interviewing process 2.Does not relay on the respondent's willingness to provide data Disadvantages 1.Data collection costs are high 2.Subjective, unsolicited info is limited 3.No insight on the problem that you didn’t think to consider

FIGURE 8-2 Types of marketing information TYPES OF DATA

Data Mining- Use of technology to search through data records looking for useful information. finds statistical links that highlight opportunities Compiling and Delivering the Report +

When Should Marketing Research be Conducted?  When value of research information exceeds the cost of generating the information  When time in which to decide is short-use your instincts here

Concept Check A: Secondary data are facts and figures that have already been recorded before the project at hand, whereas primary data are facts and figures that are newly collected for the project. 1. What is the difference between secondary and primary data?

Concept Check A: Advantages include time savings, low cost, and a greater level of detail. Disadvantages are that the data may be out of date, the definitions or categories may not be right, and not being specific enough for the project. 2. What are some advantages and disadvantages of secondary data?

Concept Check 1. What is the difference between observational and questionnaire data? A: Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. Questionnaire data are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

Concept Check 2. Which survey provides the greatest flexibility for asking probing questions: mail, telephone, or personal interview? A: personal interview survey

Concept Check A: Data mining is the extraction of hidden predictive information from large databases to find statistical links that suggest marketing actions. 1. What is data mining?