1 Marketing Research

2 The process of planning, collecting, and analyzing data relevant to a marketing decision.

3 Diagnostic Predictive Descriptive  Gathering and presenting factual statements  Explaining data  Attempting to estimate the results of a planned marketing decision Roles of Marketing Research

4 Management Uses of Marketing Research Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the ever-changing marketplace

5 Marketing Research Problem Determining what information is needed and how that information can be obtained efficiently and effectively

6 Secondary Data Data previously collected for any purpose other than the one at hand.

7 Sources of Secondary Data Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media Internal Corporate Information

8 Advantages of Secondary Data Saves time and money if on target Aids in determining direction for primary data collection Serves as a basis of comparison for other data

9 Disadvantages of Secondary Data May not be on target with the research problem Quality and accuracy of data may pose a problem

10 The New Age of Secondary Information: The Internet www Search Engines and Directories Sites of Interest to Marketing Researchers (AMA, FTC, American Demographics, etc.) Discussion Groups Periodical, Newspaper, and Book Databases

11 Research Design Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

12 Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.

13 Advantages of Primary Data Answers a specific research question Data are current Source of data is known Secrecy can be maintained

14 Disadvantages of Primary Data Expensive Quality declines if interviews / questionnaires are lengthy Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data! Disadvantages are usually offset by the advantages of primary data!

15 Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

16 Forms of Survey Research Focus Groups Executive Interviews Mail Surveys Telephone Interviews Mall Intercept Interviews In-Home Interviews

17 Focus Group Seven to ten people who participate in a group discussion led by a moderator.

18 Advantages of On-Line Focus Groups SpeedCost-effectiveness Broad geographic scope AccessibilityHonesty

19 Questionnaire Design Open-Ended Question Open-Ended Question Closed-Ended Question Closed-Ended Question Scaled- Response Question Scaled- Response Question An interview question that encourages an answer phrased in respondent’s own words. An interview question that asks the respondent to make a selection from a limited list of responses. An interview question that asks the respondent to make a selection from a limited list of responses. A closed-ended question designed to measure the intensity of a respondent’s answer. A closed-ended question designed to measure the intensity of a respondent’s answer.

20 Types of Questions in Questionnaire Design

21 Questionnaire Design Qualities of Good Questionnaires Clear and Concise No Ambiguous Language Unbiased Reasonable Terminology

22 Observation Research A research method that relies on three types of observation:  people watching people  people watching an activity  machines watching people

23 Observation Research Mystery Shoppers One-Way Mirrors Types of Observation Research Audits Machines Watching People People Watching People People Watching an Activity Traffic Counters Passive People Meter

24 Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer-employee interactions.

25 Experiment A method a researcher uses to gather primary data in which one or more variables are altered to determine their affect on another variable.

26 Sampling Procedure Sample Universe A subset from a large population. The population from which a sample will be drawn. The population from which a sample will be drawn.

27 Sampling Procedure Universe Sample Probability Samples Non-Probability Samples

28 Probability Samples Probability Sample Probability Sample A sample in which every element in the population has a known statistical likelihood of being selected. A sample in which every element in the population has a known statistical likelihood of being selected. Random Sample Random Sample A sample arranged so that every element of the population has an equal chance of being selected.

29 Nonprobability Samples Nonprobability Sample Nonprobability Sample Convenience Sample Convenience Sample Any sample in which little or no attempt is made to get a representative cross-section of the population. Any sample in which little or no attempt is made to get a representative cross-section of the population. A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher. A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.

30 Types of Errors Measurement Error Measurement Error Sampling Error Sampling Error Frame Error Frame Error Random Error Random Error Error when there is a difference between the information desired and the information provided by research Error when there is a difference between the information desired and the information provided by research Error when a sample somehow does not represent the target population. Error when a sample drawn from a population differs from the target population. Error when a sample drawn from a population differs from the target population. Error because the selected sample is an imperfect representation of the overall population. Error because the selected sample is an imperfect representation of the overall population.

31 Field Service Firm A firm that specializes in interviewing respondents on a subcontracted basis.

32 Field Service Firms Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits Provide:

33 Data Analysis One-Way Frequency Counts Record responses to a question Record responses to a questionCross-Tabulation

34 Cross-Tabulation A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.

35 Preparing and Presenting the Report Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations

36 Following Up Were the recommendations followed? Was sufficient decision-making information included in the report? What could have been done to make the report more useful to management?

37 Impact of the Internet Allows better and faster decision making Improves ability to respond quickly to customer needs and market shifts Makes follow-up studies and research easier Slashes labor- and time-intensive research activities

38 Advantages of Internet Surveys Contact with the hard-to-reach Contact with the hard-to-reach Improved respondent participation Improved respondent participation Personalized questions and data Personalized questions and data Reduced costs Rapid development, Real-time reporting Rapid development, Real-time reporting

39 Internet Samples Unrestricted Internet Sample Unrestricted Internet Sample Screened Internet Sample Screened Internet Sample Recruited Internet Sample Recruited Internet Sample A survey in which anyone with a computer and modem can fill out the questionnaire. A survey in which anyone with a computer and modem can fill out the questionnaire. An Internet sample with quotas based on desired sample characteristics. A sample in which respondents are prerecruited and must qualify to participate. A sample in which respondents are prerecruited and must qualify to participate.

40 Sales Forecasting Companies also use market research in order to predict future sales. Look at historical data, sales analysis and predict what sales will be in the future. **Important always but, even more so if your company is launching a new product or installing a new marketing plan based on research factors.