Chapter 3: Marketing Intelligence

Marketing Research
Marketing research serves many roles. It can:
1. Link companies with customers via information

2. Help define problems and opportunities

3. Generate, refine and evaluate marketing actions

4. Help monitor performance

Information is power. Power used
wisely produces profit!
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Chapter 3: Marketing Intelligence

Scope of Marketing Research

Organizations tend to focus on three primary areas
when conducting marketing research.
Market
Analysis

Information about the

marketplace

Product
Research

Information about how

people perceive products

Consumer
Analysis

Information about the needs and

motivations of consumers
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Chapter 3: Marketing Intelligence

Collecting Information
Information is collected in a scientific manner.
Procedures are implemented to ensure the
information is reliable and valid
Reliability

Information is reliable if another

study under similar conditions
yields similar results.

Validity

The research procedures ability

to actually measure what it is
intended to measure.
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Chapter 3: Marketing Intelligence

Marketing Research Process

1. Problem
Awareness

2. Exploratory
Research

6. Recommendations
and Implementation

3. Primary
Research

5. Data Analysis
& Interpretation

4. Data Transfer
& Processing
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Chapter 3: Marketing Intelligence

Problem Awareness
The problem at hand must be clearly distinguished
from symptoms. A drop in sales or market share is a
not a problem. They are symptoms that make
marketers aware there is a deeper problem.
1. The problem must be precisely defined.
2. A typical research study will address a specific
decision that must be made.
3. Exploratory research helps to define the problem.
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Chapter 3: Marketing Intelligence

Exploratory Research
When doing exploratory research a manger is
actually conducting an investigation in an
informal manner.
1. The situation is divided into manageable
variables to narrow down the field of
investigation, a process called funneling.
2. Funneling is accomplished through situation
analysis; a procedure calling for consultation
with internal an external experts and from
secondary sources.
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Chapter 3: Marketing Intelligence

Secondary Data
Data compiled and published for purposes
unrelated to the specific problem under
investigation, yet may have some impact on
resolving the problem.
1. Internal Data Sources
2. External Data Sources

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Chapter 3: Marketing Intelligence

Secondary Data
Advantages

Disadvantages

1. Inexpensive

1. Reliability questionable

2. Readily available

2. Outdated

3. Useful in
exploratory stage

3. Unlikely to resolve
problem

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Chapter 3: Marketing Intelligence

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.

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Chapter 3: Marketing Intelligence

Primary Research Steps

Objectives and
Hypotheses

Problem
Definition

What to achieve
Predicted outcomes

Data Collection
Survey, observation
or experiment
Qualitative or
quantitative
Methodology

Sample Design
Who?
How many?
What procedure?

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Chapter 3: Marketing Intelligence

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
4. Determine Sample Size
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Chapter 3: Marketing Intelligence

Data Collection Methods

Survey

Structured questionnaires
with fixed-response answers.

Observation

By personal or electronic
means.

Experiment

Simulated test situations or

test markets.
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Chapter 3: Marketing Intelligence

Qualitative Data
Data collected from small samples in a controlled
environment (e.g., a focus group).
Focus implies the discussion concentrates
on one topic or concept. Interviews reveal
attitudes held by consumers.

Focus groups can now be held online;

an environment where control is in
the hands of the participant.
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Chapter 3: Marketing Intelligence

Quantitative Data
Data collected from large samples. Analysis
and interpretation rely on numbers and
percentages obtained from data collected from
a structured questionnaire.
The feelings, attitudes, and opinions
obtained from focus groups are quantified.

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Chapter 3: Marketing Intelligence

Survey Methodology
Personal
Interview

Which option to use depends

on:

Telephone

1. Nature of information sought

Mail

2. Cost and time constraints

3. Location of respondent
Online
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Chapter 3: Marketing Intelligence

Data Transfer and Processing

Editing
Reviewing questions for consistency, completeness, and authenticity.

Data Transfer
Transferring pre-coded responses to a computer. Direct electronic
transfer is now common.

Tabulation
Counting responses to arrive at a frequency distribution and crosstabulation by various sub-groups.
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Chapter 3: Marketing Intelligence

Data Analysis & Interpretation

Data
Analysis

An evaluation of each question

to record observations.

Interpretation

An assessment of accumulated
data in relation to the problem,
objectives, and hypotheses of
the study.

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Chapter 3: Marketing Intelligence

Managing Information
Sophisticated software technologies facilitate the
collection and management of information.
A procedure known as data mining provides a means to
uncover information about customers that should
produce more effective marketing strategies. The goal is
to maximize the value of a customer though additional
purchases of a product or through complementary
purchases of related products.

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Chapter 3: Marketing Intelligence

Database Management System

External
Information
Consumer
Market
Competitor
Economy
Social
Technology
Online Data

Database

Internal
Information
Marketing
Analysis

Marketing
Plan

Sales
Costs
Profit
Budgets
Inventory
Production

Evaluation
and Control
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Chapter 3: Marketing Intelligence

CRM Model
External
Data

Database

Internal
Data

Data
Analysis

Marketing
Strategy

Customer
Acquisition

Customer
Retention

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Customer
Extension

20