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MM2711Introduction to Marketing

Marketing Research

Week 12

LEARNING OBJECTIVES

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Learning Objectives

What are the necessary steps to conduct marketing research?

What are primary and secondary data, qualitative and quantitative data, and when should each be used?

LEARNING OBJECTIVES

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DiagnosticDiagnostic

PredictivePredictive

DescriptiveDescriptive

Gathering and presenting factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

Roles of Marketing Research

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Marketing Research

Data are raw numbers or other factual information that, on their own, have limited value to marketers.

Marketing research consists of a set of techniques and principles for systematically collecting, recoding, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas.

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Using Marketing Information Systems to Create Better Value

A marketing information system (MkIS) is a set of procedures and methods that apply to the regular, planned collection, analysis, and presentation of information that then may be used in marketing decisions.

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The Marketing Research Process

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Step 1: Defining the Objectives and Research Needs

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Step 2: Designing the Research Project

Secondary dataSecondary data Primary dataPrimary data

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Step 3: Data Collection Process

Exploratory research attempts to begin to understand the phenomenon of interest and provides initial information when the problem lacks any clear definition.

Conclusive research provides the information needed to confirm preliminary insights and which managers can use to pursue appropriate courses of action.

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Exploratory Research Methods

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.

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Conclusive Research Methods

Descriptive Experimental

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Survey Research

A survey is a systematic means of collecting information from people that generally uses a questionnaire.

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Web Surveying

Response rates are relatively high

Respondents may lie less

It is inexpensive Results are

processed and received quickly

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Experimental Research

Using an experiment, McDonald’s would “test” the price of a new menu item to determine which is the most profitable.

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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Scanner Research

Information Resources, Inc.

AC Nielsen

What if I reduce my price by

10%?

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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Panel Research

Group of consumers Survey or sales receipts

What are they buying

or not buying?

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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Converting data into information to explain, predict and/or evaluate a

particular situation.

Converting data into information to explain, predict and/or evaluate a

particular situation.

Step 4: Analyzing Data

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Step 5: Presenting Results

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Learning Objectives

What are the necessary steps to conduct marketing research?

What are primary and secondary data, qualitative and quantitative data, and when should each be used?

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Primary Data

Information collected for the first time.

Can be used for solving the particular problem under investigation.

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Advantages of Primary Data

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

Expensive

Quality declines if interviews are lengthy

Reluctance to participate in lengthy interviews

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Secondary Data

Data previously collected for any purpose other

than the one at hand.

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Sources of Secondary Data

Marketing Research Firms

Trade and Industry Associations

National Research Bureaus

Professional Associations

Commercial Publications

Internal Information

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Syndicated Data

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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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 be on target with the research problem

Quality and accuracy of data may pose a problem

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Qualitative and Quantitative Data

Qualitative data Not numerical Labels or categories

Quantitative data Numerical Be processed statistically (e.g.

calculating mean, max, min, etc)

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Qualitative data examples

Automobile make (e.g. Ford, Honda)Questionnaire response (e.g.

disagree, neutral, agree)Tutorial section (e.g. TUT001,

TUT002, …)Colors (e.g. red, yellow, blue, …)

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Quantitative data examples

Voltage Height Weight Exam score Number of students arriving late for

class Number of days to complete a task