Articles synopsis paper
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MKTG10
Lamb, Hair, and McDaniel
Chapter 9
Marketing Research
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Chapter 9 Decision Support Systems and Marketing Research
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Define marketing research and explain its importance to marketing decision making
The Role of
Marketing Research
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9-1
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Chapter 9 Decision Support Systems and Marketing Research
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The Role of
Marketing Research
Marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision.
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Marketing research plays a key role in the marketing system. It provides data on the effectiveness of the marketing mix and insights for necessary changes.
- Marketing research is a main data source for management information systems.
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The Role of
Marketing Research
1
Diagnostic
Predictive
Descriptive
Gathering and presenting factual statements
(What is the historic sales trend in the industry? What are consumers’
attitudes toward a product?)
Explaining data
(What was the impact on sales after a change in the package design?)
Addressing “what if” questions
(How can research be used to predict the results of a marketing decision?)
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Chapter 9 Decision Support Systems and Marketing Research
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Management Uses of Marketing Research
Marketing research can help managers in several ways:
- It improves the quality of decision making
- It helps managers trace problems
- It can help managers understand detailed and complicated relationships
- It helps managers serve customers accurately and efficiently
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Chapter 9 Decision Support Systems and Marketing Research
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Describe the
steps involved
in conducting
a marketing
research project
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Steps in a Marketing
Research Project
9-2
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1
2
3
4
5
6
7
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9.1
The Marketing Research Process
Collect
Data
Specify
Sampling
Procedure
Plan Design/
Primary Data
Define
Problem
Analyze
Data
Prepare/
Present
Report
Follow Up
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The Marketing Research Project
Marketing Research Problem
Marketing Research Objective
Management Decision Problem
Determining what information is needed and how that information can be obtained efficiently and effectively.
The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information.
A broad-based problem that uses marketing research in order for managers to take proper actions.
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Chapter 9 Decision Support Systems and Marketing Research
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Sources of
Secondary Data
Secondary data is data previously collected for any purpose other than the one at hand.
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
Internal Corporate Information
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Notes:
Secondary data is data previously collected for any purpose other than the one at hand.
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Advantages of
Secondary Data
Saves time and money if on target
Aids in determining direction for primary data collection
Pinpoints the kinds of people to approach
Serves as a basis of comparison for other data
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Disadvantages of
Secondary Data
May not give adequate detailed information
May not be on target with the research problem
Quality and accuracy of data may pose a problem
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The New Age of Secondary Information: The Internet
The rapid development of the Internet has eliminated much of the drudgery associated with the collection of secondary data.
2
Gathering secondary data has traditionally been a tedious boring job.
The researcher often had to write to government agencies, trade associations, or other secondary data providers and then wait days or weeks for a reply that might never come.
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Social Media and Big Data
Through social media monitoring, a researcher can learn what is being said about the brand and the competition.
Monitoring social media and tracking shopping behavior online are only two inputs into the new era of big data.
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Social Media and Big Data
- Big data is the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data.
- Today, more and more firms are using the latest technology to collect, analyze, and make strategic and tactical decisions.
- Big data analytics focuses very much on what. That is, its primary purpose is to uncover what patterns and relationships exist in this database. Often, the insights gained from what are all a marketer needs to create a strategy.
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Planning the Research Design
Which research
questions
must be answered?
How and when
will data be
gathered?
How will
the data
be analyzed?
?
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Primary Data
Information collected for the first time. Used for solving the particular problem under investigation.
Advantages:
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
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Disadvantages of
Primary Data
Primary data can be very expensive. Anywhere from a few thousand to millions.
Disadvantages are usually offset by the advantages of primary data.
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Survey Research
The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
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Forms of Survey Research
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews
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Notes:
- In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
- Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
- Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
- Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
- Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
- Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
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Forms of Survey Research
2
In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
- In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
- Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
- Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
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Chapter 9 Decision Support Systems and Marketing Research
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Forms of Survey Research
2
In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
- Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
- Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
- Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
Chapter 9 Decision Support Systems and Marketing Research
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Questionnaire Design
Open-Ended
Question
Closed-Ended
Question
Scaled-
Response
Question
An interview question that encourages an answer phrased in the respondent’s own words.
An interview question that asks
the respondent to make a selection from a limited list of responses.
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
All forms of survey research require a questionnaire. Questionnaires contain three basic types of questions:
- Open-ended questions
- Closed-ended questions
- Scaled-response questions
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Questionnaire Design
Clear and concise
No ambiguous language
Avoid two questions in one
Avoid leading questions
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Chapter 9 Decision Support Systems and Marketing Research
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Online
CreateSurvey.com
Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.
