Market Research Chapter 9

What is Market Research? “The process of planning, collecting, and analyzing data relevant to a marketing decision.” “The process of planning, collecting, and analyzing data relevant to a marketing decision.” Decision support system Decision support system Why is marketing research important? Why is marketing research important? Concerns Concerns Respondent knowledge Respondent knowledge Respondent honesty Respondent honesty Respondent actions Respondent actions Source:

The Marketing Research Process Define the ProblemPlan the Design & Collect Primary DataSpecify the Sampling ProcedureCollect the DataAnalyze the DataPrepare & Present the ReportFollow Up

Step 1: Define the Problem Marketing research problem Marketing research problem Set the research objectives Set the research objectives

Step 2: Plan the Design & Gather Primary Data Research Design Research Design Primary Data Primary Data Pros: Pros: Cons: Cons: Secondary Data Secondary Data Pros: Pros: Cons: Cons:

Step 2: Plan the Design & Gather Primary Data Types of Primary Research Types of Primary Research Survey research Survey research In-home personal interviews In-home personal interviews Mall-intercept Mall-intercept Telephone interviews Telephone interviews Mail surveys Mail surveys Executive interviews Executive interviews Focus groups Focus groups Source:

Step 2: Plan the Design & Gather Primary Data Types of Primary Research Types of Primary Research Survey research (cont’d) Survey research (cont’d) Questionnaire Design Questionnaire Design Open-ended Open-ended Close-ended Close-ended Scaled-response Scaled-response Likert scale Likert scale Semantic differential scale Semantic differential scale Errors Errors Leading questions Leading questions Ambiguous question Ambiguous question Unanswerable question Unanswerable question 2-1 question 2-1 question Nonexhaustive question Nonexhaustive question Nonmutually exclusive answers Nonmutually exclusive answers

Step 2: Plan the Design & Gather Primary Data Types of Primary Research Types of Primary Research Observation research Mystery shopper Behavioral targeting Ethnographic research Virtual shopping Experiments Source:

Information Overload What is it? What is it? Information technology Information technology Databases Databases Sensitivity analysis Sensitivity analysis Data Mining Data Mining Extraction of hidden predictive information from large databases Extraction of hidden predictive information from large databases Links between the two actions or products Links between the two actions or products

Step 3: Specify the Sampling Procedure Population v. sample Population v. sample Types of sampling procedures Types of sampling procedures Probability sampling Probability sampling Random sample Random sample Nonprobability sampling Nonprobability sampling Convenience sample Convenience sample

Step 4: Collecting the Data & Step 5: Analyzing the Data Collecting the Data Collecting the Data In-house In-house Hire a company Hire a company Analyze the data Analyze the data Statistical software SPSS

Step 6: Prepare & Present Results Step 7: Follow Up Prepare & Present Prepare & Present Formal report Formal report Recommendations Recommendations Follow Up Follow Up Additional research

Other Research Internet research Internet research Advantages Advantages Scanner-based research Scanner-based research Competitive Intelligence (CI) Competitive Intelligence (CI) Source:

Sales Forecasting Market or industry potential Market or industry potential Sales or company forecast Sales or company forecast

Sales Forecasting How to Forecast How to Forecast Top-Down Forecast Top-Down Forecast Buildup Forecast Buildup Forecast

Sales Forecasting Techniques Judgment of Decision Maker Judgment of Decision Maker Direct Forecast Direct Forecast Lost-horse forecast Lost-horse forecast

Sales Forecasts Techniques Knowledgeable groups Knowledgeable groups Survey of Buyers’ Intentions Forecast Survey of Buyers’ Intentions Forecast Salesforce Survey Forecast Salesforce Survey Forecast Jury of Executive Opinion Forecast Jury of Executive Opinion Forecast Survey of Experts Survey of Experts

Sales Forecasting Techniques Statistical Methods Statistical Methods Trend extrapolation Trend extrapolation Look at past results Look at past results