1. Marketing Research
4.04

2. Marketing Information Management
How are decisions made to introduce new products and delete old ones?

3. 4.04 Vocabulary Attitude Research Data Analysis Database Marketing
Experimental Method
Forced-choice Questions
Market Intelligence
Marketing Research
Marketing Information System
Media Research
Observation Method
Open-ended Questions
Point-of-sale Research
Primary Data
Problem Definition
Product Research
Quantitative Research
Qualitative Research
Reliability
Sample
Secondary Data
Survey Method
Validity

4. 4.04 Essential Question
How does marketing information and research affect business and marketing decisions?

5. Essential Question 1 Marketing Research
What is the role of marketing information management?

6. What is Marketing Research?
Obtaining information about the preferences, opinions, habits, trends, and plans of potential customers.
Helps to determine what customers want and need.

7. American Marketing Association
Marketing Research
‘the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’
American Marketing Association

8. Why is Research Important?
Businesses that do not pay attention to what consumers are buying, are likely to make costly mistakes.
Information obtained from research helps businesses to plan for the future.

9. Why is Research Important?
Helps to anticipate or solve problems in the marketplace.
Helps a company keep track of what is happening in its markets.

10. Purpose

11. Essential Question 2 Marketing Research
How does each type of research differ from each other?

12. Types of Marketing Research
Advertising Research
Focuses on the effectiveness of the advertising message and the effectiveness of media placement.

13. Types of Marketing Research
Product Research
Used to evaluate product design and acceptance, competitive products, package design, and product usage.

14. Types of Marketing Research
Market Research
Studies customer behavior (customer analysis) to gather information about customer attitudes.

15. Types of Marketing Research
Market Research
Studies the behavior of a consumer market (market analysis) to investigate the potential markets for a product and to define the target market.

16. Types of Marketing Research
Sales Research
The study of sales data to determine the potential sales for a product and to solve problems related to future sales.

17. Essential Question 3 Marketing Research
What are the steps in the marketing research process?

18. The Marketing Research Process
Step 1 - Defining the Problem
Identify and clearly state what the problem is and what can be done to solve the problem.
Determine which problems are the most important to solve at a given time.

19. The Marketing Research Process
Step 2 - Obtaining Data
Collect and examine information in terms of the problem being studied.
Primary data can be used and/or
Secondary data can be used.

20. The Marketing Research Process
Step 3 - Analyzing the Data
Compiling, analyzing, and interpreting the results of primary and secondary data.
The results of each question can be clearly read and interpreted.

21. The Marketing Research Process
Step 4 - Recommending Solutions to the Problem.
Solutions are usually presented in a well written report.
Recommendations must be clear and supported by the research data.

22. The Marketing Research Process
Step 5 - Applying the Results
The required form of action is decided upon and put into place.

23. The Marketing Research Process
Set objectives
Define research Problem
Assess the value of the research
Construct a research proposal
Specify data collection method
Specify techniques of measurement
Select the sample
Data collection
Analysis of results
Present in a final report

24. Essential Question 4 Marketing Research
What are the differences in primary and secondary data?

25. Types of Data
Primary data: Data obtained for the first time and used specifically for the particular problem or issue under study; collected firsthand.
Secondary data: Data already collected for some purpose other than the current study; already exists, desk research.

26. Primary Research

27. Market Research Primary Research First hand information
Expensive to collect, analyse and evaluate
Can be highly focussed and relevant
Care needs to be taken with the approach and methodology to ensure accuracy
Types of question – closed – limited information gained; open – useful information but difficult to analyse

28. Secondary Research

29. Internal Sources Company Accounts Internal Reports and Analysis
Stock Analysis
Retail data - loyalty cards, till data, etc.

30. External Sources
Federal Government Statistics (i.e. census, labor dept, etc.)
Local: Chamber of Commerce, Economic Development, City & County Government, etc.
Trade publications
Commercial Data - Gallup, Mintel, etc.
Household Expenditure Survey
Magazine surveys
Other firms’ research
Research documents – publications, journals, etc.

