marketing research 4.04 marketing information management how are decisions made to introduce new...

Marketing ResearchMarketing Research4.044.04

Marketing Information Marketing Information ManagementManagement

How are decisions made to introduce How are decisions made to introduce new products and delete old ones?new products and delete old ones?

4.04 Vocabulary4.04 Vocabulary

Attitude ResearchAttitude Research Data AnalysisData Analysis Database MarketingDatabase Marketing DatabaseDatabase Experimental MethodExperimental Method Forced-choice QuestionsForced-choice Questions Market IntelligenceMarket Intelligence Marketing ResearchMarketing Research Marketing Information Marketing Information

SystemSystem Media ResearchMedia Research Observation MethodObservation Method

Open-ended QuestionsOpen-ended Questions Point-of-sale ResearchPoint-of-sale Research Primary DataPrimary Data Problem DefinitionProblem Definition Product ResearchProduct Research Quantitative ResearchQuantitative Research Qualitative ResearchQualitative Research ReliabilityReliability SampleSample Secondary DataSecondary Data Survey MethodSurvey Method ValidityValidity

4.04 Essential4.04 EssentialQuestionQuestion

How does marketing information How does marketing information and research affect business and and research affect business and marketing decisions? marketing decisions?

What is the role of marketing What is the role of marketing information management?information management?

Essential Question 1 Essential Question 1 Marketing ResearchMarketing Research

What is Marketing Research?What is Marketing Research?

Obtaining information about the Obtaining information about the preferences, opinions, habits, trends, preferences, opinions, habits, trends, and plans of potential customers.and plans of potential customers.

Helps to determine what customers Helps to determine what customers want and need.want and need.

Marketing ResearchMarketing Research

‘‘the systematic gathering, recording the systematic gathering, recording and analysing of data about and analysing of data about

problems relating to the marketing of problems relating to the marketing of goods and services’goods and services’

American Marketing AssociationAmerican Marketing Association

Why is Research Important?Why is Research Important?

Businesses that do not pay attention Businesses that do not pay attention to what consumers are buying, are to what consumers are buying, are likely to make costly mistakes.likely to make costly mistakes.

Information obtained from research Information obtained from research helps businesses to plan for the helps businesses to plan for the future.future.

Why is Research Important?Why is Research Important?

Helps to anticipate or solve problems Helps to anticipate or solve problems in the marketplace.in the marketplace.

Helps a company keep track of what Helps a company keep track of what is happening in its markets.is happening in its markets.

PurposePurpose

How does each type of research How does each type of research differ from each other?differ from each other?


Types of Marketing ResearchTypes of Marketing Research

Focuses on the Focuses on the effectiveness of the effectiveness of the advertising message advertising message and the effectiveness and the effectiveness of media placement.of media placement.

Advertising ResearchAdvertising Research


Product ResearchProduct Research Used to evaluate product Used to evaluate product

design and acceptance, design and acceptance, competitive products, competitive products, package design, and package design, and product usage.product usage.


Market ResearchMarket Research Studies customer behavior (customer Studies customer behavior (customer

analysis) to gather information about analysis) to gather information about customer attitudes.customer attitudes.


Market ResearchMarket Research Studies the behavior of a consumer Studies the behavior of a consumer

market (market analysis) to market (market analysis) to investigate the potential markets for a investigate the potential markets for a product and to define the target product and to define the target market.market.


Sales ResearchSales Research The study of sales data to determine The study of sales data to determine

the potential sales for a product and the potential sales for a product and to solve problems related to future to solve problems related to future sales.sales.

What are the steps in the marketing What are the steps in the marketing research process?research process?


The Marketing Research The Marketing Research ProcessProcess

Step 1 - Defining the ProblemStep 1 - Defining the Problem

Identify and clearly state what the Identify and clearly state what the problem is and what can be done to problem is and what can be done to solve the problem.solve the problem.

Determine which problems are the Determine which problems are the most important to solve at a given time.most important to solve at a given time.


Step 2 - Obtaining DataStep 2 - Obtaining Data Collect and examine information in Collect and examine information in

terms of the problem being studied.terms of the problem being studied. Primary data can be used and/orPrimary data can be used and/or Secondary data can be used.Secondary data can be used.


Step 3 - Analyzing the DataStep 3 - Analyzing the Data Compiling, analyzing, and Compiling, analyzing, and

interpreting the results of primary interpreting the results of primary and secondary data.and secondary data.

The results of each question can be The results of each question can be clearly read and interpreted.clearly read and interpreted.