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Observation Research
2
Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them.
A market researcher using the observation technique witnesses and records information as events occur or compiles evidence from records of past events.
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9.5
Observational Situations
| Situation | Example |
| People watching people | Observers stationed in supermarkets watch consumers select frozen Mexican dinners; the purpose is to see how much comparison shopping people do at the point of purchase. |
| People watching an activity | Observer stationed at an intersection counts traffic moving in various directions. |
| Machines watching people | Movie or videotape cameras record behavior as in the people-watching-people example above. |
| Machines watching an activity | Traffic counting machines monitor traffic flow. |
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Observation Research
Mystery Shoppers
Behavioral Targeting (BT)
Researchers posing as customers who gather observational data about a store.
A form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses.
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Notes:
- Two common forms of people-watching-people research are one-way mirror observations and mystery shoppers.
- Behavioral Targeting (BT) began by placing cookies on users’ browsers to track which Web sites they visited and ultimately match the user with ads they would most likely investigate. Now, BT combines a consumer’s online activity with psychographic and demographic profiles.
Chapter 9 Decision Support Systems and Marketing Research
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Social Media and Big Data
Through social media monitoring, a researcher can learn what is being said about the brand and the competition.
Monitoring social media and tracking shopping behavior online are only two inputs into the new era of big data.
2
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Ethnographic Research
The study of human behavior in its natural context; involves observation of behavior and
physical setting.
2
Ethnographic research comes from the field of anthropology, and is becoming popular in commercial marketing research. Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people.
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Virtual Shopping
Advantages of virtual shopping:
- Creates an environment with a realistic level of complexity and variety.
- Allows quick set up and altering of tests.
- Low production costs.
- High flexibility.
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Experiments
Experiments are used by researchers to gather primary data.
Experiment Variables
Price
Package design
Shelf space
Advertising theme
Advertising expenditures
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Mobile Research
Mobile devices and laptops are being used for all kinds of marketing research. A few techniques that are now employed using mobile devices are:
- Location-based surveys
- Product scanning during the shopping process
- Using cameras on mobile devices to upload digital images and videos
2
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Sampling Procedure
The population or universe must first be defined. Then it is determined if the sample must be representative of the population
Universe
Sample
Probability Samples
Nonprobability Samples
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample or a subset of the larger population.
- The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed.
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Types of Samples
Simple Random Sample
Stratified
Sample
Cluster
Sample
Systematic
Sample
Probability Samples
Non-Probability Samples
Convenience
Sample
Judgment
Sample
Quota
Sample
Snowball
Sample
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Chapter 9 Decision Support Systems and Marketing Research
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Probability Samples
Probability
Sample
A sample in which every element in the population has a known statistical likelihood of being selected.
Random
Sample
A sample arranged so that every element of the population has an equal chance of being selected.
2
The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population.
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Nonprobability Samples
Nonprobability
Sample
Convenience
Sample
Any sample in which little or
no attempt is made to get a representative cross-section of the population.
A form of nonprobability sample
using respondents who are
convenient or readily
accessible to the researcher.
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Types of Errors
Sampling
Error
Error when a sample somehow does not represent the target population.
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error.
- Frame error arises if the sample drawn from a population differs from the target population.
- Random error occurs when the selected sample is an imperfect representation of the overall population.
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Collecting the Data
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Field service firms provide:
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Most primary data is collected by marketing research field service firms.
- Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products.
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Analyzing the Data
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.
- Data is organized by one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.
- One-way frequency tables record the responses to a question. They provide a general picture of the study’s results.
- A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.
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Analyzing the Data
2
In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.
Data is organized by one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.
One-way frequency tables record the responses to a question. They provide a general picture of the study’s results.
A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.
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Chapter 9 Decision Support Systems and Marketing Research
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Preparing and
Presenting the Report
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
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Following Up
- Were the recommendations followed?
- Was sufficient decision-making information included in the report?
- What could have been done to make the report more useful to management?
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Chapter 9 Decision Support Systems and Marketing Research
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Discuss the profound impact of the Internet on marketing research
The Profound Impact of the
Internet On Marketing Research
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9-3
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Impact of the Internet
More than 90 percent of America’s marketing research companies conduct some form of online research.
Online survey research has replaced computer-assisted telephone interviewing as the most popular mode of data collection.
Internet data collection is rated as having the greatest potential for further growth.
