MARKETING RESEARCH: FROM INFORMATION TO ACTION

1. CHAPTER MARKETING RESEARCH: FROM INFORMATION TO ACTION

2. Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision.

3. Reasons to use Marketing Research • Improve the quality of decision making • Trace problems • Focus on keeping existing customers • Understand the ever-changing marketplace

4. Marketing Research • Why Good Marketing Research is Difficult • Dishonesty • Intention mismatched to behavior • Newness has no comparative basis

5. The Marketing Research Process Define Problem Plan Design/ Primary Data Specify Sampling Procedure Collect Data Analyze Data Prepare/ Present Report Follow Up

6. Secondary Data Data previously collected for any purpose other than the one at hand. ALWAYS USE THIS FIRST

7. Sources of Secondary Data Internal Corporate Information Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media

8. Advantages of Secondary Data • Saves time and money if on target • Aids in determining direction for primary data collection • Pinpoints the kinds of people to approach • Serves as a basis of comparison for other data

9. Disadvantages of Secondary Data • May not answer the exact question of your research problem • Quality-Don’t know who gathered it and how the data was gotten • Accuracy of data may pose a problem-Don’t know age of the info and how biased the survey was

10. Primary Data • Information collected for the first time. • ALWAYS USE THIS LAST

11. Advantages of Primary Data • Answers a specific research question • Data are current • Source of data is known • Secrecy can be maintained

12. Disadvantages of Primary Data • Expensive • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews

13. Types of Primary Data Gathering • 1. Survey Research • 2. Observational Research

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

15. Forms of Survey Research Internet surveys Mail Surveys Mall Intercept Interviews “Cool Hunters” Telephone Interviews Focus Groups- 7-10 people who participate in a group discussion led by a moderator

16. COMPARISON OF SURVEY TECHNIQUES Comparison of three kinds of surveys

17. Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. Closed-Ended Question An interview question that asks the respondent to make a selection from a limited list of responses. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design

18. TYPICAL PROBLEMS IN WORDING QUESTIONS Typical problems in wording questions

19. Observation Research A research method that does not involve personal interaction between interviewer and subject.

20. People Watching People Mystery Shoppers One-Way Mirrors Types ofObservationResearch People Watching an Activity Audits Machines WatchingPeople Traffic Counters Passive People Meter Observation Research

21. Advantages Eliminates bias from the interviewing process Does not relay on the respondent's willingness to provide data Disadvantages Data collection costs are high Subjective, unsolicited info is limited No insight on the problem that you didn’t think to consider Observational Research

22. TYPES OF DATA FIGURE 8-2 Types of marketing information

23. Compiling and Delivering the Report • Data Mining- • Use of technology tosearch through data • records looking for useful information. • finds statistical links that highlight opportunities +

24. When Should Marketing Research be Conducted? • When value of research information exceeds the cost of generating the information • When time in which to decide is short-use your instincts here

25. Concept Check 1. What is the difference between secondary and primary data? • A: Secondary data are facts and figures that have already been recorded before the project at hand, whereas primary data are facts and figures that are newly collected for the project.

26. Concept Check 2. What are some advantages and disadvantages of secondary data? • A: Advantages include time savings, low cost, and a greater level of detail. • Disadvantages are that the data may be out of date, the definitions or categories may not be right, and not being specific enough for the project.

27. Concept Check 1. What is the difference between observational and questionnaire data? • A: Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. Questionnaire data are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

28. Concept Check 2. Which survey provides the greatest flexibility for asking probing questions: mail, telephone, or personal interview? • A: personal interview survey

29. Concept Check 1. What is data mining? • A: Data mining is the extraction of hidden predictive information from large databases to find statistical links that suggest marketing actions.