1. Chpt 5
Obtaining Data for
Marketing Decisions

2. Introduction
Business which have “extra information” are more competitive.
The process of developing information through Market Research is becoming more complicated and is greatly enhanced and improved by using advanced telecommunications ( , fax, internet etc.)

3. Garbage In = Garbage Out good market info = good marketing planning
“The quality of marketing planning decision depends on the quality of the information on which they are based” p. 76
Garbage In = Garbage Out
good market info = good marketing planning

4. good market info = good marketing planning
There are many sources of Market Info
customer complaints
sales-force reports
government statistics
industry reports … and ...
Page 76

5. Marketing Research
The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.
Page 76

6. Marketing Research
The critical task of the Marketing Manager is DECISION MAKING. P. 77
Marketing Research helps provide good information to help in decision making.

7. Marketing Research
The information gathered during Marketing Research can help:
develop sales forecasts
design new products, based on customer opinion
create attractive packaging
guide advertising plans
Page 77

8. Where do you get the info?
Marketing Research
Where do you get the info?
A. you can do it yourself by making someone in the company responsible for doing the research
B. you can hire an outside agency that specializes in Market Research
Page 78

9. Marketing Research Where do you get the info?
B. you can hire an outside agency that specializes in Market Research There are 2 types of outside agencies
1. Full Service Research Supplier 2. Syndicated Service
Page 78

10. Marketing Research There are 2 types of outside agencies
1. Full Service Research Supplier They will will handle all aspects, conduct interviews, send out questionnaires, do telephone polls etc. and provide a detailed report explaining all aspects of your potential customer base.
Page 78

11. Marketing Research There are 2 types of outside agencies
2. Syndicated Service
These types of companies gather various types of information and sell it (usually in subscription form) to clients that have regular needs.
Restaurants can buy statistical information on eating habits and spending patterns
Clothing companies can buy information on demographics and seasonal buying patterns as well as trend information.
Page 78

12. 6 Steps in the Market Research Process1. 2. 3. 4. 5.
Figure 5.1 The Marketing Research Process 6.
Page 79

13. Problem Definition
You have to first know what you are looking for - this is not always so easy.
If your new chocolate bar isn’t selling well, you don’t automatically do market research on the “taste” - because maybe the reason has to do with the packaging.
Page 78

14. Often described as looking before you start looking
Exploratory Research
“Learning about the problem area and beginning to focus on specific areas of study by discussing the problem with informed sources within the firm (a process often called situation analysis) and with knowledgeable others outside the firm (the informal investigation).”
Page 79

15. Exploratory Research
One of the important things to do is review the existing situation to determine how things came to be that way - this is an important part of the Exploratory Research and is one of the reasons why companies hire outside agencies.
It is difficult for a company to “look at itself”
Page 80

16. After the problem has been defined (Step 1), and an exploratory investigation (Step 2) has been conducted,
it is possible to then formulate a Hypothesis (Step 3)

17. Stage 3
Hypothesis
“A tentative explanation about the relationship between variables as a starting point for further testing.” TEXT
Page 81
The way of thinking about how something works - and using your original “guess” as a starting point for further investigation WTGR

18. Hypothesis

19. Research Design
Stage 4
The Research Design should be a plan for testing the Hypothesis.
A series of advance decisions that, taken together, make up a master plan or model for conducting the investigation.
page 81

20. Research Design

21. Collecting Data
Stage 5
Collecting Data is often the expensive stage because it may involve paying people to make telephone calls, or hiring students to takes questionnaires to malls and ask shoppers to answer questions.
This is time consuming as well as costly

22. Collecting Data Primary Data Secondary Data Stage 5
Data being collected for the first time.
Secondary Data
Previously produced or published matter.
Page 81

23. Collecting Data Secondary Data Stage 5
Internal - eg. company sales records
External
Previously published matter. (gov’t statistics, reports, newspaper articles etc.)
Page 83

24. Collecting Data Secondary Data Stage 5 External - Government Sources
The Canadian government produces so MUCH data from census and business reports that it is published in report. Some of these reports are free, some can be bought, and some customized information can be bought at a high price.
Page 83

25. Collecting Data Advantages of Secondary Data 1. less expensive
Page 84
1. less expensive
2. less time

26. Collecting Data Advantages of Secondary Data Page 84
1. It is usually less expensive than Primary Data - and if the purpose if just to determine a general trend, then for many situations, Secondary Data is O.K.
2. It takes less time to find Secondary Data (compared to doing new studies) and therefore you answer your questions more quickly, and get on with the business.

