1. Section 29.1 Marketing Research
Marketing Essentials
n Chapter 29 Conducting Marketing Research
Section Marketing Research

2. Marketing Research SECTION 29.1
What You'll Learn
The steps in conducting marketing research
The difference between primary and secondary data
The various methods used to collect primary and secondary data

3. Marketing Research SECTION 29.1
Why It's Important
Businesses that want to increase their customer base must have information about the attitudes and behaviors of customers and prospective customers. Marketing research can provide information for strategies that will increase sales and profits.

4. Marketing Research SECTION 29.1 problem definition observation method
Key Terms
problem definition
primary data
secondary data
survey method
sample
observation method
point-of-sale research
experimental method
data analysis

5. Marketing Research SECTION 29.1 The Marketing Research Process
The five steps that a business follows when conducting marketing research are:
1. Defining the problem.
2. Obtaining data.
3. Analyzing the data.
4. Recommending solutions.
5. Applying the results.

6. Marketing Research SECTION 29.1 Step 1: Defining the Problem
The most difficult step in the marketing research process is defining the problem. Problem definition occurs when a business clearly identifies a problem or research issue and the information that is necessary to solve it.

7. Marketing Research SECTION 29.1 Step 2: Obtaining Data
In obtaining data, companies collect and examine data (facts) in terms of the problem or problems being studied. There are two types of data used in marketing research:
primary data
secondary data
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8. Marketing Research SECTION 29.1 Step 2: Obtaining Data
Primary data are data obtained for the first time and used specifically for the particular problem or issue under study.
Secondary data have already been collected for some purpose other than the current study. Secondary data are less expensive to collect than primary data.
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9. Marketing Research SECTION 29.1 How Secondary Data are Obtained
Secondary data are obtained from both internal sources (within the company) and external sources (outside the company). Sources of secondary data include:
A business’s own marketing information system.
The Internet—digital dossiers provide company profiles, income statements, and balance sheets.
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10. Marketing Research SECTION 29.1 How Secondary Data are Obtained
U.S. government sources, such as the Small Business Administration, Department of Commerce, Census Bureau, and Securities and Exchange Commission.
Consumer and business information companies.
Business and trade publications.
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11. Marketing Research SECTION 29.1 Advantages of Secondary Data
Secondary data can be obtained easily, since the data are either on the Internet, in corporate, public, and college libraries, or can quickly be purchased from syndicated services.

12. Marketing Research SECTION 29.1 Disadvantages of Secondary Data
There are two major disadvantages associated with secondary data:
The existing data may not be suitable or available for the problem under study.
The data may not be accurate.

13. Marketing Research SECTION 29.1 How Primary Data Are Obtained
When marketing researchers cannot find the information they need from secondary data, they collect primary data. Primary data may be collected using three methods:
the survey method
the observation method
the experimental method

14. Marketing Research SECTION 29.1 The Survey Method
The survey method, the most frequently used method, is a research technique in which information is gathered from people through the use of surveys or questionnaires.
In a census, researchers survey the entire target population.
More common is the use of a sample, a part of the target population that is assumed to represent the entire population.
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15. Marketing Research SECTION 29.1 The Survey Method
Surveys can be conducted in person, by phone, by mail, or by using Internet technologies.
The personal interview involves questioning people face-to-face, often in central locations such as shopping malls (a mall intercept interview).
A focus group interview involves 8 to 12 people brought together to evaluate a specific product, service, or idea.
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16. Marketing Research SECTION 29.1 The Survey Method
Less expensive than personal interviews are phone, mail, and Internet surveys.
Phone interviews often have low response rates.
Mail surveys have better, but still low, response rates.
Internet survey methods are increasing in popularity. They are quick; they eliminate data entry; and they allow real-time data collection.
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17. Marketing Research SECTION 29.1 Rating Quality of Service
Charts such as this one are typically included in a research report. Why are charts often included?

18. Marketing Research SECTION 29.1 The Observation Method
The observation method is a research technique in which the actions of people are watched and recorded either by cameras or observers. Properly performed and recorded observations supply better results than survey techniques provide.
Mystery shoppers are researchers posing as customers in retail stores to evaluate salespeople.
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19. Marketing Research SECTION 29.1 The Observation Method
The observation technique may use either contrived or natural situations.
The researcher sets up contrived observations.
Example: Allowing children to play with selected toys to determine which is most popular.
In natural observation, customers or employees are viewed as they would normally act in a given situation.
Example: Hidden cameras, traffic counts.
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20. Marketing Research SECTION 29.1 The Observation Method
Point-of-sale researchers observe shoppers to decide which ones to choose as research subjects—shoppers buying a specific type of product, product brand, or shoppers who inspect a product but do not buy it. After observation, researchers approach the selected shoppers and ask them questions.
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21. Marketing Research SECTION 29.1 The Experimental Method
The experimental method, the least-often used method, is a research technique in which a researcher observes the results of changing one or more marketing variables while keeping certain other variables constant under controlled conditions.

22. Marketing Research SECTION 29.1 Step 3: Analyzing the Data
Data analysis is the compiling, analyzing, and interpreting of the results of primary and secondary data collection.

23. Marketing Research SECTION 29.1
Step 4: Recommending Solutions to the Problem
Successful research results in information that helps businesses make decisions on how to solve a problem. The conclusions drawn from the research usually are presented in an organized and well-written report.

24. Marketing Research SECTION 29.1 Step 5: Applying the Results
Managers use the research report to make decisions about marketing strategies in relation to the researched problem or issue. In evaluating the research, managers may find that the research was inconclusive, additional research may be needed, or the research suggests specific courses of action.

25. Reviewing Key Terms and Concepts
ASSESSMENT
29.1
Reviewing Key Terms and Concepts
1. What are the five steps for designing and conducting a research study?
2. Explain the difference between primary and secondary data.
3. Name the methods used most frequently to collect secondary data.
4. Name the methods used most frequently to collect primary data.
5. What is meant by data analysis?

26. ASSESSMENT Thinking Critically 29.1
Many retail stores now ask customers after each sale to give their phone number or ZIP code. Do you support this type of data collection? Why or why not?

27. The Marketing Research Process
29.1
Graphic Organizer
The Marketing Research Process
Define the
problem
Obtain
Data
Analyze
Data
Recommend
Solutions
Apply
Results

28. Marketing Essentials
End of Section 29.1