1. Marketing Research: Gathering, Analyzing, and Using Information

2. 2 Chapter Objectives marketing information system  MIS marketing decision support system  MDSS 7 steps in the marketing research process

3. 3 Chapter Objectives research types:  exploratory, descriptive, and casual data-collection methods and research samples online research

4. 4 Knowledge is Power Accurate, up to date, relevant information the fuel that runs the marketing engine

5. 5 The Marketing Information System Determines what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users Figure 4.2

6. 6 Internal Company Data Information from within the company  to produce reports on the results of sales and marketing activities Intranet:  internal corporate communications network  links company departments, employees, and databases.

7. 7 Marketing Intelligence Monitoring everyday sources using “mystery shoppers” Futurists specialize in predicting consumer trends HSX.COM

8. 8 Marketing Research Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness  Syndicated research Research that can be purchased  Custom research Conducted specifically for one purpose & one company MEDIAMARK RESEARCHGfK ARBOR LLC

9. 9 Acquired Databases From other companies  Annual reports Government databases  U.S. Census data Misuse of databases  do-not-call lists  antispam laws

10. 10 Marketing Decision Support Systems MDSS: data plus analysis and interactive software allow marketing managers to access MIS data and conduct analyses Figure 4.3

11. 11 Searching for Gold: Data Mining After the fact,… post-hoc analysis sift through data to identify unique patterns of behavior  among different customer groups

12. 12 Value & Uses of Data Mining Customer acquisition Customer retention and loyalty Customer abandonment Market basket analysis

13. 13 Steps in Marketing Research Process Step 1 : - Define research problem Step 2: - Determine research design Step 3: Methodology Step 4: Sampling Step 5: Collecting data Step 6: Analysis & Interpretation of data Step 7: Write research report

14. 14 Steps in the Marketing Research Process Step 1: Define the research problem  Specifying research objectives  Identifying consumer population of interest  Placing the problem in an environmental context

15. 15 Steps in the Marketing Research Process Step 2: Determine the Research Design  Specifying what information  marketers will collect and  what type of study they will do

16. 16 Figure 4.5: Marketing Research Design

17. 17 Secondary vs. Primary Research Secondary data  collected for some purposes  other than the problem at hand Primary data  collected directly from respondents  to specifically address the question at hand

18. 18 Secondary Research Web Sites DIALOG.COM MARKETINGTOOLS.COM LEXIS-NEXIS CENSUS.GOV

19. 19 Exploratory (Qualitative) Research generate insights for future, more rigorous studies one-on-one discussions  with consumers Focus group:  a product-oriented discussion  among a small group of consumers LOOK-LOOK.COM

20. 20 Exploratory (Qualitative) Research Projective techniques:  participants respond to some object Case study:  comprehensive examination of a particular firm Ethnography: (phenomenology)  Marketers visit homes or participate in consumer activities to learn how products are used Wild Planet Video

21. 21 Descriptive (Quantitative) Research systematic Probes into problem Bases conclusions  on large numbers of observations Results typically expressed in quantitative terms  ( averages, percentages, other stats )  Cross-sectional design  Longitudinal design

22. 22 Causal Research Cause-and-effect relationships: a change in one thing causes a change in something else

23. 23 Causal Research Independent (cause) vs. dependent (change in outcome) variables Experiments: test to predict relationships among variables in a controlled environment

24. 24 Step3 in Marketing Research Process Choose Method for Collecting Primary Data Survey Methods:  interview respondents Questionnaires:  loosely, moderately, or completely structured

25. 25 Questionnaires Mail questionnaires Telephone interviews Face-to-face interviews Online questionnaires

26. 26 Observational Methods Observation: data collection where researcher records consumers’ behaviors,  often without their knowledge  Personal observation  Mechanical observation  Unobtrusive measures

27. 27 Data Quality: Garbage In, Garbage Out – so what? How much faith should marketing managers place in research?  Validity  Reliability  Representativeness

28. 28 STOP HERE Finish up chapter 4 on Tuesday Cookie Research on Tuesday Start on Chapter 5 on Tuesday, too  Consumer behavior ( which will tie into chapter 4 )

29. 29 Online Research Information gathered via consumer surfing and Web site/email/chat room questionnaires/focus groups Cookies allow a Web sponsor to track a surfer’s moves

30. 30 Online Research Applications New product development Estimating market response Exploratory research (online focus groups) IM (Instant Messaging) ITRACKS.COMTHERE.COM

31. 31 Advantages of Online Data Collection The same amount of data in a fraction of the time Convenience of survey completion Elimination of interviewer bias and data entry errors

