Marketing Research Chapter 1-4

Marketing Research
The process or set processes that links the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions.
Market Research
The process of designing, gathering analyzing, and reporting info that may be used to solve a specific marketing research.
Uses of Marketing Research
1. Identify: market opportunities/problems
2. Generate: refine and evaluate potential marketing actions (useful for repositioning, determine effectiveness of integrated campaigns)
3. Monitor: Marketing performance (Research ROI, tracking research for performance over time)
4. Improve: marketing as a process (academic research gives useful insights)
MIS – Marketing Information System
Designed to support marketing decision making. It brings together many kinds of data, people, equipment and procedures to help an organization make better decisions.
DSS – Decision Support Systems
Companies across all industries rely on decision support tools, techniques, and models to help them asses and resolve business questions. One example of this is a Decision Support System (DSS). A DSS is a computer-based information system that helps businesses or organizations make better decisions by providing a flexible tool for analysis.
“Father of marketing research”
Charles Coolidge Parlin was the American “manager of the division of commercial research of the Curtis Publishing Company” in charge of selling advertising spots in the Saturday Evening Post. Conducted the first continuous and organized marketing research.
What are the steps in the marketing research process?
1. Establishing the need for marketing research
2. Define the problem
3. Establish research objectives
4. Determine research design
5. Identify information types and sources
6. Determine methods of accessing data
7. Design data collection forms
8. Determine sample plan and size
9. Collect data
10. Analyze data
11. Prepare and present the final research report
Which step in the marketing research process is the most important?
Define the problem. if you don’t properly define the problem, perhaps inadvertently state a symptom as the problem, everything else will be wonky as they like to stay in Canada, wrong research objectives, wrong design.
Explain what research objectives are
Research objectives are specific bits of knowledge that need to be gathered too close the information gaps action.
Research Objectives
State what the researchers must do to carry out the research and solve the problem.
3 types of research design
1. Exploratory
2. Descriptive
3. Casual
When marketing research is needed
To determine wheter a product/service will satisfy the needs of your customers, competitors, economic shifts, demographics, current trends…
What are 2 marketing problems?
1. Problem: exist when there is a gap (what was supposed to happen with what did happen)
2. Opportunity: also involves gap (what did happen – or is happening – with what could have happened)
Components of a marketing research proposal
formal documents prepared by the researcher
1. STATE the problem
2. SPECIFY research objectives
3. DETAIL the research method
4. SPECIFY a timetable
5. SPECIFY a budget
The role of the action standard
Pre-designation of some quantity of a measured attribute that must be achieved for a predetermined action to take place
Situation Analysis
A form of preliminary research undertaken to gather background information and gather data pertinent to the problem area.
-researchers must resist the temptation to go along with what the managers think the problem is
– Researchers should take the time to conduct their ow investigation and develop and consider alternative definitions
Exploratory Research
1. Secondary data analysis
2. Experience surveys
3. Case analysis
4. Focus groups
Research design that answers the w,w,w,w,h
-WHO are their customers
-WHAT brands they buy and in what quantities
– WHERE they buy the brands
-WHEN they buy
– HOW they found out about the products
Focus Group
A demographically diverse group of people assembled to participate in a guided discussion about a product before it is launched, or to provide ongoing feedback on a political campaign, television series, etc.
Focus Group – Advantages
– They generate fresh ideas
-They allow clients to observe the participants
– They may be directed at understanding a wide variety of issues (reactions to a new food product brand logo or television ad)
-They allow fairly easy access to special responded groups (lawyers or doctors) from whom it may be very difficult to collect a representative sample
Focus Group – Disadvantage
– They do not constitute representative sample (caution must be exercised in generalizing the findings)
– Sometimes difficult to interpret the results of focus groups because the moderator’s report is based on subjective evaluation of what was said during the session
– The cost per participant is high
Cross-Sectional studies
Measures units from a sample of the population at only “one point in time” or “snap shots”
Longitude Studies
Repeatedly measure the same sample units of a population over a period of time “movies”
Experiment types (X, O, R, & E)
O: measurement of a dependent variable
X: manipulation, or change of an independent variable
R: random assignment of subjects to experiemental or control group
E: Experimental effect; the change in the dependent variable due to the independent variable
Test Market cities criteria
1. Representativeness
2. Degree of isolation
3. Ability to control distributor and promotion
Use of secondary data
Used for social science (censuses, information collected by government departments)
Secondary data – Internal
data that has been corrected within the firm (sales records, purchase requisitions, and invoices kept in a database for futrure data mining
Data mining
The practice of examining large databases in prder to generate new information
Secondary Data – External
Data obtained from outside firm from 3 general sources
(Government census trade, business and professional associations Media)
1. Published
2. Standardized
3. External databases
Database Marketing
databases within the company
CRM – Customer Relationship Marketing
A business process in which client relationships, customer loyalty and brand value are built through marketing strategies
Boolean logic
Allows the establishment of relationship between words and terms in most databases: “and”, “or” and “not”
Proximity Operators
Allow the searcher to indicate how close and in which order two or more words are to be positioned within the record: ADJ= adjoining words in order
NEAR= adjoining words in any order
SAME= Both terms are in the field of the record
Sources of Secondary data
Statcanada: census data, grandaddy of them all
NAICS: “NAKES” North American Industry Classification System
Standardized Information
Firms provide omnibus (Latin “for all”) surveys where client members receive different data but the process used to collect the data is standardized
Syndicated data
standard format for subscribers
Standardized services
Process is standardized but info is only available for 1 user
Syndicated Data – Advantages
– the shared costs of the data among users as many clients may subscribe to the same information, thus making the cost of the service greatly reduced.
Syndicated data – Disadvantages
Since the format is standardized, buyers have little control over what information is collected and must be satisfied with the standardized information received.
Standardized Services – Advantages
suppliers is mainly buying the experience of the research firm, especially when the buyer company does not have enough the experienced personnel to carry out a particular research process.
Standardized Services – Disadvantages
The word ‘standardized’ automatically implies the service is not customized, standard service suppliers do not design a service specifically for the client’s project.
Full-Service
Firms can conduct the entire marketing research project
Limited-Service
A supplier firms specialize in one or a few marketing research activities (eye testing or mystery shopping)
Online Marketing Research
The process by which companies use the Internet to gather data to evaluate how well a product or service is selling to consumers. The information provided by a careful market analysis conducted online can also identify popular trends that can assist a company in creating a strategy that will get better results
Web-based experiment
An experiment that is conducted over the internet
Online Research
Online survey research provide access to groups and individuals who would be difficult, if not impossible, to reach through