Marketing Research and Information

Prof. Rushen Chahal

Marketing Research
Is the development, interpretation and communication of decision-oriented information to be used in all phases of the strategic marketing process y Research plays a role in marketing planning, implementation, and evaluation. y Researchers become active in the decision process by making information useful to managers.
y

82

Influencers of Marketing Research

Competitive pressure y Expanding markets y The cost of mistakes y Growing customer expectations y Increased market complexity
y

83

Marketing Research Includes:

Syndicated research services y Marketing information systems y Decision support systems y Non-recurring research projects
y

84

Marketing Information Systems

a MkIS is generally computer-based and involves the production, analysis, storage, dissemination, and retrieval of information to support marketing decision making y it generates reports and studies as needed y it analyzes data using mathematical models that simulate the real world y it integrates old and new data to update information and to identify trends
y
85

The Marketing Information System (MKIS)

MkIS Requests for information Systems and Procedures for Data: Retrieval and Dissemination

MARKETING MANAGER

Collection Analyses Regular and Storage customized reports

86

Decision Support Systems

a more sophisticated version of the MkIS, allowing managers to interact with the data y the interactive capability of the DSS permits retrieval of data, examination of relationships, and preparation of custom reports y the establishment of a DSS requires the use of networked computer systems and the integration of internal and external data bases y DSS are costly to establish and operate
y

87

A DECISION SUPPORT SYSTEM (DSS)

Formulates question

Generates response

DSS
Acts or formulates new question

Generates response

MARKETING MANAGER Acts or formulates new question

Generates response
Copyright 2000 McGraw-Hill Ryerson Limited.

Personal computer with access to databases and analytical methods

88

Information in Datab Databases

marketing data are available from many sources and are stored in computer data bases y data may be contributed from sources both within and outside the firm, including customer purchase records y customer loyalty programs contribute valuable data on purchases made y other valuable data are collected by automated systems such as scanner-equipped checkouts
y

89

Databases, Data Warehouses, and Data Mining

Database - collection of information from a variety of internal & external courses that is organized, stored, and updated in a computer. y Data Warehouse - an enormous collection of internal and external data from millions of customers, suppliers, etc. y Data Mining - a technique to search, inquire, and update Data Warehouses
y
810

Database Examples
Las Vegas casinos electronically monitor the slot machine usage of slot club members. y Samsonite uses information from product registration cards (1.5 million per year) and incoming calls to its 800 number. y Kraft General Foods collects the names and preferences of consumers who mail in coupons. y American Express can trace every purchase made with its cards since 1991 to the individual cardholders.
y
811

Typical Marketing Research Projects

y y y y y y

concept test: evaluates new product or advertising ideas copy test: tests advertising content price responsiveness studies: tests how customers will respond to various price levels market-share analysis segmentation studies customer satisfaction studies: monitor how customers feel about products and service
812

Define the objective Conduct situation analysis Conduct informal investigation Further study needed?
Yes

The Marketing Research Project

No

End project and report results

Plan and conduct formal investigation Analyze data and report results Conduct follow-up
813

Steps in the Market Research Project

1. 2. 3. 4. 5. 6.

Define the objectivethe goals sought by the researcher. Conduct a situation analysisa background investigation. Conduct an informal investigationexamine readily available information. Conduct a formal investigationcollect primary and secondary data. Analyze the data and prepare a report. Conduct a follow-updetermine if and how the research was used.
814

Determining an Hypothesis
A hypothesis is an educated guess about the solution to a problem that is being investigated in marketing research y The hypothesis provides a research problem for the investigators which can be tested scientifically y Examples: sales of grocery items will increase when placed at end-of-aisle displays
y
815

Selecting Sources of Information

the marketing decision maker must decide whether he or she needs to collect primary data or secondary data y primary data are collected specifically for the project while secondary data already exist, having been collected for another purpose y syndicated data are collected by a research supplier and may be sold to a number of different clients
y
816

Research Design
y y y

y y y y y

Is the process of creating, executing, analyzing and reporting on a project Occurs in the formal investigation stage of the research process Prepare a form for collecting data. Consider question wording and response format Layout and sequence of questionnaire is important Plan sample to ensure it is representative. Collect the data. Analyze data and present a report on it Show what results tell you about research objectives. Follow up to see what use data served
817

Collecting Primary Data

many marketing research projects involve conducting a survey by administering a survey, questionnaire to a sample of respondents y surveys produce quantitative data y surveys may be conducted in person, by telephone, in shopping centres, or by mail y qualitative research is growing in popularity as a means of obtaining deeply-held opinions; includes focus groups and depth interviews
y
818

Primary Data Collection Methods

y

y y y y

Surveys Personal interviews Telephone or mail surveys Internet research Qualitative Research In-depth personal interviews, focus groups Observation Personal or mechanical (scanners) Experiments Laboratory Field (Test Marketing)
819

Data Collection Forms

Questionnaires and other forms are used to record responses and other data. Factors to consider when designing a questionnaire: y the wording of questions must ensure that they are understandable and not leading y questions may be in a fixed-answer or open-ended format y the layout of the questionnaire affects responses y questionnaires are pretested to identify problems

820

A New Research Tool: The Internet

y

As a secondary Web site tool for finding online magazines, search resources, institutes, government statistics (eg: www.Statcan.ca) As a data collection tool: Online surveys Online focus/discussion groups Concerns: Credibility of secondary data Bias in survey research Lying in surveys and focus groups
821

Observation and Experimentation

these are less widely-used research methods y observation involves collecting data usually without the knowledge of the subject; may include watching consumers as they shop or collecting data electronically y experimentation involves the manipulation of one of more variables so as to observe the effect; examples include the use of test markets and of simulations
y

822

Planning the Sample

y y y y y

in survey research, it is advisable to select a sample that is as representative as possible sample selection often contributes to bias ideally, we would like to have a random sample, but this is usually not possible most marketing surveys use convenience samples sample size must be large enough to represent the population and to allow the client to have confidence in the results
823

Who Does Marketing Research?

may be done inside or outside a company y some large firms have small marketing research departments which supervise the work of outside consultants y there are many research consultants and fullservice supplies across the country y more and more companies are realizing the importance of research to provide the information needed for decision making
y
824

Competitive Intelligence
y

y y y

Pieces together information from a variety of sources to obtain an overall picture of the marketing strategies of competing firms Information is from legal and publicly accessible sources, including the Internet Concerns involve privacy and ethical use of information Bill C-6: Personal Information Protection and Electronics Document Act comes into effect in Canada in January, 2001 Requires individuals consent for information to be used for any purpose other than that for which it was originally intended
825

The Status of the Marketing Research Industry

Major growth area due to improved computer equipment and software to collect and analyze data (scanners, data analysis). y Database development is critical to sort through all the information. y Results of research not always communicated well to executives. y Many executives not convinced of the value of systematic, continuing market research.
y

826