1. Agenda for 10.18.11 Define Key Terms Read & Take Notes The Persuaders
Problem definition
Primary data
Secondary data
Survey method
Observation method
Point-of-sale research
Experimental method
Data analysis
Sample
Read & Take Notes
Ch. 29.1, pages
Answer ?’s 1-3 on pg. 617 (Note: You can work together!)
I will notes, key terms and questions!
These are due today!
The Persuaders
Times They Are A Changin’…

2. The Marketing Research Process Chapter 29, Section 1

3. Steps in the MR Process Defining the problem Obtaining data
Primary
Secondary
Analyzing the data
Recommending solutions
Applying the results

4. Step 1: Defining the Problem
Business clearly identifies a problem or research issue and the information that is necessary to solve it
Ex: If sales are declining, you must obtain info on who is buying product, competitors, and why customers stopped buying products

5. Step 2: Obtaining Data
Data collected and examined in terms of problem(s) being studied
Two types of data:
Primary
Secondary

6. Primary and Secondary Data
Primary Data: collected 1st time by researcher; specifically for research project; new data gathered to help solve the problem at hand.
Secondary Data: Published accessible data from a variety of sources for research and other purposes
Data collected for another purpose, but may be reanalyzed in a subsequent study

7. Primary Secondary How do you Obtain Advantages Disadvantages
Individual company research
Commercial research
Nielson, Arbitron, MR firm etc.
Internal Sources (within company)
External Sources (gov’t, business journals, library, trade publications)
Advantages
Specific to your study
First hand information
May get money if successful and someone else buys research
Obtained quickly
Purchased from info companies
Less expensive
Disadvantages
Takes long to obtain
Expensive
More work involved
Existing data may not be suitable or available
Data may be dated (census every 10 years)

8. Primary Data is collected by 3 methods
Survey method
Observation method
Experimental method

9. Survey Method Information gathered directly through
surveys and questionnaires
Most frequently used
Sample: a part of the target populations that is assumed to represent the entire population
Size depends on money and time
Larger the sample more accurate the results

10. Data collection instruments
Personal interview: face-to-face
Focus group: 8-12 people who evaluate product/service/ads with moderator
Telephone interview
Mail survey
Internet Surveys
Automatic Dialers

11. Type of Collection Description Advantages Disadvantages Personal
Interview
Face-to-face questioning
People prefer to talk to you not write
Expensive
Focus
Group
8-12 people with
moderator
People prefer to talk
Expensive; only as good as leader
Telephone
Calling to give survey on phone
Quick, efficient, inexpensive
Many unwilling to respond on phone
Mail Survey
Sending survey by mail
Inexpensive, reach large audience
10-20% return rate
Internet or
Computer
Survey
Web polls, invitation only, discussion groups
Quick, eliminate data entry
Limited to individuals who have web access

12. Observation Method Actions of people are observed and recorded
Get information about customer behavior and preferences
Used to view the interaction between customers and employees
If observation is properly performed, results are
often better then survey technique
What people actually do is usually better than what they SAY they will do!
Cannot measure attitude; only provides info on what person does, not WHY they do it

13. Observations Styles…
Contrived situation: set up by researcher in controlled situation
Natural situation: customers and employees viewed in natural situation
hidden cameras, traffic count, wear of floor
Point of Sale Research: combines natural with personal interview. Observe shoppers for specific patterns and then approach to ask questions when finished

14. Experimental Method Researchers observe under controlled conditions
Change one or more variables and keep others constant
Used for new package design, new promotions, media usage
Used least often & costly
People respond different in controlled situations
Research less valuable

15. Step 3: Analyzing the Data
Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

16. Step 4: Recommending Solutions to the Problem
Successful research results in information that helps managers make decisions about problems
Conclusions drawn from research are usually present at report

17. Step 5: Applying the Results
If data gathered does not help answer questions, results are inconclusive and more research is needed
If data gathered does help, recommendations are acted on and monitored

18. Follow up Questions
What are the five steps of the marketing research process?
What is the difference between primary and secondary research?
3. Why is Step #1 of the marketing research process so important? (Define the problem?)