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Advantages of
Internet Surveys
Contact with the
hard-to-reach
Improved respondent
participation
Personalized questions
and data
Reduced costs
Rapid development,
Real-time reporting
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Uses of the Internet by
Marketing Researchers
Other types of marketing research
Conduct focus groups
Administer surveys
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Methods of Conducting Online Surveys
- Web Survey Systems
- Google Consumer Surveys
- Online Panel Providers
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Advantages of Online
Focus Groups
Ease of use
Better participation rates
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Better participation rates: Conducted over the course of days, participants less likely to pull out.
- Cost-effectiveness: Face-to-face groups incur costs for facility rental, airfare, hotel, food, etc.
- Broad geographic scope: Time is flexible online, providing a world-wide respondent pool.
- Accessibility: Give access to participants who might otherwise be difficult to recruit.
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Web Community Research
- A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. Web communities:
- Engage customers
- Achieve customer-derived innovations
- Establish brand advocates
- Offer real-time results
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Role of Consumer-Generated Media in Marketing Research
CGM comes from various sources: blogs, message boards, review sites, podcasts, and more.
It is trusted more than traditional advertising.
It can be influenced but not controlled by marketers.
3
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Discuss the growing importance of
mobile research
The Growing Importance
of Mobile Research
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9-4
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Mobile Research
Designed to fit into brief cracks of time, mobile surveys account for thirty percent of interview responses. As new and better apps make the survey experience easier and more intuitive, the use of mobile surveys will continue to rise.
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Notes:
- Mobile research has expanded into both quantitative and qualitative research.
- With today’s mobile qualitative research tools, ethnography shop-alongs can be completely self-guided.
- As screen size decreases, so do survey completion rates. Seventy-six percent of surveys are completed on desktop; 70 percent on tablet; and 59 percent on mobile phone.
Discuss the growing importance of
scanner-based research
Scanner-Based Research
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9-5
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Scanner-Based Research
A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.
BehaviorScan
InfoScan
Research program that tracks the purchases of 3,000 households through store scanners in each research market
Sales-tracking service for the consumer packaged-goods industry
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
- Scanner-based research is used for gathering information by monitoring the marketing mix and purchase behavior of a single group of respondents.
- The two major scanner-based suppliers are SymphonyIRI and The Nielson Company. SymphonyIRI’s first product is called BehaviorScan, which uses assigned ID cards to track grocery and drugstore purchases of household panel participants.
- InfoScan is SymphonyIRI’s tracking service for consumer goods. Data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers.
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Scanner-Based Research
BehaviorScan
With such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior.
InfoScan
Retail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products.
Data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers.
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Explain when marketing research should be conducted
When Should Marketing
Research Be Conducted?
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9-6
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When Should Marketing
Research Be Conducted?
Depends on managers’ perceptions of its quality, price, and timing
When the expected value of research information exceeds the cost of generating the information
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
When managers have several possible solutions to a problem, they should not instinctively call for marketing research. In fact, the first decision to make is whether to conduct marketing research at all.
Identify customer relationships
Store and integrate
customer data using IT
Capture customer data
based on interactions
Identify best customers
Understand interactions
with current customer base
Leverage customer
information
9.8
A Simple Flow Model of the Customer Relationship Management System
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Chapter 21 Customer Relationship Management (CRM)
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Notes:
While CRM appears to be a simplistic customer service strategy, it is only a small part of an integrated, holistic approach to building customer relationships. CRM is described as a closed-looped system that builds relationships with customers. Exhibit 9.8 illustrates this closed-loop system, one that is continuous and circular with no defined starting or end point.
- The CRM cycle is initiated by identifying customer relationships within the organization.
- Next the company must understand the interaction each customer has with the company, building on the initial information collected and developing a useful database.
- Based on knowledge of the customer and his/her interaction with the company, the company can then acquire and capture all relevant information about the customer.
- Technology plays a critical part in a CRM system. Technology is used to store and integrate customer data.
- Not all customers are equally important to a business. Consequently, the company must use data mining to determine its profitable and unprofitable customer segments.
- Once the customer data are analyzed, they are leveraged. Data are transformed into information and disseminated throughout the organization—to the right person in the right place at the right time.
Explain the concept
of competitive intelligence
Competitive Intelligence
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Chapter 9 Decision Support Systems and Marketing Research
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Competitive Intelligence (CI)
An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.
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Chapter 9 Decision Support Systems and Marketing Research
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Notes:
Specifically, competitive intelligence can help identify the advantage and play a major role in determining how it is achieved.
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Sources of
Competitive Intelligence
Internet
Company Salespeople
Industry Experts
CI Consultants
Government Agencies
UCC Filings
Suppliers
Periodicals
Yellow Pages
Trade Shows
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Chapter 9 Decision Support Systems and Marketing Research
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