Marketing Research Unit 7

Marketing Information Management How are decisions made to introduce new products and delete old ones?

Unit 7 Vocabulary Attitude Research Data Analysis Database Marketing Experimental Method Forced-choice Questions Market Intelligence Marketing Research Marketing Information System Media Research Observation Method Open-ended Questions Point-of-sale Research Primary Data Problem Definition Product Research Quantitative Research Qualitative Research Reliability Sample Secondary Data Survey Method Validity

Unit 7 Essential Question How does marketing information and research affect business and marketing decisions?

Essential Question 1 Marketing Research What is the need for marketing information management?

What is Marketing Research? Obtaining information about the preferences, opinions, habits, trends, and plans of potential customers. Helps to determine what customers want and need.

Why is Research Important? Businesses that do not pay attention to what consumers are buying, are likely to make costly mistakes. Information obtained from research helps businesses to plan for the future.

Why is Research Important? Helps to anticipate or solve problems in the marketplace. Helps a company keep track of what is happening in its markets.

Essential Question 2 Marketing Research What is the nature and scope of the marketing information management function?

Marketing Research Marketing research is used to: Determine consumers’ attitudes and preferences Test product features Determine market size and growth potential Learn about competitive products Determine buying cycles Understand how the company is perceived by the public

Consequences of poor Research http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/?photo=2

Essential Question 3 Marketing Research What are the different types of research (advertising, product, market, and sales) and the difference between qualitative and quantitative data?

Types of Marketing Research Advertising Research Focuses on the effectiveness of the advertising message and the effectiveness of media placement.

Types of Marketing Research Product Research Used to evaluate product design and acceptance, competitive products, package design, and product usage.

Types of Marketing Research Market Research Studies customer behavior (customer analysis) to gather information about customer attitudes.

Types of Marketing Research Market Research Studies the behavior of a consumer market (market analysis) to investigate the potential markets for a product and to define the target market.

Types of Marketing Research Sales Research The study of sales data to determine the potential sales for a product and to solve problems related to future sales.

Qualitative vs Quantitative Qualitative Research: Aims to gather an in-depth understanding of human behavior and the reasons that govern such behavior. Investigates the why and how of decision making, not just what, where, when. Usually uses smaller, focused samples.

Qualitative vs Quantitative Quantitative Research: The systematic empirical investigation of social phenomena via statistical, mathematical or computational techniques. Quantitative data is any data that is in numerical form such as statistics, percentages, etc.

Essential Question 4 Marketing Research What is the nature of marketing research?

The Marketing Research Process Step 1 - Defining the Problem Identify and clearly state what the problem is and what can be done to solve the problem. Determine which problems are the most important to solve at a given time.

The Marketing Research Process Step 2 - Obtaining Data Collect and examine information in terms of the problem being studied. Primary data can be used and/or Secondary data can be used.

The Marketing Research Process Step 3 - Analyzing the Data Compiling, analyzing, and interpreting the results of primary and secondary data. The results of each question can be clearly read and interpreted.

The Marketing Research Process Step 4 - Recommending Solutions to the Problem. Solutions are usually presented in a well written report. Recommendations must be clear and supported by the research data.

The Marketing Research Process Step 5 - Applying the Results The required form of action is decided upon and put into place.

Essential Question 5 Marketing Research What are the differences in primary and secondary data?

Types of Data Primary data: Data obtained for the first time and used specifically for the particular problem or issue under study. Secondary data: Data already collected for some purpose other than the current study.

Essential Question 6 Marketing Research What methods are used to collect primary and secondary data?

Data Collection Primary data can be obtained by: - the survey method - the observation method - the experimental method Secondary data can be obtained by a number of agencies. - Internet Sources - US and Government Sources - Specialized Research Companies - Business Publications and Trade Organizations

Essential Question 7 Marketing Research What data is monitored for marketing decision making?

Marketing Information System (MIS) Marketing Information System (MIS): A continuing and interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control.

Marketing Information System (MIS) External data includes: Markets Channels Competitors Political Legal Economic Technology

Marketing Information System (MIS) Internal data includes: Financial Production Manpower Marketing Stockholding Logistical Orders received Sales invoices

Essential Question 8 Marketing Research How are population, sample, bias, error, validity, and reliability used in marketing research?

Data Sampling When designing a survey, marketers must consider several factors: Population: The entire target group of people under study. Sample: Part of the target population that represents it accurately. Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive. Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.

Data Sampling When designing a survey, marketers must consider several factors: Reliability: Determines how consistently an instrument yields similar results under varying conditions. If a measure has high reliability, it yields consistent results. Validity: The degree to which the instrument measures what it’s supposed to measure. If an instrument is not reliable over time, it cannot be valid. An instrument can be neither reliable nor valid, reliable and not valid or both reliable and valid. However, an instrument must be reliable in order to be valid.

Essential Question 9 Marketing Research What are the trends and limitations in marketing research?

Research Trends Trends in research: Global Marketplace Due to increased international competition, US companies must improve or change products frequently to hold on to customers. Product quality and customer satisfaction are keys to business success and research that measures these qualities are the fast form of marketing research. Business Management Many businesses are using internal and external information to improve business operations.

Research Limitations Limitations in research: Money Time Customers saying one thing and doing another