Unit Overview - South Lake Marketingsouthlakemarketing.weebly.com/uploads/1/2/4/2/12428029/chapter28.pdf · Research • Chapter 29 Conducting Marketing Research Unit Objectives After

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588

9Unit Overview

INTRODUCE THE UNITUnit 9 explores marketing informa-tion management—its importance, the major areas of marketing research, and the steps performed in the marketing research process.Chapter 28 introduces the process of getting the marketing information needed to make sound business decisions through systematic gathering, recording, and analyzing of data.Chapter 29 defi nes the fi ve steps of the marketing research process—problem defi nition, obtaining data, data analysis, recommending solutions to the problem, and implementing the fi ndings.

BUILD BACKGROUNDAsk students why marketing information is essential to business success.Marketing information systems can help businesses predict and solve the prob-lems they face.

Have students share their fi rst impres-sions of the ad on this page. Ask students how this particular company might do marketing research to identify its market in terms of demographic factors, such as income, age, and ethnicity. Have students describe the customers for this company’s products.

A N A LY Z E T H E A D

Ask students to think of an item that they would like to sell. Have them write an essay about the research they would conduct to make sure that the item sells and they can make a profi t from it. Ask students to keep and review this document as they study Unit 9.

Perform a Research Study

If your program has a school store, have chapter members develop a research study to determine the market potential for products to be offered in the store. Students should develop the survey, conduct the research, analyze the data, and write a report on the fi ndings to give to the school administration.

Assessment Guidelines Prepare a rubric for evaluation that includes completeness of the survey used, thoroughness of the research conducted, a sound analysis of the data, and clearly written and thought out reporting of the students’ fi ndings.

Enrichment Assign and review Unit 9 activities in the Competitive Events Workbook.

In this unit you will find

• Chapter 28 Marketing Research

• Chapter 29 Conducting Marketing Research

This ad for Town & Country Surf Designs in Hawaii targets a very specific demographic group. How do the images and style of the ad relate to that demographic group? What does the ad communicate?

A N A LY Z E T H E A D

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9• Chapter 28

Marketing Research

• Chapter 29 Conducting Marketing Research

Unit ObjectivesAfter completing this unit, students should be able to: • Discuss the nature, importance, and usage of marketing research in planning

and implementing marketing strategies• Explain the function of marketing information systems• Describe four important types of marketing research• Describe the steps used in conducting marketing

research• Construct effective marketing research questionnaires

OUT OF TIME?If you cannot cover all unit chapters, go to Unit 9 in your Fast File Teacher Resources booklet and fi nd the Chapter Summaries for Chapters 28 and 29.

KEY TO LEVELED LEARNING ACTIVITIESL1 Strategies should be within the ability range of all

students. Often full class participation is required.L2 Strategies are for average to above-average students

or for small groups. Some teacher direction is necessary.

L3 Strategies are designed for students able and willing to work independently. Minimal teacher direction is necessary.

KEY TO RESOURCE ICONS Print Material

CD or DVD

Online Learning Center through glencoe.com

KEY TO LETTER ICONS

Reading Strategy activities help you teach reading skills and vocabulary.

Critical Thinking strategies help students apply and extend what they have learned.

Skill Practice strategies help students practice historical analysis and geographical skills.

Writing Support activities provide writing opportunities to help students comprehend the text.

Develop Concepts activities use various strategies to help teachers gauge and plan for students’ concept development.

Universal Access activities provide differentiated instruction for English language learners, and suggestions for teaching various types of learners.

No Child Left Behind activities help students practice and improve their abilities in academic subjects.

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CC

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WW

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UU

NCLB

NCLB

http://www.glencoe.com

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CHAPTER PRINT MATERIALS TECHNOLOGY RESOURCES

9

Chapter 28

Chapter 29

From Unit 9 Fast File BookletLesson PlansChapter SummariesReproducible MastersReproducible Tests

Print AncillariesStudent Activity Workbook, Chapter 28Marketing Math Workbook, Chapter 28BusinessWeek Reader with Case Studies, Chapter 28Competitive Events Workbook, Unit 9Marketing Research Project WorkbookSchool-to-Career Activity Workbook

From Unit 9 Fast File BookletLesson PlansChapter SummariesReproducible MastersReproducible Tests

Print AncillariesStudent Activity Workbook, Chapter 29Marketing Math Workbook, Chapter 29BusinessWeek Reader with Case Studies, Chapter 29Competitive Events Workbook, Unit 9Marketing Research Project WorkbookSchool-to-Career Activity Workbook

Interactive Chalkboard classroom presentations, Chapter 28 Online Learning Center through glencoe.com

Enrichment Resources at the Online Learning Center through glencoe.com

Online Student Edition, Chapter 28TeacherWorksTM Plus ExamView® Assessment Suite, Chapter 28 Virtual Business

Interactive Chalkboard classroom presentations, Chapter 29 Online Learning Center through glencoe.com

Enrichment Resources at the Online Learning Center through glencoe.com

Online Student Edition, Chapter 29TeacherWorksTM Plus ExamView® Assessment Suite, Chapter 29 Virtual Business





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Chapter 29Conducting Marketing Research

Chapter 28Marketing Research

CHAPTER SECTION PERFORMANCE INDICATOR

28.1 Describe the need for marketing information

Explain the nature of marketing research

28.2 Explain the nature and scope of the marketing-information management function

Identify information monitored for marketing decision making

Explain the nature of sales forecasts

29.1 Explain the nature and scope of the marketing-information management function

Identify sources of primary and secondary data

29.2 Describe data collection methods

Describe the use of technology in the marketing-information management function

590 UNIT 9 — MARKETING INFORMATION MANAGEMENT

C H A P T E R 28

Chapter Objectives

After reading this chapter, you should be

able to:

• Describe the purpose of marketing research

• Explain the characteristics and purposes of

a marketing information system

• Identify procedures for gathering

information using technology

• Identify the methods of conducting

marketing research

• Discuss trends and limitations in

marketing research

Market Talk Market research is the process

of obtaining the information needed to

make sound marketing decisions. A well-

known market research company is Nielsen

Media Research. The company specializes in

television audience research. In other words,

Nielsen fi nds out who watches what show,

where, and when. The heart of the company’s

national ratings is the Nielsen People Meter, an

electronic device placed on television sets in

more than 5,100 U.S. households.

Quick Think Name two ways the Nielsen

ratings can be used in marketing.

Marketing Research

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EXPLORE THE PHOTO


C H A P T E R 29

Chapter Objectives

After reading this chapter, you should be

able to:

• Explain the steps in designing and conducting

marketing research

• Compare primary and secondary data

• Collect and interpret marketing information

• Identify the elements in a marketing

research report

• Design a marketing research survey

• Administer a marketing research

survey

Market Talk Companies need to fi nd out who

their customers are, what they need or want,

their opinions, and how much they spend on

what. There are many ways of doing market

research.

Quick Think Why do you think companies

conduct marketing research and testing in

different markets?

Conducting

Marketing Research

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CHAPTER SECTION PERFORMANCE INDICATOR

588D

Key Termsand Concepts

BuildAcademic

Skills

Develop Critical

ThinkingApply

Concepts

BuildReal-World

SkillsNet

SavvyMarketingInternship

Academic Skills

Review Facts and

Ideas

SECTION ASSESSMENT CHAPTER ASSESSMENT UNIT LAB

1

✓ 3 14

✓ ✓ ✓ ✓

2, 3 ✓

2, 5, 6 14, 15 ✓ ✓ ✓ ✓ ✓

2, 3 ✓

3, 4 14, 15 ✓ ✓ ✓ ✓ ✓

1, 2, 3 ✓ 6 ✓ ✓ ✓ ✓

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11 ✓ ✓

1, 2, 3

✓ 14

✓ ✓ ✓ ✓ ✓

1, 2, 3 ✓

3, 4 14 ✓ ✓ ✓

1, 2, 3 ✓ 4, 5, 8 14 ✓ ✓ ✓ ✓

15 ✓ ✓

Check the latest national and state standards at the Marketing Essentials OLC through glencoe.com.

SECTION ASSESSMENT CHAPTER ASSESSMENT UNIT PROJECT


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Marketing Internship Tell students that as part of this unit, they will participate in a hands-on marketing internship simula-tion at the close of the unit. As they study each chapter in the unit, they can prepare for the project by doing the research listed on the checklist. They will conduct research using a variety of resources and apply academic, basic, and technology skills. Upon comple-tion of each unit project, students will have a tangible example of their work to add to a real-world career portfolio.

