1 Learning Objectives Chapter 6: Marketing Research Define marketing research.Describe the reasons for doing marketing research (the five Cs) and explain why marketing research is sometimes not done.Explain how research is used in each step of the hospitality and travel marketing system.List and describe the five key requirements for good research information.List in order and explain the six steps in the marketing research process.
2 Learning Objectives Chapter 6: Marketing Research Describe the internal and external sources of secondary research.Explain the differences between primary and secondary research and list their respective advantages and disadvantages.List and describe the primary research methods and differentiate between quantitative and qualitative research.Explain the advantages and disadvantages of personal interviews, mail, telephone, in-house, self-administered, and online surveys.
3 Learning Objectives Chapter 6: Marketing Research Explain the focus group approach and how it can be used in making effective marketing decisions.
4 Marketing ResearchThe function that links the consumer, customer, and public to the marketer through information. The information is used to:1. Identify and define marketing opportunities and problems.2. Generate, refine, and evaluate marketing actions.3. Monitor marketing performance.4. Improve understanding of marketing as a process.
5 Reasons for Doing Marketing Research: The Five Cs Customers: To determine how well customer needs are being met, investigate new target markets, and assess and test new services and facilities.Competition: To identify primary competitors and pinpoint their strengths and weaknesses.Confidence: To reduce the perceived risk in making marketing decisions.
6 Reasons for Doing Marketing Research: The Five Cs Credibility: To increase the believability of promotional messages among customers.Change: To keep updated with changes in travelers’ needs and expectations.
7 Reasons for Not Doing Marketing Research Timing: It will take to much time.Cost: The cost of the research is too high.Reliability: There is no reliable research method available for doing the research.Competitive intelligence: There is a fear that competitors will learn about the organization’s intentions.Management decision: Management prefers to use own judgment.
8 Five Key Requirements of Marketing Research Information Utility: Can we use it? Does it apply to us?Timeliness: Will it be available in time?Cost-effectiveness: Do the benefits outweigh the costs?Accuracy: Is it accurate?Reliability: Is it reliable?
9 Marketing Research Programs and Projects A plan or program to investigate several marketing opportunities or problems (several projects).Marketing Research Project:An individual element of a marketing research program in which a specific marketing opportunity or problem is investigated.
10 Marketing Research Process Formulate Problem:Define research problemIdentify research objectives and related questionsSelect Research Design And Data Collection Method:Collect and analyze secondary informationSelect research design and primary data collection method
11 Marketing Research Process Select Sample And Collect Data:Decide on sample design and collect primary dataAnalyze And Interpret DataAnalyze and interpret primary dataPrepare Research Report:Draw conclusions and make recommendationsCommunication of the Research ResultsPresent results to all interested parties
12 Sources of Secondary Research Information Internal DataExternal DataRegistrations or reservationsGovernment agenciesSales or customer mixWWW. Magazines, journals, newspapers, radio, TVDatabasesAssociationsInquiriesResearch companies and consultantsUnfulfilled reservations/turn-awaysUniversities and Colleges
13 Secondary and Primary Research Published information available from other sources, either internal or externalPrimary:Data collected for the first time, by a method other than secondary research, to answer specific questions.
14 Advantages and Disadvantages of Secondary Research InexpensiveEasily accessibleImmediately availableDisadvantagesFrequently outdatedPotentially unreliableMay not be applicable
15 Advantages and Disadvantages of Primary Research Applicable and usableAccurate and reliableUp-to-dateDisadvantagesExpensiveNot immediately availableNot as readily accessible
17 Primary Research Methods Experimental (e.g., test marketing)Observational (human and mechanical)Survey (mail, telephone, personal interview, in-house self-administered, online)Simulation (mathematical and computer modeling)Focus groups (groups of 8 to 12 people with moderator trying to reach a consensus of opinions)
18 Personal Interviews Advantages High response rate Great flexibility (ability to adapt/explain questions)Can show or demonstrate itemsFuller explanations can be givenVery timely data
19 Personal Interviews Disadvantages Relatively expensive Possibility of interviewer biasPersonal nature of questions (e.g., age or income)Respondents not relaxed (put on the spot)Time may not be convenient for respondents
20 Mail Surveys Advantages Relatively inexpensive No interviewer bias Consistent questions (for all respondents)Large number of respondents can be includedAnonymityRespondents can choose the most convenient time to answer
21 Mail Surveys Disadvantages Low response rates (relative to other survey types)Junk mail syndromeImpersonal nature
22 Telephone Surveys Advantages More flexibility compared to mail surveys Quick and inexpensiveHigh response ratesDisadvantagesMore obtrusive than mailGreater difficulties in rapport buildingLong-distance calls are expensive
23 In-House, Self-Administered Surveys AdvantagesCompleted by customers within the premises of a hospitality and travel organizationConvenientDisadvantagesGenerate low response rates
24 Online Surveys Advantages Relative speed and flexibility Large and growing audienceDisadvantagesTechnical skills and time required to develop questionnaires