Five Steps of the Marketing Research Process

1. Five Steps of the Marketing Research Process Define problem – Why are you doing this research (ex: people hate to dust furniture) Obtain Data Analyze Data Recommend Solution (go to your boss – share your idea) Apply Results

2. 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publications • Advantage –obtained quickly/less expensive • Disadvantage– may not be suitable for particular problem/outdated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. 3 Methods of Primary • Survey Method • Observation Method • Experimental Method

4. #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)

5. 3 Types of Survey • Personal Interview – • Advantages – • people would rather talk than write/honest • Disadvantages – • timely/costly

6. 3 Types of Survey • Telephone Interviews – • Advantages – • quick, efficient, relatively inexpensive • Disadvantages – • low response, resent intrusion on personal time at home

7. 3 Types of Survey • Mail Survey – • Advantages – • inexpensive, reach large audience • Disadvantages – • return rate = 10-20 percent

8. #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

9. #3 - Way to obtain primary data • Experimental Method – • Change one or more variable • Example: candy wrappers