Marketing Internship Tell students that as part of this unit, they will participate in a hands-on marketing internship simula-tion at the close of the unit. As they study each chapter in the unit, they can prepare for the project by doing the research listed on the checklist. They will conduct research using a variety of resources and apply academic, basic, and technology skills. Upon comple-tion of each unit project, students will have a tangible example of their work to add to a real-world career portfolio.

RELATE THE UNIT TO THE MARKETING PLANThe four Ps of the marketing mix include product, place, pricing, and promotion. An effective marketing plan cannot be made without conducting marketing research, which is explained in Unit 9.

MARKETING PLAN OVERVIEWLet students know that conducting effective marketing research and analysis will help increase a business’s chances to succeed and profi t in the face of fi erce competition and the changing marketplace.

Marketing Core FunctionsPoint out to students that Chapters 28 and 29 will deal with the marketing core function Marketing Information Management.

Marketing Information

Management Gathering, storing, and analyzing information about customers, trends, and competing products are all part of marketing information management, on which good business and marketing deci-sions rely.

For WebQuest teaching suggestions and rubrics, go to the Teacher Center of this book’s Online Learning Center (OLC) through glencoe.com.

glencoe.com

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BUDGET Cost of SalesCost of PromotionIncome and Expenses

IMPLEMENTATION OrganizationManagementStaffing

STRATEGY PromotionPlacePriceProduct

ANALYSISSWOT

Economic

Socio-Cultural

Technological

Competitive

CONTROLEvaluation

Performance Measures

Performance Analysis

In this unit

Marketing Core Functions Marketing Information Management

Marketing research can analyze results by demographic factors, including income, age, and ethnicity. Begin the activity by thinking of five questions to ask your friends about why they buy a certain brand of jeans.

PRINT AD IMAGES

Log on to glencoe.com and go to the Marketing Essentials Online Learning Center (OLC). Find the WebQuest for Unit 9.

Marketing Internship Your client, a cosmetics firm, needs a customer analysis and recommendations on how to market its new line of personal grooming products for men.As you read, use this checklist to prepare for the unit project:✓ Choose at least one personal grooming product used by men. ✓ Do online research about the male grooming industry.✓ Go to local stores that sell grooming products for men and observe their displays and customers.

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INTRODUCE THE CHAPTERChapter 28 explains the purpose of marketing research and identifi es ways of gathering information and methods of conducting research. Students will also read about trends and limitations in marketing research.

BUILD BACKGROUNDInitiate a discussion of what factors infl uence students’ purchasing decisions. How would the companies that make the products they buy benefi t from under-standing the reasons behind purchase decisions? Ask students what factors are important for companies to know. Tell students they will learn how companies compile and use such information in marketing their products and services.

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Market Talk Lead a discussion about Nielsen Media Research and the type of information it collect about television audiences. Ask: What type of programs do your students watch, if any? At what time and on what stations? Why is this information valuable to TV networks? How is it valuable to advertisers?

Quick Think Student responses may include: Networks can use ratings to persuade advertisers of the value of advertising on a certain program. Advertisers can use ratings to match their product with the appropriate audience demographic. Advertisers can use ratings to choose when to run their commercial for the most exposure.

Ask students to name another company

similar to Nielsen Media Research which collects research information for an industry other than television.

REVIEW THE OBJECTIVESDescribe the purpose of marketing research. Marketing research involves the process and methods used to gather information, analyze it, and report fi ndings related to marketing goods and services. Explain the characteristics and purposes of a marketing information system. A marketing infor-mation system is a set of procedures and meth-ods that regularly generates, stores, analyzes, and distributes information for use in making market-ing and other business decisions.

Identify procedures for gathering information using technology. Technology is now used to generate, store, analyze, and distribute marketing informationIdentify the methods of conducting marketing research. attitude and opinion research, market intelligence, media research, product researchDiscuss trends and limitations in marketing research. Marketing research trends include the global marketplace, the use of internal and exter-nal information in managing a business, and total quality management (TQM). Marketing research limitations include money, time, and the number of personnel needed to conduct the research.


C H A P T E R 28

Chapter ObjectivesAfter reading this chapter, you should be able to:

• Describe the purpose of marketing research

• Explain the characteristics and purposes of a marketing information system

• Identify procedures for gathering information using technology

• Identify the methods of conducting marketing research

• Discuss trends and limitations in marketing research

Market Talk Market research is the process

of obtaining the information needed to

make sound marketing decisions. A well-

known market research company is Nielsen

Media Research. The company specializes in

television audience research. In other words,

Nielsen fi nds out who watches what show,

where, and when. The heart of the company’s

national ratings is the Nielsen People Meter, an

electronic device placed on television sets in

more than 5,100 U.S. households.

Quick Think Name two ways the Nielsen

ratings can be used in marketing.

Marketing Research

EXPLORE THE PHOTO

Veer/Blend Images Photography

590

For the Teacher TeacherWorks™ Plus

Teacher Resources at glencoe.com

Interactive Chalkboard ExamView® Assessment Suite Fast File Unit 9

For the StudentMarketing Essentials Online Edition

Student Activity Workbook Marketing Math Workbook Marketing Research Project Workbook School-to-Career Activity Workbook Competitive Events Workbook BusinessWeek Reader with Case Studies

Interactive Student EditionStudent Resources at glencoe.com

28

Discuss the performance indicators for the

DECA events listed, so that students understand

how to demonstrate their understanding.

The event acronyms stand for:

AAM: Apparel and Accessories Marketing

Series

ADC: Advertising Campaign Event

ASM: Automotive Services Marketing

Series

BSM: Business Services Marketing Series

EMDM: E-Commerce Management Team

Decision Making Event

FMAL: Food Marketing Series, AL

FMDM: Financial Analysis Management

Team Decision Making Event

FMML: Food Marketing Series, ML

FSRM: Full Service Restaurant Manage-

ment Series

HMDM: Hospitality Services Management

Team Decision Making Event

HRR: Hospitality and Recreation Market-

ing Research Event

MMS: Marketing Management Series

QSRM: Quick Serve Restaurant Manage-

ment Series

RFSM: Restaurant and Food Service

Management Series

RMS: Retail Merchandising Series

SEM: Sports and Entertainment Marketing

Series

SMDM: Sports and Entertainment Marketing

Management Team Decision Making

Event

TMDM: Travel and Tourism Marketing

Management Team Decision Making

Event

TSE: Technical Sales Event

Find timed DECA Prep activities correlated to the Competitive Events Workbook for students and DECA tips for teachers at the Marketing Essentials OLC through glencoe.com.

Chapter 28 — Marketing Research 591

ROLE PLAY Check your understanding of DECA performance indicators with the DECA activity in this chapter’s review. For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.

glencoe.com

DECA Events These acronyms represent DECA com-petitive events that involve concepts in this chapter:AAMADCASMBMDMBSM

EMDMFMALFMML HLMHMDM

MMSQSRMRFSMRMSSEM

SMDMTMDM

Performance Indicators The performance indicators represent key skills and knowledge. Relating them to the concepts explained in this chapter is your key to success in DECA competitive events. Keep this in mind as you read, and write notes when you fi nd mate-rial that helps you master a key skill. In these DECA competitive events, you should follow these perfor-mance indicators:• Describe the need for marketing information• Explain the nature and scope of the marketing-

information management function• Explain the role of ethics in marketing-information

management• Explain the nature of marketing research in a

marketing-information management systemSome events include these performance indicators:ADC Explain the use of databases in

organizing marketing information Design a database for retrieval of

information Use database for information analysisASM Identify information monitored for

marketing decision-makingBSM Identify research methods used to

evaluate the quality of business services

EMDM Explain the nature of data miningQSRM/RFSM Develop marketing-information

management systemSEM/SMDM Explain the need for sport/event marketing information Explain sources of secondary sport/

event information

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SECTION 28.1

BELLRINGER ACTIVITY

To prepare for reading this section, have students split into groups and choose two products, one that is successful and one that failed in the marketplace. Have students brainstorm how marketing research may have contributed to the success and failure of each product. Ask students to consider how consumers’ attitudes and preferences might have been taken into better consideration to make the failed product more successful. Have groups share their ideas in class.

