Presentation on theme: "9 MKTG CHAPTER Marketing Research"— Presentation transcript:
1 9 MKTG CHAPTER Marketing Research Chapter 8 Decision Support Systems and Marketing ResearchMKTG9CHAPTERMarketing Research
2 The Role of Marketing Research Chapter 8 Decision Support Systems and Marketing ResearchThe Role of Marketing ResearchMarketing ResearchThe process of planning, collecting, and analyzing data relevant to a marketing decision.Notes:Marketing research plays a key role in the marketing system. It provides data on the effectiveness of the marketing mix and insights for necessary changes.Marketing research is a main data source for management information systems and DSS.LO2
3 Marketing Research Types Chapter 8 Decision Support Systems and Marketing ResearchMarketing Research TypesDiagnostic (Exploratory)Predictive (Causal)DescriptiveGathering and presenting factual statementsExplaining data“What if?”Notes: Marketing research has three roles: descriptive, diagnostic, and predictive.Descriptive: What is the historic sales trend in the industry? What are consumers’ attitudes toward a product?Diagnostic: What was the impact on sales after a change in the package design?Predictive: “What if questions,” such as how can descriptive and diagnostic research be used to predict the results of a marketing decision?LO2
4 The Marketing Research Process Chapter 8 Decision Support Systems and Marketing ResearchLO31CollectDataSpecifySamplingProcedurePlan Design/Primary DataDefineProblemAnalyzePrepare/PresentReportFollow Up2345Notes: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.67
5 Marketing Research LO3 Marketing Research Problem Objective Management Chapter 8 Decision Support Systems and Marketing 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.
6 Secondary Data LO3 Secondary Data Sources: Internal vs. External Chapter 8 Decision Support Systems and Marketing ResearchLO3Secondary DataData previously collected for any purpose other than the one at hand.Sources:Internal vs. ExternalNotes:Secondary data is a valuable tool particularly in the problem/opportunity identification stage.
7 Advantages of Secondary Data Chapter 8 Decision Support Systems and Marketing ResearchLO3Saves 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 data
8 Disadvantages of Secondary Data Chapter 8 Decision Support Systems and Marketing ResearchLO3May not give adequate detailed informationMay not be on target with the research problemQuality and accuracy of data may pose a problem
9 LO3 Primary Data Primary Data Chapter 8 Decision Support Systems and Marketing ResearchLO3Primary DataInformation collected for the first time. Can be used for solving the particular problem under investigation.
10 Advantages of Primary Data Chapter 8 Decision Support Systems and Marketing ResearchLO3Answers 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.
11 Disadvantages of Primary Data Chapter 8 Decision Support Systems and Marketing ResearchLO3Disadvantages 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.
12 Planning the Research Design Chapter 8 Decision Support Systems and Marketing ResearchLO3Which research questions must be answered?How and when will data be gathered?How will the data be analyzed??
13 Forms of Survey Research Chapter 8 Decision Support Systems and Marketing ResearchLO3In-Home InterviewsMail SurveysMall Intercept InterviewsExecutive InterviewsTelephone InterviewsFocus GroupsNotes: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.Internet Surveys
14 Focus Groups LO4 Advantages Speed Uses small groups Cost-effectiveness Chapter 8 Decision Support Systems and Marketing ResearchLO4Used to collect diagnostic info.Uses small groupsUses open-ended questionsOften lasts 1 – 2 hoursOften videotapedListening for responses as well as watching reactions and body languageAdvantagesSpeedCost-effectivenessBroad geographic scopeAccessibilityHonesty
15 Observational Research Chapter 8 Decision Support Systems and Marketing ResearchLO3SituationPeople watching peoplePeople watching phenomenaMachines watching peopleMachines watching phenomenaExampleMystery shoppers in a supermarketObserverat 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.Online
16 A subset from a large population. The population from which What is Sampling?Chapter 8 Decision Support Systems and Marketing ResearchLO3SampleA 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.
17 Non-Probability Samples Types of SamplesChapter 8 Decision Support Systems and Marketing ResearchLO3Probability SamplesSimple Random SampleStratified SampleCluster SampleSystematic SampleNon-Probability SamplesConvenience SampleJudgment SampleQuota SampleSnowball SampleNotes:Exhibit 8.4 describes each of these types of samples.
18 Marketing Decision Support Systems Chapter 8 Decision Support Systems and Marketing ResearchMarketing Decision Support SystemsLO1