Weekly Discussion
Chapter 2
Marketing Research: Process and Systems for Decision Making
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15e
Chapter Outline
The role of marketing research
The marketing research process
Marketing information systems
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Marketing Research
Process by which information about the environment is generated, analyzed, and interpreted for use in marketing decision making
Aids decision making and is not a substitute for it
Reduces risks associated with managing marketing strategies
Vital for investigating the effects of various marketing strategies after implementation
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Figure 2.1: The Five Ps of the Research Process
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Purpose of the Research
Managers and researchers need to discuss and clarify the current situation and develop a clear understanding of the problem
Should agree on:
Current situation involving the problem to be researched
Nature of the problem
Specific question or questions the research is designed to investigate
This step influences the type of research to be conducted and the research design
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Plan of the Research
Details the nature of the research
Includes explanation of sample design, measures, and analysis techniques
Critical issues that influence a research plan include whether:
Primary or secondary data are needed
Qualitative or quantitative research is needed
The company will conduct its own research or contract with a marketing research specialist
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Primary versus Secondary Data
Primary data: Data collected specifically for the research problem under investigation
Secondary data: Previously collected data that could be used for the problem at hand
Can be obtained from sources external or internal to the organization
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Qualitative Research
Involves face-to-face interviews with respondents designed to develop a better understanding of what they think and feel concerning a research topic
Types
Focus groups: Involve discussions among a small number of consumers led by an interviewer
Designed to generate insights and ideas about products and brands
Long interviews: Conducted by an interviewer with a single respondent for several hours
Designed to find out how individuals perceive the products or how they are influenced by them
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Quantitative Research, 1
Involves systematic procedures designed to obtain and analyze numerical data
Types
Observational research: Involves watching people and recording relevant facts and behaviors
Survey research: Involves the collection of data by means of a questionnaire by mail, phone, online, or in person
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Quantitative Research, 2
Experimental research: Involves manipulating one variable and examining its impact on other variables
Mathematical modeling: Involves developing equations to model relationships among variables
Investigates the impact of different strategies and tactics on sales and brand choices using econometric and statistical techniques
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Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 1
| Method | Advantages | Disadvantages |
| Focus groups | Depth of information collected Flexibility in use Relatively low cost Data collected quickly | Requires expert moderator Questions of group size and acquaintanceships of participants Potential for bias from moderator Small sample size |
| Telephone surveys | Centralized control of data collection More cost-effective than personal interviews Data collected quickly | Resistance in collecting income, financial data Limited depth of response Disproportionate coverage of low-income segments Abuse of phone by solicitors Perceived intrusiveness |
Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135
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Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 2
| Method | Advantages | Disadvantages |
| Mail surveys | Cost-effective per completed response Broad geographic dispersion Ease of administration Data collected quickly | Refusal and contact problems with certain segments Limited depth of response Difficult to estimate nonresponse biases Resistance and bias in collecting income, financial data Lack of control following mailing |
| Personal, in-depth, Interviews | More depth of response than telephone interviews Generate substantial number of ideas compared with group methods | Easy to transmit biasing cues Not-at-homes Broad coverage often infeasible Cost per contact high Data collection time may be excessive |
Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135
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Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 3
| Method | Advantages | Disadvantages |
| Mall intercepts | Flexibility in collecting data, answering questions, probing respondents Data collected quickly Excellent for concept tests, copy evaluations, other visuals Fairly high response rates | Limited time Sample composition or representativeness is suspect Costs depend on incidence rates Interviewer supervision difficult |
| Internet surveys | Inexpensive, quickly executed Visual stimuli can be evaluated Real-time data processing possible Can be answered at convenience of respondent | Responses must be checked for duplication, bogus responses Respondent self-selection bias Limited ability to qualify respondents and confirm responses Difficulty in generating sample frames for probability sampling |
Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135
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Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 4
| Method | Advantages | Disadvantages |
| Projective techniques | Useful in word association tests of new brand names Less threatening to respondents for sensitive topics Can identify important motives underlying choices | Require trained interviewers Cost per interview high |