Preteaching

VOCABULARYKEY TERMS Read defi nitions of each key term aloud one at a time. Have students write down on a piece of paper which key term they think matches each defi nition. Tell students they can see if they guessed correctly as they read the chapter.ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZERModel using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer. READING GUIDE

BEFORE YOU READNCLB

NCLB connects academic correlations to book content.

C Critical ThinkingExplain Ask students if they have ever tried a new product and disliked it. Ask them to come up with reasons that the com-pany thought their product would be successful.

Write “Succeed” on one side of the board and “Fail” on the other side. Lead students in brainstorming reasons

why new businesses succeed or fail. Write the reasons on the board under the appropriate heading.

D Develop Concepts

THE MAIN IDEAAsk students to give examples of how understanding customer needs and wants can help a business plan.

Model for students how they can make a simple, two-column graphic

organizer. Name one column marketing and the other marketing research.

What?

Who?

How?

Why?

MarketingResearch


Defining Marketing ResearchOne of the largest American sports shoe manufacturers

wants to introduce its new, best-selling shoe in overseas mar-kets. A famous basketball player in the United States wears the shoe, and a commercial shows him shooting hoops in locations around the world. The commercial is aired in three European countries and translated into each country’s official language. However, sales are disappointingly low. What went wrong?

THE MAIN IDEAMarketing research provides information to create a business plan, solve problems, and make decisions about products.

GRAPHIC ORGANIZERDraw this chart for taking notes about the main concepts of marketing research.

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

READING GUIDE

OBJECT IVES• Describe the purpose of

marketing research

• Explain the characteristics and purposes of a marketing information system

• Identify procedures for gathering information using technology

KEY TERMS• marketing research

• marketing information system

• database marketing

• database

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• obtain

• overall

Predict Why do some businesses have almost immediate success while others fail miserably?

SECTION 28.1

BEFORE YOU READ

Marketing Information Systems

ACADEMIC STANDARDSEnglish Language ArtsNCTE 1 Read texts to acquire new information.

English Language ArtsNCTE 3 Apply strategies to interpret texts.

Analysis Compare

and contrast the terms

market and marketing research.

D

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SECTION 28.1

Discussion Starter

DEFINING MARKETING RESEARCHAsk students to come up with a new prod-uct idea. They have one year before the launch of their new product. Which fac-tors must they research before they begin product development? What information must they collect from consumers? In class, have students brainstorm ques-tions to ask consumers and then rank responses in order of importance regarding the success of their product.

Demonstrate Bring in examples of con-sumer surveys conducted by companies performing marketing research for new products. Help students identify common types of questions asked on such surveys.

Marketing research involves the process and

methods used to gather information, analyze it, and report fi ndings related to marketing goods and services. This helps identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor performance.

S Skill PracticeGuided PracticeWho Uses Marketing Research?

After students read the section, brain-storm types of organizations other than individual businesses that use market-ing research. Ask students to focus on marketing research for their own school. On the board, list groups that their school could collect information from. Answers may include students, family members, local residents, teachers, etc.

Divide students into groups and have each group create a short survey aimed at one of the target groups. Have groups share their surveys and lead discussion about how each group’s opinions could help the school function better and which group’s opinions should be most important.

Extended ActivityDatabase Marketing—Rewards Cards

Lead a discussion of supermarket reward cards as an example of database marketing. Ask stu-dents what type of information may be collected from such cards. (Answers may include house-hold demographics, lifestyle, and purchase behavior.) Ask how many students use such cards or know people who do. Possible questions may include:

• Did you know the supermarket was collecting this information when you signed up for the card?

• Does knowing your purchases are being tracked make you more or less likely to use the card?

Ask students to list other possible ways in which businesses collect information that consumers might not be aware of.


Even though the ad has a global focus, it does not have global appeal, at least not in Europe. Careful marketing research would have shown that basketball is not as popu-lar in Europe as it is in the United States. Few people purchased the shoe because few people related to the associated sport.

According to the Marketing Research Association, marketing research involves the process and methods used to gather information, analyze it, and report findings related to marketing goods and services. Information obtained through market-ing research is used to identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performance.

Marketing research is most often used by companies to:

• Determine consumers’ attitudes and preferences

• Test product features • Determine market size and growth

potential • Learn about competitive products • Determine buying cycles • Understand how the company is

perceived by the public

Before developing a product, marketers conduct research to determine the product that customers want. The research mini-mizes potential losses when introducing the new product. Consumers accept only one out of every ten new products introduced into the marketplace; therefore, gaining information about consumer likes and dis-likes is important.

Why Is Marketing Research Important?

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

The information obtained from research helps businesses increase sales and profits. Research answers questions about what prod-ucts to produce, at what price to sell the prod-ucts, who will buy the products, and how the products will be promoted.

Research also helps businesses solve mar-keting problems and gauge the potential of new product ideas. For example, Stouffer’s spent almost 13 years doing marketing research and development before starting its Lean Cuisine product line. Stouffer’s studied consumers’ interest in health and dieting. They conducted consumer panels to find out what dieters liked and disliked about diet meals. Using the information, the company developed its product, tested its package design, and held pilot sales of the product in several large cities before national distribu-tion. The product was a tremendous success, with more than $125 million in sales after the first year of national distribution.

Research also helps a company keep track of what is happening with its current markets. Through research, a company can determine its major competitors, what its competitors are offering, which products consumers pre-fer, and if customers are are satisfied with those products.

Who Uses Marketing Research?Small businesses usually do not have

separate research specialists or departments. There, marketing research is done informally by the owners, managers, or employees, or they hire outside service providers who spe-cialize in market research. Larger companies often have in-house research departments and marketing personnel to plan and con-duct marketing research. But even larger companies sometimes contract with outside research companies because of their spe-cialized expertise. It is estimated that $6.2 billion was spent in 2001 on marketing research conducted in the United States by the largest 180 marketing research firms and in-house groups.

Defi ne What is marketing research?

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SECTION 28.1

CONCEPTS Ask students to recall the purpose of marketing research. To identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performances.

KEY TERMS Have students review key terms, their spellings, and defi nitions in small groups.

S Skill PracticeResearch Products Have students select a product currently on the market that they view as having room for improve-ment. Tell students to research the product and write a two-page report outlining a marketing research plan to improve the product’s sales.

INDEPENDENT REVIEW

L1 Assign and review Chapter 28 activities in the Student Activity Workbook.

L2 Assign and review Chapter 28 activities in the Marketing Math Workbook.

L3 Assign and review Chapter 28 activities in the BusinessWeek Reader with Case Studies.

AFTER YOU READHave students complete the Section 28.1 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 28.1 practice test.

Discussion Lead a discussion on the ethics of marketing research by asking what, if any, kinds of behavior might be unethical in market research.

Answer: Most students should understand that inten-tionally misleading people is unethical. Students might have a hard time deciding if Manuel should tell his bosses that Jason misled people. They might recommend that Manuel wait for his bosses to ask why Jason did so much better than he did.

For instruction, ideas, and answer guide, go to the Teacher Center at theMarketing Essentials OLC through glencoe.com.

Ask students to brainstorm ways that Jason and Manuel could achieve their research goal without falsifying information or misleading interviewees.

Conducting Research

594 UNIT 9 — MARKETING INFORMATION MANAGEMENT glencoe.com

Trade associations representing various man-ufacturers, wholesalers, and retailers conduct marketing research. Industry trade associations, such as the National Retail Federation, collect industry data to help their members under-stand the markets for their products.

Nonprofit organizations, such as hospi-tals, conduct patient satisfaction surveys to improve on programs and services.

Marketing Information Systems The data collected in marketing research

must be sorted and stored so that the results

can be put to good use. Many businesseshave sophisticated marketing information systems to organize, collect, and store mar-keting research data for future decisions. Amarketing information system is a set of procedures and methods that regularly gener-ates, stores, analyzes, and distributes informa-tion for use in making marketing and other business decisions. Most marketing informa-tion systems rely heavily on data about cur-rent customers, overall product sales reports, and inventory levels. Marketers use marketing information systems in many ways, including designing advertising campaigns, developing promotional plans, and selling directly to cus-tomers. Data that should be part of a market-ing information system include:

• Customer profile data, such as the results of previous marketing studies regarding buying behavior, shopping patterns, customer demographics, and lifestyles research

• Company records, such as sales results, expenses, supplier data, and production schedules

• Competitors’ records, such as their prices, products, and market share

• Government data, such as price trends, new regulations and laws, and future projections for the economy

• Marketing research reports that are produced and sold by research firms

Database Marketing Information technologies have made the

collection and analysis of data for decision making much easier. Database marketing, or customer relationship management (CRM), is a process of designing, creating, and man-aging customer lists. These customer lists contain information about individuals’ char-acteristics and transactions with a business. Customer lists are developed from customer touch points such as face-to-face sales, direct-mail responses, telephone or e-mail purchases, service requests, or Web site visits. Marketing lists can also be obtained through third-party companies that specialize in selling databases

Go to the Marketing Essentials OLC through glencoe.com to find an activity about ethics and marketing research.

