USING MARKETING RESEARCH CHAPTER 05 4/20/2017 USING MARKETING RESEARCH 5.1 Understanding the Need for Market Information 5.2 Finding and Managing Marketing Information 5.3 Using Marketing Research 5.4 Collecting Primary Data © South-Western Publishing MARKETING

UNDERSTANDING THE NEED FOR MARKETING INFORMATION GOALS for Lesson 5.1 Explain the importance of information in targeting market segments. Describe the categories of information marketers need. © South-Western Publishing

Marketing to Segments Marketing Segments – a group of similar consumers within a larger market “Here’s what I think our customers will buy” “What can we provide that will meet your needs as our customer” © South-Western Publishing

Marketing to Segments The Global Market Competition Changing Markets © South-Western Publishing

Marketing to Segments Global Market Develop an international focus Number of marketing segments become even greater Gathering information about the country and it people is highly important © South-Western Publishing

Marketing to Segments Competition Competition is becoming more intense for most businesses Tougher to ensure customers will prefer your product Gathering information about competitors’ products and marketing activities is important in analyzing strengths and weaknesses © South-Western Publishing

Marketing to Segments Changing Markets Basic needs vs. satisfying discretionary desires More information available, more informed decisions Basic products vs. Advanced products product development and technology © South-Western Publishing

Categories of Information What types of information are needed? Every business needs specific information in order to run a successful business 1. Consumers 2. Marketing mix 3. Business environment © South-Western Publishing

Types of Information Needed for Effective Marketing Decisions Consumers age gender income education family size home ownership address occupation how money is spent attitudes primary needs product purchases purchase frequency brand preferences information needs media preferences shopping behavior © South-Western Publishing

Types of Information Needed for Effective Marketing Decisions Marketing Mix basic products product features services product packaging guarantees repairs product price credit choices discounts location of sale type of store used display procedures use of salespeople promotion methods promotional message promotional media © South-Western Publishing

Types of Information Needed for Effective Marketing Decisions Business Environment type of competition competitors’ strengths competitors’ strategies economic conditions government regulations new technology consumer protection ethical issues tax policies proposed laws international markets © South-Western Publishing

Journal Entry #8 List 5 to 8 items (fast food, clothes, magazines) that you buy periodically to satisfy some need or want. Then note how your preferences have changed over the past years, and how those preferences have affected what you buy. © South-Western Publishing

FINDING AND MANAGING MARKETING INFORMATION GOALS for Lesson 5.2 Describe common sources of internal and external market information. Explain the five critical elements of an effective marketing information system. © South-Western Publishing

Sources of Information Steps of the Process Identify the types of information needed. Determine the available sources of each type of information. Evaluate each source to determine if it meets the organization’s needs in term of accuracy, time, detail, and cost. Select the sources that best meet the identified needs. Enter the information into a marketing information system. © South-Western Publishing

Internal Information Sources – from within the org. Internal Information - is information developed from activities that occur within the organization. A great deal of information flows through a business on a daily basis. Customer records and sales information Production and operations reports Performance information © South-Western Publishing

Customer Records / Sales information highly important for effective planning purchase records (dates, quantities, related purchases, accessories, payment types) demographic information and customer needs customer profiles and customer clubs Ralph’s Club Card, Blockbuster Card © South-Western Publishing

Production and Operations Reports products and services must be available quality standards must be met expenses must be controlled channel members must share marketing plan, balance sheets, customer data sheets © South-Western Publishing

Performance information Sales, costs, quality, and customer satisfaction… Measured 1 of 3 ways… Past records (compare current to past) Compare performance to similar businesses (external) Compare actual perf. w/ expected perf. © South-Western Publishing

External Information Sources – understanding of factors OUTSIDE the organization. External Information - provides an understanding of factors outside the organization © South-Western Publishing

External Information Sources – understanding of factors OUTSIDE the organization. Government reports Census (U.S. Bureau of the Census) 5 or 10 years plus yearly updates (sometimes) Trade and professional associations Journals, newsletters, research reports, etc. © South-Western Publishing

External Information Sources – understanding of factors OUTSIDE the organization. (continued) Business publications WSJ, Forbes, Business Week Commercial data and information services Nielsen (ratings), Dun & Bradstreet © South-Western Publishing

