Copyright © 2007 Pearson Education Canada 3-1 Marketing Research Marketing research serves many roles. It can: 1.Link companies with customers via information 2.Help define problems and opportunities 3.Generate, refine and evaluate marketing actions 4.Monitor performance
Copyright © 2007 Pearson Education Canada 3-2 Scope of Marketing Research Market Analysis Market Analysis Product Research Product Research Consumer Analysis Consumer Analysis Information about the marketplace. Information about how people perceive products. Information about the needs and motivations of consumers.
Copyright © 2007 Pearson Education Canada 3-3 Marketing Research Process Problem Awareness Problem Awareness Exploratory Research Secondary Data Collection Secondary Data Collection Primary Research Data Collection & Processing Analysis & Interpretation Recommendations & Action
Copyright © 2007 Pearson Education Canada 3-4 Exploratory Research Exploratory research helps define the precise nature of a problem. Funnelling Dividing a subject into manageable variables so that research can be conducted. Situation Analysis Collecting information from knowledgeable people and secondary sources.
Copyright © 2007 Pearson Education Canada 3-5 Secondary Data Sources Secondary Data Internal Sources External Sources DMS DSS Government Business Online
Copyright © 2007 Pearson Education Canada 3-6 Data Mining “The analysis of information that establishes relationships between pieces of information so that more effective marketing strategies can be identified and implemented.” An attempt to locate informational patterns or nuggets within a database.
Copyright © 2007 Pearson Education Canada 3-7 Database Management System External Data Consumer Market Product Competitor Economy Social Online Data External Data Consumer Market Product Competitor Economy Social Online Data Internal Data Sales Costs Profit Budgets Inventory Production Internal Data Sales Costs Profit Budgets Inventory Production Database Market Analysis Market Analysis Marketing Plan Marketing Plan Evaluation and Control Evaluation and Control
Copyright © 2007 Pearson Education Canada 3-8 Secondary Data Advantages Available at low or no cost Updated constantly by some sources Only source some of the time Useful for exploratory research
Copyright © 2007 Pearson Education Canada 3-9 Secondary Data Disadvantages Inability to resolve specific problem Reliability and accuracy questioned Data outdated in changing market
Copyright © 2007 Pearson Education Canada 3-10 Online Databases A public information database accessible to anyone with proper communication facilities. Data is available quickly but the amount of data can be overwhelming. Statistics Canada offers information online.
Copyright © 2007 Pearson Education Canada 3-11 Primary Research The collecting and recording of new data, called primary data, in order to resolve a specific problem, usually at high cost to the organization.
Copyright © 2007 Pearson Education Canada 3-12 Primary Research Problem Definition Objectives and Hypotheses Sample Design Data Collection Methods
Copyright © 2007 Pearson Education Canada 3-13 Sample Design A representative sample is essential in order to produce valid and reliable data. Steps: 1.Define Population 2.Identify Sampling Frame 3.Determine Type of Sample 4.Determine Sample Size
Copyright © 2007 Pearson Education Canada 3-14 Data Collection Methods Survey Observation Experiment Structured questionnaires Personal or electronic means Simulated or test market
Copyright © 2007 Pearson Education Canada 3-15 Qualitative Data Data collected from small samples in a controlled environment (e.g., a focus group) “Focus” implies that the discussion concentrates on one topic or concept. Interviews reveal “attitudes” held by participants.
Copyright © 2007 Pearson Education Canada 3-16 Quantitative Data Data collected from large samples. Analysis and interpretation rely on numbers and percentages obtained from data collected from a structured questionnaire. The feelings, attitudes, and opinions of participants are quantified.
Copyright © 2007 Pearson Education Canada 3-17 Survey Methodology Personal Interview Telephone Mail Online Which option to use depends on: 1.Nature of information sought 2.Cost and time constraints 3.Location of respondent
Copyright © 2007 Pearson Education Canada 3-18 Data Transfer and Processing Data Transfer Data Transfer Processing Completed questionnaire are edited for consistency and completeness. Tabulation Frequency Distribution Cross-tabulation
Copyright © 2007 Pearson Education Canada 3-19 Data Analysis and Interpretation Analysis Interpretation Evaluating responses for each question in a survey. Relating accumulated data to the problem under review.
Copyright © 2007 Pearson Education Canada 3-20 Recommendations and Implementation It’s decision time! Where’s the research? 1.Prospective courses of action are offered in relation to the problem under review. 2.Findings are presented to the client in report and presentation formats.