Ch. 10 Marketing Research - Marketing Minute
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Chapter 10 – Marketing Research
LEARNING OBJECTIVES
LO 10-1 Identify the five steps in the marketing research process.
LO 10-2 Describe the various secondary data sources.
LO 10-3 Describe the various primary data collection techniques.
LO 10-4 Summarize the differences between secondary data and primary data.
LO 10-5 Examine the circumstances in which collecting information on consumers is
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These are the learning objectives for this chapter.
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Step 1: Defining Objectives and Research Needs
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To determine whether to conduct research, two questions must be addressed: What? How?
What information is needed to answer specific research questions?
How should that information be obtained?
Step 2: Designing the Research
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In this step, researchers identify the type of data needed and determine the type of research necessary to collect it.
Type of data
Type of research
Step 3: Data Collection Process
Secondary data
Primary data
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After answering why and how, researchers must determine where they can find the data. Discuss how the types of data required determine the methods used to collect them. If you can connect to your college library – look at some of the data sources at your own school. Dabases like mintel, tablebase, ABI inform and Business Source Premier are excellent sources of data.
Group activity: As a group, tackle a problem for a company (e.g., local retailer who appears to be losing customers), For this problem, list several research questions that secondary data can answer. Then list several questions that require primary data.
Converting data into information to explain, predict and/or evaluate a particular situation.
Step 4: Analyzing Data and Developing Insights
©Getty Images
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The problem today is not too little data but, in many instances, too much. Firms are drowning in data, and their challenge is to convert that data into information.
For the cookie taste test example discussed earlier, suppose the average mean for the group who saw the national brand cookie was 5.4 (1=poor taste and 7=great taste) and the store brand cookie was (2.3. These two means are significantly different. It would be important for the students to realize that the data helps marketing managers make decisions – in this case – creating and cultivating that the brand is important.
Step 5: Action Plan and Implementation
Digital Vision/Getty Images
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A typical marketing research report would start with a two page executive summary. This would highlight the objectives of the study, methodology and key insights. The body of the report would go through the objectives of the study, issues examined, methodology, analysis and results, insights and managerial implications. We would end with conclusions and any limitations or caveats. Many consultants today, provide an executive summary, power point presentation of the report, questionnaire and tabulated study results
Executive Summary
Body
Conclusions
Limitations
Supplements including tables, figures, appendices
What are the steps in the marketing research process?
What is the difference between data and information?
check yourself
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Define objectives and research needs, designing the research project, deciding on the data collection process and collecting the data. analyze and interpret the data, prepare the findings for presentation.
Data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers. However, when the data are interpreted, they become information.
External Secondary Data Syndicated Data
| Name | Services Provided |
| ACNielsen (www.acnielsen.com) | With its Market Measurement Services, the company tracks the sales of consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes. |
| SymphonyIRI Group (www.symphonyiri.com) | InfoScan store tracking provides detailed information about sales, share, distribution, pricing, and promotion across a wide variety of retail channels and accounts. |
| J.D. Power and Associates (www.jdpower.com) | Widely known for its automotive ratings, it produces quality and customer satisfaction research for a variety of industries. |
| Mediamark Research Inc. (www.mediamark.com) | Supplies multimedia audience research pertaining to media and marketing planning for advertised brands. |
| National Purchase Diary Panel (www.npd.com) | Based on detailed records consumers keep about their purchases (i.e., a diary), it provides information about product movement and consumer behavior in a variety of industries. |
| NOP World (www.nopworld.com) | The mKids US research study tracks mobile telephone ownership and usage, brand affinities, and entertainment habits of American youth between 12 and 19 years of age. |
| Research and Markets (www.researchandmarkets.com) | Promotes itself as a one-stop shop for market research and data from most leading publishers, consultants, and analysts. |
| Roper Center for Public Opinion Research (www.ropercenter.uconn.edu) | The General Social Survey is one of the nation’s longest running surveys of social, cultural, and political indicators. |
| Simmons Market Research Bureau (www.smrb.com) | Reports on the products American consumers buy, the brands they prefer, and their lifestyles, attitudes, and media preferences. |
| Yankelovich (www.yankelovich.com) | The MONITOR tracks consumer attitudes, values, and lifestyles shaping the American marketplace. |
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Secondary data are plentiful and free, whereas syndicated data generally are more detailed but can be very costly.
Ask students: Why might firms subscribe to a data service and collect their own primary and secondary data at the same time?
External Secondary Data Scanner Research
Courtesy The Nielsen Co
IRI Website
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Students may not remember a time before grocery stores used scanners, but highlight how the installation of scanners created a huge new data source for marketers.
Ask students: What can researchers take from scanner data?
Students might note that researchers can discover which consumers purchase what products together and how often. They also can immediately track the impact of any price or promotional adjustments. This web link brings you to IRI homepage – explore their many products with the students.
External Secondary Data Panel Research
Group of consumers
Survey or sales receipts
What are they
buying
or not buying?
©BananaStock/PunchStock
Flying Colours Ltd/Getty Images
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In recent years, response rates to marketing research surveys have declined, which has increased usage of research panels.
Internal Secondary Data
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Every day, consumers provide wide-ranging data that get stored in increasingly large databases.
Ask students: How might firms and organizations collect information about you? Do you always know when you are providing such data? Who uses these data? In the United States, firms use opt-out programs, so when consumers fill out a registration form or application, the firm automatically has permission to market to that customer and share information with its partners, unless consumers explicitly revoke this permission. In contrast, the EU regulations state that customers must opt-in to such information uses.
