Chapter 8 Marketing Research and Sales Forecasting Principles of Contemporary Marketing Kurtz & Boone Chapter 8 Marketing Research and Sales Forecasting

Chapter Objectives Describe the development of the marketing research function and its major activities. Explain the steps in the marketing research process. Distinguish between primary and secondary data and identify the sources of each type. Explain the different sampling techniques used by marketing researchers. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Chapter Objectives Identify the methods by which marketing researchers collect primary data. Explain the challenges of conducting marketing research in global markets. Outline the most important uses of computer technology in marketing research. Identify the major types of forecasting methods. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Development of the Marketing Research Function Advertising pioneer N. W. Ayer conducted the first organized marketing research project in 1879 Charles C. Parlin organized the nation’s first commercial research department at Curtis Publishing Research methods grew more sophisticated in the 1930s with better sampling techniques and greater accuracy Computer technology has significantly advanced market research Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Who Conducts Marketing Research? Syndicated services - Organization that provides standardized data on a periodic basis to its subscribers Full-service research suppliers - Marketing research organization that offers all aspects of the marketing research process Limited-service research suppliers - Firm that specializes in a limited number of activities, such as conducting field interviews or performing data processing Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Secondary Data Collection Secondary data comes from many sources and can be internal data or external data Government data Nation’s most important source of marketing data The U.S. Census of Population contains a wealth of valuable information for marketers Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Private Data Variety of sources: Trade associations Business and trade magazines Electronic systems Radio-frequency identification technology Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Sampling Techniques Sampling - Process of selecting survey respondents or research participants Population or universe - Total group of people a researcher wants to study Probability sample - Sample that gives every member of the population a chance of being selected Simple random sample - Every member of relevant group has an equal opportunity to be sampled Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Sampling Techniques Stratified sample - Randomly selected subsamples of different groups are represented in the total sample Cluster sample - Researchers select subgroups from which they sample Nonprobability sample - Sample that involves personal judgment in the selection process Convenience sample - An accidental sample Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Conducting International Marketing Research Follow same basic steps as for domestic marketing research Researchers must be aware of cultural and legal environments May have to adapt research methods to local conditions Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Interpretative Research Researcher spends time studying the culture, called ethnographic research Focus is on understanding the meaning of the product or consumption experience in the consumer’s life Captures what consumers actually do, not just what they say they do Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Marketing Information Systems (MIS) A planned, computer-based system designed to provide decision makers with a continuous flow of information relevant to their areas of responsibility Well-constructed MIS is the company’s nerve center because it continually monitors marketing environment and provides instantaneous information Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Marketing Decision Support Systems (MDSSs) Marketing information system component that links a decision maker with relevant databases and analysis tools Develops raw data into information useful for decision making Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Data Mining The process of searching through computerized data files to detect patterns Focuses on identifying relationships that are not obvious to marketers Efficient way to sort through huge amounts of data and make sense of it Example: Strategic Vision conducted a data-mining study of car sales to link motivation to purchase Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Business Intelligence Process of gathering information and analyzing it to improve business strategy, tactics, and daily operations Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Competitive Intelligence A form of business intelligence that focuses on finding information about competitors using published sources, interviews, observations by salespeople and suppliers in the industry, and other sources Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Sales Forecasting Estimate of a firm’s revenue for a specified time period Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.