1. USING MARKETING RESEARCH
CHAPTER 05
4/20/2017
USING MARKETING RESEARCH
5.1 Understanding the Need for Market Information
5.2 Finding and Managing Marketing Information
5.3 Using Marketing Research
5.4 Collecting Primary Data
© South-Western Publishing
MARKETING

2. UNDERSTANDING THE NEED FOR MARKETING INFORMATION
GOALS for Lesson 5.1
Explain the importance of information in targeting market segments.
Describe the categories of information marketers need.
© South-Western Publishing

3. Marketing to Segments
Marketing Segments – a group of similar consumers within a larger market
“Here’s what I think our customers will buy”
“What can we provide that will meet your needs as our customer”
© South-Western Publishing

4. Marketing to Segments The Global Market Competition Changing Markets
© South-Western Publishing

5. Marketing to Segments Global Market Develop an international focus
Number of marketing segments become even greater
Gathering information about the country and it people is highly important
© South-Western Publishing

6. Marketing to Segments Competition
Competition is becoming more intense for most businesses
Tougher to ensure customers will prefer your product
Gathering information about competitors’ products and marketing activities is important in analyzing strengths and weaknesses
© South-Western Publishing

7. Marketing to Segments Changing Markets
Basic needs vs. satisfying discretionary desires
More information available, more informed decisions
Basic products vs. Advanced products
product development and technology
© South-Western Publishing

8. Categories of Information
What types of information are needed?
Every business needs specific information in order to run a successful business
1. Consumers
2. Marketing mix
3. Business environment
© South-Western Publishing

9. Types of Information Needed for Effective Marketing Decisions
Consumers
age
gender
income
education
family size
home ownership
address
occupation
how money is spent
attitudes
primary needs
product purchases
purchase frequency
brand preferences
information needs
media preferences
shopping behavior
© South-Western Publishing

10. Types of Information Needed for Effective Marketing Decisions
Marketing Mix
basic products
product features
services
product packaging
guarantees
repairs
product price
credit choices
discounts
location of sale
type of store used
display procedures
use of salespeople
promotion methods
promotional message
promotional media
© South-Western Publishing

11. Types of Information Needed for Effective Marketing Decisions
Business Environment
type of competition
competitors’ strengths
competitors’ strategies
economic conditions
government regulations
new technology
consumer protection
ethical issues
tax policies
proposed laws
international markets
© South-Western Publishing

12. Journal Entry #8
List 5 to 8 items (fast food, clothes, magazines) that you buy periodically to satisfy some need or want. Then note how your preferences have changed over the past years, and how those preferences have affected what you buy.
© South-Western Publishing

13. FINDING AND MANAGING MARKETING INFORMATION
GOALS for Lesson 5.2
Describe common sources of internal and external market information.
Explain the five critical elements of an effective marketing information system.
© South-Western Publishing

14. Sources of Information
Steps of the Process
Identify the types of information needed.
Determine the available sources of each type of information.
Evaluate each source to determine if it meets the organization’s needs in term of accuracy, time, detail, and cost.
Select the sources that best meet the identified needs.
Enter the information into a marketing information system.
© South-Western Publishing

15. Internal Information Sources – from within the org.
Internal Information - is information developed from activities that occur within the organization. A great deal of information flows through a business on a daily basis.
Customer records and sales information
Production and operations reports
Performance information
© South-Western Publishing

16. Customer Records / Sales information
highly important for effective planning
purchase records (dates, quantities, related purchases, accessories, payment types)
demographic information and customer needs
customer profiles and customer clubs
Ralph’s Club Card, Blockbuster Card
© South-Western Publishing

17. Production and Operations Reports
products and services must be available
quality standards must be met
expenses must be controlled
channel members must share
marketing plan, balance sheets, customer data sheets
© South-Western Publishing

18. Performance information
Sales, costs, quality, and customer satisfaction…
Measured 1 of 3 ways…
Past records (compare current to past)
Compare performance to similar businesses (external)
Compare actual perf. w/ expected perf.
© South-Western Publishing

19. External Information Sources – understanding of factors OUTSIDE the organization.
External Information - provides an understanding of factors outside the organization
© South-Western Publishing

20. External Information Sources – understanding of factors OUTSIDE the organization.
Government reports
Census (U.S. Bureau of the Census)
5 or 10 years plus yearly updates (sometimes)
Trade and professional associations
Journals, newsletters, research reports, etc.
© South-Western Publishing

