1. Chapter Seven: Marketing Research

2. Chapter Objectives
Define marketing research and provide a description of its scope.
Describe steps involved in the marketing research process.
Introduce concept of decision support systems for marketing and describe the sales forecasting process.

3. Defining Marketing Research
Definition: Systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision
Types of Marketing Research
Industry, market characteristics and market trends
Buyer behavior research
Product research
Distribution research
Promotion research
Pricing research

4. Research of Industry, Market Characteristics, and Market Trends
Show what products to produce
Understand how to promote products
Example: A research study by A.C. Nielsen indicated time is the key issue for consumers when cleaning; thus, products and promotion need to help consumers save time.
Buyer Behavior Research
Examines brand preferences and brand attitudes
You are trying to identify consumers perceptions about your product in order to develop Brand Equity. What is important?
-Brand Awareness -Brand Loyalty
-Brand Association -Perceived Quality

5. Product Research Concept development Brand name generation
Product testing
Competitive product studies
Product packaging design
Test marketing

6. Distribution Research
Channel performance and coverage
First step in channel design
SWOT of channel structure
Channel feasibilities
Plant/warehouse location
Cost of transportation
Real estate costs
Labor costs
Power availability
Tax structure/incentives
Another example of distribution research is research that determines the product’s optimal shelf location. Eye-level is the best shelf space location in most cases.

7. Promotion Research
Evaluates effectiveness of communication, appropriateness of communication, and effectiveness of media
Examples:
Studies of premiums, coupons,
and deals
Advertising effectiveness research
Media research
Sales force compensation, quota,
and territory studies

8. Pricing Research
Pricing is a key determinant in research studies attempting to project demand, such as:
Market potential studies
Sales potential studies
Sales forecasts studies
Pricing research is also an important determinant in:
Cost analyses
Profit analyses
Price elasticity studies
Competitive pricing analyses

9. Marketing Research Process*
Define Problem
Create Research Design
Collect Data
Analyze & Report Data

10. Create Research Design
Define Problem
Translate a marketing problem into a research problem.
Have a clear understanding of the research problem that needs to be investigated.
Create Research Design
Exploratory research
Descriptive research
Causal (experimental) research

11. Collecting Data Secondary Data Research
Secondary data is data that already exists, collected to address a problem other than the problem currently facing the company.
Internal
secondary data
External
secondary data
Valuable secondary data can be acquired from specialized marketing research firms.

12. The Research Methodology
Primary Data Research
The Research Methodology
Qualitative research:
Small number of respondents
Uses open-ended questions
Uses unstructured observation
Requires interpretation
Quantitative research:
Structured questionnaires
Produces numbers
Allows for higher level analysis
Exploratory Research–Descriptive Research–Causal Research

13. Primary Data Research Methods and Instruments
Focus group interviews
In Depth Interviews
Observational research
Content analysis
Survey research
Experimental research
Instruments
Electronic instruments
Psychogalvanometer
Pupillometric meter
Scanners
Cameras, etc.
Questionnaires
Scales
Note: Validity, Reliability, Biases

14. Primary Data Research Methods

15. Example of Content Analysis Questionnaire
Please look at each ad and indicate to what extent the ad has the following characteristics by circling the corresponding number, as follows: 1 = if the ad DOES NOT AT ALL HAVE the characteristic; 2 = if the ad DOES NOT HAVE the characteristic; 3 = if you are NOT SURE if the ad has the characteristic; 4 = if the ad HAS the characteristic; 5 = if the ad DEFINITELY HAS the characteristic.
The ad appears to be …  
Interesting
Funny
Seductive
Joyful
Scary
Colorful
Dull l
Spartan
Stressing practicality
Stressing safety
Stressing excitement
Stressing adventure
Now, please fill in the following information:
The ad features ____ people.
Example of Content Analysis Questionnaire

16. Collecting Primary Data: Sampling
Representative segment of the population of interest
Sample
Sampling frame
Sampling size
Sampling procedure
Probability sample
Non-Probability sample
Judgment sample
Sampling biases

17. : Collecting Primary Data
Sampling Plan (Terms)
Term
Definition
Population
The group being studied or for which the research will be applied, such as all vehicle owners.
Sample
A subset of the population selected for the study.
Sample Unit
The individuals who will be included in the research, such as all individuals with incomes over $125,000.
Sampling Procedure
Method of determining how individuals will be selected.
Sampling Frame
The list from which sample units will be selected, such as all holders of the GM credit card.
Convenience sample
Subjects within the sampling unit who are easy or convenient to use for the research.
Judgment sample
Subjects selected by the researcher because they are perceived to be representative of the population.
Random probability sample
Individuals selected randomly for a study where each person has a known and equal chance of being selected.

18. Sampling Plan

19. Collecting Primary Data (cont.)
Data can be collected using various methods such as mail, , Internet, telephone, and personal interviews. (Note Biases)
Researchers select different research methods depending on research needs, the size of the sample, the amount of data needed, etc.
Nonresponse: The inability or refusal by a respondent to participate in the study.
Each method has its advantages and disadvantages, as follows: . . .

20. Collecting Primary Data (cont.)
Collecting Data Methods
Method Advantages Disadvantages

21. Data Analysis,Recommendations, and Implementation
Data collected is coded, entered into the analysis program, and analyzed.
Researchers will tabulate the results and put them in a form that is meaningful and that will answer the problems introduced in the beginning of the research process.
Ethics

22. Marketing Decision Support Systems (MDSS)
A coordinated collection of data, systems, tools, and techniques, complemented by supporting software and hardware designed for the gathering and interpretation of business and environmental data.
Decision support systems should be:
Computerized
Interactive
Flexible
Discovery oriented

23. Marketing Decision Support Systems: Sales Forecasting
Statistical Methods (What People Have Done)
Trend Analysis
Extrapolation (straight-line, linear)
Exponential Smoothing
Time Series Analysis [Y=f(T,C,S,E)]
Correlation Methods, e.g., Regression
Behavioral Methods (What People Do)
Test Market
Surveys/Judgments (What People Say)
Survey of Buyer Intentions
Composite Sales Force Opinion
Survey of “Experts,”
e.g., executive judgment, Delphi technique
Cool Hunting #1