| Observation | Can collect sensitive data Accuracy of measuring overt behaviors Different perspective than survey self-reports Useful in studies of cross-cultural differences | Appropriate only for frequently occurring behaviors Unable to assess opinions of attitudes causing behaviors May be expensive in data-collection-time costs |
Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135
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Company versus Contract Research
Some marketing research suppliers have special expertise in a particular type of research
Makes them a better choice than doing the research internally
Decision about whether the marketing research department has the ability to do a particular type of research itself or whether all or part of the research should be contracted with a research supplier must be made
Considerations
Schedules for task completion
Exact responsibilities of all involved parties
Cost
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Performance of Research
Preparing for data collection and actually collecting them
Tasks depend on the:
Type of research selected
Type of data needed
Cardinal rule in data collection
One should obtain and record the maximal amount of useful information subject to the constraints of time, money, and respondent privacy
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Processing of Research Data
Involves preparation of data for analysis and their actual analysis
Preparations include editing and structuring data and coding them for analysis
Appropriate analysis techniques depend on:
Nature of the research question
Design of the research
Interpreting and assessing the research results are critical
Marketing researchers should always double-check their analysis and avoid overstating the strength of their findings
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Preparation of Research Report
Research report: Complete statement of everything done in a research project
Includes:
Write-up of each of the stages
Strategic recommendations from the research
Should be clear and unambiguous with respect to what was done and what recommendations are made
Researchers should work closely with managers to ensure that the study and its limitations are fully understood
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Criteria for Evaluating Marketing Research Reports, 1
Was the type of research appropriate for the research questions?
Was the research well designed?
Was the sample studied appropriate for the research questions?
Were measures well developed, pretested, and validated?
Were the data analysis techniques the best ones for the study?
Was there adequate supervision of data collection, editing, and coding?
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Criteria for Evaluating Marketing Research Reports, 2
Was the analysis conducted according to standards accepted in the field?
Do the findings make sense, given the research question and design, and were they considered in light of previous knowledge and experience?
Are the limitations of the study recognized and explained in detail?
Are the conclusions appropriately drawn or are they over- or understated?
Are the recommendations for marketing strategy clear and appropriate?
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Test Marketing and Its Limitations, 1
Goal: To measure new product sales on a limited basis where competitive retaliation and other factors are allowed to operate freely
Helps estimate future sales potential
Limitations of test marketing
Test market areas are not representative of the market in terms of population characteristics, competition, and distribution outlets
Sample size and design are incorrectly formulated
Pretest measurements of competitive brand sales are not made or are inaccurate
Test scores do not give complete support to the study
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Test Marketing and Its Limitations, 2
Test-market products are advertised or promoted beyond a profitable level for the market in general
Effects of factors that influence sales are ignored in the research
Test-market period is too short to determine whether the product will be repurchased
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Marketing Information Systems, 1
Computer-based systems that help gather, sort, store, and distribute information for marketing decisions
Consist of a coordinated collection of data, tools, techniques, and models by which marketers gather and interpret relevant information for decision making
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Marketing Information Systems, 2
Require the following types of software:
Database management software: Sorts and retrieves data from internal and external sources
Model base management software: Contains routines for manipulating data in order to make it useful for marketing decision making
Dialog system: Permits marketers to explore databases and use models to produce information to address their decision-making needs
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Marketing Information Systems, 3
Designed to handle information from both internal and external sources
Internal information
Helps investigate the efficiency and effectiveness of various marketing strategies
Includes sales records, inventory data, and expenditure data
External information
Gathered from outside the organization
Concerns changes in the environment that could influence marketing strategies
Information from marketing research studies conducted by an organization is fed into marketing information systems to improve marketing strategy development
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APPENDIX
Figure 2.1: The Five Ps of the Research Process, Appendix
This figure presents five rectangular boxes placed one on top of the other. An arrow points from one rectangle to the next to denote a process. No arrow originates from the last rectangle. Arrows on the right side connect each of the rectangular boxes to show the interconnectivity between the processes.
The first rectangle is labeled purpose of research. The second rectangle is labeled plan of the research. The third rectangle is labeled performance of the research. The fourth rectangle is labeled processing of research data. The fifth rectangle is labeled preparation of research report.
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