Marketing

Research
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Marketing Research
The process of planning,
collecting, and analyzing data
relevant to a marketing
decision.

Roles of Marketing Research

Descriptive

Gathering and presenting

factual statements

Diagnostic

Explaining data

Predictive

Attempting to estimate the

results of a planned
marketing decision
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Management Uses of
Marketing Research
Improve the quality of decision making
Trace problems
Focus on keeping existing
customers
Understand the ever-changing
marketplace
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Marketing Research Problem

Determining what
information is
needed and how that
information can be
obtained efficiently
and effectively

Secondary Data
Data previously collected for
any purpose other
than the one at hand.

Sources of Secondary Data

Internal
Internal Corporate
Corporate Information
Information
Government
GovernmentAgencies
Agencies
Trade
Trade and
and Industry
IndustryAssociations
Associations
Marketing
Marketing Research
Research Firms
Firms
Commercial
Commercial Publications
Publications
News
News Media
Media
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Advantages of Secondary Data

Saves time and money if on target
Aids in determining direction for
primary data collection
Serves as a basis of comparison
for other data

Disadvantages of Secondary
Data
May not be on target with the research
problem
Quality and accuracy of data may pose a
problem

The New Age of Secondary

Information: The Internet
Search Engines
and Directories

www

Sites of Interest to
Marketing Researchers
(AMA, FTC, American
Demographics, etc.)
Discussion Groups
Periodical, Newspaper, and Book Databases
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Research Design
Specifies which research
questions must be answered,
how and when the data will be
gathered, and how the data
will be analyzed.

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Primary Data
Information collected for the
first time. Can be
used for solving the particular
problem under
investigation.

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Advantages of Primary Data

Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained

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Disadvantages of Primary Data

Expensive
Quality declines if interviews / questionnaires
are lengthy
Reluctance to participate in lengthy interviews

Disadvantages
Disadvantages are
are
usually
usually offset
offset by
by the
the
advantages
advantages
of
of primary
primary data!
data!
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Survey Research
The most popular technique for
gathering primary data in which
a researcher interacts with
people to obtain facts, opinions,
and attitudes.

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Forms of Survey Research

In-Home
In-Home Interviews
Interviews

Mail
Mail Surveys
Surveys

Mall
Mall Intercept
Intercept Interviews
Interviews

Executive
Executive Interviews
Interviews

Telephone
Telephone Interviews
Interviews

Focus
Focus Groups
Groups

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Focus Group
Seven to ten people who
participate in a group
discussion led by a
moderator.

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Advantages of
On-Line Focus Groups
Speed
Cost-effectiveness
Broad geographic
scope
Accessibility
Honesty
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Questionnaire Design
Open-Ended
Open-Ended
Question
Question

An
An interview
interview question
question that
that
encourages
encourages an
an answer
answer phrased
phrased in
in
respondents
respondents own
own words.
words.

An
An interview
interview question
question that
that asks
asks
Closed-Ended
Closed-Ended the
respondent
to
make
aa selection
the
respondent
to
make
selection
Question
Question
from
from aa limited
limited list
list of
of responses.
responses.

ScaledScaledResponse
Response
Question
Question

A
A closed-ended
closed-ended question
question
designed
designed to
to measure
measure the
the intensity
intensity
of
of aa respondents
respondents answer.
answer.
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Types of Questions in
Questionnaire Design

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Questionnaire Design
Clear
Clear and
and Concise
Concise
No
No Ambiguous
Ambiguous Language
Language
Qualities
Qualities
of
of
Good
Good
Questionnaires
Questionnaires

Unbiased
Unbiased
Reasonable
Reasonable Terminology
Terminology
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Observation Research
A research method that relies
on three types of observation:
people watching people
people watching an activity
machines watching people

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Observation Research
People
People
Watching
Watching
People
People

Types
Types of
of
Observation
Observation
Research
Research

People
People
Watching
Watching
an
anActivity
Activity
Machines
Machines
Watching
Watching
People
People

Mystery
MysteryShoppers
Shoppers
One-Way
One-WayMirrors
Mirrors

Audits
Audits

Traffic
TrafficCounters
Counters
Passive
PassivePeople
PeopleMeter
Meter

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Mystery Shoppers
Researchers posing as
customers who gather
observational data about
a store and collect data about
customer-employee
interactions.

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Experiment
A method a researcher uses to gather
primary data in which one or more
variables are altered to determine their
affect on another variable.

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Sampling Procedure
Sample
Sample

A
A subset
subset from
from aa large
large population.
population.

Universe
Universe

The
The population
population from
from which
which
aa sample
sample will
will be
be drawn.
drawn.

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Sampling Procedure

Universe

Sample
Probability
Probability
Samples
Samples
Non-Probability
Non-Probability
Samples
Samples
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Probability Samples
Probability
Probability
Sample
Sample
Random
Random
Sample
Sample

A
A sample
sample in
in which
which every
every element
element in
in
the
the population
population has
has aa known
known
statistical
statistical likelihood
likelihood of
of being
being
selected.
selected.
A
A sample
sample arranged
arranged so
so that
that every
every
element
element of
of the
the population
population has
has an
an
equal
equal chance
chance of
of being
being selected.
selected.

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Nonprobability Samples
Nonprobability
Nonprobability
Sample
Sample

Any
Any sample
sample in
in which
which little
little or
or
no
no attempt
attempt is
is made
made to
to get
get aa
representative
representative cross-section
cross-section
of
of the
the population.
population.

Convenience
Convenience
Sample
Sample

A
A form
form of
of nonprobability
nonprobability sample
sample
using
using respondents
respondents who
who are
are
convenient
convenient or
or readily
readily
accessible
accessible to
to the
the researcher.
researcher.

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Types of Errors
Error
Error when
when there
there is
is aa difference
difference
Measurement
Measurement between the information desired and the
between the information desired and the
Error
Error
information
information provided
provided by
by research
research

Sampling
Sampling
Error
Error

Error
Error when
when aa sample
sample somehow
somehow does
does not
not
represent
represent the
the target
target population.
population.

Frame
Frame
Error
Error

Error
Error when
when aa sample
sample drawn
drawn from
from aa
population
population differs
differs from
from the
the
target
target population.
population.

Random
Random
Error
Error

Error
Error because
because the
the selected
selected sample
sample is
is
an
an imperfect
imperfect representation
representation of
of
the
the overall
overall population.
population.

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Field Service Firm

A firm that specializes in
interviewing respondents on a
subcontracted basis.

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Field Service Firms

Provide:
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Retail audits
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Data Analysis
One-Way Frequency Counts

Record responses to a question

Cross-Tabulation

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Cross-Tabulation
A method of analyzing data
that lets the analyst look at
the responses to one
question in relation to the
responses to one or more
other questions.

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Preparing and Presenting

the Report
Concise statement of the research
objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
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Following Up
Were the recommendations followed?
Was sufficient decision-making information
included in the report?
What could have been done to make
the report more useful to management?

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Impact of the Internet

Allows better and faster decision making
Improves ability to respond quickly to
customer needs and market shifts
Makes follow-up studies and research
easier
Slashes labor- and time-intensive research
activities
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Advantages of Internet Surveys

Rapid
Rapid development,
development,
Real-time
Real-time reporting
reporting
Reduced
Reduced costs
costs
Personalized
Personalized questions
questions
and
and data
data
Improved
Improved respondent
respondent
participation
participation
Contact
Contact with
with the
the
hard-to-reach
hard-to-reach

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Internet Samples
Unrestricted
A
Unrestricted
A survey
survey in
in which
which anyone
anyone with
with
aa computer
Internet
computer and
and modem
modem can
can fill
fill out
out
Internet
the
the questionnaire.
questionnaire.
Sample
Sample
Screened
Screened
Internet
Internet
Sample
Sample

An
An Internet
Internet sample
sample with
with quotas
quotas
based
based on
on desired
desired sample
sample
characteristics.
characteristics.

Recruited
Recruited
Internet
Internet
Sample
Sample

A
A sample
sample in
in which
which respondents
respondents
are
are prerecruited
prerecruited and
and must
must
qualify
qualify to
to participate.
participate.
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Sales Forecasting
Companies also use market research in
order to predict future sales.
Look at historical data, sales analysis and
predict what sales will be in the future.
**Important always but, even more so if
your company is launching a new product
or installing a new marketing plan based
on research factors.
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