Chapter 6: Getting the Marketing Information We Need

Obtaining Good Information  information is key to sound decision making  there is an important distinction between data and information  marketing research involves the development, interpretation, and communication of information to support strategic marketing  marketing information may be collected by a firm or by a research supplier on its behalf, or may come from a marketing information system

Scope of Marketing Research  Marketing research projects are designed to provide managers with answers about: 1.What’s happening in the market 2.Whether new products are attractive 3.Customer and non-customer characteristics 4.What factors influence buying decisions 5.Whether prices and advertising are attractive 6.Whether they like dealing with us 7.How solid our customer relationships are

Qualitative or Quantitative?  qualitative research is growing in popularity as a means of obtaining deeply-held opinions; includes focus groups and individual depth interviews  many marketing research projects involve conducting a survey, by administering a questionnaire to a sample of respondents  surveys produce quantitative data  surveys may be conducted in person, by phone or the Internet, in shopping centres, or by mail

Observation and Experimentation  these are less widely-used research methods  observation involves collecting data usually without the knowledge of the subject; may include watching consumers as they shop or collecting data electronically (e.g. on the Web)  experimentation involves the manipulation of one of more variables so as to observe the effect; examples include the use of test markets and of simulations

Planning the Research Project  a typical marketing research project will involve a series of stages: 1.defining the objectives of the client 2.conducting a situation analysis 3.conducting an informal investigation 4.conducting the formal investigation; collecting the data 5.analyzing data and preparing a final report 6.following up

Approaches to Marketing Research  the marketing decision maker must decide whether he or she needs to collect primary data or secondary data  primary data are collected specifically for the project while secondary data already exist, having been collected for another purpose  syndicated data are collected by a research supplier and may be sold to a number of different clients

The Research Project  Conducting a typical research project will involve several steps: 1.Decide whether primary data are needed 2.Decide how to collect the data through qualitative or quantitative methodologies 3.Design a questionnaire or interview guide 4.Select a sample 5.Collect the data 6.Proceed to data analysis and preparation of a report

Figure 6-1 Marketing Research Procedure

Data-collection Forms  questionnaires and other forms are used to record responses and other data  questionnaire design is often a source of bias  the wording of questions must ensure that they are understandable and not leading  questions may be in a variety of formats  the layout of the questionnaire affects responses  questionnaires are pretested to identify problems

Planning the Sample  in survey research, it is advisable to select a sample that is as representative as possible  sample selection often contributes to bias  ideally, we would like to have a random sample, but this is usually not possible  most marketing surveys use convenience samples  sample size must be large enough to represent the population and to allow the client to have confidence in the results

Information in Databases  marketing data are available from many sources and are stored in computer databases  data may be obtained from sources within and outside the firm, including customer purchase records  customer loyalty programs contribute valuable data on purchases made  other valuable data are collected by automated systems such as scanner-equipped checkouts

Marketing Information Systems  generally computer-based and involves the production, analysis, storage, dissemination, and retrieval of information to support marketing decision making  it generates reports and studies as needed  it integrates old and new data to update information and to identify trends  it analyzes data using mathematical models that simulate the “real world”

Who Does Marketing Research?  may be done inside or outside a company  some large firms have small marketing research departments which supervise the work of outside consultants  there are many research consultants and full- service supplies across the country  more and more companies are realizing the importance of research to provide the information needed for decision making

Issues in Marketing Research  The main issue facing marketing research is the protection of consumer privacy  Canada has enacted privacy legislation that affects how research may be conducted  At a practical level, researcher must address: Integration of data sources Obtaining a deeper understanding of consumers Gaining greater acceptance of research