Presentation on theme: "Steps in a Marketing Research Project"— Presentation transcript:
1 Steps in a Marketing Research Project Chapter 8 Decision Support Systems and Marketing ResearchSteps in a Marketing Research ProjectLO3Describe the steps involved in conducting a marketing research projectNotes:The scope of a marketing research project may range from several hundred dollars to millions of dollars. In any case, the same general research process should be followed.
2 The Marketing Research Process Chapter 8 Decision Support Systems and Marketing ResearchLO3CollectDataSpecifySamplingProcedurePlan Design/Primary DataDefineProblemAnalyzePrepare/PresentReportFollow Up1234567Notes:Exhibit 8.1 traces the steps in the marketing research process.The research process begins with the recognition of a marketing problem or opportunity. As changes occur in the firm’s external environment, marketing managers must decide on changes to the existing marketing mix.The Marketing Research Process
3 Marketing Research LO3 Marketing Research Problem Objective Management Chapter 8 Decision Support Systems and Marketing ResearchMarketing ResearchLO3MarketingResearchProblemObjectiveManagementDecisionDetermining what information is needed and how that information can beobtained efficiently and effectively.The specific information neededto solve a marketing research problem;the objective should provide insightful decision-making information.A broad-based problem thatrequires marketing research in orderfor managers to take proper actions.Notes:The marketing research problem is information oriented.The marketing research objective is to provide decision-making information.In contrast, the management decision problem is action oriented.
4 Chapter 8 Decision Support Systems and Marketing Research Secondary DataLO3Secondary DataData previously collected for any purpose other than the one at hand.Notes:Secondary data is a valuable tool particularly in the problem/opportunity identification stage.
5 Sources of Secondary Data Chapter 8 Decision Support Systems and Marketing ResearchSources of Secondary DataGovernment AgenciesTrade and Industry AssociationsBusiness PeriodicalsNews MediaInternal Corporate InformationOnlineCoca-Cola StoreWhen you are asked for your opinion on the Coke Store Web site, is Coca-Cola doing marketing research, or gathering information for a DSS? Read the whole survey before deciding. Which did you pick and why?OnlineLO3
6 Advantages of Secondary Data Chapter 8 Decision Support Systems and Marketing ResearchAdvantages of Secondary DataSaves time and money if on targetAids in determining direction for primary data collectionPinpoints the kinds of people to approachServes as a basis of comparison for other dataLO3
7 Disadvantages of Secondary Data Chapter 8 Decision Support Systems and Marketing ResearchDisadvantages of Secondary DataMay not give adequate detailed informationMay not be on target with the research problemQuality and accuracy of data may pose a problemLO3
8 The New Age of Secondary Information: The Internet Chapter 8 Decision Support Systems and Marketing ResearchThe New Age of Secondary Information: The InternetLO312345Analyze your topicTest run a word or phrase in a search engineLearn as you go and vary your approachDon’t bog down in strategy that doesn’t workGo back to earlier steps better informedNotes:Before the availability of the Internet’s widely accessible information, collection of secondary information was tedious and boring, often requiring visits to the library or communication with government agencies, trade associations or other secondary data providers.By typing a description of the desired secondary data into a Web browser, the Internet may provide a wide range of information. However, keep in mind that the Internet is a self-publishing medium and the information quality may vary.
9 Planning the Research Design Chapter 8 Decision Support Systems and Marketing ResearchPlanning the Research DesignLO3Which research questions must be answered?How and when will data be gathered?How will the data be analyzed??
10 Chapter 8 Decision Support Systems and Marketing Research Primary DataLO3Primary DataInformation collected for the first time. Can be used for solving the particular problem under investigation.
11 Advantages of Primary Data Chapter 8 Decision Support Systems and Marketing ResearchAdvantages of Primary DataAnswers a specific research questionData are currentSource of data is knownSecrecy can be maintainedNotes:The main advantage of primary data is that they will answer a specific research question that secondary data cannot answer.Primary data are current and the source of data is known.Moreover, the information is proprietary.LO3
12 Disadvantages of Primary Data Chapter 8 Decision Support Systems and Marketing ResearchDisadvantages of Primary DataDisadvantages are usually offset by the advantages of primary data.Expensive“Piggybacking” may confuse respondentsQuality declines if interviews are lengthyReluctance to participate in lengthy interviewsNotes:The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nationwide study.To save money, firms may cut back on the number of interviews, or piggyback studies by gathering data on two different projects using one questionnaire.LO3
13 Chapter 8 Decision Support Systems and Marketing Research Survey ResearchLO3Survey ResearchThe most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.
14 Forms of Survey Research Chapter 8 Decision Support Systems and Marketing ResearchForms of Survey ResearchFocus GroupsExecutive InterviewsMail SurveysTelephone InterviewsMall Intercept InterviewsIn-Home InterviewsNotes:In home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool.Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.Executive interviews: Survey involves businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.LO3
15 Forms of Survey Research Chapter 8 Decision Support Systems and Marketing ResearchForms of Survey ResearchLO3Mall Intercept InterviewSurvey research method that involves interviewing people in the common areas of shopping malls.Executive InterviewA type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.
16 Forms of Survey Research Chapter 8 Decision Support Systems and Marketing ResearchForms of Survey ResearchLO3Focus GroupsSeven to ten people who participate in a group discussion led by a moderator.
17 Questionnaire Design LO3 Open-Ended Question Closed-Ended Chapter 8 Decision Support Systems and Marketing ResearchQuestionnaire DesignLO3Open-EndedQuestionClosed-EndedScaled- ResponseAn interview question that encourages an answer phrased in respondent’s own words.An interview question that asksthe respondent to make a selection from a limited list of responses.A closed-ended questiondesigned to measure the intensityof a respondent’s answer.Notes:Questionnaires contain three basic types of questions:Open-ended questionsClosed-ended questionsScaled-response questions.Examples of these types of questions are shown in Exhibit 8.4.
