Chapter 4 Marketing Research: Gather, Analyze, and Use Information

Chapter 4

Marketing Research:Gather, Analyze, and Use

Information

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall4-2

Chapter Objectives

Explain the role of the marketing information system and the marketing decision support system in marketing decision making

Understand data mining and how marketers can put it to good use

List and explain the steps and key elements of the marketing research process

Appreciate the importance of high ethical standards in marketing research


Real People, Real Choices:Decision Time at Plan-It Marketing

What marketing research strategy would maximize results of the research within a reasonable budget?– Option 1: conduct exploratory qualitative

study– Option 2: conduct quantitative survey of

700+ leisure and business travelers– Option 3: conduct viability study with both

qualitative exploratory study and confirmatory quantitative study


Knowledge Is Power

Accurate, up-to-date, relevant information is the fuel that runs the marketing engine

Marketing information systems:– Determine what information marketing

managers need, then gathers, sorts, analyzes, stores, and distributes information to system users


Marketing Information Systems

Marketing information systems (MIS) include multiple components:– Data:

• Internal company data• Marketing intelligence• Marketing research• Acquired database

– Computer hardware and software– Information for marketing decisions


Internal Company Data

Internal data:Information from within the company to produce reports on the results of sales and marketing activities

Intranet: Internal corporate communications network that links company departments, employees, and databases


Marketing Intelligence

Marketing intelligence systems:Method by which marketers get information about everyday happenings in the marketing environment– Example: Monitoring the Internet and using

“mystery shoppers” Futurists specialize in predicting

consumer trends


Marketing Research

Market research:Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness– Syndicated research– Custom research


Acquired Databases

External databases can be used to collect a variety of information from different sources– Non-competing businesses– Government databases

Misuse of databases can be problematic and has led to do-not-call lists and antispam laws


Marketing Decision Support Systems

Marketing decision support systems: Data plus analysis and interactive software that allow managers to conduct analyses and find the information that they need


Searching for Gold: Data Mining

Data mining:Includes sophisticated analysis techniques to take advantage of the massive amount of transaction information now available

Analysts sift through data to identify unique patterns of behavior among different customer groups for use in behavioral targeting


What Marketers Can Do with Data Mining

Data mining applications in marketing:– Customer acquisition– Customer retention and loyalty – Customer abandonment – Market basket analysis


Steps in the Marketing Research Process

Step 1: Define the research problem– Specifying research objectives– Identifying consumer population of interest – Placing the problem in an environmental

context



Step 2: Determine the research design– Determine whether secondary data are

available– Determine whether primary data are required

and if so, what type:• Exploratory research• Descriptive research• Causal research


Secondary and Primary Research

Secondary data:– Have been collected for some purposes other

than the problem at hand

Primary data: – Information collected directly from

respondents to specifically address the question at hand


Exploratory (Qualitative) Research

Exploratory research techniques generate insights for future, more rigorous studies– Typically involve in-depth consumer probing– Take many forms:

• Consumer interviews• Focus groups• Productive techniques• Case studies• Ethnography


Descriptive (Quantitative) Research

Descriptive research studies:– Probe systematically into the problem– Base conclusions on large numbers of

observations– Typically expresses results in quantitative

terms (averages, percentages, other stats)• Cross-sectional design• Longitudinal design


Causal Research

Cause-and-effect relationships: A change in one thing causes a change in something else– Independent (cause) vs. dependent (change

in outcome) variables– Experiments test predicted relationships

among variables in a controlled environment



Step 3: Choose the method for collecting primary data– Survey methods are used to interview

respondents– Questionnaires:

• loosely, moderately, or completely structured

– Observational research methods– Online research


Questionnaires

Mail questionnaires Telephone interviews Face-to-face interviews

– Mall intercept

Online questionnaires


Observational Methods

Observation: Data collection method where the researcher records consumers’ behaviors, often without their knowledge– Personal observation – Mechanical observation– Unobtrusive measures


Online Research

Types of online research:– Gathering information via consumer surfing – Gathering information via Web site/

e-mail/chat room questionnaires/focus groups Online research used as part of:

– New-product development– Estimating market response– Exploratory research

IM and focus groups


Data Quality:Garbage In, Garbage Out

How much faith should marketing managers place in research? Three key considerations include:– Validity– Reliability– Representativeness


Step 4: Design the Sample

Probability sampling:– Each member of the population has some

known chance of being included– Sample is representative of population, and

inferences about population are justified Types of probability sampling:

– Simple random sampling – Systematic sampling – Stratified sampling


Step 4: Design the Sample

Nonprobability sample– Personal judgment used in selecting

respondents– Some members of population have no

chance of being included so sample is not representative of population

Types of nonprobability sampling– Convenience sampling – Quota sampling


Step 5: Collect the Data

Challenges to gathering data in foreign countries include:– Differences in sophistication of research

operations – Infrastructure/transportation challenges – Lack of phones and/or low literacy rates– Local customs and cultural differences– Language translation difficulties


Step 6: Analyze and Interpret the Data

Data must be analyzed and interpreted to be meaningful

Tabulation: – Arranging data in a table or other summary

form to get a broad picture of overall responses

Cross-tabulation: – Examining the data by subgroups to see how

results vary between categories


Step 7: Prepare the Research Report

Research reports typically contain the following sections:– Executive summary– Description of research methodology– Discussion of results including tabulations,

cross-tabulations– Limitations of study– Conclusions and recommendations


Ethics in Marketing Research

Marketing research ethics:Taking an ethical and above-board approach to conducting marketing research that does no harm to the participant in the process of conducting the research– Researchers must provide full disclosure of

confidentiality and anonymity options


Real People, Real Choices: Decision Made at Plan-It Marketing

Cindy chose option 3, conducting both qualitative and quantitative research– Implementation: Concept design was refined

using input from qualitative research; quantitative study of 700 business and leisure travelers confirmed viability of Priceline’s business model concept

– Measuring success: Used total unduplicated reach and frequency analysis


Keeping It Real: Fast-Forward to Next Class Decision Time at (RED)

Meet Julie Cordua, VP Marketing—(RED) (RED) works with international brands to

make unique products and directs up to 50% of gross profits to the Global Fund

The decision to be made: Is partnering with mass market international brands the optimal way to generate money for the Global Fund?


Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

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Chapter 4 Marketing Research: Gather, Analyze, and Use Information