Marketing Research 3

4-2 Professor Takada ROAD MAP: Previewing the Concepts Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research Marketing research How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-3 Professor Takada ROAD MAP Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research process Marketing research process How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-4 Professor Takada The Importance of Information Companies need information about their: Companies need information about their: –Customer needs –Marketing environment –Competition Marketing managers do not need more information, they need better information. Marketing managers do not need more information, they need better information.

4-5 Professor Takada Information Overload “In this oh so overwhelming information age, it’s all too easy to be buried, burdened, and burned out by data overload.”

4-6 Professor Takada ROAD MAP Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research process Marketing research process How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-7 Professor Takada The Marketing Information System

4-8 Professor Takada Marketing Information System An MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. An MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. The MIS helps managers to: The MIS helps managers to: 1. Assess Information Needs 2. Develop Needed Information 3. Distribute Information

4-9 Professor Takada Assessing Information Needs A good MIS balances the information users would like against what they really need and what is feasible to offer. A good MIS balances the information users would like against what they really need and what is feasible to offer. Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations. Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations. Have to decide whether the benefits of more information are worth the costs. Have to decide whether the benefits of more information are worth the costs.

4-10 Professor Takada Developing Marketing Information Internal Databases: Electronic collections of information obtained from data sources within the company. Internal Databases: Electronic collections of information obtained from data sources within the company. Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

4-11 Professor Takada ROAD MAP Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research Marketing research How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-12 Professor Takada Marketing Research Defined Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.

4-13 Professor Takada The Marketing Research Process 12 34

4-14 Professor Takada The Problem Definition and Approach Development Process Tasks Involved Qualitative Research Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Step 3: Research Design Research Questions and Hypotheses Analytical Framework and Models Specification of Information Needed Figure 2.3 The Problem Definition and Approach Development Process Figure 2.3 The Problem Definition and Approach Development Process

4-15 Professor Takada Underlying Causes Superior Promotion by Competition Inadequate Distribution of Company’s Products Lower Product Quality Price Undercutting by a Major Competitor Focus of the DMFocus of the Researcher Discussion Discussion Between the Researcher and the DM Figure 2.5 Discussion Between the Researcher and the DMFigure 2.5 Discussion Between the Researcher and the DM Symptoms Loss of Market Share

4-16 Professor Takada Research Design Exploratory Research Design Causal Research Conclusive Research Design Cross-Sectional Design Descriptive Research Longitudinal Design A Classification of Market Research Designs Figure 3.4 A Classification of Market Research Designs Figure 3.4 A Classification of Market Research Designs

4-17 Professor Takada Marketing Research Designs Gather preliminary information that will help define the problem and suggest hypotheses. Exploratory Research Descriptive Research Causal Research Describes things (e.g., market potential for a product, Demographics, and attitudes). Tests hypotheses about cause-and-effect relationships.

4-18 Professor Takada Exploratory Research Secondary Data Analysis Focus Groups Conclusive Research Descriptive/Causal Conclusive Research Descriptive/Causal Exploratory Research Secondary Data Analysis Focus Groups Conclusive Research Descriptive/Causal Some Alternative Research Designs (a) (b) (c) Figure 3.7 Some Alternative Research Designs Figure 3.7 Some Alternative Research Designs

4-19 Professor Takada Focus Group in Session

4-20 Professor Takada Developing the Research Plan Includes: Includes: –Determining the exact information needed –Developing a plan for gathering it efficiently –Presenting the written plan to management Outlines: Outlines: –Sources of existing data –Specific research approaches –Contact methods –Sampling plans –Instruments for data collection

4-21 Professor Takada A Classification of Marketing Research Data Marketing Research Data Secondary Data Primary Data Quantitative Data Qualitative Data Causal Descriptive Survey Data Observational and Other Data Experimental Data Figure 6.3 A Classifi cation of Marketi ng Resear ch Data

4-22 Professor Takada A Classification of Secondary Data Secondary Data Internal Requires Further Processing Ready to Use Published Materials Computerized Databases Syndicated Services External A Classification of Secondary DataA Classification of Secondary Data

4-23 Professor Takada Gathering Secondary Data Information that already exists somewhere Information that already exists somewhere –Internal databases –Commercial data services –Government sources Available more quickly and at a lower cost than primary data Available more quickly and at a lower cost than primary data Must be relevant, accurate, current, and impartial Must be relevant, accurate, current, and impartial