Step 4 - Recommending Solutions Step 4 - Recommending Solutions to the Problem.to the Problem.

Solutions are usually presented in a Solutions are usually presented in a well written report.well written report.

Recommendations must be clear and Recommendations must be clear and supported by the research data.supported by the research data.


Step 5 - Applying the ResultsStep 5 - Applying the Results The required form of action is The required form of action is

decided upon and put into place.decided upon and put into place.


1.1. Set objectivesSet objectives

2.2. Define research ProblemDefine research Problem

3.3. Assess the value of the researchAssess the value of the research

4.4. Construct a research proposalConstruct a research proposal

5.5. Specify data collection methodSpecify data collection method

6.6. Specify techniques of measurementSpecify techniques of measurement

7.7. Select the sampleSelect the sample

8.8. Data collectionData collection

9.9. Analysis of resultsAnalysis of results

10.10. Present in a final reportPresent in a final report

What are the differences in What are the differences in primary and secondary dataprimary and secondary data??


Types of DataTypes of Data

Primary dataPrimary data:: Data obtained for the first Data obtained for the first time and used specifically for the time and used specifically for the particular problem or issue under study; particular problem or issue under study; collected firsthand.collected firsthand.

Secondary dataSecondary data:: Data already collected Data already collected for some purpose other than the current for some purpose other than the current study; already exists, desk research.study; already exists, desk research.

Primary ResearchPrimary Research

Market ResearchMarket Research

Primary Research First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and

methodology to ensure accuracy Types of question – closed – limited information

gained; open – useful information but difficult to analyse

Secondary ResearchSecondary Research

Internal SourcesInternal Sources

Company AccountsCompany Accounts Internal Reports and AnalysisInternal Reports and Analysis Stock AnalysisStock Analysis Retail data - loyalty cards, till data, etc.Retail data - loyalty cards, till data, etc.

External SourcesExternal Sources

Federal Government Statistics (i.e. census, labor dept, etc.)

Local: Chamber of Commerce, Economic Development, City & County Government, etc.

Trade publications Commercial Data - Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications, journals,

etc.

What methods are used to collect What methods are used to collect primary and secondary data?primary and secondary data?


Data CollectionData Collection Primary dataPrimary data can be obtained by: can be obtained by:

- the survey method- the survey method- the observation method- the observation method

- the experimental method- the experimental method

Secondary dataSecondary data can be obtained by a can be obtained by a number of agencies.number of agencies.

- Internet Sources- Internet Sources- US and Government Sources- US and Government Sources

- Specialized Research Companies- Specialized Research Companies- Business Publications and Trade Organizations- Business Publications and Trade Organizations

How are population, sample, bias, How are population, sample, bias, and error used in marketing and error used in marketing research?research?


Data SamplingData Sampling When designing a survey, marketers must

determine the number of people to include in their survey.

• Population: The entire target group of people under study.• Sample: Part of the target population that represents it

accurately.• Sampling - studying part of a ‘population’ to learn about the whole

• Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.

• Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.

Sampling MethodsSampling Methods


Sampling Methods:Sampling Methods: Random SamplesRandom Samples – equal chance of – equal chance of

anyone being pickedanyone being picked May select those not in the target group May select those not in the target group

– indiscriminate– indiscriminate Sample sizes may need to be large Sample sizes may need to be large

to be representativeto be representative Can be very expensiveCan be very expensive


Stratified or Segment Random Stratified or Segment Random SamplingSampling Samples on the basis of a representative Samples on the basis of a representative

strata or segmentstrata or segment Still random but more focussedStill random but more focussed May give more relevant informationMay give more relevant information May be more cost effectiveMay be more cost effective


Quota SamplingQuota Sampling Again – by segmentAgain – by segment Not randomly selectedNot randomly selected Specific number on each segment are Specific number on each segment are

interviewed, etc.interviewed, etc. May not be fully representativeMay not be fully representative Cheaper methodCheaper method


Cluster SamplingCluster Sampling Primarily based on geographical areas or Primarily based on geographical areas or

‘clusters’ that can be seen as being ‘clusters’ that can be seen as being representative of the whole populationrepresentative of the whole population

Multi-Stage SamplingMulti-Stage Sampling Sample selected from multi-stage Sample selected from multi-stage

sub-groupssub-groups Snowball SamplingSnowball Sampling

Samples developed from contacts Samples developed from contacts of existing customers – ‘word of mouth’ type of existing customers – ‘word of mouth’ type approach!approach!