27. Collecting Data Limitations of Secondary Data 1. Obsolete
Page 85
1. Obsolete
2. Fit - relevance

28. Collecting Data Limitations of Secondary Data Page 85
1. Obsolete - date it was produced may be old - this is why some companies pay for new Primary Data
2. Fit - relevance. Some Secondary Data is too vague to answer the questions - therefore you need new Primary Data that is more specific

29. Collecting Data Primary Data Stage 5
Data being collected for the first time.
1. Observation
2. Survey
Telephone
Mail
Personal Interview
3. Controlled Experiment
Page 85

30. Collecting Data Primary Data Stage 5
Data being collected for the first time.
1. Observation
overt - watching how customers shop, what they look at, the features they like, asking for postal codes, counting cars - often used to evaluate how good some advertising is
covert (technical eg. Hidden camera, POP computerized information)
Page 85 ~ 86

31. Collecting Data Primary Data Stage 5
Data being collected for the first time.
2. Survey
Telephone - inexpensive and fast - they are the majority of primary marketing research used by big marketing research companies
Mail - costs less, and more detailed questions can be asked, can be used in geographic segments
Personal Interview - the best method, but most expensive
Page 86

32. Collecting Data Primary Data Stage 5
Data being collected for the first time.
2. Survey
Personal Interview - FOCUS GROUPS are a special type of personal interview
typically 8 ~ 12 people are shown something, then asked for comments
typically used in preparing TV commercials
Page 88

33. Collecting Data Primary Data Stage 5
Data being collected for the first time.
3. Controlled Experiment
- not used very often due to costs, but sometimes done by people who need to answer difficult questions
- the most common method is test marketing a target market segment, then look at the results and see what works, and what didn’t work
Page 88

34. Collecting Data Primary Data Stage 5
Data being collected for the first time.
3. Controlled Experiment
- Sometimes TEST products are used in cities like Calgary and Winnipeg, and then not followed up, so people there have a chance to use totally new products not available elsewhere
- eg. Winnipeg was the first city to try variable sizes of plastic soft drink bottled
Page 88 ~ 89

35. Collecting Data Test Marketing
The selection of areas considered reasonably typical of the total market, and introducing a new product to these areas with a total marketing campaign to determine consumer response before marketing the product nationally.
Page 88 ~ 89

36. Collecting Data The Data Collection Instrument
or, … “getting the info”
“Most of the work in Data Collection depends on the use of a good questionnaire”
has to ask questions referring to specific objectives
should be pre-tested, if it is new, so you can make any changes to the questions
Page 89

37. Sampling Techniques Population (universe) Census Probability Sample
Convenience
Quota
Simple Random
Census
Nonprobability Sample
Judgment
Cluster
Systematic Technique
Page 90

38. Sampling Techniques Population (universe)
the total group that the researcher wants to study
Page 90

39. Sampling Techniques Census
if the total group is contacted, the results are known as a census (same term as used when the government does a census to get information on the citizens)
Page 90

40. Sampling Techniques Probability Sample
a sample in which every member of the population has a known chance of being selected
Page 90

41. Sampling Techniques Nonprobability Sample
a sample chosen in an arbitrary way so that each member of the population does not have a representative chance to be selected.
Page 90

42. Sampling Techniques Convenience Sample
a sample chosen in an arbitrary way (a nonprobability sample) so that each member of the population does not have a representative chance to be selected. - BECAUSE they just used readily available respondents/participants
eg. “CityTV on the street interviews”
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43. Sampling Techniques Judgement Sample
a nonprobability sample of people with a specific attribute.
eg. “CityTV on the street interviews” of people that DO NOT have political party affiliation - to determine how they voted, and who would win the election
Page 90

44. Sampling Techniques Quota Sample
a nonprobability sample that is divided so that different segments or groups are represented in the total sample.
Page 90

45. Sampling Techniques Cluster Sample
a probability sample that is used in groups
used when it is difficult to ask everybody, so they pick some areas and ask everybody in that area (cluster)
Page 90

46. Sampling Techniques Simple Random Sample
a probability sample in which everybody has an equal opportunity of being selected.
Page 90

47. Sampling Techniques Systematic Sample
every 5th, or every “n”th person is selected. An example is market research people who call every 10th person in the phone book to get an opinion.
Page 90

48. Marketing Information Systems
For some companies, market knowledge comes in on a regular basis.
Some stuff is “Data”, and some is “Information”
Data = statistics, opinions in surveys, facts, predictions etc.
Information = data RELEVANT to the Marketing Manager in making decisions
Page 91

49. The most important thing is
Marketing Information Systems
The most important thing is
RELEVANCE
Page 91

50. Marketing Information Systems
The best way to get RELEVANT information is to establish a systematic approach and have a planned Marketing Information System
Page 91

51. Marketing Information Systems
Defn
A set of routine procedures to continuously collect, monitor, and present internal and external information on company performance and opportunities in the marketplace.
Page 91

52. Marketing Information Systems
A set of routine procedures - things you do all the time
to continuously collect, monitor, - always gathering info
and present - give to the boss
internal and external information - inside the company, and from primary and secondary sources
on company performance - how you are doing
and opportunities in the marketplace.
Page 91

53. Figure 5.2 Information Components of a Firm’s MIS
Page 92

54. Marketing Information Systems
All of this depends on the ability of the company to use technology to help it be better than the competition