Marketing Research

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

Roles of Marketing Research

Management Uses of Marketing Research

Improve the quality of decision makingTrace problemsFocus on keeping existing customersUnderstand the ever-changing marketplace

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

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

Sources of Secondary DataGovernment AgenciesTrade and Industry AssociationsMarketing Research FirmsCommercial PublicationsNews MediaInternal Corporate Information

Advantages of Secondary Data

Saves time and money if on targetAids in determining direction for primary data collectionServes 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 DirectoriesSites of Interest to Marketing Researchers (AMA, FTC, American Demographics, etc.)Discussion GroupsPeriodical, Newspaper, and Book Databases

Research DesignSpecifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

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

Advantages of Primary Data

Answers a specific research questionData are currentSource of data is knownSecrecy can be maintained

Disadvantages of Primary Data

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

Disadvantages are usually offset by the advantages of primary data!

Survey ResearchThe most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

Forms of Survey Research

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

Advantages of On-Line Focus GroupsSpeedCost-effectivenessBroad geographic scopeAccessibilityHonesty

Questionnaire Design

Types of Questions inQuestionnaire Design

Questionnaire Design

Observation ResearchA research method that relies on three types of observation:people watching peoplepeople watching an activitymachines watching people

Observation Research

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

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

Sampling Procedure

Sampling Procedure

Probability Samples

Nonprobability Samples

Types of Errors

Field Service FirmA firm that specializes in interviewing respondents on a subcontracted basis.

Field Service FirmsFocus group facilitiesMall intercept locationsTest product storageKitchen facilitiesRetail auditsProvide:

Data AnalysisOne-Way Frequency CountsRecord responses to a question

Cross-Tabulation

Cross-TabulationA 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.

Preparing and Presenting the ReportConcise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations

Following UpWere 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?

Impact of the InternetAllows better and faster decision makingImproves ability to respond quickly to customer needs and market shiftsMakes follow-up studies and research easierSlashes labor- and time-intensive research activities

Advantages of Internet Surveys

Internet Samples

Sales ForecastingCompanies 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.