Marketing Research: Gather, Analyze, and Use Information Chapter Four

4-2 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Chapter Objectives  Explain the role of a marketing information system and marketing decision support system in marketing decision making  Understand the data mining and how marketers can put it to good use  List and explain the steps and key elements of the marketing research process

4-3 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Real People, Real Choices: Decision Time at Discover Card  Which option should Ryan undertake? Option 1: Continue to use the same new project prioritization process that has been used in the past Option 1: Continue to use the same new project prioritization process that has been used in the past Option 2: Modify the process to include existing consumer input Discover can easily access Option 2: Modify the process to include existing consumer input Discover can easily access Option 3: Engage an outside firm to assist Discover in developing a new process Option 3: Engage an outside firm to assist Discover in developing a new process

4-4 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Knowledge Is Power  Marketing research provides accurate, up-to-date, relevant information  Marketing research should be conducted in an ethical manner  Marketing information systems: Determine what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users Determine what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users

4-5 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.1 The Marketing Information System

4-6 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Internal Company Data  Internal data Information from within the company Information from within the company Used to produce reports on the results of sales and marketing activities Used to produce reports on the results of sales and marketing activities Commonly accessed via Intranets Commonly accessed via Intranets Intranet: Internal corporate communications network that links company departments, employees, and databases Intranet: Internal corporate communications network that links company departments, employees, and databases

4-7 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Marketing Intelligence  Marketing intelligence systems: Method by which marketers get information about everyday happenings in the marketing environment Gathered via monitoring everyday sources, observation, and discussions with salespeople or others Gathered via monitoring everyday sources, observation, and discussions with salespeople or others

4-8 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. It’s Debatable Class Discussion Question One form of marketing intelligence gathering involves sorting through competitor’s trash in search of information. Can businesses engage in this activity legally? Is it ethical? What can firms do to protect themselves from this form of intelligence gathering?

4-9 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Applying Marketing Intelligence Marketing managers use marketing intelligence to predict fluctuations in sales or to forecast the future so they will be on top of developing trends

4-10 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Marketing Research  Market research: Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness Syndicated research Syndicated research Custom research Custom research Nielsen Reports and Downloads Nielsen Reports and DownloadsNielsen Reports and DownloadsNielsen Reports and Downloads

4-11 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Marketing Research

4-12 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Acquired Databases  External databases can be used to collect a variety of information from different sources Non-competing businesses Non-competing businesses Government databases Government databases  Misuse of databases can be problematic and has led to do-not-call lists and antispam laws The census offers great free informationcensus

4-13 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.2 The Marketing Decision Support System

4-14 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Table 4.1 Examples of Questions an MIS and an MDSS Might Answer

4-15 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Searching for Gold: Data Mining  Data mining: Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available

4-16 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Searching for Gold: Data Mining  Data mining Data warehouses Data warehouses Reality mining Reality mining How location-based mobile advertising workslocation-based mobile advertising

4-17 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. It’s Debatable Class Discussion Question Location-based advertising and mobile marketing efforts are much more prominent in the United Kingdom than they are in America. Why isn’t location-based advertising seen as much in the U.S.? Does mobile marketing have a future? What actions must marketers take for this technique to succeed? Check out How Adidas used mobile marketingAdidas

4-18 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.3 Uses of Data Mining

4-19 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.4 Steps in the Marketing Research Process

4-20 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.5a Marketing Research Designs

4-21 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Table 4.2 Helpful Internet Sites for Marketing Research

4-22 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 4.5b Marketing Research Designs

4-23 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Exploratory (Qualitative) Research  Exploratory research techniques generate insights for future, more rigorous studies Typically involve in-depth consumer probing Typically involve in-depth consumer probing Take many forms: Take many forms:  Focus groups  Case studies  Ethnography GoGurts Video

4-24 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Descriptive (Quantitative) Research  Descriptive research studies: Probe systematically into the problem Probe systematically into the problem Base conclusions on large numbers of observations Base conclusions on large numbers of observations Typically expresses results in quantitative terms Typically expresses results in quantitative terms Often use cross-sectional design Often use cross-sectional design Sometimes a longitudinal design is used instead Sometimes a longitudinal design is used instead

4-25 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Causal Research  Causal research: Technique that attempts to understand cause-and-effect relationships Experiments test predicted relationships among variables in a controlled environment Experiments test predicted relationships among variables in a controlled environment  Independent variables are factors that might cause a change  Dependent variables are those which measure a change in outcome

4-26 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Casual Research Experiments are conducted in controlled environments in order to eliminate alternative explanations for the results found

4-27 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Survey Methods  Survey methods are used to interview respondents  Questionnaires Mail questionnaire Mail questionnaire Telephone interviews Telephone interviews Face-to-face interviews Face-to-face interviews Online questionnaires Online questionnaires

4-28 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Observation Research  Observation: Data collection method where the researcher records consumers’ behaviors, often without their knowledge Personal observation Personal observation Unobtrusive measures Unobtrusive measures Mechanical observation Mechanical observation

4-29 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Online Research  Advantages of online research  Types of online research: Gathering information via consumer surfing Gathering information via consumer surfing Gathering information via online sources Gathering information via online sources  Cookies allow marketers to track consumers  Predictive technology is made possible by online research  Concern over consumer privacy is growing  Disadvantages of online research

4-30 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Data Quality: Garbage In, Garbage Out  How much faith should marketing managers place in research? Three key considerations include: Validity Validity Reliability Reliability Representativeness Representativeness

4-31 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Step 4: Design the Sample  Probability sampling: Each member of the population has some known chance of being included Each member of the population has some known chance of being included Sample is representative of population, and inferences about population are justified Sample is representative of population, and inferences about population are justified  Types of probability sampling: Simple random sampling Simple random sampling Systematic sampling Systematic sampling Stratified sampling Stratified sampling

4-32 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Step 4: Design the Sample  Nonprobability sample Personal judgment is used in selecting respondents Personal judgment is used in selecting respondents Some members of population have no chance of being included so sample is not representative of population Some members of population have no chance of being included so sample is not representative of population  Types of nonprobability sampling Convenience sampling Convenience sampling Quota sampling Quota sampling

4-33 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Step 5: Collect the Data  Garbage (collector) in, garbage out  Data gathering in foreign countries: A number of key challenges exist A number of key challenges exist

4-34 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Step 6: Analyze and Interpret the Data  Data must be analyzed and interpreted to be meaningful  Tabulation: Arranging data in a table or other summary form to get a broad picture of overall responses Arranging data in a table or other summary form to get a broad picture of overall responses  Cross-tabulation: Examining the data by subgroups to see how results vary between categories Examining the data by subgroups to see how results vary between categories

4-35 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Table 4.4 Examples of Data Tabulation and Cross-Tabulation Tables

4-36 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Step 7: Prepare the Research Report  Research reports typically contain the following sections: Executive summary Executive summary Description of research methods Description of research methods Discussion of study results Discussion of study results Limitations of study Limitations of study Conclusions and recommendations Conclusions and recommendations

4-37 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Real People, Real Choices: Decision Made at Discover Card  Ryan chose option 3 Why do you think that Ryan chose to engage an outside firm to assist Discover in developing a new process? Why do you think that Ryan chose to engage an outside firm to assist Discover in developing a new process?

4-38 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Keeping It Real: Fast-Forward to Next Class Decision Time at (RED)  Meet Julie Cordua, VP Marketing—(RED)  (RED) works with international brands to make unique products and directs up to 50% of gross profits to the Global Fund  The decision to be made: Is partnering with mass market international brands the optimal way to generate money for the Global Fund?

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