1. THE MARKET RESEARCH PROCESS Chapter 29.1

2. 5 Steps of the Market Research Process 1. Define the Problem 2. _____________________ 3. Analyzing Data 4. Recommending Solutions 5. ______________________

3. Step 1: Defining the Problem  Most difficult step of the research process  _______________occurs when a business clearly identifies a problem and what is needed to solve it.  Helps researcher create objectives that will help answer the problem  Objectives are used to develop the ___________________

4. Step 2: Obtaining Data  Data (or ______) are collected  Primary Data  Primary Data - obtained for the _______time and used specifically for the particular problem under study  Secondary Data  Secondary Data - ___________; previously collected for some other purpose

5. Ways to collect Secondary Data  ________________  ________________– company home pages, digital dossiers, business clearinghouses  U.S. and State Government Sources  U.S. and State Government Sources – data collected by the government, like population demographics and economic trends  ____________________  ____________________– companies collect data to sell to other businesses like demographic data, economic forecasts, and consumer purchase information  Business Publications  Business Publications – BusinessWeek, Forbes, Wall Street Journal

6. Ways to collect Secondary Data  U.S. and State Government Sources  U.S. and State Government Sources – _______ collected by the government, like population demographics and economic trends  Specialized Research  Specialized Research – companies collect data to _______to other businesses like _____________ data, economic forecasts, and consumer purchase information

7. Secondary Data  Easily obtained  __________________  Saves time and money  Data may not be suitable for the problem under study  __________________ AdvantagesDisadvantages

8. Ways to collect Primary Data  _____________________  The Technological Method  _______________  The Observation Method  The Experimental Method

9. The Survey Method  Information is gathered from people through the use of surveys or questionnaires  _______________________________  Conducted in person, by phone, by mail or Internet  __________  __________– survey the entire target population Not usual because population is normally too large and it would cost too much money and time  Sample  Sample – part of the target population that represents it accurately Size of sample depends on the amount of time and money available Generally speaking, the larger the sample the more accurate the results

10. Technological Method  Online surveys and focus groups  Online surveys and focus groups – survey is conducted in a “chat room” environment  Smart Phones/Devices  Smart Phones/Devices – IPods, ____________  Fax broadcasts  Fax broadcasts – questionnaires can be sent to a select group of fax numbers  _______________________  automatically rejects busy signals and answering machines  Prerecorded voice walks caller through a series of questions and caller responds with key pad

11. Interviews  Questioning people _____________  Because it is expensive they are usually conducted in central locations  “Mall Intercept Interviews”  “Mall Intercept Interviews” - (started in shopping malls)  Focus Group Interview  Focus Group Interview – 8-12 people brought together to evaluate ___________, product, or __________ under the direction of a moderator

12. Advantages and Disadvantages Type of SurveyAdvantagesDisadvantages Personal Interview Easier to get people to respond Easy to administer Expensive Take time to tabulate results Telephone Interview Quick Efficient Inexpensive Limited by “Do Not Call Registry” People are irritated by unwanted calls Mail Survey Inexpensive Reaches large audience Respondents find them less intrusive Successful response rate is only 10% Incentives can increase results Internet Survey Quick Automatic data entry Allows for real time data collection, multiple choice and opened ended questions Limited to people with internet access Many people dislike receiving uninvited surveys

13. The Observation Method  Peoples actions are ___________ ___________________  Better results because people are __________that they are being observed  Mystery Shoppers – sent in to observe interactions between customers and employees  Disadvantage – cannot measure ___________or __________

14. The Observation Method  Point-of-Sale Research  Point-of-Sale Research – combines natural observation with personal interview  People can explain their ___________________

15. The Experimental Method  Researcher observes results when changing one or more marketing variables while keeping all the others constant  Used to test:  __________________________  Media usage  ___________________

16. Step 3: Analyzing the Data  The process of compiling, analyzing and interpreting results  _____________  _____________ – computer process that uses statistical methods to extract new information from large amounts of data

17. Step 4: Recommending Solutions to the Problem  Conclusions drawn form research are usually presented in an ____________________

18. Step 5: Applying the Results  After research is completed and changes have been made, businesses must monitor the results carefully.  The research efforts were a success if resulting decisions lead to increased sales.

19. Review  What are the five steps to market research?  Defining the problem, obtaining data, analyzing data, recommending solutions, applying results  What are the two types of research?  Primary and Secondary  What are the five methods used to collect primary data?  Survey methods, technological method, interview, observation method, experimental method