The process of collecting, analyzing, and reporting marketing information that can be used to improve a company’s bottom line.
The process of researching a specific market to determine its size and trends.
Involves gathering information on a regular, ongoing basis to stay in touch with what’s happening in
marketing information system (MIS)
A way to manage the vast amount of information
firms have on hand—information marketing professionals and managers need to make good decisions. Systems range from paper-based systems to very sophisticated computer systems.
a marketing information system components
-A system for recording internally generated data and reports
-A system for collecting market intelligence on an ongoing basis
-Marketing analytic software to help managers with their decision making
-A system for recording marketing research information
Information related to their Web sites,
such as data generated about the number of people who visit a Web site and its various pages, how long they dwell there, and what they buy or don’t buy.
clickstream data uses
Use it to monitor the overall traffic of visitors that a site gets, to see which areas of the site people aren’t visiting and explore why, and to automatically offer visitors
products and promotions by virtue of their browsing patterns.
Looks like the Web and operates like it, but only an organization’s employees have access to the information.
Accessing different databases and writing computer programs to extract the right information from the right places, which managers can use to detect marketing trends.
Allows managers who are not computer experts to
gather all kinds of different information from a company’s databases—information not produced in reports regularly generated by the company. The software incorporates regression models, linear programming, and other statistical methods to help managers answer “what if” types of questions.
sources of information to gather market intelligence
Search Engines and Corporate Web Sites, Publications, Trade Shows and Associations, Salespeople, Suppliers and Industry Experts, Customers
Gathering corporate information illegally or unethically.
Society of Competitive Intelligence Professionals code of ethics
– To continually strive to increase the recognition and respect of the profession.
– To comply with all applicable laws, domestic and international.
– To accurately disclose all relevant information, including one’s identity and organization, prior to
– To avoid conflicts of interest in fulfilling one’s duties.
– To provide honest and realistic recommendations and conclusions in the execution of one’s duties.
– To promote this code of ethics within one’s company, with third-party contractors and within the entire profession.
– To faithfully adhere to and abide by one’s company policies, objectives and guidelines.
Steps in the Market Research Process
1) Define the Problem (or opportunity)
2) Design the Research
3) Design the Data Collection Forms
4) Specify the Sample
5) Collect the Data
6) Analyze the Data
7) Write the Research Report and Present its Findings
Step 1: Define the Problem (or opportunity)
To take a look at symptoms and try to drill
down to the potential causes.
Narrow the parameters of the study to the information
you actually need to make a good decision.
Put into writing the research objective.
The goal(s) the research is supposed to accomplish.
Step 2: Design the Research
To do a research design.
“plan of attack.” It outlines what data you are going to gather and from whom, how and when you will collect the data, and how you will analyze it once it’s been obtained.
Information you collect yourself, using hands-on tools such as interviews or surveys, specifically for the
research project you’re conducting.
More time consuming, work intensive, and expensive.
Data that has already been collected by someone else, or data you have already collected for another purpose.
Always try to collect this data first to solve your research problem, if you can.
sources of secondary data
Internal records, any data you collect as part of
your marketing intelligence gathering efforts. You can also purchase syndicated research.
Primary data that marketing research firms collect on a regular basis and sell to other companies.
Information collected by scanners at checkout stands in stores.
marketing research aggregator
A marketing research company that doesn’t conduct its own research and sell it. Instead, it buys research reports from other marketing research companies and then sells the reports in their entirety or in pieces to other firms.
sources of primary data
Interviews and surveys.
gauging secondary data credibility
– Who gathered this information?
– For what purpose?
– What does the person or organization that gathered the information have to gain by doing so?
– Was the information gathered and reported in a systematic manner?
– Is the source of the information accepted as an authority by other experts in the field?
– Does the article provide objective evidence to support the position presented?
types of desearch design
– Exploratory research design
– Descriptive research design
– Causal research design (experiments)
exploratory research design
A less-structured type of research designed used to initially investigate a marketing research project that hasn’t yet been defined well enough for an in-depth study to be conducted.
An exploratory research technique engaging in detailed, one-on-one, question-and-answer sessions with potential buyers allows a researcher to ask logical follow-up questions to help dig further and shed additional light on the research problem.
A group of potential buyers who are brought together to discuss a marketing research topic with one
Looks at how another company solved the problem that’s being researched. Sometimes
multiple cases, or companies, are used in a study.
Researchers interview, observe, and often videotape people while they work, live, shop, and play.
Used to reveal information research respondents might not reveal by being asked directly.
descriptive research design
Involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who, what, where, when, and how.
Measure people’s involuntary physical responses to marketing stimuli, such as an advertisement.
causal research design
Examines cause-and-effect relationships. Using a causal research design allows researchers to answer “what if” types of questions.
An experiment conducted in a natural setting such as a store.
The place the experiment is conducted or the demographic group of people the experiment is administered to.
Step 3: Design the Data-Collection Forms
If the behavior of buyers is being formally observed, and a number of different researchers are conducting observations, the data obviously need to be recorded on a standardized data-collection form that’s either paper or electronic. The items on the form could include a shopper’s sex; his or her approximate age; whether the person seemed hurried, moderately hurried, or unhurried; and whether or not he or she read the label on products, used coupons, and so forth.
Follow a similar format: They begin with an introduction describing what the study is for, followed by instructions for completing the questionnaire and, if necessary, returning it to the market researcher.
Two questions in the same question. “Do you think parents should spend more time with their children and/or their teachers?”
Questions that ask respondents to elaborate.
Questions that limit a respondent’s
Step 4: Specify the Sample
Once you have created your questionnaire or other marketing study, you must choose a sample.
A subset of potential buyers that are representative of your entire target market, or population being studied
Entire target market being studied.
Any type of marketing research mistake that results because a sample was utilized.
The list from which the sample is drawn. Can be put together using a directory, customer list, or membership roster.
One in which each would-be participant has a known and equal chance of being selected. The chance is known because the total number of people in
the sampling frame is known.
Any type of sample that’s not drawn in a systematic way. So the chances of each would-be participant being selected can’t be known.
One type of nonprobability sample. It is a sample a researcher draws because it’s readily available and convenient to do so.
Step 5: Collect the Data
Survey data can be collected in many different ways and combinations of ways. The following are the basic methods used:
-Face-to-face (can be computer aided)
-Telephone (can be computer aided or completely automated)
-Mail and hand delivery
-E-mail and the Web
A person who is paid to shop at a firm’s establishment or one of its competitor’s to observe the level of service, cleanliness of the facility, and report his or her findings to the firm.
A process whereby a native speaker translates a research instrument such as a survey into a foreign language and then back again to the original language to determine if there are gaps in meaning.
Step 6: Analyze the Data
Look for obvious errors, tabulate the data, and draw conclusions from the results.
The process of removing research data that have accidentally been duplicated (entered twice into a computer) or correcting data that have obviously been recorded wrong.
A study that actually tests what it was designed to test and not something else.
A study that, when repeated, produces the same or nearly same results.
Step 7: Write the Research Report and Present Its Findings
Putting the study together.
margin of error
A measure of the possible inaccuracy of the data reported in a survey.
6 Basic Elements of a Research Report
1) Title Page
2) Table of Contents
3) Executive Summary
4) Methodology and Limitations