18 Reasonable terminology Chapter 8 Decision Support Systems and Marketing ResearchQuestionnaire DesignLO3Clear and conciseNo ambiguous languageUnbiasedReasonable terminologyOnly one questionOnlineCreateSurvey.comDesign a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.Online
19 Observation Research LO3 Chapter 8 Decision Support Systems and Marketing ResearchObservation ResearchLO3Observation ResearchA research method that relies on three types of observation:people watching peoplepeople watching an activitymachines watching peopleNotes:Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them.
20 Observational Situations Chapter 8 Decision Support Systems and Marketing ResearchObservational SituationsSituationPeople watching peoplePeople watching phenomenaMachines watching peopleMachines watching phenomenaExampleMystery shoppers in a supermarketObserver at an intersection counting trafficVideo cameras recording behaviorTraffic-counting machine monitoring traffic flowOnlineBrand Marketing InternationalLearn more about mystery shopping by requesting a mystery shopper kit from BMI and reading its shopper application.Notes:Observation research depends on watching what people do. It may be conducted by human observers or machines.OnlineLO3
21 Ethnographic Research Chapter 8 Decision Support Systems and Marketing ResearchEthnographic ResearchLO3Ethnographic ResearchThe study of human behavior in its natural context; involves observation of behavior and physical setting.Notes:Ethnographic research comes from the field of anthropology, and is becoming popular in commercial marketing research. Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people.
22 The Sampling Procedure Chapter 8 Decision Support Systems and Marketing ResearchThe Sampling ProcedureLO3SampleA subset from a large population.UniverseThe population from whicha sample will be drawn.Notes:Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample of the larger population.The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed.
23 Non-Probability Samples Chapter 8 Decision Support Systems and Marketing ResearchSampling ProcedureLO3UniverseSampleProbability SamplesNon-Probability Samples
24 Non-Probability Samples Chapter 8 Decision Support Systems and Marketing ResearchTypes of SamplesLO3Probability SamplesSimple Random SampleStratified SampleCluster SampleSystematic SampleNon-Probability SamplesConvenience SampleJudgment SampleQuota SampleSnowball SampleNotes:Exhibit 8.6 describes each of these types of samples.
25 Probability Samples LO3 A sample in which every element in Chapter 8 Decision Support Systems and Marketing ResearchProbability SamplesLO3ProbabilitySampleA sample in which every element inthe population has a known statistical likelihood of being selected.RandomSampleA sample arranged so that every element of the population has an equal chance of being selected.Notes:The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population.One type of probability sample is the random sample—where every element of the population has an equal chance of being selected as part of the sample.
26 Nonprobability Samples Chapter 8 Decision Support Systems and Marketing ResearchNonprobability SamplesLO3NonprobabilitySampleAny sample in which little orno attempt is made to get a representative cross-sectionof the population.ConvenienceSampleA form of nonprobability sampleusing respondents who areconvenient or readilyaccessible to the researcher.Notes:A nonprobability sample is a sample where little or no attempt is made to get a representative cross section of the population.A common form of nonprobability sample is the convenience sample, a selection of convenient respondents such as employees, relatives, or friends. Because of their lower cost, nonprobability samples are the basis of much marketing research.
27 Types of Errors LO3 Error when there is a difference Measurement Chapter 8 Decision Support Systems and Marketing ResearchTypes of ErrorsMeasurementErrorError when there is a differencebetween the information desired and the information provided by researchSamplingErrorError when a sample somehow does not represent the target population.FrameErrorError when a sample drawn from apopulation differs from thetarget population.Notes: Error is common to all surveys, yet it is often not reported or is underreported. When errors are ignored, misleading results can result in poor information and bad decisions.Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error.Frame error arises if the sample drawn from a population differs from the target population.Random error occurs when the selected sample is an imperfect representation of the overall population.RandomErrorError because the selected sample isan imperfect representation ofthe overall population.LO3
28 Field Service Firms Focus group facilities Mall intercept locations Chapter 8 Decision Support Systems and Marketing ResearchField Service FirmsProvide:Focus group facilitiesMall intercept locationsTest product storageKitchen facilitiesRetail auditsNotes:Most primary data is collected by marketing research field service firms.Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products.LO3
29 Chapter 8 Decision Support Systems and Marketing Research Analyzing the DataLO3Cross- TabulationA method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.Notes:After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.Data is organized by one-way frequency counts, cross-tabulations, and sophisticated statistical analysis.One-way frequency counts record the responses to a question. They provide a general picture of the study’s results.A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.
30 Preparing and Presenting the Report Chapter 8 Decision Support Systems and Marketing ResearchPreparing and Presenting the ReportConcise statement of the research objectivesExplanation of research designSummary of major findingsConclusion with recommendationsNotes:After data analysis is completed, the report is prepared, and conclusions and recommendations are communicated to management.The report should be tailored to the audience, beginning with a statement of research objectives, followed by a brief explanation of the research design. A summary of major findings is next, followed by a conclusion with recommendations.LO3
31 Following Up LO3 Were the recommendations followed? Chapter 8 Decision Support Systems and Marketing ResearchFollowing UpWere the recommendations followed?Was sufficient decision-making information included in the report?What could have been done to make the report more useful to management?Notes:The final step in the marketing research process is to follow up. The researcher should determine why management did or did not carry out the recommendations of the report.LO3
32 REVIEW LEARNING OUTCOME Chapter 8 Decision Support Systems and Marketing ResearchLO3REVIEW LEARNING OUTCOMESteps in a Marketing Research Project