Data Warehouse
Data Mining
What is the difference between internal and external secondary research?
check yourself
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Secondary data might come from free or very inexpensive external sources, such as census data, information from trade associations, and reports published in magazines. Secondary sources can also be accessed through internal sources, including the company’s sales invoices, customer lists, and other reports generated by the company itself.
Qualitative versus Quantitative Data Collection Techniques
Data
collection
research
Qualitative research
Quantitative research
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Managers commonly use several exploratory research methods: observation, in-depth interviewing, focus group interviews, and projective techniques.
If the firm is ready to move beyond preliminary insights, it likely is ready to engage in conclusive research, which provides the information needed to confirm those insights and which managers can use to pursue appropriate courses of action.
Observation
In-Depth interviews
Focus groups
Social media
Experiments
Scanner
Survey
Panel
Data Collection
In-Store Tracking Analytics
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Example of observation: When a museum wanted to know which exhibits people visited most often, it conducted a unique study to determine the wear patterns in the floor. This “human trace” evidence allowed the museum to study flow patterns.
Interviews provide extremely valuable information, because researchers can probe respondents to elicit more information about interesting topics. Focus groups similarly provide a snapshot of customers’ opinions and allow some follow-up but also are relatively fast and inexpensive to conduct.
Video: “The Brave New World of Shopper-Tracking Technology”
Ask students what are the advantages to a company in tracking a customer’s behavior inside a store?
Ask students what are the advantages to a company of combining a customer’s in-store behavior with their online shopping behavior?
WSJ: http://live.wsj.com/video/the-brave-new-world-of-shopper-tracking-technology/7503B9D6-2F0D-40B8-9684-E293BA3E9207.html#!7503B9D6-2F0D-40B8-9684-E293BA3E9207
Qualitative Research
Observation
Social Media
Focus group
In-depth interview
What are the types of qualitative research?
check yourself
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Observation, In-Depth Interviews, Focus Groups, and Social Media.
Survey Research
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Marketing research relies heavily on questionnaires, and questionnaire design is virtually an art form. Ask students the advantages and disadvantages of each type of question (unstructured and structured).
Group activity: Create a questionnaire. First determine the form of the questions (i.e., structured versus unstructured). On the basis of these questions, what types of analysis will you be able to perform on your collected data?
Web Surveying
Response rates are relatively high
Respondents may lie less
It is inexpensive
Results are processed and received quickly
Simon Fell/Getty Images
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Ask students: Do you fill out internet surveys? If so, were you honest in your responses. Ask students whether they took their time with the survey and gave quality responses.
How do firms successfully use web surveying?
Using Web Surveying
The McGraw-Hill Companies, Inc/
John Flournoy, photographer
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The Internet offers researchers a new way to reach customers, but its use requires adaptations and new research methods.
AP Photo/Mary Altaffer
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Using an experiment, McDonald’s would “test” the price of a new menu item to determine which is the most profitable
This web link is to a YouTube ad (always check before class) by Microsoft for Vista. It is called the Mojave experiment and is designed to show the relationship between the Vista name and “liking” of a computer system.
An example of an experiment could involve two groups of subjects. One taste cookies with a national brand and the other with a store brand. Each group rates the cookie on a seven point scale from poor to great taste. The group with the branded name tends to rate the cookie as better tasting, demonstrating the power of a brand name.
Group Activity: Ask students to design a taste test experiment for Coke vs. Pepsi.
Advantages and Disadvantages of Secondary and Primary Data
| Type | Examples | Advantages | Disadvantages |
| Secondary Research | |||
| Primary Research |
Census data
Sales invoices
Internet information
Books
Journal articles
Syndicated data
Saves time in collecting data because they are readily available
Free or inexpensive (except for syndicated data)
May not be precisely relevant to information needs
Information may not be timely
Sources may not be original, and therefore usefulness is an issue
Methodologies for collecting data may not be appropriate
Data sources may be biased
Observed consumer behavior
Focus group interviews
Surveys
Experiments
Specific to the immediate
data needs and topic at hand
Offers behavioral insights
generally not available from
secondary research
Costly
Time consuming
Requires more sophisticated
training and experience to design
study and collect data
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A summary of the advantages and disadvantages of each type of research.
What are the types of quantitative research?
What are the advantages and disadvantages of primary and secondary research?
check yourself
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Experiments, Survey, Scanner, and Panel
see Exhibit 10.9
The Ethics of Using Customer Information
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A strong ethical orientation must be an integral part of a firm’s marketing strategy and decision making. It is extremely important for marketers to adhere to ethical practices when conducting marketing research.
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Strong ethical orientation
Adhere to ethical practices
Under what circumstances is it ethical to use consumer information in marketing research?
What challenges do technological advances pose for the ethics of marketing research?
check yourself
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Many customers demand increasing control over the information that has been collected about them. Companies must disclose their privacy practices to customers before using information.
As technology continues to advance though, the potential threats to consumers’ personal information grow in number and intensity.
Data are raw numbers or other factual information that, on their own, have limited value to marketers.
Glossary
Return to slide
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Data are raw numbers or other factual information that, on their own, have limited value to marketers.
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Experimental research is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.
Glossary
Return to slide
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Experimental research is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.
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Marketing research consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.
Glossary
Return to slide
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Marketing research consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.
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Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time.
Glossary
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Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time.
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Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters.
Glossary
Return to slide
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Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters.
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A survey is a systematic means of collecting information from people that generally uses a questionnaire.
Glossary
Return to slide
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A survey is a systematic means of collecting information from people that generally uses a questionnaire.
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Syndicated data are data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.
Glossary
Return to slide
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Syndicated data are data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.
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