Marketing Chapter 4 (Marketing Research)

Marketing Research
set of techniques and principles for systematically collecting, recording, analyzing and interpreting data that can aid decision makers involved in marketing goods, services, or ideas
The Marketing Research Process
1. Define Research Problem and Objectives
2. Design the Research Project
3. Collect Data
4. Analyze Data
5. Present Action Plan
Step 1: Define Research Problem and Objectives
-correctly defining the marketing problem is the most important element
-if you define incorrectly and do the process perfectly = wrong solution
-if you define correctly and do improper process = useless results
-define the problem and try to separate symptoms from actual root cause
Step 2: Design the Research Project
– identify type of data and type of research necessary
– secondary or primary data
– secondary data research before primary
Primary Data
– to address specific research needs/questions currently under investigation
Advantages of Primary Data
– specific to immediate data needs and topic at hand
– offers behavioural insights generally not available from secondary research
Disadvantages of Primary Data
– mores costly
– longer to collect
– requires more sophisticated training and experience to design and collect unbiased, valid, reliable data
Reliability
extent to which same result is achieved when study is repeated under identical situations
Validity
extent to which study measures what it is suppose to measure
Sample
segment or subset of population that adequately represents entire population of interest
Sampling
process of picking a sample
1. Who should be surveyed
2. How big should sample be
3. What type of sampling procedure to use
Secondary Data
– pieces of information that have been collected prior to the start of the focal project
Advantages of Secondary Data
– saves time because readily available
– reduces costs
Disadvantages of Secondary Data
– info many not be precisely relevant to info needs
– may not be as timely
– sources not original so not useful
– methodologies for collecting data may not be relevant or contain bias
Step 3: Collect Data
– exploratory research
– conclusive research
– Use exploratory research as first phase of research process and follow it up with conclusive research
Exploratory (Qualitative) Research
– attempts to begin to understand phenomenon of interest; also provides initial info when problem lacks any clear definition
– observation
– focus groups
– in-depth interviews
– social media
Observation
exploratory research method that entails examining purchase and consumption behaviours through personal or video camera scrutiny
Ethnography
observational method that studies people in daily lives and activities in their homes, work, communities
In-Depth Interviews
research technique in which trained researchers ask questions, listen to/record answers, pose additional questions to clarify/expand on particular issue
Focus Groups
research technique in which small group of people come together for in-depth discussion about particular topic, with conversation guided by trained moderator using unstructured method of inquiry
Protective Technique
qualitative research in which subjects provided scenario and asked to express thoughts and feelings about it
Social Media
– Can provide insights into what consumers are saying about firm’s product or competitor’s product
– Find out likes, dislikes, and preferences by monitoring past purchases and interactions with social network sites; polls and blogs
Conclusive (Quantitative) Research
– Intended to verify insights and aid decision makers in selecting specific course of action
– Can be descriptive (profiles typical user/non-user by survey) or experimental (taste test to determine preference; establish causalities)
– survey research
– experimental research
– scanner research
– panel research
Survey Research
– Used to study consumer behaviours, attitudes, preferences and knowledge about products and brands
– survey
– questionnaire (structured or unstructured)
Disadvantages of Survey Research
– consumers may be unable to answer some of the questions on questionnaire
– may not be able to recall information
– may interpret questions differently from what researchers intended
– some may try to answer questions according to what they think researchers want
– some don’t answer all the questions on questionnaire; makes analysis and interpretation of data more complicated and tricky
Survey
systematic means of collecting information from people that generally uses questionnaire
Questionnaire
form that features set of questions designed to gather information from respondents and thereby accomplish the researcher’s objectives; questions can be structured or unstructured
Unstructured Questionnaire
open-ended questions that allow respondents to answer in their own words
Structured Questionnaire
close-ended questions for which discrete set of response alternatives, or specific answers, provided for respondents to evaluate
Experimental Research
quantitative research that systematically manipulates one or more variables to determine which variable has causal effect on another variable
Scanner Research
type of quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters
Panel Research
quantitative research that involves collecting info from group of consumers (the panel) over time; data collected may be from survey or record of purchases
Step 4: Analyze Data
Converting data into information to explain, predict and/or evaluate a particular situation
Data
numbers or other factual information of limited value
Information
data that has been organized, analyzed, interpreted, and converted into useful form for decision makers
Step 5: Present Action Plan
– Includes exec summary, body of report, conclusion, limitations, and appropriate supplemental tables, figures, and appendices
Ethics of Using Customer Information
– Marketing research should be used only to produce unbiased, factual information
– if security breach occurs company must quickly notify affected customers and state clearly steps they are taking to protect data and privacy