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FIGURE 8-1 FIGURE 8-1 Marketing research questions asked in test screenings of movies that lead to specific actions 8-2

Marketing Research Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. 8-3

FIGURE 8-2 FIGURE 8-2 Five-step marketing research approach leading to marketing actions with lessons learned from past research 8-4

STEP 1: DEFINE THE PROBLEM SET THE RESEARCH OBJECTIVES LO2  Exploratory Research  Descriptive Research  Causal Research 8-5

STEP 1: DEFINE THE PROBLEM IDENTIFY POSSIBLE MARKETING ACTIONS LO2  Measures of Success Measures of Success Possible Marketing Actions Measure of Success: Playtime Children Spent More Time Playing with Old Design Children Spent More Time Playing with New Design Continue with Old Design; Don’t Introduce New Design Introduce New Design; Drop Old Design 8-6

STEP 2: DEVELOP THE RESEARCH PLAN LO2  Specify Constraints Specify Constraints  Identify Data Needed for Marketing Actions 8-7

STEP 2: DEVELOP THE RESEARCH PLAN DETERMINE HOW TO COLLECT DATA LO2  Concepts  Methods New-Product Concept Sampling Probability Sampling Nonprobability Sampling Statistical Inference 8-8

STEP 3: COLLECT RELEVANT INFORMATION/DATA LO3  Data Data  Secondary Data Secondary Data  Primary Data Primary Data 8-9

FIGURE 8-3 FIGURE 8-3 Types of marketing information 8-10

STEP 3: COLLECT RELEVANT INFO/DATA SECONDARY DATA LO3  Internal Sales Breakdowns Customer Inquiries/ Complaints 8-11

STEP 3: COLLECT RELEVANT INFO/DATA SECONDARY DATA LO3  External Census Bureau Trade Associations Business Periodicals Syndicated Services Scanner Data 8-12

STEP 3: COLLECT RELEVANT INFO/DATA +/– OF SECONDARY DATA LO3  Advantages Time Savings Inexpensive Out of Date Definitions/Categories Not Right  Disadvantages Not Specific Enough 8-13

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—OBSERVING BEHAVIOR LO4  Mechanical Observation Observational Data 8-14

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—OBSERVING BEHAVIOR LO4  Personal Observation Mystery Shopper Videotaping Ethnographic Research 8-15

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—QUESTIONING CONSUMERS LO4  Questionnaire Data Questionnaire Data Individual Interviews  Idea Generation Methods Depth Interviews 8-16

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—QUESTIONING CONSUMERS LO4 Focus Groups  Idea Generation Methods “Fuzzy Front End” 8-17

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—QUESTIONING CONSUMERS LO4 Personal Interview Surveys Personal Interview Surveys Mail/Fax Surveys Mail/Fax Surveys Telephone Surveys Telephone Surveys  Idea Evaluation Methods / Internet Surveys / Internet Surveys Mall Intercept Interview Surveys 8-18

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—QUESTION FORMATS LO4  Open-Ended Questions  Closed-End or Fixed Alternative Questions  Dichotomous Questions  Semantic Differential Questions  Likert Scale Questions 8-19

FIGURE 8-6A FIGURE 8-6A Different types of questions featured in a sample Wendy’s survey (Q1-Q5) 8-20

STEP 3: COLLECT RELEVANT INFO/DATA PRIMARY DATA—PANELS & EXPERIMENTS LO4  Panels  Experiments Independent Variable: The Cause Independent Variable: The Cause Dependent Variable: The Result Dependent Variable: The Result Test Markets 8-21

STEP 3: COLLECT RELEVANT INFO/DATA +/– OF PRIMARY DATA LO4  Advantage Expensive Time Consuming to Collect  Disadvantages More Specific to the Problem 8-22

STEP 3: COLLECT RELEVANT INFO/DATA USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS LO5  The Marketing Manager’s View of Sales Drivers Data (Facts & Figures) Information (Interpreted Data that Leads to Marketing Actions)  Need to Distinguish Between: Controllable Marketing Mix Factors Uncontrollable Environmental Forces 8-23

FIGURE 8-7 FIGURE 8-7 Sales drivers: factors that influence product or brand sales and are essential for effective marketing programs 8-24

STEP 3: COLLECT RELEVANT INFO/DATA USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS LO5  Key Elements of an Information System Sensitivity Analysis Information Technology Data Warehouse 8-25

FIGURE 8-8 FIGURE 8-8 How marketing researchers and managers use information technology to turn information into action 8-26

STEP 3: COLLECT RELEVANT INFO/DATA USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS LO5 Data Mining RFID Technology  Data Mining: A New Approach to Searching the Data Ocean 8-27

STEP 4: DEVELOP FINDINGS LO5  Present the Findings  Analyze the Data How are Sales? What Factors Contribute to Sales Trends? 8-28

FIGURE 8-9 FIGURE 8-9 Marketing dashboards that present findings to Tony’s marketing manager that leads to recommendations and actions 8-29

STEP 5: TAKE MARKETING ACTIONS LO5  Evaluate the Results  Make Action Recommendations Evaluate the Decision Itself  Implement the Action Recommendations Evaluate the Decision Process Used 8-30