1. Marketing Research: Gather, Analyze, and Use Information
Chapter Four
© 2012 Pearson Education, Inc. publishing as Prentice-Hall

2. Chapter Objectives
Explain the role of a marketing information system and marketing decision support system in marketing decision making
Understand the data mining and realize how marketers can put it to good use
List and explain the steps and key elements of the marketing research process
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3. Real People, Real Choices: Decision Time at Discover Card
Which option should Ryan undertake?
Option 1: Continue to use the same new project prioritization process that has been used in the past
Option 2: Modify the process to include existing consumer input Discover can easily access
Option 3: Engage an outside firm to assist Discover in developing a new process
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

4. Knowledge Is Power
Marketing research provides accurate, up-to-date, and relevant information
Marketing research should be conducted in an ethical manner
Marketing information systems:
Determine what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

6. Internal Company Data Internal data:
Information from within the company
Used to produce reports on the results of sales and marketing activities
Commonly accessed via Intranets
Intranet: Internal corporate communications network that links company departments, employees, and databases
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7. Marketing Intelligence
Marketing intelligence systems Method that marketers use to gather information about everyday happenings in the marketing environment
Gathered via monitoring everyday sources, observation, and discussions with salespeople or others
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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 anti-spam laws
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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
Includes statistical and modeling software tools
Helps answer “What if” type questions
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

11. Searching for Gold: Data Mining
Data mining: Sophisticated analysis techniques to take advantage of the massive amount of transaction information available now
Data warehouses
Reality mining
Data mining applications in marketing:
Customer acquisition
Customer retention and loyalty
Customer abandonment
Market basket analysis
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

12. Steps in the Marketing Research Process
Step 1: Define the research problem:
Specifying research objectives
Identifying the consumer population of interest
Placing the problem in an environmental context
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

13. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

14. Secondary and Primary Research
Secondary data
Information collected for some purpose other than the problem at hand
Primary data:
Information collected directly from respondents to specifically address the question at hand
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

15. Exploratory (Qualitative) Research
Exploratory research techniques generate insights for future, more rigorous studies
Typically involve in-depth consumer probing
Take many forms:
Focus groups
Case studies
Ethnography
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

16. Descriptive (Quantitative) Research
Descriptive research studies:
Probe systematically into the problem
Base conclusions on large numbers of observations
Typically expresses results in quantitative terms
Often use cross-sectional design
Sometimes a longitudinal design is used
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

17. Causal Research
Causal research: Technique that attempts to understand cause-and-effect relationships
Experiments test predicted relationships among variables in a controlled environment:
Independent variables are factors that might cause a change
Dependent variables are those which measure a change in outcome
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18. Steps in the Marketing Research Process
Step 3: Choose the method to collect primary data:
Determine which survey methods are most appropriate
Determine which observational methods are most appropriate
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19. Survey Methods Survey methods are used to interview respondents
Questionnaires:
Mail questionnaire
Telephone interviews
Face-to-face interviews
Online questionnaires
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20. Observation Research
Observation: Data collection method where the researcher records consumers’ behaviors, often without their knowledge
Personal observation
Mechanical observation
Unobtrusive measures
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21. Online Research Advantages of online research
Types of online research:
Gathering information via consumer surfing
Gathering information via online sources
Cookies allow marketers to track consumers
Predictive technology is made possible by online research
Concern over consumer privacy is growing
Disadvantages of online research
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22. 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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23. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

24. Step 4: Design the Sample
Nonprobability sample:
Personal judgment is 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

25. Step 5: Collect the Data
Conclusions are only as good as the quality of data collected
Challenges associated with 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

26. 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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27. Step 7: Prepare the Research Report
Research reports typically contain the following sections:
Executive summary
Description of research methods
Discussion of study results
Limitations of study
Conclusions and recommendations
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

28. Real People, Real Choices: Decision Made at Discover Card
Ryan chose option 3
Why do you think that Ryan chose to engage an outside firm to assist Discover in developing a new process?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

29. 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?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

30. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.