4-24 Professor Takada Primary Data Collection Consists of information collected for the specific purpose at hand. Consists of information collected for the specific purpose at hand. Must be relevant, accurate, current, and unbiased. Must be relevant, accurate, current, and unbiased. Must determine: Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

4-25 Professor Takada Primary Data Collection Mechanical Devices People Meters Supermarket Scanners Galvanometer Eye Cameras Questionnaires What questions to ask Form of each question Closed-ended Open-ended Wording Ordering Research Instruments

4-26 Professor Takada A Comparison of Primary and Secondary Data

4-27 Professor Takada Quantitative Descriptive Research Methods of Obtaining Quantitative Data in Descriptive Research Figure 7.3 Methods of Obtaining Quantitative Data in Descriptive Research SURVEY Information Obtained by Questioning Respondents OBSERVATION Information Obtained by Observing Behavior or Phenomena

4-28 Professor Takada Survey Research Most widely used method for primary data collection. Most widely used method for primary data collection. Approach best suited for gathering descriptive information. Approach best suited for gathering descriptive information. Can gather information about people’s knowledge, attitudes, preferences, or buying behavior. Can gather information about people’s knowledge, attitudes, preferences, or buying behavior.

4-29 Professor Takada Strengths & Weaknesses of Contact Methods

4-30 Professor Takada Avoid negatives Avoid negatives Avoid hypotheticals Avoid hypotheticals Avoid words that could be misheard Avoid words that could be misheard Use mutually exclusive categories Use mutually exclusive categories Allow for “ other ” in fixed response questions Allow for “ other ” in fixed response questions Questionnaire Do’s and Don’ts Ensure questions are free of bias Ensure questions are free of bias Make questions simple Make questions simple Make questions specific Make questions specific Avoid jargon Avoid jargon Avoid sophisticated words Avoid sophisticated words Avoid ambiguous words Avoid ambiguous words

4-31 Professor Takada Question Types - Dichotomous In arranging this trip, did you contact American Airlines?  Yes  No

4-32 Professor Takada Question Types – Multiple Choice With whom are you traveling on this trip?  No one  Spouse  Spouse and children  Children only  Business associates/friends/relatives  An organized tour group

4-33 Professor Takada Question Types – Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.  Strongly disagree  Disagree  Neither agree nor disagree  Agree  Strongly agree

4-34 Professor Takada Question Types – Semantic Differential American Airlines Large ………………………………...…………….Small Experienced………………….………….Inexperienced Modern………………………..………….Old-fashioned

4-35 Professor Takada Question Types – Importance Scale Airline food service is _____ to me.  Extremely important  Very important  Somewhat important  Not very important  Not at all important

4-36 Professor Takada Question Types – Rating Scale American Airlines’ food service is _____.  Excellent  Very good  Good  Fair  Poor

4-37 Professor Takada Question Types – Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?  Definitely buy  Probably buy  Not sure  Probably not buy  Definitely not buy

4-38 Professor Takada Question Types – Completely Unstructured What is your opinion of American Airlines?

4-39 Professor Takada Question Types – Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________

4-40 Professor Takada Question Types – Sentence Completion When I choose an airline, the most important consideration in my decision is: ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________.

4-41 Professor Takada Question Types – Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

4-42 Professor Takada Question Types – Picture (Empty Balloons)

4-43 Professor Takada Question Types – Thematic Apperception Test Make up a story that reflects what you think is happening in this picture.

4-44 Professor Takada Observational Research The gathering of primary data by observing relevant people, actions, and situations. The gathering of primary data by observing relevant people, actions, and situations. Ethnographic research: Ethnographic research: –Observation in “natural environment” Mechanical observation: Mechanical observation: –People meters –Checkout scanners

4-45 Professor Takada Observational Research Fisher-Price set up an observation lab in which it could observe the reactions of little tots to new toys.

4-46 Professor Takada Experimentation as Conclusive Research Conclusive Research Descriptive Causal Experimentation Field Experiments Laboratory Experiments Figure 8.3 Experi mentati on as Conclu sive Resear ch

4-47 Professor Takada Experimental Research Tries to explain cause-and-effect relationships. Tries to explain cause-and-effect relationships. Involves: Involves: –selecting matched groups of subjects, –giving different treatments, –controlling unrelated factors, and –checking differences in group responses.