Is Jason’s behavior ethical? If Manuel decides to keep telling the truth, what should he do when he and Jason submit their results to their bosses?

Conducting Research

Fun Foods has hired Manuel’s marketing firm to learn what 20- to 30-year-old women want in a nutrition bar. Manuel’s bosses have written a 20-minute marketing survey and sent him and his colleague, Jason, to the mall to interview young women. But when Manuel tells shoppers how long the sur vey will take, they don’t want to participate.

Misleading RespondentsJason has had no trouble finding women to interview. When they take their lunch break, Manuel asks Jason the secret of his success. Jason says, “I say the survey will take only five minutes. When they realize more than ten minutes have gone by and they look uneasy, I tell them we’re almost done.”

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SECTION 28.1

CULMINATING ACTIVITY

Ask students to recall and provide answers to the following questions:

• Who uses marketing research? Small businesses, large companies, trade associations, government de-partments, nonprofi t organizations

• What are the diffi culties of marketing information systems? They require a signifi cant investment of time and money, and they need trained personnel to maintain and analyze the data.

NCLB

NCLB Activity correlated to Mathematics and Social Studies Standards

Key Terms and Concepts

1. Marketing research is important because it lets producers know what products to pro-duce, it identifi es consumer wants, needs, and preferences, it helps solve market-ing problems, and it enables businesses to keep track of competition. Marketing research is also necessary to evaluate the effectiveness of marketing plans.

2. Besides individual businesses, various manufacturers, wholesalers, retailers, departments within local, state, and federal governments, and nonprofi t organizations conduct marketing research.

3. A marketing information system is a set of procedures and methods that regularly generates, stores, analyzes, and distributes information for use in making marketing decisions.

Academic Skills 4. $10.5 billion � $16 billion � 0.656, or

about 66 percent

5. Papers should demonstrate an understand-ing of customer relationship management.

Find answers at the Marketing Essentials OLC through glencoe.com.

28.1 AFTER YOU READ

Extended ActivityAsk students: Have you ever taken a survey or participated in a focus group for marketing research purposes? What kind of questions were you asked? Have students share their responses in class.

Problem Solving: Percents A percent is a ratio that com-pares values to 100. A percent can also be thought of as a part of a whole. When figuring what percentage a value is of another value, divide the part by the whole. This gives the decimal equivalent of the percent.1. To solve this problem, divide $10.5

billion by the total amount spent on marketing research to get the deci-mal equivalent of the percent.

2. Multiply the decimal number by 100 to get the percent it represents.

For help, go to the Math Appendix located at the back of this book.

Chapter 28 — Marketing Research 595glencoe.com

of names and addresses to specific markets.Once a customer list is developed, it can be used for locating, selecting, and targeting cus-tomers with special programs and services.

Ways To Collect Data Many businesses create programs to assist

in data collection by furnishing “valued cus-tomer cards,” which add the customer’s infor-mation to the purchase. Customers complete an application, which entitles them to special rewards. Over time, the store collects data on purchases and analyzes it to better understand demographics and purchase behavior.

Consumer Databases Information about consumers and their

buying habits are stored in computer data-bases. A database is a collection of related information about a specific topic. For exam-ple, REI, an outdoor recreational products

retailer, has a database of people to whom it sends its catalogs. American Express main-tains a database of its card members and their addresses, plus what they buy, where they buy it, where they eat out, and how much money they spend. The company uses the informa-tion to send their card members special offers on products, hotels, restaurants, and travel.

Many companies that collect information about their customers often sell that informa-tion to others. Banks that provide mortgage loans often share the names and addresses of the borrowers with insurance companies that then send information about mortgage insurance to the borrower. This exchange of information among businesses has led to complaints of invasion of privacy.

Consumer Privacy The government has regulations regarding

protecting the privacy of consumers. Banks offer detailed privacy statements that ensure the protection of clients’ personal informa-tion. Other businesses offer clients the choice of being added to mailing lists.

Key Terms and Concepts 1. Why is marketing research important? 2. Besides individual businesses, who else conducts marketing research? 3. What is a marketing information system?

28.1 AFTER YOU READ

Check your answers at the Marketing Essentials OLC through glencoe.com.

Academic SkillsMath

4. According to the European Society for Opinion and Marketing Research, $16 billion was spent on marketing research in 2003. The world’s top 25 marketing research companies had total revenues of $10.5 billion. What percentage of the overall research dollars does this represent?

Social Studies/Communication

5. Use the Internet, school media center, or local library to investigate the concept of customer relationship management (CRM). Write a one-page paper on the benefits of business-to-consumer relationships and the specific strategies that can be used to establish them.

NCLB

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READING GUIDE

SECTION 28.2

BELLRINGER ACTIVITY

To prepare for reading this section, divide students into groups and have each group fl ip through a magazine and choose a product advertise-ment. Have students brainstorm types of marketing research they could conduct to help market this product. Then have groups choose the method that would work best for their particular product and present it to the class. Lead a discussion about why different types of market-ing research may work better for different products.

Preteaching

VOCABULARYKEY TERMS Divide students into groups and have them guess the mean-ings of the key terms and write them down. Write the key terms across the top of the board and have groups write the meaning under each term. As students read the chapter, they can see which groups guessed correctly.ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZERModel using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer.

NCLB

NCLB connects academic correlations to book content.

Have students list new products that have come out in the last year. Write these on the board and discuss

which products have failed and if students think marketing research was used in their development.

D Develop Concepts

THE MAIN IDEAAsk students how using different types of research helps a product succeed.

Model for students how to keep a running list of kinds of marketing

research as they read through the section.

BEFORE YOU READ

C Critical ThinkingExplain Ask students: In what ways can using more than one type of marketing research help a business better identify its target market?

Quantitative Research1.2.

Quantitativeand

QualitativeResearch

Qualitative Research1. Attitude Research2.


Types of Marketing ResearchThe type of research businesses conduct depends on the

problem that they are trying to solve. Quantitative research answers questions that start with “how many” or “how much.” This type of research usually gathers information from large numbers of people. Quantitative research relies heavily on sur-veys or questionnaires to obtain information.

THE MAIN IDEAUsing more than one type of research can improve a business’s ability to solve problems and successfully market a product.

GRAPHIC ORGANIZERDraw this chart to note the differences between quantitative research and qualitative research.

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

READING GUIDE

OBJECT IVES• Identify the methods of

conducting marketing research

• Discuss trends and limitations in marketing research

KEY TERMS• quantitative research

• qualitative research

• attitude research

• market intelligence

• media research

• product research

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• anticipate

• associate

Predict What would happen if marketing research was not used in product development?

SECTION 28.2

BEFORE YOU READ

Types, Trends, and Limitations of Marketing Research

ACADEMIC STANDARDSEnglish Language ArtsNCTE 1 Read texts to acquire new information.

English Language ArtsNCTE 3 Apply strategies to interpret texts.

Predict What kinds

of marketing research

do successful

businesses conduct?

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SECTION 28.2

DiscussionStarter

TYPES OF MARKETING RESEARCHHave students imagine they own a small electronics store. Sales have been down for the last year. They want to conduct marketing research to fi nd out what cus-tomers are looking for. Should they con-duct quantitative or qualitative research? Students should answer quantitative.

Have students brainstorm appropriate survey questions. Ask students what kind of research they do after changes are implemented. Students should answer qualitative.

Demonstrate You may want to bring in examples of quantitative surveys. Ask stu-dents to think of similar surveys they have fi lled out in the past.

Clarify Remind students that marketing research is not restricted to products. Ask students to list questions pertaining to other areas, such as attitude, behavior, market segments, advertising media, brands, etc.

Extend Have students go to a local busi-ness and interview the owner or manager, asking if they survey their customers and how they pick their survey questions.

