Agenda for 10.18.11 Define Key Terms Read & Take Notes The Persuaders Problem definition Primary data Secondary data Survey method Observation method Point-of-sale research Experimental method Data analysis Sample Read & Take Notes Ch. 29.1, pages 610-617 Answer ?’s 1-3 on pg. 617 (Note: You can work together!) I will notes, key terms and questions! These are due today! The Persuaders Times They Are A Changin’…

The Marketing Research Process Chapter 29, Section 1

Steps in the MR Process Defining the problem Obtaining data Primary Secondary Analyzing the data Recommending solutions Applying the results

Step 1: Defining the Problem Business clearly identifies a problem or research issue and the information that is necessary to solve it Ex: If sales are declining, you must obtain info on who is buying product, competitors, and why customers stopped buying products

Step 2: Obtaining Data Data collected and examined in terms of problem(s) being studied Two types of data: Primary Secondary

Primary and Secondary Data Primary Data: collected 1st time by researcher; specifically for research project; new data gathered to help solve the problem at hand. Secondary Data: Published accessible data from a variety of sources for research and other purposes Data collected for another purpose, but may be reanalyzed in a subsequent study

Primary Secondary How do you Obtain Advantages Disadvantages Individual company research Commercial research Nielson, Arbitron, MR firm etc. Internal Sources (within company) External Sources (gov’t, business journals, library, trade publications) Advantages Specific to your study First hand information May get money if successful and someone else buys research Obtained quickly Purchased from info companies Less expensive Disadvantages Takes long to obtain Expensive More work involved Existing data may not be suitable or available Data may be dated (census every 10 years)

Primary Data is collected by 3 methods Survey method Observation method Experimental method

Survey Method Information gathered directly through surveys and questionnaires Most frequently used Sample: a part of the target populations that is assumed to represent the entire population Size depends on money and time Larger the sample more accurate the results

Data collection instruments Personal interview: face-to-face Focus group: 8-12 people who evaluate product/service/ads with moderator Telephone interview Mail survey Internet Surveys Automatic Dialers

Type of Collection Description Advantages Disadvantages Personal Interview Face-to-face questioning People prefer to talk to you not write Expensive Focus Group 8-12 people with moderator People prefer to talk Expensive; only as good as leader Telephone Calling to give survey on phone Quick, efficient, inexpensive Many unwilling to respond on phone Mail Survey Sending survey by mail Inexpensive, reach large audience 10-20% return rate Internet or Computer Survey Web polls, invitation only, discussion groups Quick, eliminate data entry Limited to individuals who have web access

Observation Method Actions of people are observed and recorded Get information about customer behavior and preferences Used to view the interaction between customers and employees If observation is properly performed, results are often better then survey technique What people actually do is usually better than what they SAY they will do! Cannot measure attitude; only provides info on what person does, not WHY they do it

Observations Styles… Contrived situation: set up by researcher in controlled situation Natural situation: customers and employees viewed in natural situation hidden cameras, traffic count, wear of floor Point of Sale Research: combines natural with personal interview. Observe shoppers for specific patterns and then approach to ask questions when finished

Experimental Method Researchers observe under controlled conditions Change one or more variables and keep others constant Used for new package design, new promotions, media usage Used least often & costly People respond different in controlled situations Research less valuable

Step 3: Analyzing the Data Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

Step 4: Recommending Solutions to the Problem Successful research results in information that helps managers make decisions about problems Conclusions drawn from research are usually present at report

Step 5: Applying the Results If data gathered does not help answer questions, results are inconclusive and more research is needed If data gathered does help, recommendations are acted on and monitored

Follow up Questions What are the five steps of the marketing research process? What is the difference between primary and secondary research? 3. Why is Step #1 of the marketing research process so important? (Define the problem?)