Terminology of Marketing Terminology of Marketing ResearchResearch

Quantitative research - statistical Quantitative research - statistical basisbasis

Qualitative research - subjective and Qualitative research - subjective and personalpersonal


Quantitative and Qualitative Information:

Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how

Qualitative – more detail – tells you why, when and how!

What are techniques are used in What are techniques are used in marketing research?marketing research?


Marketing Research Marketing Research TechniquesTechniques

InterviewsInterviews face-to-faceface-to-face telephonetelephone postal questionnairepostal questionnaire

Attitude measurementAttitude measurement cognitive component (know/believe about an cognitive component (know/believe about an

act/object)act/object) affective component (feel about an act/object)affective component (feel about an act/object) conative component (behave towards an object conative component (behave towards an object

or act)or act)

Likert scaleLikert scale strongly agreestrongly agree agreeagree neither agree nor disagreeneither agree nor disagree disagreedisagree strongly disagreestrongly disagree

Semantic differential scales - Semantic differential scales - differences between words e.g. differences between words e.g. practical v impractical practical v impractical

Projective techniquesProjective techniques sentence completionsentence completion psychodrama (yourself as a product)psychodrama (yourself as a product) friendly martian (what someone else might do)friendly martian (what someone else might do)

Group discussion and focus groupGroup discussion and focus group Postal research questionnairesPostal research questionnaires Diary panels - sources of continuous Diary panels - sources of continuous

datadata In-home scanning - hand-held light In-home scanning - hand-held light

pen to scan barcodespen to scan barcodes Telephone researchTelephone research ObservationObservation

home audithome audit direct observationdirect observation

In-store testingIn-store testing

What is MKIS?What is MKIS?

‘‘MKIS (MIS) is a set of procedures and MKIS (MIS) is a set of procedures and methods for the regular, planned methods for the regular, planned

collection, analysis and presentation collection, analysis and presentation of information for use in marketing of information for use in marketing

decisions’decisions’

American Marketing AssociationAmerican Marketing Association

The components of a The components of a computerised MKIScomputerised MKIS

Model Bank

Data Bank

StatisticalBank

MKISDisplay

unitMarketingManager

The components of a The components of a computerised MKIScomputerised MKIS

Data bank - raw data e.g historical sales Data bank - raw data e.g historical sales data, secondary datadata, secondary data

Statistical bank - programmes to carry-Statistical bank - programmes to carry-out sales forecasts, spending projectionsout sales forecasts, spending projections

A model bank - stores marketing models A model bank - stores marketing models e.g Ansoff’s matrix, Boston Matrixe.g Ansoff’s matrix, Boston Matrix

Display unit - VDU and keyboardDisplay unit - VDU and keyboard

What are the advantages & What are the advantages & disadvantages of marketing disadvantages of marketing research?research?



Advantages of Market ResearchAdvantages of Market Research Helps focus attention on objectivesHelps focus attention on objectives Aids forecasting, planning and strategic Aids forecasting, planning and strategic

developmentdevelopment May help to reduce risk of new product May help to reduce risk of new product

developmentdevelopment Communicates image, vision, etc. Communicates image, vision, etc. Globalisation makes market information Globalisation makes market information

valuable (HSBC adverts!!)valuable (HSBC adverts!!)


Disadvantages of Market ResearchDisadvantages of Market Research Information only as good Information only as good

as the methodology usedas the methodology used Can be inaccurate or unreliableCan be inaccurate or unreliable Results may not be what the business wants to Results may not be what the business wants to

hear!hear! May stifle initiative and ‘gut feeling’May stifle initiative and ‘gut feeling’ Always a problem that we may never know Always a problem that we may never know

enough to be sure!enough to be sure!

What are the trends and limitations What are the trends and limitations in marketing research?in marketing research?


Research TrendsResearch Trends Trends in research:

• Global MarketplaceGlobal Marketplace- Due to increased international competition, US Due to increased international competition, US

companies must improve or change products frequently companies must improve or change products frequently to hold on to customers.to hold on to customers.

- Product quality and customer satisfaction are keys to Product quality and customer satisfaction are keys to business success and research that measures these business success and research that measures these qualities are the fast form of marketing research.qualities are the fast form of marketing research.

• Business ManagementBusiness Management- Many businesses are using internal and external Many businesses are using internal and external

information to improve business operations.information to improve business operations.

Research LimitationsResearch Limitations Limitations in research:

• MoneyMoney• TimeTime• Customers saying one thing and doing Customers saying one thing and doing

anotheranother

marketing research 4.04 marketing information management how are decisions made to introduce new...

Documents

marketing research slide

type of research

research important

advertising research

marketing decisions

sale research point

research affect business

marketing of goods