1. D EFINE PROBLEM – Why are you doing this research (ex: people hate to dust furniture) 2. O BTAIN DATA 3. A NALYZE DATA 4. R ECOMMEND SOLUTION (go to your boss – share your idea) 5. A PPLY RESULTS Five Steps of the Marketing Research Process

Step 2 – Obtain Data Primary –  Information cannot be obtained through secondary  You must go out and get the information yourself  Advantage – specific/accurate  Disadvantage – timely/costly Secondary – data already collected census government publications  Advantage –obtained quickly/less expensive  Disadvantage – may not be suitable for particular problem/outdated

3 Methods of Primary 1. Survey Method 1. Observation Method 1. Experimental Method

#1 - Way to obtain primary data Survey Method –  Most frequently used  data gathered directly from people  Sample –  part of a target; the larger the better  Must be consistent  Forced choice questions (no opened ended questions)

3 Types of Survey Personal Interview –  Advantages –  people would rather talk than write/honest  Disadvantages –  timely/costly

3 Types of Survey Telephone Interviews –  Advantages –  quick, efficient, relatively inexpensive  Disadvantages –  low response, resent intrusion on personal time at home

3 Types of Survey Mail Survey –  Advantages –  inexpensive, reach large audience  Disadvantages –  return rate = percent

#2 - Way to obtain primary data Observation Method –  Actions of people are observed  Contrived – situation is set (example: 5 toys in a room)  Natural – act normal (example: toys r us)  Point of sale – stalker in grocery store

#3 - Way to obtain primary data Experimental Method –  Change one or more variable  Example: candy wrappers