1. Gathering, Analyzing, and Using Information
Marketing Research:
Gathering, Analyzing, and Using Information

2. Chapter Objectives
Explain the role of the marketing information system and the marketing decision support system in marketing decision making
List and explain the steps in the marketing research process
Appreciate the differences among exploratory, descriptive, and casual research
Describe the different types of data-collection methods and types of consumer samples that research use
Understand the impact of the growing use of online research

3. Real People, Real Choices
Meet Cindy Turgate at Plan-it Marketing, a marketing research firm
Priceline needed help in planning its business. Would its name-your-own-price strategy fly?
The decision: What marketing research strategy would maximize results within a reasonable budget?
Option 1: conduct exploratory qualitative study
Option 2: conduct quantitative survey of 700+ leisure and business travelers
Option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study

4. Knowledge is Power
Accurate, up to date, relevant information is the fuel that runs the marketing engine

5. The Marketing Information System
Determines what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users
Figure 4.2

6. Internal Company Data
Information from within the company to produce reports on the results of sales and marketing activities
Intranet: internal corporate communications network that links company departments, employees, and databases.

7. Marketing Intelligence
Monitoring everyday sources and using “mystery shoppers”
Futurists specialize in predicting consumer trends
HSX.COM

8. Marketing Research
Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness
Syndicated research
Custom research
GfK ARBOR LLC
MEDIAMARK RESEARCH

9. Acquired Databases From other companies Government databases
Misuse of databases can be problematic and has led to do-not-call lists and antispam laws

10. Marketing Decision Support Systems
MDSS: data plus analysis and interactive software allow marketing managers to access MIS data and conduct analyses
Figure 4.3

11. Searching for Gold: Data Mining
Analysts sift through data to identify unique patterns of behavior among different customer groups

12. What Marketers Can Do with Data Mining
Customer acquisition
Customer retention and loyalty
Customer abandonment
Market basket analysis

13. Steps in the Marketing Research Process
Step 1: Define the research problem
Specifying research objectives
Identifying consumer population of interest
Placing the problem in an environmental context
Step 2: Determine the Research Design
Specifying exactly what information marketers will collect and what type of study they will do

14. Figure 4.5: Marketing Research Design

15. Secondary Versus Primary Research
Secondary data have been collected for some purposes other than the problem at hand
Primary data is information collected directly from respondents to specifically address the question at hand

16. Secondary Research Web Sites
DIALOG.COM
MARKETINGTOOLS.COM
LEXIS-NEXIS
CENSUS.GOV

17. Exploratory (Qualitative) Research
Research techniques that generate insights for future, more rigorous studies
Researchers conduct one-on-one discussions with consumers
Focus group: a product-oriented discussion among a small group of consumers
LOOK-LOOK.COM

18. Exploratory (Qualitative) Research (cont’d)
Projective techniques: participants respond to some object
Case study: comprehensive examination of a particular firm
Ethnography: Marketers visit homes or participate in consumer activities to learn how products are used
Wild Planet
Video

19. Group Activity
Break into small groups and pick a product category of interest
Assume a company wants to create a new or modified product to compete for market share in that category
Create a couple of questions for a focus group moderator to guide discussion
Each group sits with another group and takes turns conducting an informal focus group

20. Descriptive (Quantitative) Research
Probes systematically into the problem
Bases conclusions on large numbers of observations
Results typically expressed in quantitative terms (averages, percentages, other stats)
Cross-sectional design
Longitudinal design

21. Causal Research
Cause-and-effect relationships: a change in one thing causes a change in something else
Independent (cause) vs. dependent (change in outcome) variables
Experiments: test predicted relationships among variables in a controlled environment

22. Steps in the Marketing Research Process (cont’d)
Step 3: Choose the Method for Collecting Primary Data
Survey Methods: interview respondents
Questionnaires: loosely, moderately, or completely structured

23. Questionnaires Mail questionnaires Telephone interviews
Face-to-face interviews
Online questionnaires

24. Discussion
Are you willing to divulge personal information to marketing researchers?
How much are you willing to tell?
Where would you draw the line?

25. Group Activity
In small groups, choose a topic below and analyze the advantages and disadvantages of mail questionnaires, telephone interviews, face-to-face interviews, and online questionnaires:
The amount of sports nutrition drinks consumed in a city
Why a local bank has been losing customers
What local doctors would like to see changed in hospitals
Consumers’ attitudes toward several sports celebrities

26. Observational Methods
Observation: data collection where the researcher records consumers’ behaviors, often without their knowledge
Personal observation
Mechanical observation
Unobtrusive measures

27. Discussion
Do you think marketers should have to right to go through a competitor’s garbage? Is it ethical?

28. Data Quality: Garbage In, Garbage Out
How much faith should marketing managers place in research?
Validity
Reliability
Representativeness

29. Discussion
Do you think marketers should be allowed to conduct market research with young children? Why or why not?

30. Reality TV: Group Activity
Each group comes up with a new “Reality TV” show…
Design a short survey to get information to help you develop the best show
Hand it out to your classmates to complete
Use the information to create your show
Describe your thoughts, feelings, and behaviors during this activity

31. Online Research
Information gathered via consumer surfing and Web site/ /chat room questionnaires/focus groups
Cookies allow a Web sponsor to track a surfer’s moves

32. Online Research Applications
New product development
Estimating market response
Exploratory research (online focus groups)
IM (Instant Messaging)
THERE.COM
ITRACKS.COM

33. Advantages of Online Data Collection
The same amount of data in a fraction of the time
Convenience of survey completion
Elimination of interviewer bias and data entry errors

34. Disadvantages of Online Data Collection
Non-representativeness of respondents
Limited computer access for poor and elderly
Self-selection bias (people who like to take part in online studies)
Hackers and competitors influencing/intercepting results

35. Step 4: Design the Sample
Probability sample
Each member of the population has some known chance of being included
Sample is representative of population, and inferences about population are justified
- Simple random sampling
- Systematic sampling
- Stratified sampling

36. Step 4: Design the Sample (cont’d)
Nonprobability sample
Personal judgment used in selecting respondents
Some members of population have no chance of being included
No way to ensure that sample is representative of population
*Christine: next two should be lower-level (black)*
Convenience sampling
Quota sampling

37. Discussion
Why wouldn’t you select all the individuals or elements of a population to be in your study?

38. Step 5: Collect the Data
Challenges to gathering data in foreign countries
Differences in sophistication of research operations
Infrastructure/transportation challenges
Lack of phones
Low literacy rates
Local customs and cultural differences
Language translation difficulties

39. Group Activity
Break into small groups and choose one of the following countries. Generate a list of difficulties a firm would expect to encounter when developing plans for marketing research:
South Africa
Spain
China
Saudi Arabia
Canada
Argentina
Australia
Germany

40. Step 6: Analyze and Interpret the Data
Data need analysis for them to have meaning
Tabulation: arranging data in a table or other summary form to get a broad picture of overall responses
Cross-tabulation: examining the data by subgroups to see how results vary between categories

41. Table 4.4: Data Tabulation and Cross-Tabulation Tables

42. Step 7: Prepare the Research Report
Executive summary
Description of research methodology
Discussion of results including tabulations, cross-tabulations
Limitations of study
Conclusions and recommendations

43. Discussion What is your overall attitude toward marketing research?
Do you think it is a beneficial activity from a consumer’s perspective?
Or do you think it merely gives marketers new insights on how to convince consumers to buy something they really don’t want or need?

44. Real People, Real Choices
Plan-it Marketing (Cindy Turgate)
Cindy chose option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study
Priceline.com was launched nationally in April 1998, and it continues to flourish

45. Marketing Plan Exercise
Select a company that makes a product you use. For the firm you selected:
Define one specific problem it could address through marketing research
What type of research design do you recommend for addressing that problem, and why?
What is the most appropriate way to collect the data? Justify your choice
How will you ensure high validity, reliability, and representativeness of the data?
Design an appropriate sampling plan

46. Marketing in Action Case: You Make the Call
What is the decision facing Acxiom?
What factors are important in understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your recommendation?

47. Keeping it Real: Fast Forward to Next Class Decision Time at Wild Planet
Meet Danny Grossman, CEO and founder of Wild Planet Toys.
Room Gear: a product line that lets kids decorate their rooms met with sharply different gender appeals
The decision: the future direction of the Room Gear line