31. Essential Question 5 Marketing Research
What methods are used to collect primary and secondary data?

32. Data Collection Primary data can be obtained by:
- the survey method
- the observation method
- the experimental method
Secondary data can be obtained by a number of agencies.
- Internet Sources
- US and Government Sources
- Specialized Research Companies
- Business Publications and Trade Organizations

33. Essential Question 6 Marketing Research
How are population, sample, bias, and error used in marketing research?

34. Data Sampling
When designing a survey, marketers must determine the number of people to include in their survey.
Population: The entire target group of people under study.
Sample: Part of the target population that represents it accurately.
Sampling - studying part of a ‘population’ to learn about the whole
Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.
Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.

35. Sampling Methods

36. Market Research Sampling Methods:
Random Samples – equal chance of anyone being picked
May select those not in the target group – indiscriminate
Sample sizes may need to be large to be representative
Can be very expensive

37. Market Research Stratified or Segment Random Sampling
Samples on the basis of a representative strata or segment
Still random but more focussed
May give more relevant information
May be more cost effective

38. Market Research Quota Sampling Again – by segment
Not randomly selected
Specific number on each segment are interviewed, etc.
May not be fully representative
Cheaper method

39. Market Research Cluster Sampling Multi-Stage Sampling
Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population
Multi-Stage Sampling
Sample selected from multi-stage sub-groups
Snowball Sampling
Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

40. Terminology of Marketing Research
Quantitative research - statistical basis
Qualitative research - subjective and personal

41. Market Research Quantitative and Qualitative Information:
Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how
Qualitative – more detail – tells you why, when and how!

42. Essential Question 7 Marketing Research
What are techniques are used in marketing research?

43. Marketing Research Techniques
Interviews
face-to-face
telephone
postal questionnaire
Attitude measurement
cognitive component (know/believe about an act/object)
affective component (feel about an act/object)
conative component (behave towards an object or act)

44. Projective techniques
Likert scale
strongly agree
agree
neither agree nor disagree
disagree
strongly disagree
Semantic differential scales - differences between words e.g. practical v impractical
Projective techniques
sentence completion
psychodrama (yourself as a product)
friendly martian (what someone else might do)

45. Group discussion and focus group Postal research questionnaires
Diary panels - sources of continuous data
In-home scanning - hand-held light pen to scan barcodes
Telephone research
Observation
home audit
direct observation
In-store testing

46. American Marketing Association
What is MKIS?
‘MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions’
American Marketing Association

47. The components of a computerised MKIS
Data Bank
Statistical
Bank
MKIS
Display
unit
Marketing
Manager
Model
Bank

48. The components of a computerised MKIS
Data bank - raw data e.g historical sales data, secondary data
Statistical bank - programmes to carry-out sales forecasts, spending projections
A model bank - stores marketing models e.g Ansoff’s matrix, Boston Matrix
Display unit - VDU and keyboard

49. Essential Question 8 Marketing Research
What are the advantages & disadvantages of marketing research?

50. Market Research Advantages of Market Research
Helps focus attention on objectives
Aids forecasting, planning and strategic development
May help to reduce risk of new product development
Communicates image, vision, etc.
Globalisation makes market information valuable (HSBC adverts!!)

51. Market Research Disadvantages of Market Research
Information only as good as the methodology used
Can be inaccurate or unreliable
Results may not be what the business wants to hear!
May stifle initiative and ‘gut feeling’
Always a problem that we may never know enough to be sure!

52. Essential Question 9 Marketing Research
What are the trends and limitations in marketing research?

53. Research Trends Trends in research: Global Marketplace
Due to increased international competition, US companies must improve or change products frequently to hold on to customers.
Product quality and customer satisfaction are keys to business success and research that measures these qualities are the fast form of marketing research.
Business Management
Many businesses are using internal and external information to improve business operations.

54. Research Limitations Limitations in research: Money Time
Customers saying one thing and doing another

55. Market Research