D Develop ConceptsGuided PracticeAttitude Research Divide students into small groups and have each group create a satisfaction survey about food in the school cafeteria. Have each student in the group write out a copy of the survey; then have groups exchange and fi ll out each other’s surveys. Ask volunteers to discuss how the survey they created was different than the one they fi lled out. Lead a discussion about the various types of questions that can be on such surveys.

U.S. Market Research Spending by Category

Discussion Ask students to name types of research they think would fall under each category in Figure 28.1. Lead a discussion about why companies would spend more money on syndicated and survey research methods than on qualitative research. Answer: Qualitative research usually focuses on small numbers of people and thus costs less than other methods administered to large numbers of people.

Caption Answer Quantitative research is represented by the survey segment.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

28.1


Qualitative research focuses on smaller numbers of people (usually fewer than 100) and tries to answer questions about “why” or “how.” This type of research relies heavily on in-depth interviews, rather than surveys that have been constructed ahead of time. Most marketing research combines quantitative and qualitative methods. (See Figure 28.1 for a breakdown of money spent on market research in the United States.)

Research is not limited to products; it is also conducted to answer questions about attitudes and behaviors, market segments, advertising media, brands, prices, employees, and every other aspect of marketing. (See Figure 28.2 on page 598.)

Attitude ResearchAttitude research, also known as opin-

ion research, is designed to obtain information on how people feel about certain products, ser-vices, companies, or ideas. Satisfaction studies conducted by mail surveys or telephone inter-views are the most common ways to get at individuals’ opinions. Customers are usually

asked to rate “how satisfied” they are with a product or service they purchased or used.

Opinion polls are another example of attitude research. The Gallup Organization conducts opinion polls on politics, elections, business and the economy, social issues, and public policy. Based on random samples of the population, opinion poll results can be generalized to the entire population. A busi-ness considering a major expansion might be interested in the attitude of the general population toward the economy.

Consumer panels, also called focus groups, are groups of people who are questioned to provide information on research issues.

Market IntelligenceMarket intelligence is concerned with

the size and location of a market, the compe-tition, and the segmentation within the mar-ket for a particular product or service. Existing market data and new research are used to assemble a profile of present and potential customers, competitors, and the overall indus-try. Market intelligence helps define potential

28.1 U.S. Market Research Spending by Category

Go to the Marketing Essentials OLC through glencoe.com to find a project on marketing research spending.

• How Marketing Research Dollars Are Spent In 2001, syndicated spending represented the largest segment of

U.S. marketing research expenditures.

What type of research is represented by the survey segment in this figure?

Source: Marketing News Supplement, June 11, 2002

SegmentAnnual Spending

($ million) Percent of TotalPercent Increase

Over Previous Year

Qualitative 1,120 18.2 +5.2

Syndicated 2,573 41.8 +9.2

Survey 2,466 40.0 –1.4

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SECTION 28.2

CONTINUED

D Develop ConceptsGuided PracticeMarket Intelligence Make photocop-ies of a market research report covering a specifi c industry, such as consumer electronics, cosmetics, carbonated bever-ages, etc. Have students read over the report and jot down notes on the type of information included, such as sales data, sales forecasts, customer demographics, and competitor profi les. Lead a discus-sion about the information in the report and write an outline on the board as students list the sections.

Explain Explain to students that many companies pay large amounts of money to purchase market information. Ask students why they think companies fi nd market infor-mation so valuable.

Extend Have students keep the market research report and work in class to create a brief summary of the key points of the report.

Extended ActivityTypes of Marketing ResearchHave students choose one type of mar-keting research and write a one-page report describing a scenario that uses that type of marketing research.

Types of Marketing Research

Discussion On slips of paper write various types of information companies might want to research, such as opinion on customer service, the size of the market for big-screen TVs, response to a commercial, or preference for toothpaste packaging. After students read Figure 28.2, have them pull slips of paper from a bowl, read aloud, and identify which type of research would be appropriate. Ask other students whether they agree or disagree with each choice and lead discus-sion about matching research with purpose.

Caption Answer The type of problem to be solved determines the type of marketing research that is conducted and tells you what you need to know.


28.2


28.2 Types of Marketing Research

Go to the Marketing Essentials OLC through glencoe.com to find a project on types of marketing research.

• What Do Marketers Need to Know? Marketing research covers all the activities used to gather, analyze, and report

information related to marketing. This broad field can be broken down by types of research and defined by the purpose

of the research.

How do you find out the kind of marketing information you need to know?

Research is used to gather information about

an existing or potential market for market

intelligence. It defines the size, location, and

makeup of the market. This type of research

is often done before a new product launch. It

is used to guide the marketing efforts for the

new product.

MARKET INTELLIGENCE

This type of research is used to determine the

effectiveness of the various media to advertise

a good or service. It can be conducted before or

after a media campaign.

MEDIA RESEARCH This type of research is used to gather

information about a product’s design,

packaging, and usage. It is used to discover

how customers react to a new product design

or packaging. It can also be used to gather

information about how a competing product is

designed and packaged.

PRODUCT RESEARCH

Marketers conduct this type of research to

discover how people feel about their products,

services, or ideas. Satisfaction surveys, such as

those sent after a visit to the hospital, and opinion

polls, such as those used by political campaigns,

are examples of this type of research.

ATTITUDE AND OPINION RESEARCH

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SECTION 28.2

CONTINUED

S Skill PracticeIndependent Practice

L1 Ask students to research and explain how to calculate the market share of a company. Divide the company’s total sales by the total market sales. The result is the company’s market share.

L2 Ask students to solve the following problem: A candy company’s yearly sales are $250 million. The total candy market for the year is $5 billion. What is the candy company’s market share? $250 million � $5 billion equals 0.05, or 5 percent. The company’s market share is 5 percent.

L3 Give students copies of a chart showing two years of sales data (such as 2002 and 2003 data) for various markets. For each market, have students calculate the percentage increase from the previous year and then forecast sales for 2004.

Extended ActivitySales Forecasting Careers

Ask students to research two to three careers that involve sales forecasting and to list the skills that might be necessary in those careers in a brief, one-page summary.

PHOTO GUIDE • OBTAINING MARKET RESEARCH DATA

Discussion Lead a discussion on some possible uses for this information. Ask students how they think this kind of information was obtained.

Caption Answer The data in this chart provide demographic information that helps defi ne a market (in this case, Oakland, California).

Have students select a particular type of information from this profi le that could be used to market a certain product, for example, a new type of environmentally friendly automobile.


Sales Forecasting Sales forecasting is an attempt to estimate

the future sales of an existing product. A total estimate of a market is calculated, com-pany and competitor sales are analyzed, and then an individual share is estimated for abusiness.

The share that is assigned to a business is called its market share or sales penetration of

target markets for a particular product or ser-vice and how to reach potential customers.

A company’s existing and projected sales data are part of market intelligence. Sales data help businesses project the potential sales for a product and anticipate problems related to future sales. Sales trends for various products may also be compared to determine whether a product’s sales are increasing or declining.

• OBTAINING MARKET RESEARCH DATA Public and private organizations provide valuable information for exploring the market potential for products and services.

Why is data such as that found in this chart important for market research?

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CONTINUED

D Develop ConceptsDrawing ConclusionsMedia Research Make transparen-cies of ten advertisements from a print magazine or newspaper. Allow students to view each ad for about fi ve to ten seconds before switching to the next one. After students have viewed all the ads, have them write down the subject of as many as they can remember. Then ask them to try to remember key details, such as illustrations, colors, slogans, etc. Lead a discussion about which ads stuck most in students’ minds and why. Also discuss if students were more likely to remember the type of product or the brand name.

Extend Have students pretend they are an advertiser. Have students design an effective ad for a product, using construc-tion paper, magazine clippings, markers, etc.

R Reading StrategyAnalyze Words Preview the following words by reading them in context under the heading Media Advertising Measures. Discuss the meaning of these words with the students.

• audience homes/people exposed to ad

• frequency times viewer sees/hears ad

• reach percentage that will see/hear ad

• ratings total impressions delivered

Ad Agency Launches a Video Game UnitDiscussion Have students discuss the advantages and disadvantages of video game advertising versus television advertising. Ask: How are the target audiences different?

Answer: It is a new way to reach the gaming audience. A video game promotional unit capitalizes on the increasing popularity of video games and could be more effective than promotion through TV. It is also an opportunity to get into the business before competitors do.



the market. Based on its research findings, the business can then try to increase its market share through changes in the product, pric-ing, promotion, or distribution strategies.

