The Marketing Research Process

1. Chapter 29Conducting Market Research The Marketing Research Process • Section 29.1 The Marketing Research Process • Section 29.2 The Marketing Survey

2. Key Terms problem definition primary data secondary data survey method sample observation method point-of-sale research experimental method data analysis validity reliability open-ended questions forced-choice questions The Marketing Research Process Objectives Explain the steps in designing and conducting marketing research Compare primary and secondary data Identify the elements in a marketing research report Design a marketing research survey Administer a marketing research survey Marketing Essentials Chapter 29, Section 29.1

3. The Marketing Research Process 5 Apply the results 4 Recommendations The five steps that a business follows when conducting marketing research are: 3 Analyze the data 2 Obtain the data 1 Define the problem Marketing Essentials Chapter 29, Section 29.1

4. problem definition The process by which a business clearly identifies a problem and what is needed to solve it. Step 1: Defining the Problem Problem definition occurs when a business clearly identifies a problem and what is needed to solve it. Because money and time are limited, businesses must identify which problems and issues are the most important to address at a given time. Marketing Essentials Chapter 29, Section 29.1

5. primary data Data obtained for the first time and used specifically for the particular problem or issue under study. secondary data Data that has already been collected for some purpose other than the current study. Step 2: Obtaining Data The word data means facts. There are two types of data used in marketing research: Primary dataare facts obtained for the first time and used specifically for the particular problem or issue under study. Secondary datahave already been collected for some purpose other than the current study. They are less expensive to collect than primary data. There are many ways secondary data can be obtained from both internal sources (within the company) and external sources. Marketing Essentials Chapter 29, Section 29.1

6. How Secondary Data Are Obtained Secondary data are most often collected in the following ways: The Internet U.S. and state government sources Specialized research companies Business publications and trade organizations or journals Marketing Essentials Chapter 29, Section 29.1

7. How Secondary Data Are Obtained The greatest advantage of secondary data is that they can be obtained easily because of how widely distributed they are. There are two major disadvantages to secondary data: The existing data may not be suitable for the problem under study. The data may sometimes be outdated and/or inaccurate. Marketing Essentials Chapter 29, Section 29.1

8. survey method A research technique in which information is gathered from people through the use of surveys or questionnaires. sample A part of the target population that is assumed to represent the entire population. How Primary Data Are Obtained Primary research data can be collected using three methods: survey observation experimental The survey methodis a research technique in which information is gathered from people through the use of surveys or questionnaires. It is the most frequently used method of collecting primary data. A sampleis a part of the target population that represents it accurately. Marketing Essentials Chapter 29, Section 29.1

9. How Primary Data Are Obtained Survey research can be conducted: in person by phone by mail using the Internet When the marketer has decided how to conduct the survey, he or she then writes the questions according to the specific needs of that survey type. Personal interviews can be done in focus groups, door-to-door, or randomly in central locations. Marketing Essentials Chapter 29, Section 29.1

10. How Primary Data Are Obtained A focus group interview involves generally six to ten people who are brought together to evaluate advertising, a product, design, or marketing strategy under a skilled moderator. Marketing Essentials Chapter 29, Section 29.1

11. How Primary Data Are Obtained A major advantage of personal interviews is that they get a much better and easier response than mail, phone, or Internet surveys. Telephone interviews are quick, efficient, and relatively inexpensive. Marketing Essentials Chapter 29, Section 29.1

12. How Primary Data Are Obtained While mailed surveys have low response rates, offering some type of incentive to complete them can help to convince more people to respond. Marketing Essentials Chapter 29, Section 29.1

13. How Primary Data Are Obtained Internet-based surveys are quick and eliminate the need for data entry. A drawback is that Internet surveys are limited to individuals who have access to the Web. Also, many people dislike receiving uninvited e-mail surveys. Marketing Essentials Chapter 29, Section 29.1

14. observation method A research technique in which the actions of people are watched and recorded either by cameras or by observers. How Primary Data Are Obtained The observation methodis a research technique in which the actions of people are watched and recorded either by cameras or by observers. A mystery shopper is a researcher who poses as a customer. The mystery shopper observes the interactions between customers and salespeople to evaluate the effectiveness of sales staff. Marketing Essentials Chapter 29, Section 29.1

15. How Primary Data Are Obtained One disadvantage of the observation method is that it cannot measure attitudes or motivation. Two advantages of the observation method are that it is faster than personal interviews, and people are unaware that they are being observed, so they act as they normally would. Marketing Essentials Chapter 29, Section 29.1

16. experimental method A research technique in which a researcher observes the results of changing one or more marketing variables while keeping certain other variables constant under controlled conditions. How Primary Data Are Obtained The experimental methodis a technique in which a researcher observes the results of changing one or more marketing variables while keeping others constant under controlled conditions. It is not used frequently because of the cost of setting up the research conditions and the inaccuracy of the responses. Marketing Essentials Chapter 29, Section 29.1

