Getting Information for Marketing Decision Making Marketing Research: Getting Information for Marketing Decision Making To Accompany Basic Marketing, 14th Edition by William D. Perreault, Jr. and E. Jerome McCarthy Your host: David J. Urban Professor of Marketing Virginia Commonwealth University

Key Topics in Marketing Research What is it? Why is it important? How is it done?

Marketing Research consists of the procedures Marketing Research Defined Marketing Research consists of the procedures to develop and analyze new information to help marketing managers make decisions. Marketing research gets the "facts" not already available in the marketing information system.

Who Does “Custom” Marketing Research Suppliers In-house research departments Custom research firms Consulting firms Advertising agencies Syndicated services Colleges and universities

Internationalization of Marketing Research

The Importance of Marketing Research Reason #1: Not getting the right information is the fastest path to marketing disaster. Base marketing strategies on valid evidence and analysis Don’t blow it!

The Importance of Marketing Research Reason #2: research is often done poorly … and with serious consequences Managers may not know much about research Quality of suppliers is highly variable Research is often done on a crisis basis

Reason #3: big changes are underway because of technology The Importance of Marketing Research Reason #3: big changes are underway because of technology Instant feedback and rapid change “Real time” data Lack of understanding about how to use the tools Changes do not happen all at once

Ethical Issues in Marketing Research Withheld information Acceptability of Findings Research vs. Selling “Lying” with Statistics

Marketing Research Process – Step 1 Early Identification of Solution Most important and difficult part of the process What do we need to know? What pieces of information will give us what we need? Manager and researcher must work together Defining the Problem

Researcher – Manager Collaboration That overpaid yuppie is clueless--she doesn’t even know how a chi-square is computed That marketing research geek doesn’t understand my business--she doesn’t even know my competitors! I stats

Marketing Research Process – Step 2 Feedback to Previous Steps Early Identification of Solution Defining the Problem Analyzing the Situation What information is already available Expert interviews and case studies Secondary data Feedback to Previous Steps

An Example of Secondary Data

Marketing Research Process – Step 3 Feedback to Previous Steps Early Identification of Solution Defining the Problem Analyzing the Situation Getting Problem- Specific Data Feedback to Previous Steps

Primary Data -- Qualitative

Primary Data - Quantitative Questioning Mail, telephone, face-to-face, and internet surveys

Primary Data - Quantitative Questioning Mail, telephone, face-to-face, and internet surveys Observation Human or machine observers

Primary Data - Quantitative Questioning Mail, telephone, face-to-face, and internet surveys Observation Human or machine observers Experiments Cause and effect relationships

A good research proposal keeps the process on track The Research Proposal A good research proposal keeps the process on track What data will be collected What it will cost How it will be collected Research Proposal How long it will take From whom Quality control standards that will be used Who will analyze it

Marketing Research Process – Step 4 Feedback to Previous Steps Early Identification of Solution Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Feedback to Previous Steps

Key Issues Data Interpretation Is the sample representative? Is the data reliable? Is the data valid? Are the statistical techniques appropriate?

Data Interpretation

Marketing Research Process – Step 5 Feedback to Previous Steps Early Identification of Solution Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Solving the Problem Feedback to Previous Steps

Information Enters a Database Sources Questions and Answers Decision Maker Results Market Research Studies Internal Data Sources Inputs Databases External Data Sources

Support Systems Interact with the Database Information Sources Questions and Answers Decision Maker Results Marketing Models Market Research Studies New Information Answers ? Internal Data Sources Inputs Databases Decision Support System (DSS) External Data Sources Information Processing Specialists

Decisions and Outcomes Information Sources Questions and Answers Decision Maker Results Marketing Models Market Research Studies New Information Answers ? Internal Data Sources Marketing Manager Decisions Outcomes Inputs Databases Decision Support System (DSS) External Data Sources Information Processing Specialists Feedback

Marketing Strategy Planning Process Narrowing down to focused strategy with quantitative and qualitative screening criteria Customers Needs and other Segmenting Dimensions Targeting & Segmentation S. W. O. T. Company Mission, Objectives, & Resources Positioning & Differentiation Competitors Current & Prospective External Market Environment Technology Political & Legal Social & Cultural Economic