1. 2007 Pearson Education Canada1 Chapter 3: Marketing Research: Primary Research Lesson 2 Marketing 11 pp. 66-72

2. 2007 Pearson Education Canada2 Marketing Research Process Problem Awareness Problem Awareness Exploratory Research Secondary Data Collection Secondary Data Collection Primary Research Data Collection & Processing Analysis & Interpretation Recommendations & Action

3. 2007 Pearson Education Canada3 Primary Research The collecting and recording of new data, called primary data, in order to resolve a specific problem, usually at high cost to the organization.

4. 2007 Pearson Education Canada4 Primary Research Problem Definition Objectives and Hypotheses Sample Design Data Collection Methods

5. 2007 Pearson Education Canada5 Sample Design A representative sample is essential in order to produce valid and reliable data. Steps: 1.Define Population 2.Identify Sampling Frame 3.Determine Type of Sample (probability or non probability) 4.Determine Sample Size

6. 2007 Pearson Education Canada6 Sample Design Example Define the Population Define the Population –“male golfers between the ages of 21 and 45 years living in cities with over 500,000 residents.” Identify the Sampling Frame Identify the Sampling Frame –Subscription list from Golf magazine –Telephone directory Determine the Type of Sample Determine the Type of Sample –Probability Sample: pull 50 names out of a hat –Non-probability Sample: stand in the hallway and pass out survey to whoever walks by Determine the Sample Size Determine the Sample Size –10 % of total population –Minimum 200 respondents

7. 2007 Pearson Education Canada7 Data Collection Methods Primary Research Survey Observation Experiment Structured questionnaires Personal or electronic means Simulated or test market

8. 2007 Pearson Education Canada8 Survey: Fixed-Response Questioning Survey created with predetermined questions and a selection of responses that are easily filled in by the respondent. Survey created with predetermined questions and a selection of responses that are easily filled in by the respondent. E.g. tick-off, multiple-choice, on a scale of 1 – 10, True or False E.g. tick-off, multiple-choice, on a scale of 1 – 10, True or False Allows for easier analysis of results Allows for easier analysis of results

9. 2007 Pearson Education Canada9 Structured Survey Screening questions at the beginning Screening questions at the beginning Central issue questions in the middle Central issue questions in the middle –Funnelling: general questions initially, progressing to more specific questions Classification/demographic questions at the end Classification/demographic questions at the end Fixed-response questions that list possible answers are most popular Fixed-response questions that list possible answers are most popular

10. 2007 Pearson Education Canada10 Example: Structured Survey Questions 1. Do you like ice cream?Y / N (screening question) 2. Rank the following ice cream flavours, listing your favourite flavour as #1. VANILLA __ CHOCOLATE __ STRAWBERRY__ (central-issue question - Product) 3. Circle the most appropriate answer. I am a student / teacher / administrator. (demographic question)

11. 2007 Pearson Education Canada11 Observation Research Behaviour of respondent is observed and recorded Behaviour of respondent is observed and recorded Respondent might be unaware of the study Respondent might be unaware of the study Examples: Examples: –Hidden cameras used to analyze shoppers’ behaviour in the store: how they move through the store, what they buy and where it was displayed. –Store greeters used to observe demographics of customers entering the store

12. 2007 Pearson Education Canada12 Experimental Research / Test Marketing Placing a product for sale in one or more small markets in order to observe its performance with a defined marketing plan (4 P’s) Test Marketing Placing a product for sale in one or more small markets in order to observe its performance with a defined marketing plan (4 P’s) Test Marketing Example: Dairy Queen Chill & Grill Example: Dairy Queen Chill & Grill –Market opportunity: casual restaurant business is growing –New Product Idea: Updated store décor, table service, a premium burger patty, a new style of bun, and new grilled sandwiches –Test Markets: Fredericton & Vancouver

13. 2007 Pearson Education Canada13 Pros & Cons of Test Marketing PROS: Observe consumers’ reactions to product Observe consumers’ reactions to product Different marketing strategies can be tested in different geographic markets Different marketing strategies can be tested in different geographic markets Provides experience prior to expensive regional or national launch Provides experience prior to expensive regional or national launch CONS: Tips competition off to what you are planning – they might beat you to it! Tips competition off to what you are planning – they might beat you to it! If a product stays in a test market too long it may become out of date before it’s launched. If a product stays in a test market too long it may become out of date before it’s launched.

14. 2007 Pearson Education Canada14 Assignment: Homework: Read Pg 66 – 72 Read Pg 66 – 72 Complete WSH 3.2 Complete WSH 3.2