2 Marketing Information Management How are decisions made to introduce new products and delete old ones?
3 4.04 Vocabulary Attitude Research Data Analysis Database Marketing Experimental MethodForced-choice QuestionsMarket IntelligenceMarketing ResearchMarketing Information SystemMedia ResearchObservation MethodOpen-ended QuestionsPoint-of-sale ResearchPrimary DataProblem DefinitionProduct ResearchQuantitative ResearchQualitative ResearchReliabilitySampleSecondary DataSurvey MethodValidity
4 4.04 Essential QuestionHow does marketing information and research affect business and marketing decisions?
5 Essential Question 1 Marketing Research What is the role of marketing information management?
6 What is Marketing Research? Obtaining information about the preferences, opinions, habits, trends, and plans of potential customers.Helps to determine what customers want and need.
7 American Marketing Association Marketing Research‘the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’American Marketing Association
8 Why is Research Important? Businesses that do not pay attention to what consumers are buying, are likely to make costly mistakes.Information obtained from research helps businesses to plan for the future.
9 Why is Research Important? Helps to anticipate or solve problems in the marketplace.Helps a company keep track of what is happening in its markets.
11 Essential Question 2 Marketing Research How does each type of research differ from each other?
12 Types of Marketing Research Advertising ResearchFocuses on the effectiveness of the advertising message and the effectiveness of media placement.
13 Types of Marketing Research Product ResearchUsed to evaluate product design and acceptance, competitive products, package design, and product usage.
14 Types of Marketing Research Market ResearchStudies customer behavior (customer analysis) to gather information about customer attitudes.
15 Types of Marketing Research Market ResearchStudies the behavior of a consumer market (market analysis) to investigate the potential markets for a product and to define the target market.
16 Types of Marketing Research Sales ResearchThe study of sales data to determine the potential sales for a product and to solve problems related to future sales.
17 Essential Question 3 Marketing Research What are the steps in the marketing research process?
18 The Marketing Research Process Step 1 - Defining the ProblemIdentify and clearly state what the problem is and what can be done to solve the problem.Determine which problems are the most important to solve at a given time.
19 The Marketing Research Process Step 2 - Obtaining DataCollect and examine information in terms of the problem being studied.Primary data can be used and/orSecondary data can be used.
20 The Marketing Research Process Step 3 - Analyzing the DataCompiling, analyzing, and interpreting the results of primary and secondary data.The results of each question can be clearly read and interpreted.
21 The Marketing Research Process Step 4 - Recommending Solutions to the Problem.Solutions are usually presented in a well written report.Recommendations must be clear and supported by the research data.
22 The Marketing Research Process Step 5 - Applying the ResultsThe required form of action is decided upon and put into place.
23 The Marketing Research Process Set objectivesDefine research ProblemAssess the value of the researchConstruct a research proposalSpecify data collection methodSpecify techniques of measurementSelect the sampleData collectionAnalysis of resultsPresent in a final report
24 Essential Question 4 Marketing Research What are the differences in primary and secondary data?
25 Types of DataPrimary data: Data obtained for the first time and used specifically for the particular problem or issue under study; collected firsthand.Secondary data: Data already collected for some purpose other than the current study; already exists, desk research.
27 Market Research Primary Research First hand information Expensive to collect, analyse and evaluateCan be highly focussed and relevantCare needs to be taken with the approach and methodology to ensure accuracyTypes of question – closed – limited information gained; open – useful information but difficult to analyse
29 Internal Sources Company Accounts Internal Reports and Analysis Stock AnalysisRetail data - loyalty cards, till data, etc.
30 External SourcesFederal Government Statistics (i.e. census, labor dept, etc.)Local: Chamber of Commerce, Economic Development, City & County Government, etc.Trade publicationsCommercial Data - Gallup, Mintel, etc.Household Expenditure SurveyMagazine surveysOther firms’ researchResearch documents – publications, journals, etc.
31 Essential Question 5 Marketing Research What methods are used to collect primary and secondary data?
32 Data Collection Primary data can be obtained by: - the survey method- the observation method- the experimental methodSecondary data can be obtained by a number of agencies.- Internet Sources- US and Government Sources- Specialized Research Companies- Business Publications and Trade Organizations
33 Essential Question 6 Marketing Research How are population, sample, bias, and error used in marketing research?
34 Data SamplingWhen designing a survey, marketers must determine the number of people to include in their survey.Population: The entire target group of people under study.Sample: Part of the target population that represents it accurately.Sampling - studying part of a ‘population’ to learn about the wholeBias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.Error: Determined by the sample size with respect to the population. The greater the sample size, the lower the margin of error.
36 Market Research Sampling Methods: Random Samples – equal chance of anyone being pickedMay select those not in the target group – indiscriminateSample sizes may need to be large to be representativeCan be very expensive
37 Market Research Stratified or Segment Random Sampling Samples on the basis of a representative strata or segmentStill random but more focussedMay give more relevant informationMay be more cost effective
38 Market Research Quota Sampling Again – by segment Not randomly selectedSpecific number on each segment are interviewed, etc.May not be fully representativeCheaper method
39 Market Research Cluster Sampling Multi-Stage Sampling Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole populationMulti-Stage SamplingSample selected from multi-stage sub-groupsSnowball SamplingSamples developed from contacts of existing customers – ‘word of mouth’ type approach!
40 Terminology of Marketing Research Quantitative research - statistical basisQualitative research - subjective and personal
41 Market Research Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, howQualitative – more detail – tells you why, when and how!
42 Essential Question 7 Marketing Research What are techniques are used in marketing research?
43 Marketing Research Techniques Interviewsface-to-facetelephonepostal questionnaireAttitude measurementcognitive component (know/believe about an act/object)affective component (feel about an act/object)conative component (behave towards an object or act)
44 Projective techniques Likert scalestrongly agreeagreeneither agree nor disagreedisagreestrongly disagreeSemantic differential scales - differences between words e.g. practical v impracticalProjective techniquessentence completionpsychodrama (yourself as a product)friendly martian (what someone else might do)
45 Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous dataIn-home scanning - hand-held light pen to scan barcodesTelephone researchObservationhome auditdirect observationIn-store testing
46 American Marketing Association What is MKIS?‘MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions’American Marketing Association
47 The components of a computerised MKIS Data BankStatisticalBankMKISDisplayunitMarketingManagerModelBank
48 The components of a computerised MKIS Data bank - raw data e.g historical sales data, secondary dataStatistical bank - programmes to carry-out sales forecasts, spending projectionsA model bank - stores marketing models e.g Ansoff’s matrix, Boston MatrixDisplay unit - VDU and keyboard
49 Essential Question 8 Marketing Research What are the advantages & disadvantages of marketing research?
50 Market Research Advantages of Market Research Helps focus attention on objectivesAids forecasting, planning and strategic developmentMay help to reduce risk of new product developmentCommunicates image, vision, etc.Globalisation makes market information valuable (HSBC adverts!!)
51 Market Research Disadvantages of Market Research Information only as good as the methodology usedCan be inaccurate or unreliableResults may not be what the business wants to hear!May stifle initiative and ‘gut feeling’Always a problem that we may never know enough to be sure!
52 Essential Question 9 Marketing Research What are the trends and limitations in marketing research?
53 Research Trends Trends in research: Global Marketplace Due to increased international competition, US companies must improve or change products frequently to hold on to customers.Product quality and customer satisfaction are keys to business success and research that measures these qualities are the fast form of marketing research.Business ManagementMany businesses are using internal and external information to improve business operations.
54 Research Limitations Limitations in research: Money Time Customers saying one thing and doing another