CHAPTER 3 MARKETING RESEARCH AND INFORMATION SYSTEM

Important Topics of the Chapter l Differences Between Consumer and Business marketing research. l Major Tasks of marketing Research. l Marketing Research Vs. MIS. l The Marketing research Process. l Make or Buy Decision in research. l Information Sources in Marketing research.

Business Vs. Consumer Marketing Research Consumer Business Universe Pop. Large Small Resp. Accessibility Difficult Concern Sample Size Large Small Resp. Definition Simple Difficult Interviews Easy Difficult Overall Study Cost Higher Smaller Cost per interview Less Higher

Focus of Business Marketing Research Business Market uses qualitative and quantitative research including computer assisted telephone interview and multivariate techniques. Business marketers conduct customer satisfaction, new market analysis, segmentation and packaging research.

Technology and Marketing Research l New methods of data collection have increased the quality and the quantity of data. l Data collection methods become cheaper and faster: CATI Internet data acquisition. Scanner technology. Remote data collection by sales and service personnel.

Major tasks of Business Marketing Research l Market Potential sales/profit potential l Market Share Analysis Company Vs. Industry ratio l Market Characteristics Understanding the market/customers l Sales Analysis Sales goals Vs. sales records- customer, product, regions, price

Major Tasks of Business Research (cont.) l Forecasting short and long term sales forecasting l Other applications sales quotas, territory studies, marketing audit, pricing tests, business trends

Marketing Research Vs. Marketing Information l MIS computerized data base for gathering accurate and timely information for key marketing professionals. It disseminate information in an almost infinite number combination on a regular basis depending upon what is needed. Information can be in finance, sales, production and accounting.

Marketing Research Vs. MIS (cont.) Storage Internal Environment Editing Data Analysis Dec. External Environment Reports Routine and non-routine information

Marketing Research Vs. MIS (cont.) l Sources of MIS Internal Environment Employee, financial resources External Environment Market, competition, government l MIS Data, editing and storage Data analysis and modeling Report generation and dissemination l Decision Process

Model of MIS System Information Information out in Macro Internal MIS Periodic Reports Special Reports Micro

Data Base Development l Information Sources Secondary Internal External Government-SIC codes Commercial sources Professional publications On-line and Internet Primary Marketing Research

The Business Marketing Research Process l Planning the research design Defining the problem l Preparation Sampling Designing the questionnaire open-ended close-ended Data collection methods Mail, telephone, personal, computer and internet

Business Marketing Research Process l Field Operations Scheduling and conducting interviews l Processing Coding and editing data Constructing data file l Tabulation and Interpretation Analysis Findings Interpretation

Business Marketing Research Process l Processing Coding and editing data Constructing data file l Tabulation and Interpretation Analysis Findings Interpretation l Reporting Written report and presentation Follow-up

Qualitative Vs. Quantitative Research l Qualitative Research: Subjective and interpretive Use open ended questions Use small sample. Use type recorder, videos. Exploratory. l Quantitative Research: Objective and statistical summarization. Use Questionnaires, computers. Large sample. Descriptive or Causal.

Make-or-Buy Marketing Research l Cost l Expertise l Resources statistician, computer specialists l Organizational structure l Legal and Administrative requirements l Confidentiality of information

Developing Information Sources l Secondary Data Sources: Internal sources. External sources. Government sources: Census data. Commercial sources: Survey of Industrial and commercial buying. Thomas Register of American manufacturers. Professional publications. Internet sources. Disadvantages of secondary data: Accuracy and Coverage. Collection problem.

Developing Information Sources (cont.) l Primary data Sources: Personal Interviews. Telephone Surveys. Mail Surveys. Research on the Internet. l Disadvantages of Primary Data: Cost. Response rate. Importance of computer. Statistical analysis.

International Marketing research l Language l Culture l Resources l Training l Attitudes of People l Political climate