21. External Information Sources – understanding of factors OUTSIDE the organization. (continued)
Business publications
WSJ, Forbes, Business Week
Commercial data and information services
Nielsen (ratings), Dun & Bradstreet
© South-Western Publishing

22. Marketing Information Systems
definition - an organized method of collecting, sorting, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions
© South-Western Publishing

23. Marketing Information Systems
Input – the information that goes into the system that is needed for decision making
Routine information about customers, competitors and business operation is used for marketing decisions.
Storage – is the resources used to maintain information, including equipment and procedures, so that it can be used when needed.
Must protect the information or be organized so the information can be located when needed.
© South-Western Publishing

24. Marketing Information Systems
Analysis – is the process of summarizing, combining, or comparing information so that decisions can be made
Summarizing, combining or comparing information or data
Output – results of analysis given to decisions makers
Usually written or graphical form
© South-Western Publishing

25. Marketing Information Systems
Decision Making – marketing information system is used to improve decision making
Some decisions are routine and some are unique
© South-Western Publishing

26. Designing an MkIS – groups
Input: What information is needed to develop and implement the marketing strategy?
Storage: How should the information be maintained so it is in a usable form and is easy to access when needed?
Analysis: What methods should be used to organize and study the information in order to make effective marketing decisions?
Output: How and when should the information be made available for most effective use?
Decision-Making: What ways should the information be used to improve marketing?
© South-Western Publishing

27. USING MARKETING RESEARCH
GOALS for Lesson 5.3
Describe how to define and develop an understanding of a problem as the first steps toward solving it.
Identify the steps needed to gather and study data relevant to a problem.
Explain how to prepare reports and present proposed solutions.
© South-Western Publishing

28. Implementing a Marketing Research Study
1. Seeing the Problem Clearly
2. Gathering Information
3. Proposing a Solution
© South-Western Publishing

29. Seeing the Problem Clearly
Marketing research – a procedure designed to identify solutions to a specific marketing problem through the use of scientific problem-solving
Define the problem
Analyze the situation
Develop a data-collection procedure
Secondary data
Primary data
© South-Western Publishing

30. Gathering Information
Selecting the participants
Population
Random sampling
Collecting the data
Analyzing the data
Numerical data
Non-numerical data
© South-Western Publishing

31. Visual Summaries of Marketing Information
Bar Graph
© South-Western Publishing

32. Visual Summaries of Marketing Information
Line Graph
© South-Western Publishing

33. Visual Summaries of Marketing Information
Pie Chart
© South-Western Publishing

34. Proposing a Solution Preparing reports Presentation of results
Who is the report being prepared for?
Must clearly describe the purpose of the study and the research procedures used
Presentation of results
Written with graphs and charts or oral presentations with visual aids
© South-Western Publishing

35. Sections of a Research Report
Statement of the problem
Review of secondary data
Research procedures
Results of the research
Summary and recommendations
© South-Western Publishing

36. COLLECTING PRIMARY DATA
GOALS for Lesson 5.4
Describe the purpose of marketing research surveys.
Explain the reasons for and limitations of using observation.
Define various types of marketing research experiments.
© South-Western Publishing

37. Conducting Surveys
Closed-ended questions – offers two or more choices (yes-no, agree-disagree, a-b-c-d)
Open-ended questions – develop their own answers (How was your shopping experience?)
© South-Western Publishing

38. Focusing on the Issues
Focus group – a small number of people brought together to discuss identified elements of an issue or problem
Questioning with clarity
Understands what is being asked
Encouraged to answer honestly
Is not directed toward one answer
© South-Western Publishing

39. Making Observations
Observation - collects information by recording actions without interacting or communication with the participant.
Greater accuracy and objectivity
More money and time
Purchasing behavior
© South-Western Publishing

40. Making Observations Recording devices include Television cameras
Audio recorders
Bar code scanners
Eye-tracking photography
© South-Western Publishing

41. Performing Experiments
Experiment – tightly controlled situations in which all important factors are the same except the one being studied.
Hard to control many activities
Must operate long enough to see any significant results
Ex. – price effect on sales volume
© South-Western Publishing

42. Performing Experiments
Test marketing – specific cities or geographic areas in which marketing experiments are conducted (ex. – McDonalds)
Simulations – experiments where researchers create the situation to be studied (ex. – toys and play centers)
© South-Western Publishing

43. Group Activity
At your table, create a survey, for one of the products below, that could be used to find out more about consumer’s acceptance and views of the product. The survey should be conducted on prospective consumers.
1. peanut butter and jelly potato chips,
2. electric powered scooter, 3. athletic shoes with attached in-line skates
© South-Western Publishing