Market share estimation and market seg-mentation research studies are used for new products and services in both consumer and industrial markets. The goal of market share and segmentation studies is to investigate the potential markets for new products and to define characteristics of the target market.

Specialized software programs can assist with forecasting. These computer programs analyze current market data and use this information to predict future sales.

Economic Forecasting Economic forecasting is an attempt to pre-

dict the future economic conditions of a city, a region, a country, or other part of the world. This research requires extensive knowledge of economic statistics and trend indicators.

Ad Agency Launches a Video Game Unit

Young & Rubicam, a large, full-service advertising agency, teamed up with Bounce, an event marketing group, in 2004 to start a video game promotional unit called Bounce Interactive Gaming (BIG).

Ad agencies became more interested in video games in 2003, when Nielsen data showed that men aged 18 to 34—an appealing demographic group for advertisers—were watching less prime-time TV. Jupiter Research expected that 63 million people in the United States would spend at least five hours a week playing video games by 2009.

Target Audience

BIG markets products to fans of video games. The company signs deals with video game makers to embed products in the games in the form of a brand of beverage or car, for example. It also hosts video game events sponsored by its products. These events include tournaments for top players or live-satellite feeds to watch tournaments in action.

Captive Audience

Advertising through video games has advantages over advertising on TV. Gamers stay in the room during the course of the game, unlike TV watchers, who sometimes leave the room during commercial breaks. Gamers keep their attention focused on the screen, while TV watchers can lose their concentration. A gamer might also like a product just because it is used by the gamer’s onscreen character.

What are some strategic reasons for a large full-service advertising agency to establish a video game promotional unit?

Go to the Marketing Essentials OLC through glencoe.com to find an activity about advertising and market research.

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SECTION 28.2

CONTINUED

C Critical ThinkingIndependent PracticeNew Product Development Have students talk to the manager of a local supermarket to discuss which products have been test marketed in the store within the last few years. How was their store chosen to participate in the test? How did the manufacturer promote the products? Are the products now sold regularly in the store? How was customer feedback solicited on these products? Were changes made to the product as a result of customer feedback? Have students summarize their fi ndings in a two- to three-page report.

Extended ActivityConsumer PrivacyHave students search newspapers, magazines, and online media for stories concerning consumer privacy issues. Article topics may include litigation over privacy issues, new technology that affects consumer privacy, or new laws concerning privacy.

A New Local Rating SystemDiscussion Lead a discussion about the advantages and disadvantages of switching from paper-based viewer diaries to people meters. Ask students why they think the results are different for popular minority shows under the new system.

Answer: Local television ratings are important because they enable marketers to determine which ads to run on which channels in order to reach their target market. TV ratings are an important measure of TV audience, reach, and frequency. Ads on higher-rated TV shows generate more money for the TV station.



Several federal agencies collect informa-tion on key economic indicators, such as new building construction, inflation rates, money supply, and consumer and producer price indexes. Most businesses rely on govern-ment data to predict economic conditions, and then they adjust their business activities accordingly.

Businesses use research on general eco-nomic conditions to help plan for long-range expansion. This research helps to determine whether to cut costs when unfavorable eco-nomic conditions, such as higher interest rates or raw materials costs, are predicted.

Media ResearchMedia research, also known as adver-

tising research, focuses on issues of media effectiveness, selection, frequency, and rat-ings. Businesses often conduct research to determine which media are most effective for getting an advertising message to a particular market.

Media research studies brand awareness, advertising recall, brand image, effectiveness of advertising copy, and audience size for a particular type of advertising.

Media Advertising Measures Important statistics for media measure-

ment include audience, frequency, reach, and ratings. Audience is the number of homes or people exposed to a particular advertising medium. Frequency is the number of times a viewer in the audience sees or hears an ad. Reach is the percentage of the target audi-ence that will see or hear an ad at least once, while ratings are the total number of audi-ence impressions delivered over a set period of time.

To obtain these important media adver-tising measures, businesses often request information from the print, broadcast, and electronic media of interest to them. In most cases, the information received would include a rate card listing the advertising costs, its cir-culation or viewership figures, deadline dates, and other requirements for submission of an advertisement. Other information might

A New Local Rating System

Nielsen Media Research, Inc. is replacing all of its paper-based viewer diaries with a sample of viewers that use people meters in local television markets.

Local People MeterPeople meters automatically track viewing

as people change channels. Since 1987, the company has used the method to determine national television ratings. Now, it is estab-lishing a similar system for local television ratings. While the old system provided ratings data only four times a year, the new local rat-ings will be available on a nightly basis. The new system will allow Nielsen to give demo-graphic data by age, race, and gender on a local television market.

Equal Measurement?The system is not without controversy.

Some politicians and the National Minority Business Council say the new system is flawed because it undercounts minority groups. However, Nielsen says that 21.6 percent of African Americans are being measured under the new rating system, compared to 19 percent with the old system.

Go to the Marketing Essentials OLC through glencoe.com to find an activity about technology and market research.

Why are local television ratings important?

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SECTION 28.2

CONCEPTSAsk students to recall the four types of marketing research and give examples of each type.Attitude and opinion research, market research, media research, and product research. Examples may include: political surveys (attitude/opinion); economic forecasting (market); Nielsen ratings or Internet tracking (media); new product test marketing or product usage surveys (product).

KEY TERMS Have students review key terms, their spellings, and defi nitions in small groups.

INDEPENDENT REVIEW

L1 Assign and review Chapter 28 activities in the Student Activity Workbook.

L2 Assign and review Chapter 28 activities in the Marketing Math Workbook.

L3 Assign and review Chapter 28 activities in the BusinessWeek Reader with Case Studies.

AFTER YOU READHave students complete the Section 28.2 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 28.2 practice test.

Online ActivityOnline Surveys

Ask students to fi nd an online survey site and take one or more surveys on that site. Have students note if they had to register and what kind of information they had to submit. Ask students how they think the survey company will use their information. Have students share their fi ndings in a one-page analysis.


concern the age, income, interests, hobbies, occupations, and attitudes of readers, sub-scribers, or viewers. Another way to measure advertising research on the various media is to subscribe to Standard Rate and Data Service (SRDS), which publishes rates and data for the advertising industry.

Researching Print Advertisements Marketing researchers can use different

techniques to get people’s reactions to an advertisement. To determine the ad’s effec-tiveness, readers are asked about the extent to which they noticed the ad, remembered it, and associated it with the advertised brand. The ad is also measured on its ability to change the consumer’s beliefs, attitudes, or intended behavior. Using consumer panels is another technique for measuring print adver-tising effectiveness.

Readership in print media is measured by surveys or estimated by circulation. The Audit Bureau of Circulations provides circulation data on more than 1,500 daily and weekly newspapers and 1,000 periodicals. Media-mark Research and Simmons Market Research Bureau provide audience data. They conduct recent reading studies to see if participants can recall a magazine logotype, have read the magazine, and can remember where they read it during in the past month.

Researching Broadcast Media Most broadcast ad testing research is done

on television commercials. Testing research can use quantitative or qualitative research techniques, such as personal interviews, the-ater tests, in-home testing, or focus groups, to get reaction to planned TV advertisements.

Nielsen Media Research, Inc. provides audi-ence measurement information for the televi-sion industry. Nielsen estimates the audience by measuring the viewing habits of 13,000 people in 5,000 homes. Nielsen’s measurement information is recorded by “people meters” on TV sets, VCRs, cable boxes, and satellitedishes that automatically monitor program viewing. Nielsen counts the number of view-ers in meter-equipped households to get the

number of households using TV, the share of the audience that is tuned to a particular sta-tion, and the rating, or percentage of viewers, for a particular television program at a par-ticular time. Broadcast and cable network pro-viders, program developers, distributors, and advertisers use this information to decide on which television programs to advertise.

The Arbitron Ratings Company assembles important data on radio advertising. Arbi-tron produces radio audience measurements and sells software that analyzes advertis-ing expenditure data. Continuous audiencemeasurement in 276 local markets serving 2,300 radio stations makes it the largest radio audience service in the world. Arbitron con-tacts more than two million consumers a year and collects more than one million diaries to compile its radio station rating reports. Dia-ries are records on which people report such viewer data as who is watching or listening to a station and what programs are tuned in.

