Marketing Research

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Learning Outcomes:

LO1: Define marketing research

LO2: Explain the importance of marketing research

LO3: Describe the steps involved in conducting a marketing research project

What is

“Marketing Research”?

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Marketing Research – Defined

 The process of planning, collecting, & analyzing data relevant to a marketing decision.

 Why? To make better decisions.

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The Role of Marketing Research

Diagnostic

Predictive

Descriptive

 Gathering and presenting factual statements

 E.g., What is the historic sales trend in oil sector?

 Explaining data  E.g., What is the impact on sales after

mobile advertising?

 “What if?”  E.g., What will be the revenue if we

increases mobile advertising?

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Management Uses of Marketing Research

 Improve the quality of decision making

 Trace problems

 Focus on keeping existing customers

 Understand the marketplace

 Gauge the value of goods and services, and the level of

customer satisfaction

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Collect Data

Specify Sampling Procedure

Study Primary Data

Identify the Problem

Analyze Data

Prepare/ Present Report

Follow Up

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Steps Involved in Conducting a Marketing Research Project

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Step 1: Problem/Opportunity Identification

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 provide insightful decision- making information.

A broad-based problem that requires marketing research in order for managers to take proper actions.

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Step 2: Primary Data • Information collected for the first time. • Can be 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

Disadvantages:

Expensive

Quality declines if interviews are lengthy

Reluctance to participate in lengthy interviews

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Example 1. Survey Research • The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. • Forms of Survey Research

Focus Groups

Executive Interviews

Mail Surveys

Telephone Interviews

Mall Intercept Interviews

In-Home Interviews

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Survey Design – Types of Questions

Open-Ended Question

Closed-Ended Question

An interview question that encourages an answer phrased in respondent’s own words.

An interview question that asks the respondent to make a selection from a limited list of responses.

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Criteria for Good Questions

Clear and concise

Reasonable terminology

Only one question

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Example 2. Observation Research

• “The systematic process of recording the behavioral patterns of people, objects,

and occurrences without questioning them.”

• Four types of observation (Examples?) People watching people People watching an activity Machines watching people Machines watching an activity

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Step 3: The Sampling Procedure

Sample

Universe

A subset from a large population.

The population from which a sample will be drawn.

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Types of Samples

Probability Samples

Simple Random Sample

Stratified Sample

Cluster Sample

Systematic Sample

Non-Probability Samples

Convenience Sample

Judgment Sample

Quota Sample

Snowball Sample

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Assignment

Read the textbook to summarize the different types of probability sampling and

nonprobability sampling.

Due: Next class (hard copy).

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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.

Probability Samples

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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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Step 4: Collect Data - Secondary Data • Data previously collected for any purpose other than the one at hand. • Sources of Secondary Data – • Advantages/disadvantages? • New trend?

Government Agencies

Trade and Industry Associations

Business Periodicals

News Media

Internal Corporate Information

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Step 5: Analyzing the Data

One-way frequency counts – record the responses to a question.

Cross-Tabulation – “A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.”

Step 6: 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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Step 7: 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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