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Obtaining Data for Marketing Decisions

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Chapter

Objectives

1. Describe the development and current status of the marketing research functions.

2. Present the steps of the marketing research process.

3. Discuss the nature and source of primary and secondary data.

4. Outline the methods of collecting survey data.

5. Discuss the nature of marketing information systems, and relate them to the marketing research function.

7Obtaining Data for Marketing Decisions

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Chapter

Marketing Research

• The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.

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7-2

Chapter

The Marketing Research Process

Obtaining Data for Marketing Decisions 7Figure 7.1

Collect secondary data

Design sample and collect data

Determine the data collection method and forms

Receive feedback on research and decision effectiveness

Collect primary data; observations, surveys, experiments

Develop the research design

Formulate the problem• do exploratory research• formulate hypotheses

Information is perceived

Interpret and present information

Make decision in response to the information need7-3

Chapter

Exploratory Research

• Learning about the problem area and beginning to focus on specific areas of study by discussing the problem with informed sources within the firm (a process often called situation analysis) and with knowledgeable others outside the firm (the informal investigation).

Obtaining Data for Marketing Decisions 7

7-4

Chapter

Topics for the Exploratory Analysis (1 of 4)

Obtaining Data for Marketing Decisions 7Table 7.1

7-5a

The Company and Industry • Company objectives

• The companies in the industry (size, financial power) and the industry trends

• Geographic locations of the industry

• The company’s market share as compared with the competitor’s

• Marketing policies of competitors

Chapter

Topics for the Exploratory Analysis (2 of 4)

Obtaining Data for Marketing Decisions 7Table 7.1

7-5b

The Market

Products

• Geographic location• Demographic characteristics of

the market• Purchase motivations• Product-use patterns• Nature of demand

• Physical characteristics• Consumer acceptance--

strengths and weaknesses• Package as a container and as

a promotional device• Manufacturing processes,

production capacity.• Closeness and availability of

substitute products.

Chapter

Topics for the Exploratory Analysis (3 of 4)

Obtaining Data for Marketing Decisions 7Table 7.1

7-5c

Market Channels

Sales Organization

• Channels employed and recent trends

• Channel policy• Margins for resellers

• Market coverage• Sales analysis by number of

accounts per salesperson, size of account, type of account,etc.

• Expense ratios for various territories, types of product, size of accounts, etc.

• Control procedures• Compensation methods

Chapter

Topics for the Exploratory Analysis (4 of 4)

Obtaining Data for Marketing Decisions 7Table 7.1

7-5d

Pricing

Advertising and sales

promotion

• Elasticity• Season or special promotional

price cuts• Profit margins of resellers• Legal restrictions• Price lines

• Media employed• Dollar expenditures as compared

with competitor’s• Timing of advertising• Sales promotional materials

provided for resellers• Results from previous advertising

and sales promotional campaigns.

Chapter

Hypothesis

• A tentative explanation about the relationship between variables as a starting point for further testing.

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Research Design

• A series of advance decisions that, taken together, make up a master plan or model for conducting the investigation.

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Data Collection

Primary Data

• Data being collected for the first time.

Secondary Data

• Previously published matter.

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Advantages of Secondary Data

• Less expensive

• Faster and easier to obtain

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Limitations of Secondary Data

• Obsolete

• Fit

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Collecting Primary Data

1. Observation

2. Survey• Telephone interviews• Self-completed surveys• Personal interviews

3. Controlled Experiment

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Test Marketing

• Selecting areas considered reasonably typical of the total market, and introducing a new product to these areas with a total marketing campaign to determine consumer response before marketing the product nationally.

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Sampling Techniques

• Population (Universe)

• Probability Sample

• Convenience Sample

• Quota Sample• Simple Random

Sample

Obtaining Data for Marketing Decisions 7

• Census• Nonprobability

Sample• Judgement Sample• Cluster Sample• Systematic Sample

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Population or Universe

• The total group that the researchers wants to study.

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Census

• A collection of marketing data from all possible sources.

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Probability Sample

• A sample in which every member of the population has known chance of being selected.

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Nonprobability Sample

• A sample chosen in an arbitrary fashion so that each member of the population dose not have a representative chance of being selected.

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Convenience Sample

• A non-probability sample base on the selection of readily available respondents.

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Judgement Sample

• A non-probability sample of people with a specific attribute.

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Quota Sample

• A non-probability sample that is divided so that different segments or groups are represented in the sample.

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Cluster Sample

• A probability sample that is generated by randomly choosing one or more areas or population clusters and then surveying all members in the chosen cluster(s).

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Simple Random Sample

• A probability sample in which every item in the relevant universe has an equal opportunity of being selected.

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Systematic Sample

• A probability sample that takes every nth item on a list, after a random start.

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Marketing Information System

• A set of routine procedures to continuously collect, monitor, and present internal and external information on company performance and opportunities in the marketplace.

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Information components of a Firm’s MIS

Obtaining Data for Marketing Decisions 7Figure 7.3

7-25

Sales analysis

Cost analysis

Financial records

Purchase of syndicated Commercial data

• Marketing research studies by the MR department• Secondary data

Internal

External

Information

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