Agenda for 10.18.11 – Define Key Terms• Problem definition• Primary data• Secondary data• Survey method• Observation method• Point-of-sale research• Experimental method• Data analysis• Sample

— Read & Take Notes• Ch. 29.1, pages 610-617• Answer ?’s 1-3 on pg. 617

(Note: You can work together!)

• I will notes, key terms and questions!

• These are due today!

– The Persuaders• Times They Are A

Changin’…

The Marketing Research Process

Chapter 29, Section 1

Steps in the MR Process1. Defining the problem2. Obtaining data

– Primary – Secondary

3. Analyzing the data4. Recommending solutions 5. Applying the results

Step 1: Defining the Problem• Business clearly identifies a problem or research issue

and the information that is necessary to solve it

• Ex: If sales are declining, you must obtain info on who is buying product, competitors, and why customers stopped buying products

Step 2: Obtaining Data• Data collected and examined in terms of problem(s)

being studied

• Two types of data: – Primary – Secondary

Primary and Secondary Data• Primary Data: collected 1st time by researcher;

specifically for research project; new data gathered to help solve the problem at hand.

• Secondary Data: Published accessible data from a variety of sources for research and other purposes

– Data collected for another purpose, but may be reanalyzed in a subsequent study

How do you Obtain•Individual company research•Commercial research•Nielson, Arbitron, MR firm etc.

How do you Obtain•Internal Sources (within company)•External Sources (gov’t, business journals, library, trade publications)

Advantages•Specific to your study•First hand information•May get money if successful and someone else buys research

Advantages•Obtained quickly•Purchased from info companies•Less expensive

Disadvantages•Takes long to obtain•Expensive•More work involved

Disadvantages•Existing data may not be suitable or available•Data may be dated (census every 10 years)

Primary Secondary

Primary Data is collected by 3 methods

1. Survey method

2. Observation method

3. Experimental method

Survey Method• Information gathered directly through surveys and questionnaires• Most frequently used• Sample: a part of the target populations that is

assumed to represent the entire population– Size depends on money and time– Larger the sample more accurate the results

Data collection instruments• Personal interview: face-to-face• Focus group: 8-12 people who evaluate

product/service/ads with moderator• Telephone interview • Mail survey• Internet Surveys• Automatic Dialers

Type of Collection

Description Advantages Disadvantages

Personal Interview

Face-to-face questioning

People prefer to talk to you not write

Expensive

Focus Group

8-12 people withmoderator

People prefer to talk

Expensive; only as good as leader

TelephoneInterview

Calling to give survey on phone

Quick, efficient, inexpensive

Many unwilling to respond on phone

Mail Survey Sending survey by mail

Inexpensive, reach large audience

10-20% return rate

Internet or Computer

Survey

Web polls, invitation only, discussion groups

Quick, eliminate data entry

Limited to individuals who have web access

Observation Method• Actions of people are

observed and recorded

• Get information about customer behavior and preferences

• Used to view the interaction between customers and employees

• If observation is properly performed, results are

often better then survey technique

• What people actually do is usually better than what they SAY they will do!

• Cannot measure attitude; only provides info on what person does, not WHY they do it

Observations Styles…1. Contrived situation: set up by researcher in

controlled situation2. Natural situation: customers and employees viewed

in natural situation– hidden cameras, traffic count, wear of floor

3. Point of Sale Research: combines natural with personal interview. Observe shoppers for specific patterns and then approach to ask questions when finished

Experimental Method• Researchers observe under

controlled conditions• Change one or more variables and

keep others constant• Used for new package design,

new promotions, media usage• Used least often & costly• People respond different in

controlled situations• Research less valuable

Step 3: Analyzing the Data

• Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

Step 4: Recommending Solutions to the Problem

• Successful research results in information that helps managers make decisions about problems

• Conclusions drawn from research are usually present at report

Step 5: Applying the Results

• If data gathered does not help answer questions, results are inconclusive and more research is needed

• If data gathered does help, recommendations are acted on and monitored

Follow up Questions1. What are the five steps of the marketing research

process?

2. What is the difference between primary and secondary research?

3. Why is Step #1 of the marketing research process so important? (Define the problem?)