1.DEFINE PROBLEM –• Why are you doing this research • (ex: people hate to dust furniture)

2. OBTAIN DATA

3. ANALYZE DATA

4. RECOMMEND SOLUTION• (go to your boss – share your idea)

5. APPLY RESULTS

Five Steps of the Marketing Research Process

Step 2 – Obtain Data

Primary – Information cannot be obtained through secondary You must go out and get the information yourself

Advantage – specific/accurate

Disadvantage – timely/costly

Secondary – data already collected census government publications

Advantage –obtained quickly/less expensive

Disadvantage – may not be suitable for particular problem/outdated

3 Methods of Primary

1. Survey Method

2. Observation Method

3. Experimental Method

#1 - Way to obtain primary data

Survey Method – Most frequently used data gathered directly from people

Sample – part of a target; the larger the better

Must be consistent

Forced choice questions (no opened ended questions)

3 Types of Survey

Personal Interview –

Advantages – people would rather talk than write/honest

Disadvantages – timely/costly

3 Types of Survey

Telephone Interviews –

Advantages – quick, efficient, relatively inexpensive

Disadvantages – low response, resent intrusion on personal time at home

3 Types of Survey

Mail Survey –

Advantages – inexpensive, reach large audience

Disadvantages – return rate = 10-20 percent

#2 - Way to obtain primary data

Observation Method – Actions of people are observed

Contrived – situation is set (example: 5 toys in a room)

Natural – act normal (example: toys r us)

Point of sale – stalker in grocery store

#3 - Way to obtain primary data

Experimental Method – Change one or more variable

Example: candy wrappers