32. 32 Disadvantages of Online Data Collection Non-representativeness of respondents Limited computer access for poor and elderly Self-selection bias (people who like to take part in online studies) Hackers and competitors influencing/intercepting results

33. 33 Step 4: Design the Sample Probability sample Each member of the population has some known chance of being included Sample is representative of population, and inferences about population are justified  - Simple random sampling  - Systematic sampling  - Stratified sampling

34. 34 Step 4: Design the Sample (cont’d) Nonprobability sample Personal judgment used in selecting respondents Some members of population have no chance of being included No way to ensure that sample is representative of population *Christine: next two should be lower-level (black)* Convenience sampling Quota sampling

35. 35 Step 5: Collect the Data Challenges to gathering data in foreign countries  Differences in sophistication of research operations  Infrastructure/transportation challenges  Lack of phones  Low literacy rates  Local customs and cultural differences  Language translation difficulties

36. 36 Step 6: Analyze and Interpret the Data Data need analysis for them to have meaningData need analysis for them to have meaning Tabulation: arranging data in a table or other summary form to get a broad picture of overall responsesTabulation: arranging data in a table or other summary form to get a broad picture of overall responses Cross-tabulation: examining the data by subgroups to see how results vary between categoriesCross-tabulation: examining the data by subgroups to see how results vary between categories

37. 37 Table 4.4: Data Tabulation and Cross- Tabulation Tables

38. 38 Step 7: Prepare the Research Report Executive summary Description of research methodology Discussion of results including tabulations, cross-tabulations Limitations of study Conclusions and recommendations

39. 39 THE END

40. 40 Discussion What is your overall attitude toward marketing research? Do you think it is a beneficial activity from a consumer’s perspective? Or do you think it merely gives marketers new insights on how to convince consumers to buy something they really don’t want or need?

41. 41 Real People, Real Choices Plan-it Marketing (Cindy Turgate) Cindy chose option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study  Priceline.com was launched nationally in April 1998, and it continues to flourish

42. 42 Marketing Plan Exercise Select a company that makes a product you use. For the firm you selected:  Define one specific problem it could address through marketing research  What type of research design do you recommend for addressing that problem, and why?  What is the most appropriate way to collect the data? Justify your choice  How will you ensure high validity, reliability, and representativeness of the data?  Design an appropriate sampling plan

43. 43 Keeping it Real: Fast Forward to Next Class Decision Time at Wild Planet Meet Danny Grossman, CEO and founder of Wild Planet Toys. Room Gear: a product line that lets kids decorate their rooms met with sharply different gender appeals The decision: the future direction of the Room Gear line

44. 44 Real People, Real Choices Meet Cindy Turgate at Plan-it Marketing, a marketing research firm Priceline needed help in planning its business. Would its name-your-own-price strategy fly? The decision: What marketing research strategy would maximize results within a reasonable budget?  Option 1: conduct exploratory qualitative study  Option 2: conduct quantitative survey of 700+ leisure and business travelers  Option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study

45. 45 Group Activity Break into small groups and pick a product category of interest  Assume a company wants to create a new or modified product to compete for market share in that category Create a couple of questions for a focus group moderator to guide discussion  Each group sits with another group and takes turns conducting an informal focus group

46. 46 Discussion Are you willing to divulge personal information to marketing researchers? How much are you willing to tell? Where would you draw the line?

47. 47 Group Activity In small groups, choose a topic below and analyze the advantages and disadvantages of mail questionnaires, telephone interviews, face- to-face interviews, and online questionnaires:  The amount of sports nutrition drinks consumed in a city  Why a local bank has been losing customers  What local doctors would like to see changed in hospitals  Consumers’ attitudes toward several sports celebrities

48. 48 Discussion Do you think marketers should have to right to go through a competitor’s garbage? Is it ethical?

49. 49 Discussion Do you think marketers should be allowed to conduct market research with young children? Why or why not?

50. 50 Reality TV: Group Activity Each group comes up with a new “Reality TV” show…Each group comes up with a new “Reality TV” show…  Design a short survey to get information to help you develop the best show  Hand it out to your classmates to complete  Use the information to create your show Describe your thoughts, feelings, and behaviors during this activityDescribe your thoughts, feelings, and behaviors during this activity

51. 51 Marketing in Action Case: You Make the Call What is the decision facing Acxiom? What factors are important in understanding this decision situation? What are the alternatives? What decision(s) do you recommend? What are some ways to implement your recommendation?

52. 52 Discussion Why wouldn’t you select all the individuals or elements of a population to be in your study?

53. 53 Group Activity Break into small groups and choose one of the following countries. Generate a list of difficulties a firm would expect to encounter when developing plans for marketing research:  South Africa  Spain  China  Saudi Arabia  Canada  Argentina  Australia  Germany