1. CHAPTER
seven
Marketing research

2. Previewing concepts (1)
Explain the importance of information to the company and its understanding of the marketplace
Define the marketing information system and discuss its parts
Outline the steps in the marketing research process
Principles of Marketing 5e, © Pearson Education 2008

3. Previewing concepts (2)
Explain how companies analyse and distribute marketing information
Discuss the special issues some marketing researchers face, including public policy and ethics issues
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4. Prelude case: Market researching HIV/AIDS in South Africa
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5. What is a marketing information system?
A marketing information system (MIS) includes the people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
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6. Figure 7.1 The marketing information system
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7. Developing marketing information
Internal data
Marketing intelligence
Marketing research
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8. Developing marketing information
Marketing Birmingham
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9. Sources of competitive intelligence
Executives
Engineers
Scientists
Purchasing agents
Sales force
Suppliers
Resellers
Customers
Published information
Competitors
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10. P&G went dumpster diving for competitive information on Unilever
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11. What is marketing research?
Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation.
Principles of Marketing 5e, © Pearson Education 2008

12. Figure 7.2 The marketing research process
Defining the problem and
research objectives
Developing the research
plan for collecting information
Implementing the
research plan
Interpreting and reporting
the findings
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13. Research Objectives
Exploratory research seeks to gather preliminary information that will help define the problem and suggest hypotheses
Descriptive research describes thing like market potential or consumer attitudes
Causal research seeks to test hypotheses about cause-and-effect relationships
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14. Information Needs
Information collected specifically for the purpose at hand is called primary data
Information collected already for some other purpose is known as secondary data
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15. Evaluating secondary data
How relevant is the data to the project at hand?
How accurate is the data?
How current is the data?
Were the data collected by an impartial party?
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16. Decisions associated with primary data collection
Research approach
Contact method
Sampling plan
Research instruments
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17. Primary data collection: research approaches
Observational
Survey
Experiment
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18. What is ethnographic research?
Ethnographic research is a form of observational research that involves sending trained observers to watch and interact with consumers in their ‘natural habitat.’
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19. IDEO used ethnographic research to design a Marriott strategy
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20. What is survey research?
Survey research is the gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour.
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21. Harris Interactive is a major provider of custom survey solutions
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22. What is experimental research?
Experimental research is the gathering of primary data by select matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
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23. Primary data collection: contact methods
Mail
Telephone
Personal
Online
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24. Strengths and weaknesses of contact methods
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25. Personal interviewing
Focus group interviewing utilises a small sample of typical consumers under the direction of a group leader who elicits their reaction to a stimulus such as an ad or product concept
Individual interviewing involves talking with people in their homes or offices on the street or in shopping centres
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26. Greenfield Online overcomes the a weakness of online research by using panel members
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27. Primary data collection: sampling plan
Sampling unit
Sample size
Sampling procedure
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28. Designing a sample Who is to be surveyed?
How many people should be surveyed?
How should the people in the sample be chosen?
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29. Types of samples Probability Simple random Stratified random Cluster
Nonprobability
Convenience
Judgement
Quota
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30. Designing questionnaires
Should questions be closed-ended or open-ended?
How should questions be worded?
How should the questions be ordered?
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31. Designing questionnaires
Marketing Birmingham
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32. Mechanical instruments
Eye cameras
People meters
Checkout scanners
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33. Analysing marketing information
Data may be analysed using advanced statistical methods and the development of econometric models
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34. Marketing research for small business and non-profit organisations
Research can be based on simple observation
Small scale surveys can be conducted using convenience samples
Managers can conduct simple experiments
Secondary information is easily available
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35. Issues facing international marketing research
Diverse markets in different countries
Difficulty finding good secondary data
Difficulty recruiting good samples
Communication modes (telephone, internet) may not be widespread
Language is an obstacle
Attitudes toward marketing research vary
Illiteracy rates may limit participation
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36. Public policy and ethics
Intrusions on consumer privacy
Misuse of research findings
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37. ShopperTrak uses video mining to monitor consumer behaviour
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38. Discussing the concepts (1)
Determine how the activities in Figure would apply to Reebok developing the information it needs to market a new running shoe.
List three different sources of internal data useful for a mobile phone company. How could the data be useful for creating mobile phone services that provide greater customer value and satisfaction?
Principles of Marketing 5e, © Pearson Education 2008

39. Discussing the concepts (2)
Outline the strengths and weaknesses of marketing research conducted online.
How does your college use an intranet to help its students access data?
List three ways, using limited resources, in which a director of fundraising for a small non-profit organisation could gather information about primary donor groups.
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