Using the Internet The effectiveness of Internet advertising is

often measured with tracking studies. Track-ing studies can be either Web-centric or user-centric. The Web-centric method logs the total number of people who have visited a Web site and stores the results on the Internet provid-er’s network. The user-centric method involves metering software in a sample householdor business that tracks computer usage and Web sites that are visited. The information gained from user-centric tracking can be com-piled and analyzed to get an audience profile for a certain Web site.

Product ResearchProduct research centers on evaluat-

ing product design, package design, product usage, and consumer acceptance of new and existing products. Many new products and their packages are designed, tested, changed, and introduced each year. Product research is also conducted to collect information about competitive products. Concept testing is often used in the early stages of product

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SECTION 28.2

CULMINATING ACTIVITY

• Divide students into groups of three or four and have each group choose a topic pertaining to their school about which they will conduct an opinion poll (such as extracurricular activities, academics, school lunches, parking, housing, etc.). Have students make up poll questions that ask about opinions. Each group will then poll a random sample of students and combine their answers. Have groups present their results to the class and discuss how their results can be generalized to the entire student population.

• Lead a discussion comparing and contrasting Web-centric and user-centric tracking. Divide students into small groups of two or three and have them write down examples of when each type of study would be appropriate. Examples may include: comparing hits on a company’s Web site versus hits on their competitors’ sites (Web-centric); studying which Web sites are popular among a demographic (user-centric).

NCLB

NCLB Activity correlated to Mathematics and Social Studies Standards

Key Terms and Concepts

1. Quantitative and qualitative research.

2. Four major areas of marketing research are attitude research, market research, media research, and product research.

3. Any two of the following: increased empha-sis on customer satisfaction; emphasis on total quality management; more integration

of marketing research data with other source; total quality management (TQM) programs. Global trends, technological advances, and concern for privacy are additional answers.

Academic Skills 4. Sales forecast � $552,187.50

Step 1: 100% � 25% � 75% Step 2: 1,550 � .75 � 1,162.5 householdsStep 3: 1,162.5 � $475 � $552,187.50

5. Accept all reports that include required ele-ments and demonstrate an understanding of marketing research.

Find answers at the Marketing Essentials OLC through glencoe.com.

28.2 AFTER YOU READ

Problem Solving: Multi-Step Problems When solving prob-lems that require multiple steps, list the information given and the information for which you will be solving. This will clarify the relationship between the two.1. To solve this problem, determine the

percent of households you will be servicing by subtracting 25 percent from the total market of 100 percent.

2. Multiply the decimal equivalent of this percent by the total number of households to determine the number of households in the target market.

3. Multiply the number of households in the target market by the amount they spend on fitness equipment each year to determine the annual sales forecast.



development (see Chapter 30). Concept test-ing, product positioning, and pricing studies are frequently done with focus groups or in-depth interviews to get initial consumer reac-tion to a product or service idea.

Trends in Marketing ResearchThe nature and scope of marketing research

is rapidly changing to keep pace with a chang-ing marketplace. The trend toward a global marketplace means increased international competition for U.S. companies, which must improve or change products frequently to hold on to their customers. In this environ-ment, product quality and customer satisfac-tion are the keys to business success. Research

that measures these qualities has become the fastest growing form of marketing research.

Another important trend is the use of both internal and external information in man-aging a business. Total quality management (TQM) programs place a premium on gather-ing and using database research in improving business operations.

Limitations of Marketing ResearchThe amount of information that can be

gathered is limited by the amount of money and time a company can afford to spend on the equipment and by the number of person-nel needed to conduct the research.

Marketing research information also has its limitations. Customers in a test marketsituation may say they want a particular prod-uct, but there is no guarantee they will actually buy the product when it is sold.

Key Terms and Concepts 1. What are the two types of marketing research? 2. What are the four major areas within market-

ing research? 3. List at least two trends facing marketing

researchers today.

28.2 AFTER YOU READ

Check your answers at the Marketing Essentials OLC through glencoe.com.

Academic SkillsMath

4. Assume that you are planning to purchase an exercise and fitness center targeted to women aged 21 to 49 in your city. By doing market research using results from the Consumer Expenditure Surveys and the U.S. Census Bureau, you learn that 1,550 households in your target market spend $475 a year on fitness and recreation. There is one other fitness center that serves 25 percent of your target market. What would be your annual sales forecast for the center?

Social Studies/Geography

5. Investigate a country of your choice and develop a two-page paper on its location, demographics, and culture. Indicate recommendations for conducting marketing research in the country.

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The consumer information provided by market surveys lets businesses know what current customers and potential customers want and need.

Lifelong Learning

CAREER INFORMATION Have students go to the Marketing Essentials OLC through glencoe.com and fi nd Chapter 28 Careers page and click on the link for the American Marketing Association’s Careers Strategies and Tips. Ask students to select one article, read it, and summarize it in three short paragraphs.

MARKETING RESEARCHThere are many ways to study marketing research. Most community colleges or extension programs will offer classes and seminars on marketing research topics, including questionnaire design, focus group techniques, statistics courses, and methods of analysis for survey information. These courses are often taught by professional market researchers from local businesses.

PrimarySourceAsk students to go to the Marketing Essentials OLC through glencoe.com and fi nd Chapter 28 Resources. Ask them to click on the link for the American Market-ing Association’s marketing dictionary and read the defi nitions of any terms related to marketing research they fi nd.

Test-Taking StrategiesHave students create a visual study aid by dividing a piece of paper into four sections and writing one of four types of market research in each section (attitude research, market research, media research, and product research). In each section, have students write key terms and/or draw pictures that relate to each type of research.


MICHELLE DAYSENIOR RESEARCH ANALYSTTHE STEVENSON COMPANY

What do you do at work?

Clients and I work together to develop a survey tool to question current or potential customers. We implement this survey and analyze the results to gain a better understanding of customers’ opinions of the question at hand. This information is compiled into

a format that is presented to clients, who are then able to meet the needs of their customers and make better business decisions based on the results.

What skills are most important to you?

Computer skills and communication skills are critical to this job. Other important skills are analyzing, organizing, and time management. Communication is also very important, both effective oral communication with the client to under-stand their questions and objectives, and written com-munication to draft the surveys and present the results to the client in a clear and logical format.

What is your key to success?

Both continuing to learn and receiving constructive criticism have helped me succeed in my job. I have continued to learn by completing an MBA, attending applicable training seminars, and asking questions of those who are more experienced than I am. I welcome constructive criticism from these more experienced professionals, who can help me improve upon the skills I have.

Courses marketing, communication, research, general business

Degrees BA, masters degree

A successful career path can begin with an assistant position in a marketing department, and continue with responsibilities as market research data analyst.

Growth to increase faster than average for the next ten years

Source: Occupational Outlook Handbook

Computer skills, communicat-ion skills, time management, an analytical mind

Go to the Marketing Essentials OLC through glencoe.com to fi nd a career-related activity.

How are market surveys useful to a business?

604






Ask volunteers to read the summaries aloud and give the classroom one real-life example for each concept.

See the Glossary at the back of this book for defi nitions of Key Terms. Academic Vocabu-lary defi nitions are on the book’s OLC.

1. A sample answer might read: Key Terms Marketing research involves the process and methods used to gather information, analyze it and report fi ndings related to marketing goods and services.Academic Vocabulary To associate is to connect one thing with another in the mind.

2. Marketing research involves the process and methods used to gather information, analyze it, and report fi ndings related to marketing goods and services.

3. to generate, store, analyze, and distribute marketing information

4. A marketing database is a collection of information on a specifi c topic, for example, information about the preferences, opinions, habits, trends, and plans of potential customers.

5. Quantitative research deals with evaluations, opinions, attitudes,and behaviors about customers. Qualitative research focuses on smaller numbers of people and tries to discover the basic reasons behind buying decisions or actions.

6. It is designed to obtain information on how people feel about products, companies, or ideas.

7. Market intelligence is concerned with the size and location of a market, the competition, and the segmentation within the market for a particular product or service.

8. Media research helps determine the effectiveness of the various media to advertise a good or service.

9. New product development: concept testing, pricing studies, brand research, choice study or blind test, test marketing. Product usage: industrial, customer, or employee satisfaction studies.

10. Marketing research trends include the global marketplace, the use of internal and external information in managing a business, and total qual-ity management (TQM). Limitations include money, time, and the person-nel needed to conduct the research.