4-48 Professor Takada Choosing the Sample Sample – segment of the population selected to represent the population as a whole. Sample – segment of the population selected to represent the population as a whole. Requires 3 Decisions: Requires 3 Decisions: –Who is to be surveyed? Sampling unit –How many people should be surveyed? Sample size –How should the people in the sample be chosen? Sampling procedure

4-49 Professor Takada Types of Samples Probability Simple random Simple random Stratified random Stratified random Cluster ClusterNonprobability Convenience Convenience Judgment Judgment Quota Quota

4-50 Professor Takada Collecting the Data Processing the Data Analyzing the Data Research Plan Implementing the Research Plan

4-51 Professor Takada Interpreting & Reporting Findings Managers and researchers must work together when interpreting research results. Step 1. Interpret the Findings Step 2. Draw Conclusions Step 3. Report to Management

4-52 Professor Takada Characteristics of Good Marketing Research Scientific method Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing

4-53 Professor Takada Tools to Measure Marketing Plan Performance Sales Analysis Financial Analysis Expense- to-Sales Analysis Market Share Analysis

4-54 Professor Takada Market Share Analysis Overall market share Overall market share Relative market share Relative market share

4-55 Professor Takada The Control-Chart Model

4-56 Professor Takada Simplified Profit-and-Loss Statement

4-57 Professor Takada The Measures of Market Demand Potential Market Penetrated Market Target Market Available Market

4-58 Professor Takada Ninety Types of Demand Measurement

4-59 Professor Takada Market Demand Functions

4-60 Professor Takada Market Demand Functions

4-61 Professor Takada Estimating Current Demand Total market potential Total market potential Area market potential Area market potential –Market buildup method –Multiple-factor index method Brand development index Brand development index

4-62 Professor Takada Calculating Brand Development Index

4-63 Professor Takada Estimating Future Demand Survey of Buyers ’ Intentions Survey of Buyers ’ Intentions Composite of Sales Force Opinions Composite of Sales Force Opinions Expert Opinion Expert Opinion Past-Sales Analysis Past-Sales Analysis Market-Test Method Market-Test Method

4-64 Professor Takada Purchase Probability Scale Do you intend to buy an automobile within the next 6 months? 0.00 No 0.20 Slight possibility 0.40 Fair possibility 0.60 Good possibility 0.80 High possibility 1.00 Certain

4-65 Professor Takada ROAD MAP Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research process Marketing research process How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-66 Professor Takada Customer Relationship Management Many companies utilize CRM Many companies utilize CRM –Capture customer information from all sources –Analyze it in depth –Apply the results to build stronger relationships. Companies look for customer touch points. Companies look for customer touch points. CRM analysts develop data warehouses and use data mining techniques to find information out about customers. CRM analysts develop data warehouses and use data mining techniques to find information out about customers.

4-67 Professor Takada Distributing and Using Marketing Information Information Must be Distributed to the Right People at the Right Time Routine Information for Decision Making Nonroutine Information for Special Situations IntranetsExtranets

4-68 Professor Takada ROAD MAP: Previewing the Concepts Importance of information to the company and its understanding of the marketplace Importance of information to the company and its understanding of the marketplace Marketing information system Marketing information system Marketing research process Marketing research process How companies analyze and distribute marketing information. How companies analyze and distribute marketing information. Special issues some marketing researchers face: Special issues some marketing researchers face: –public policy and ethics issues.

4-69 Professor Takada Other Marketing Research Considerations Marketing Research in Small Businesses and Nonprofit Organizations Marketing Research in Small Businesses and Nonprofit Organizations International Marketing Research Public Policy and Ethics in Marketing Research

4-70 Professor Takada Research Services Roper ASW, Inc. provides companies with information resources “from Brazil to Eastern Europe; from Cape Town to Beijing— if you are there, Roper ASW, Inc. is there.” Click Here to Visit RoperASW

4-71 Professor Takada Table 1.2 Top 25 Global Research OrganizationsTable 1.2 Top 25 Global Research Organizations

4-72 Professor Takada A Sample of Marketing Research Jobs Figure 1.7 A Sample of Marketing Research Jobs Figure 1.7 A Sample of Marketing Research Jobs

4-73 Professor Takada Rest Stop: Reviewing the Concepts Explain the importance of information to the company. Explain the importance of information to the company. Define the marketing information system and discuss its parts. Define the marketing information system and discuss its parts. Outline the steps in the marketing research process. Outline the steps in the marketing research process. Explain how companies analyze and distribute marketing information. Explain how companies analyze and distribute marketing information. Discuss the special issues some marketing researchers face, including public policy and ethics issues. Discuss the special issues some marketing researchers face, including public policy and ethics issues.