Marketing Information Systems definition - an organized method of collecting, sorting, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions © South-Western Publishing

Marketing Information Systems Input – the information that goes into the system that is needed for decision making Routine information about customers, competitors and business operation is used for marketing decisions. Storage – is the resources used to maintain information, including equipment and procedures, so that it can be used when needed. Must protect the information or be organized so the information can be located when needed. © South-Western Publishing

Marketing Information Systems Analysis – is the process of summarizing, combining, or comparing information so that decisions can be made Summarizing, combining or comparing information or data Output – results of analysis given to decisions makers Usually written or graphical form © South-Western Publishing

Marketing Information Systems Decision Making – marketing information system is used to improve decision making Some decisions are routine and some are unique © South-Western Publishing

Designing an MkIS – groups Input: What information is needed to develop and implement the marketing strategy? Storage: How should the information be maintained so it is in a usable form and is easy to access when needed? Analysis: What methods should be used to organize and study the information in order to make effective marketing decisions? Output: How and when should the information be made available for most effective use? Decision-Making: What ways should the information be used to improve marketing? © South-Western Publishing

USING MARKETING RESEARCH GOALS for Lesson 5.3 Describe how to define and develop an understanding of a problem as the first steps toward solving it. Identify the steps needed to gather and study data relevant to a problem. Explain how to prepare reports and present proposed solutions. © South-Western Publishing

Implementing a Marketing Research Study 1. Seeing the Problem Clearly 2. Gathering Information 3. Proposing a Solution © South-Western Publishing

Seeing the Problem Clearly Marketing research – a procedure designed to identify solutions to a specific marketing problem through the use of scientific problem-solving Define the problem Analyze the situation Develop a data-collection procedure Secondary data Primary data © South-Western Publishing

Gathering Information Selecting the participants Population Random sampling Collecting the data Analyzing the data Numerical data Non-numerical data © South-Western Publishing

Visual Summaries of Marketing Information Bar Graph © South-Western Publishing

Visual Summaries of Marketing Information Line Graph © South-Western Publishing

Visual Summaries of Marketing Information Pie Chart © South-Western Publishing

Proposing a Solution Preparing reports Presentation of results Who is the report being prepared for? Must clearly describe the purpose of the study and the research procedures used Presentation of results Written with graphs and charts or oral presentations with visual aids © South-Western Publishing

Sections of a Research Report Statement of the problem Review of secondary data Research procedures Results of the research Summary and recommendations © South-Western Publishing

COLLECTING PRIMARY DATA GOALS for Lesson 5.4 Describe the purpose of marketing research surveys. Explain the reasons for and limitations of using observation. Define various types of marketing research experiments. © South-Western Publishing

Conducting Surveys Closed-ended questions – offers two or more choices (yes-no, agree-disagree, a-b-c-d) Open-ended questions – develop their own answers (How was your shopping experience?) © South-Western Publishing

Focusing on the Issues Focus group – a small number of people brought together to discuss identified elements of an issue or problem Questioning with clarity Understands what is being asked Encouraged to answer honestly Is not directed toward one answer © South-Western Publishing

Making Observations Observation - collects information by recording actions without interacting or communication with the participant. Greater accuracy and objectivity More money and time Purchasing behavior © South-Western Publishing

Making Observations Recording devices include Television cameras Audio recorders Bar code scanners Eye-tracking photography © South-Western Publishing

Performing Experiments Experiment – tightly controlled situations in which all important factors are the same except the one being studied. Hard to control many activities Must operate long enough to see any significant results Ex. – price effect on sales volume © South-Western Publishing

Performing Experiments Test marketing – specific cities or geographic areas in which marketing experiments are conducted (ex. – McDonalds) Simulations – experiments where researchers create the situation to be studied (ex. – toys and play centers) © South-Western Publishing

Group Activity At your table, create a survey, for one of the products below, that could be used to find out more about consumer’s acceptance and views of the product. The survey should be conducted on prospective consumers. 1. peanut butter and jelly potato chips, 2. electric powered scooter, 3. athletic shoes with attached in-line skates © South-Western Publishing