1. Gathering, Analyzing, and Using Information
Marketing Research:
Gathering, Analyzing, and Using Information

2. Chapter Objectives
Explain the role of the marketing information system and the marketing decision support system in marketing decision making
List and explain the steps in the marketing research process
Appreciate the differences among exploratory, descriptive, and casual research
Describe the different types of data-collection methods and types of consumer samples that research use
Understand the impact of the growing use of online research

3. Knowledge is Power
Accurate, up to date, relevant information is the fuel that runs the marketing engine

4. The Marketing Information System
Determines what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users

5. Internal Company Data
Information from within the company to produce reports on the results of sales and marketing activities (e.g. Sales, what consumers are buying what products…etc)
Intranet: internal corporate communications network that links company departments, employees, and databases.

6. Marketing Intelligence
Monitoring everyday sources and using “mystery shoppers”
Futurists specialize in predicting consumer trends (using different scenarios to predict the future)
HSX.COM

7. Marketing Research
Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness
Syndicated research (research by firms that collect data on a regular basis and sell the reports to multiple firms)
Custom research (conducted for a single firm to provide specific information)
MEDIAMARK RESEARCH
GfK ARBOR LLC

8. Acquired Databases From other companies Government databases
Misuse of databases can be problematic and has led to do-not-call lists and antispam laws

9. Marketing Decision Support Systems
MDSS: data plus analysis and interactive software allow marketing managers to access MIS data and conduct analyses

10. Searching for Gold: Data Mining
Analysts sift (filter) through data to identify unique patterns of behavior among different customer groups
Using super computers to process terabytes size of data, and also “data warehouse” to investigate patterns of preferences of consumers
Very complex and costly way, over $10m.

11. What Marketers Can Do with Data Mining
Customer acquisition
Customer retention and loyalty
Customer abandonment
Market basket analysis

12. Steps in the Marketing Research Process
Step 1: Define the research problem
Specifying research objectives (research questions)
Identifying consumer population of interest (characteristics of consumers)
Placing the problem in an environmental context (what internal/external environment might be influenced)
Step 2: Determine the Research Design
Specifying exactly what information marketers will collect and what type of study they will do

13. Figure 4.5: Marketing Research Design

14. Secondary Versus Primary Research
Secondary data have been collected for some purposes other than the problem at hand
Primary data is information collected directly from respondents to specifically address the question at hand

15. Secondary Research Web Sites
DIALOG.COM
MARKETINGTOOLS.COM
LEXIS-NEXIS
CENSUS.GOV

16. Exploratory (Qualitative) Research
Research techniques that generate insights for future, more rigorous studies
Researchers conduct one-on-one discussions with consumers
Focus group: a product-oriented discussion among a small group of consumers

17. Exploratory (Qualitative) Research (cont’d)
Projective techniques: participants respond to some object
Case study: comprehensive examination of a particular firm
Ethnography: Marketers visit homes or participate in consumer activities to learn how products are used

18. Descriptive (Quantitative) Research
Probes systematically into the problem
Bases conclusions on large numbers of observations
Results typically expressed in quantitative terms (averages, percentages, other stats)
Cross-sectional design (one time)
Longitudinal design (track over time)

19. Causal Research
Cause-and-effect relationships: a change in one thing causes a change in something else
Independent (cause) vs. dependent (change in outcome) variables
Experiments: test predicted relationships among variables in a controlled environment
Field studies

20. Steps in the Marketing Research Process (cont’d)
Step 3: Choose the Method for Collecting Primary Data
Survey Methods: interview respondents
Questionnaires: loosely, moderately, or completely structured

21. Questionnaires Mail questionnaires Telephone interviews
Face-to-face interviews
Online questionnaires

22. Discussion
Are you willing to reveal personal information to marketing researchers?
How much are you willing to tell?
Where would you draw the line?

23. Observational Methods
Observation: data collection where the researcher records consumers’ behaviors, often without their knowledge
Personal observation
Mechanical observation
Unobtrusive measures

24. Data Quality: Garbage In, Garbage Out
How much faith should marketing managers place in research?
Validity
Reliability
Representativeness

25. Discussion
Do you think marketers should be allowed to conduct market research with young children? Why or why not?

26. Online Research
Information gathered via consumer surfing and Web site/ /chat room questionnaires/focus groups
Cookies allow a Web sponsor to track a surfer’s moves

27. Online Research Applications
New product development
Estimating market response
Exploratory research (online focus groups)
IM (Instant Messaging)
THERE.COM
ITRACKS.COM

28. Advantages of Online Data Collection
The same amount of data in a fraction of the time
Convenience of survey completion
Elimination of interviewer bias and data entry errors

29. Disadvantages of Online Data Collection
Non-representativeness of respondents
Limited computer access for poor and elderly
Self-selection bias (people who like to take part in online studies)
Hackers and competitors influencing/intercepting results

30. Step 4: Design the Sample
Probability sample
Each member of the population has some known chance of being included
Sample is representative of population, and inferences about population are justified
- Simple random sampling
- Systematic sampling
- Stratified sampling

31. Step 4: Design the Sample (cont’d)
Nonprobability sample
Personal judgment used in selecting respondents
Some members of population have no chance of being included
No way to ensure that sample is representative of population
Convenience sampling
Quota sampling

32. Discussion
Why wouldn’t you select all the individuals or elements of a population to be in your study?

33. Step 5: Collect the Data
Challenges to gathering data in foreign countries
Differences in sophistication of research operations
Infrastructure/transportation challenges
Lack of phones
Low literacy rates
Local customs and cultural differences
Language translation difficulties

34. Step 6: Analyze and Interpret the Data
Data need analysis for them to have meaning
Tabulation: 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

35. Table 4.4: Data Tabulation and Cross-Tabulation Tables

36. Step 7: Prepare the Research Report
Executive summary
Description of research methodology
Discussion of results including tabulations, cross-tabulations
Limitations of study
Conclusions and recommendations

37. Discussion What is your overall attitude toward marketing research?
Do you think it is a beneficial activity from a consumer’s perspective?
Or do you think it merely gives marketers new insights on how to convince consumers to buy something they really don’t want or need?

38. Marketing Plan Exercise
Select a company that makes a product you use. For the firm you selected:
Define one specific problem it could address through marketing research
What type of research design do you recommend for addressing that problem, and why?
What is the most appropriate way to collect the data? Justify your choice
How will you ensure high validity, reliability, and representativeness of the data?
Design an appropriate sampling plan