Chapter 8 Marketing Research

Role of Marketing Research Defined as: “the planning, collecting, and analyzing information to improve marketing decisions.” A decision Support System (DSS) Keep isolated marketing managers in touch with markets. What’s hot? What’s not? DSS: Interactive, flexible, discovery-oriented & accessible Create customer profiles via database marketing

Marketing Research Scientific Method: Is the objective and orderly process for testing ideas about relationships between variable(s). Hypothesis is an educated guess about relationship between variables (if a, then b). Is this the best way to understand consumers?

Marketing Research Ethics Withhold info: ads, phone-in poll, what else? Privacy “Fake” surveys: telemarketer Any other examples?

Marketing Research Steps 1. Identify the problems (or opportunity) Is the most difficult and important Book: often outside specialists must understand situation. Budget constraints an issue. Coke/New Coke Va/ NOVa

Market research can bring new ideas ServiceNeedMetaphorNew Service Idea Retail BankingAccessibilityVending machineATM TV newsMore available Round the clock radioCNN Pizza RestaurantIndoor cateringCall servicePizza taxi Book shopsEasy shoppingLibrary at homeAmazon.com Maps Easy to study while drivingElectronic co-driverNavigator

Why won’t you buy my insect killer? McCann-Erickson advertising agency asked users of roach killers to create drawings of their prey. From the drawings, the agency determined that roach spray sold better than insecticide disks since the users wanted control, and spray allowed them to actively kill the roach.

Marketing Research Steps 2. Plan Research Design & Collect Data RD=a plan that specifies which RQ must be answered, how, when the data will be collected, how will it be analized Quick and cost effective (eliminates need) Secondary data Information already collected and or published Study information already available End: decide if information is still needed If so, conduct a new, original (primary) research study

How the Internet has Changed Secondary and Primary Data Collection Methods

(15 years of data=1500 usd! Not bad!)

Marketing Research Steps Plan to gather data: surveys 2b. If primary data, have to collect data yourself Questioning: survey (Scales) Set of questions to collect information directly from subjects (open or closed ended) Self administer or in person (at events, malls) Problem: low response rates :10% is good Problem (from low response): representative Online surveys (zoomerang.com.surveymonkey.com)

Marketing Research Marketing Research Process Plan to gather data: novel methods 2b. Depth interviews Observing “you can observe a lot, just be looking” Advantage: natural inquiry (kids), and gather information without influencing customers. What about disadvantages?? “Mystery shoppers” (what are examples??) Scanner data: collect buying information (unlimited use) Netnography/ethnography Online/focus groups/

Marketing Research Plan to gather data: experiments 2b. Data Experimenting Two similar groups oDiffer on one item of importance oHold all else constant Advantage: causation Disadvantage: naturalism (is it so fake?) Look on the back of a prescription drug print ad….that is an experiment

Marketing Research Steps 5. Analyse/Interpret data Solve with statistics Issues: Reliability: consistency (same result in repeated trials; scale for weight) Validity: measure what you intend to (accurate standardized tests Statistical software assists you

SPSS vs. SAS

Marketing Research Steps 5. Analyze the data (not just interesting data, all data) Run cross-tabs Hypothesis testing Association Measures Regression Analysis Structural Equation Models

Marketing Research 6. Prepare/Present Report or Manuscript Solve objectives clearly Search for the “better question” (ask about food quality in dining hall; everyone talks about price or location) Tailor to audience (executive or expert scholars 7. Follow up - How could your improve? - Was a decision made based on your study? - Build a relationship