11. Economic forecasting is an attempt to predict the future economic condi-tions of a city, a region, a country. Businesses use research on general economic conditions to help plan for long-range expansion and to determine whether to cut costs when unfavorable conditions are predicted.

CHAPTER 28 REVIEW


C H A P T E R 28 R E V I E W

SECTION 28.1• Marketing research involves the marketing function that links the consumer, customer,

and public to the marketer through information. Marketing information is used to identify

marketing opportunities, solve marketing problems, implement marketing plans, and

monitor marketing performance. A marketing information system is a set of procedures

and methods that regularly generates, stores, analyzes, and distributes marketing

information for use in making marketing decisions.

SECTION 28.2• Marketing research is usually divided into two broad types of research: quantitative

and qualitative. Marketing research involves the process and methods used to gather

information, analyze it, and report fi ndings related to marketing goods and services.

The nature and scope of marketing research are rapidly changing to keep pace with a

changing marketplace. Marketing research information provides much information but

does have limitations.

Key Terms• marketing research (p. 593)• marketing information system

(p. 594)• database marketing (p. 594)• database (p. 595)• quantitative research (p. 596)

• qualitative research (p. 597)• attitude research (p. 597)• market intelligence (p. 597)• media research (p. 601)• product research (p. 602)

Academic Vocabulary• obtain (p. 593)• overall (p. 594)• anticipate (p. 599)• associate (p. 602)

1. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence.

2. What is marketing research? (28.1)

3. What is the primary function of a marketing

information system? (28.1)

4. What is a marketing database? (28.1)

5. How does quantitative research differ from

qualitative research? (28.2)

6. What is attitude research? (28.2)

7. What is market intelligence? (28.2

8. What is the purpose of media research?

(28.2)

9. Give an example of one research technique

used for new product development and one

for product usage research. (28.2)

10. Name one trend and one limitation of

marketing research. (28.2)

11. Explain how economic forecasting relates to

market research. (28.2)

605

12. Workplace Skills Student answers should demonstrate

an understanding of ethical busi-ness practices. Making changes to incomplete or missing responses will affect the validity of the survey.

13. Technology Applications Students may choose to focus on

one or more companies in the phar-maceuticals market.

Formative AssessmentFormative assessment is an essential component of classroom work. This type of assessment provides information that is then used as feedback to modify teaching and meet student needs.

L1 Have students write a one-page summary of the chapter using all key terms.

L2 Provide scenarios in which each of the four types of marketing research is used. Have students identify the type of marketing research in each scenario.L3 Have students create fl ashcards with a marketing research technique on one side and an example of that technique on the other. Flashcards should include the four types of marketing research and the various techniques associated with each type.

If the results of the formative assessment seem low, consider the following activity:

Read section subheads aloud and have volunteers give a summary of the section.

CHAPTER 28 REVIEW

14. Math Practice Total cost: $16,140; 1500 names �

$.30 � $450 (mailing list);1500 � $.10 � $150 (printing); 1500 � $.36 � $540 (mailing costs); $450 � $150 � $540 � $15,000 (writing and analysis) � $16,140

15. English Language Arts

Accept all reasonable reports that discuss the differences in prices for the same product. Examples could include comparing the price of a digital camera model in electron-ics stores, department stores, and online stores, including the online store of the camera’s manufacturer.

16. Press Review Reports should demonstrate an

understanding of a research activity.

17. Identifying Market

Factors Reports will vary depending on

student’s selected city and state. Accept all reports containing required elements.


12. Workplace Skills Human Relations You have a part-time job

in the marketing research department of a

large corporation. You and three coworkers

are gathering information through mailed

surveys. Your supervisor wants each of you

to complete at least 30 surveys a day, which

can be diffi cult. One coworker makes changes

to incomplete or missing responses on some

surveys that have been returned. What should

you do?

13. Technology ApplicationsAnalyzing International Trends Use

presentation software to present an

oral report on the international trends

affecting marketing research efforts in the

pharmaceuticals market.

14. Math Practice The Cost of Direct Mail Research Assume

that your company plans to send a marketing

questionnaire to 30 percent of the names on

a mailing list of 5,000 people. The mailing

list was purchased from another company

for $0.30 per name. Each questionnaire

costs $0.10 to print; mailing costs are $0.36

(including the envelope and return envelope)

each; and the cost of writing the questionnaire,

analyzing the information, and preparing the

report is $15,000. What is the total cost?

Problem Solving: Multi-

Step Problems When solving problems

that require multiple steps, make a list of

the information given in the problem and

information for which you are solving. This will

clarify the relationship between the two.


15. English Language Arts Compare and Contrast Skim the chapter

identifying two different types of marketing

research. Write a paragraph describing each

type. Explain their differences and similarities

and give examples of types of companies

best suited for each type of research.

16. Press Review

Review current business publications such

as the Wall Street Journal, Business Week, Forbes, Money, Advertising Age, Brandweek, and Sales & Marketing Management. Find

one current research activity and write a

one-page report on the nature and scope

of the research activity.

17. Identifying Market Factors Use the Internet to fi nd the U.S. Census

Bureau Web site and research your city

or state’s population, income, education,

trading area, and purchasing power. Consult

city or state offi ces for additional market

information. For example, you may contact

your area’s chamber of commerce.

Activity Using presentation software, create

an oral report highlighting these factors.


606

The students should be evaluated on the performance indicators noted in the role play. For another DECA role play, go to the Competitive Events Workbook or the Student Activity Workbook, or go to the Marketing Essentials OLC through glencoe.com.


DECA Advisors CornerAcquaint your chapter members with National DECA. Pair up members of your chapter and give them a list of questions that can be answered by viewing DECA’s Web site (www.deca.org). Have students describe DECA’s home page, for instance, identify the national offi cers.

18. Researching Market Researchers

Profi les will vary depending on com-pany chosen. Accept all reports con-taining required elements: company history, number of employees, and the marketing research it conducts.

MINI-QUIZRead these sentences to the students and have them volunteer the missing word(s).

1. is the marketing function that links the consumer, customer, and public to the marketer through information. (Marketing research)

2. A set of procedures and methods that regularly generates, stores, analyzes, and distributes marketing information is called a(n) . (marketing information system)

3. A collection (or fi le) of related infor-mation on a specifi c topic is known as a(n) . (database)

For an expanded chapter quiz, go to Chapter 28 in the TeacherWorks™ Plus DVD and to Chapter 28 in the ExamView® Assessment Suite.

CHAPTER 28 REVIEW

STANDARDIZED TEST PRACTICE

ANSWERS

1. A 2. F

TEST-TAKING TIPSWhen your students have a standardized test coming up, these last-minute tips and strate-gies will help students relax and do their best.

Test Format Help your students become familiar with the format of the specifi c test they are going to take by practicing with test items that imitate the actual test items.

Test Timing Have your students take one or more timed practice tests so that they become comfortable with the test format.


For more information and DECA Prep practice, go to the Marketing Essentials

OLC through glencoe.com.

18. Researching Market Researchers

Visit the Web site for the American Marketing

Association to fi nd Marketing Research

Services. Investigate one of the listed

companies.

Develop a company profi le in 100 to 150

words, describing the company’s history,

number of employees, and the marketing

research that it conducts.

To control the stress of test-taking, view the test as an opportunity to show how much you have studied and to receive a reward for the studying you have done.

1. Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.

What is the total amount spent on market research if $537 is spent on each of 2,400 households?

A $1,288,800 B $1,500,300 C $2,280,800 D $2,550,344

2. Directions Choose either True or False as the answer. Write the letter for the answer on a separate piece of paper.

Qualitative market research relies heavily on surveys.

T

F

Role PlayMarketing Research StudentSituation Assume the role of a student

preparing to work on a marketing research

project in a competition for your state DECA

conference. This project is a class assign-

ment; all students must conduct a marketing

research project with a local business. You

must prepare a presentation for the partici-

pating local business owners that explains the

project and its potential benefi ts to them.

Activity You are to outline and explain the

reasons businesses use marketing research.

Begin by explaining marketing research and

its potential benefi ts to local businesses. You

will review your presentation outline with your

DECA advisor (judge).

Evaluation You will be evaluated on how well

you meet the following performance indicators:

• Describe the need for marketing research.

• Identify information monitored for marketing

decision making.

• Explain the

nature of mar-

keting research

in a marketing

information

management

system.

• Make oral

presentations. Test-Taking Tip

STANDARDIZED TEST PRACTICE


607





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