17. data analysis The process of compiling, analyzing, and interpreting the results of primary and secondary data collection. Step 3: Analyzing the Data Data analysis is the process of compiling, analyzing, and interpreting the results of primary and secondary data collection. Marketing Essentials Chapter 29, Section 29.1

18. Step 4: Recommending Solutions to the Problem Solution recommendations must be clear and well-supported by the research data. A typical research report includes the following: Title page Acknowledgments of people who assisted Table of contents List of tables, figures, charts, and graphs Marketing Essentials Chapter 29, Section 29.1

19. Step 5: Applying the Results Managers use the research report to make decisions about marketing strategies to address the researched problem or issue. After the research is completed and changes are made, a business should carefully monitor the results to know if the actions are successful. Marketing Essentials Chapter 29, Section 29.1

20. validity When questions asked on a questionnaire measure what was intended to be asked. reliability When a research technique produces nearly identical results in repeated trials. Constructing the Questionnaire A questionnaire has validitywhen the questions asked measure what was intended to be measured. Reliabilityexists when a research technique produces nearly identical results in repeated trials. It requires that the questions ask for the same type of information from all respondents. To be valid and reliable, a questionnaire must be properly: Written Formatted Administered Marketing Essentials Chapter 29, Section 29.2

21. open-ended questions Questions that require respondents to construct their own answers. forced-choice questionsQuestions that ask respondents to choose answers from possibilities given on a questionnaire. Writing Questions Open-ended questionsask respondents to construct their own response to a question. Forced-choice questions (structured)ask respondents to choose answers from possibilities on a questionnaire. Yes/No questions should be used only when asking for a response on one issue, for example, “Was our facility well maintained?” Having a question that asks about more than one issue decreases validity and reliability. Marketing Essentials Chapter 29, Section 29.2

22. The Marketing Survey Multiple Choice Questions Multiple choice questions give the respondent several choices. When constructing multiple choice questions, it is important that the options are made comprehensive enough to include every possible response. Examples might include list, category or quantity questions. Level of Agreement Questions When assessing attitudes or opinions, it is often a good idea to write statements that reflect those attitudes or opinions. Then you can ask respondents for their level of agreement with the statements. Examples might include ranking or scale/grid questions.

23. The Marketing Survey Multiple Choice Questions List Which of the following did you eat at your last meal? Check all that apply: • Cooked vegetables • Salad • Boiled or mashed potatoes • Roast potatoes • Chips • Fresh fruit

24. Less than 18 18 - 24 25 34 35 - 44 45- above The Marketing Survey Multiple Choice Questions Category Please indicate your age? Note: Questions of age are considered by some as embarrassing and best asked as a category rather than the direct question “What is your age?”

25. The Marketing Survey Multiple Choice Questions Quantity: How many times did you eat chips last week? Please circle one. Not at All Once Twice 3-4 times Ranking: Place the following in the order of importance, number 1 being the most important ____ A well stocked library ____ Well equipped laboratories ____ Up to date computing facilities Level of Agreement Questions

26. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree The laboratory classes in this module were well organized There were sufficient tutorials/seminars in this module The lectures in this module were clearly presented The Marketing Survey Level of Agreement Questions Scale/Grid:

27. The Marketing Survey Yes/No Questions • Two-choice questions give the respondent only two options, usually yes or no. Yes/No questions should be used only when asking for a response on one issue. Yes/No questions are often used as filter questions. Filter questions help to guide respondents to answer only those questions that apply. • Do you frequently attend sporting events? • Yes No • If yes, please answer questions a - e below.

28. Basic Guidelines for Writing Questions Each question should be clearly written and as brief as possible. Use consistent ranking scales for all similar questions. Avoid leading questions and introducing biases. Do not use questions that make your respondent guess. Marketing Essentials Chapter 29, Section 29.2

29. Formatting • use dark ink on light paper • use a font that is easy to read • be brief • have section headings or numbers on all individual survey sections • have numbers for each question The survey should: Marketing Essentials Chapter 29, Section 29.2

30. Formatting Section headings Question numbers

31. Formatting General demographic questions about gender, age, ethnicity, and education are typically grouped together at the end of the survey. That is because respondents are more likely to answer personal questions after completing the other questions. Marketing Essentials Chapter 29, Section 29.2

32. This chapter has helped prepare you to meet the following DECA performance indicators: Identify information monitored for marketing decision making Describe sources of secondary data Search the Internet for marketing information Monitor internal records for marketing information Collect marketing information from others (e.g., customers, staff, vendors)

33. CHAPTER 29 REVIEW Click to Launch Review