THE MARKETING RESEARCH PROCESS CHAPTER 29 Mrs. Simone Seaton Marketing Management

Objectives  Explain the steps in designing and conducting marketing research  Compare primary and secondary data  Collect and interpret marketing information  Identify the elements in a marketing research report

Key Terms  Problem Definition  Primary Data  Secondary Data  Survey Method  Sample  Observation Method  Point-of-sale research  Experimental Method  Data Analysis

The Marketing Research Process 1. Defining the Problem  The problem or research issue is identified and goals are set to solve the problem 2. Obtaining Data  Researchers obtain data from primary and secondary sources 3. Analyzing Data  Researchers compile, analyze, and interpret the data. 4. Recommending Solutions  Researchers come up with potential solutions to the problem and present them in a report. 5. Applying the Results  The research results are put into action.

Step 1 - Defining the Problem  Problem Definition occurs when a business clearly identifies a problem and what is needed to solve it.

Step 2 - Obtaining the Data  Data is collected and examined in terms of the problem or problems being studied.

Two Types of Data  Primary Data  Data obtained for the first time an used specifically for the particular problem or issue under study.  Secondary Data  Data that have already been collected for some purpose other than the current study.  Secondary are less expensive to collect.  Most cost-effective way of getting data

How Primary Data are obtained  Survey Method A sample which is part of the target market is surveyed  Technological Method On-line survey Focus group & chat sessions on the internet Automated phone calls  Interviews Face to face Focus group interview under the direction of a moderator Telephone Mail survey  The Observation Method People’s actions are watched and recorded Ex. Mystery shopping

How Primary Data are obtained (cont.)  The Observation Method (cont) Advantage: Cost effective & customers act normally Disadvantage: Unable to measure attitudes and motivation.  Point-of-sale research Powerful form of research that combines natural observation with personal interview to get people to explain buying behavior. After the observation, the shopper is approached and asked questions.  The Experimental Method Research technique in which a researcher observes the results of changing one or more marketing variables while keeping other variables constant under controlled conditions. Often used to test new package designs, media usage, and new promotions.

How Secondary Data are obtained  Internet Sources Company’s home page Digital dossiers – provides company profiles on public corporations. Ex. Standard & Poor’s  U.S. and State Government Sources State dept of commerce & small business development centers can provide useful information Data collected by the U.S. Gov’t Example: The Small Business Administration, U.S. Dept of Commerce, U.S. Census Bureau, and the Bureau of Labor Statistics

How Secondary Data are obtained (cont.)  Specialized Research Companies aka (Syndicated Services) Sell data which is available in print and electronic form Example: MediaMark Research, Inc.  Business Publications & Trade Organizations Publications such as Forbes, Business Week and the Wall Street Journal. Trade Associations such as Advertising Research Foundation, etc.

Step 3 - Analyzing the data  The Process of compiling, analyzing, and interpreting the results of primary and secondary data collection.  Data Mining: A computer process that uses statistical methods to extract new information from large amounts of data

Step 4 – Recommending Solutions to the Problem  The conclusions drawn from the research are usually presented in an organized and well-written report.

Step 5 – Applying the Results  In evaluating the research, managers find that the research was inconclusive, additional research is needed, or the research suggests specific course of action.

Key Terms – Section 2  Validity  Reliability  Open-ended Questions  Forced-choice questions

Constructing the Questionnaire Questionnaires have to constructed in the correct manner, they should have the following: 1. Validity  This exists if the questions asked on a questionnaire measures what was intended to be measured. 2. Reliability  This exists when a research technique produces nearly identical results in repeated trials.

Writing Questions Survey questions can be either: 1. Open-ended questions  Respondents construct their own responses 2. Forced-choice questions  Respondents have to choose answers from a list.

Basic Guidelines for Writing Questions  Each question should be written clearly and as briefly as possible  Use the same ranking or rating scales for all similar questions.

Formatting the Questionnaire  Questionnaire should have excellent visual appearance and design to appeal to respondents.  The questionnaire should be short enough to be answered quickly  Section headings should be included  Numbers should be on all questions  If the questionnaire involved more than one page, “continued” should be placed at the bottom of the page.

Administering the Questionnaire  All surveys should have deadlines for completion.  A mailed questionnaire should be sent first class with a hand-signed cover letter.  The cover letter should explain the purpose of the survey and the deadline for returning it.  A postage-paid return envelope should be included.

In-Person Surveys & Incentives  Surveys that are not mailed should have a brief explanation of the survey purpose placed on the survey  Incentives are given to encourage people to participate

Questions 1. Identify in correct order the five steps used in designing and conducting a research study. 2. What is the difference between primary and secondary data? Why should researchers consider one type first? 3. Identify the three methods used to collect primary data. 4. What is the survey method of research? Describe 4 ways to conduct surveys.