1. Marketing Research: Gather, Analyze, and Use Information
Chapter 4
Marketing Research: Gather, Analyze, and Use Information

2. Chapter Objectives
Explain the role of the marketing information system and the marketing decision support system in marketing decision making
Understand data mining and how marketers can put it to good use
List and explain the steps and key elements of the marketing research process
Appreciate the importance of high ethical standards in marketing research
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3. Real People, Real Choices: Decision Time at Plan-It Marketing
What marketing research strategy would maximize results of the research 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
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4. Knowledge Is Power
Accurate, up-to-date, relevant information is the fuel that runs the marketing engine
Marketing information systems:
Determine what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users
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5. Marketing Information Systems
Marketing information systems (MIS) include multiple components:
Data:
Internal company data
Marketing intelligence
Marketing research
Acquired database
Computer hardware and software
Information for marketing decisions
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6. Internal Company Data
Internal 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
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7. Marketing Intelligence
Marketing intelligence systems: Method by which marketers get information about everyday happenings in the marketing environment
Example: Monitoring the Internet and using “mystery shoppers”
Futurists specialize in predicting consumer trends
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8. Marketing Research
Market research: Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness
Syndicated research
Custom research
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9. Acquired Databases
External databases can be used to collect a variety of information from different sources
Non-competing businesses
Government databases
Misuse of databases can be problematic and has led to do-not-call lists and antispam laws
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10. Marketing Decision Support Systems
Marketing decision support systems: Data plus analysis and interactive software that allow managers to conduct analyses and find the information that they need
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11. Searching for Gold: Data Mining
Data mining: Includes sophisticated analysis techniques to take advantage of the massive amount of transaction information now available
Analysts sift through data to identify unique patterns of behavior among different customer groups for use in behavioral targeting
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12. What Marketers Can Do with Data Mining
Data mining applications in marketing:
Customer acquisition
Customer retention and loyalty
Customer abandonment
Market basket analysis
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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
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14. Steps in the Marketing Research Process
Step 2: Determine the research design
Determine whether secondary data are available
Determine whether primary data are required and if so, what type:
Exploratory research
Descriptive research
Causal research
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15. Secondary and Primary Research
Secondary data:
Have been collected for some purposes other than the problem at hand
Primary data:
Information collected directly from respondents to specifically address the question at hand
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16. Exploratory (Qualitative) Research
Exploratory research techniques generate insights for future, more rigorous studies
Typically involve in-depth consumer probing
Take many forms:
Consumer interviews
Focus groups
Productive techniques
Case studies
Ethnography
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17. Descriptive (Quantitative) Research
Descriptive research studies:
Probe systematically into the problem
Base conclusions on large numbers of observations
Typically expresses results in quantitative terms (averages, percentages, other stats)
Cross-sectional design
Longitudinal design
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18. 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
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19. Steps in the Marketing Research Process
Step 3: Choose the method for collecting primary data
Survey methods are used to interview respondents
Questionnaires:
loosely, moderately, or completely structured
Observational research methods
Online research
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20. Questionnaires Mail questionnaires Telephone interviews
Face-to-face interviews
Mall intercept
Online questionnaires
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21. Observational Methods
Observation: Data collection method where the researcher records consumers’ behaviors, often without their knowledge
Personal observation
Mechanical observation
Unobtrusive measures
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22. Online Research Types of online research:
Gathering information via consumer surfing
Gathering information via Web site/ /chat room questionnaires/focus groups
Online research used as part of:
New-product development
Estimating market response
Exploratory research
IM and focus groups
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23. Data Quality: Garbage In, Garbage Out
How much faith should marketing managers place in research? Three key considerations include:
Validity
Reliability
Representativeness
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24. Step 4: Design the Sample
Probability sampling:
Each member of the population has some known chance of being included
Sample is representative of population, and inferences about population are justified
Types of probability sampling:
Simple random sampling
Systematic sampling
Stratified sampling
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25. Step 4: Design the Sample
Nonprobability sample
Personal judgment used in selecting respondents
Some members of population have no chance of being included so sample is not representative of population
Types of nonprobability sampling
Convenience sampling
Quota sampling
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26. Step 5: Collect the Data
Challenges to gathering data in foreign countries include:
Differences in sophistication of research operations
Infrastructure/transportation challenges
Lack of phones and/or low literacy rates
Local customs and cultural differences
Language translation difficulties
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27. Step 6: Analyze and Interpret the Data
Data must be analyzed and interpreted to be meaningful
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
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28. Step 7: Prepare the Research Report
Research reports typically contain the following sections:
Executive summary
Description of research methodology
Discussion of results including tabulations, cross-tabulations
Limitations of study
Conclusions and recommendations
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29. Ethics in Marketing Research
Marketing research ethics: Taking an ethical and above-board approach to conducting marketing research that does no harm to the participant in the process of conducting the research
Researchers must provide full disclosure of confidentiality and anonymity options
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30. Real People, Real Choices: Decision Made at Plan-It Marketing
Cindy chose option 3, conducting both qualitative and quantitative research
Implementation: Concept design was refined using input from qualitative research; quantitative study of 700 business and leisure travelers confirmed viability of Priceline’s business model concept
Measuring success: Used total unduplicated reach and frequency analysis
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

31. Keeping It Real: Fast-Forward to Next Class Decision Time at (RED)
Meet Julie Cordua, VP Marketing—(RED)
(RED) works with international brands to make unique products and directs up to 50% of gross profits to the Global Fund
The decision to be made: Is partnering with mass market international brands the optimal way to generate money for the Global Fund?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall