Agenda for 10.18.11

1. Agenda for 10.18.11 • Define Key Terms • Problem definition • Primary data • Secondary data • Survey method • Observation method • Point-of-sale research • Experimental method • Data analysis • Sample • Read & Take Notes • Ch. 29.1, pages 610-617 • Answer ?’s 1-3 on pg. 617 (Note: You can work together!) • I will notes, key terms and questions! • These are due today! • The Persuaders • Times They Are A Changin’…

2. The Marketing Research ProcessChapter 29, Section 1

3. Steps in the MR Process • Defining the problem • Obtaining data • Primary • Secondary • Analyzing the data • Recommending solutions • Applying the results

4. Step 1: Defining the Problem • Business clearly identifies a problem or research issue and the information that is necessary to solve it • Ex: If sales are declining, you must obtain info on who is buying product, competitors, and why customers stopped buying products

5. Step 2: Obtaining Data • Data collected and examined in terms of problem(s) being studied • Two types of data: • Primary • Secondary

6. Primary and Secondary Data • Primary Data: collected 1st time by researcher; specifically for research project; new data gathered to help solve the problem at hand. • Secondary Data: Published accessible data from a variety of sources for research and other purposes • Data collected for another purpose, but may be reanalyzed in a subsequent study

7. Primary Secondary

8. Primary Data is collected by 3 methods • Survey method • Observation method • Experimental method

9. Survey Method • Information gathered directly through surveys and questionnaires • Most frequently used • Sample: a part of the target populations that is assumed to represent the entire population • Size depends on money and time • Larger the sample more accurate the results

10. Data collection instruments • Personal interview: face-to-face • Focus group: 8-12 people who evaluate product/service/ads with moderator • Telephone interview • Mail survey • Internet Surveys • Automatic Dialers

12. Observation Method • Actions of people are observed and recorded • Get information about customer behavior and preferences • Used to view the interaction between customers and employees • If observation is properly performed, results are often better then survey technique • What people actually do is usually better than what they SAY they will do! • Cannot measure attitude; only provides info on what person does, not WHY they do it

13. Observations Styles… • Contrived situation: set up by researcher in controlled situation • Natural situation: customers and employees viewed in natural situation • hidden cameras, traffic count, wear of floor • Point of Sale Research: combines natural with personal interview. Observe shoppers for specific patterns and then approach to ask questions when finished

14. Experimental Method • Researchers observe under controlled conditions • Change one or more variables and keep others constant • Used for new package design, new promotions, media usage • Used least often & costly • People respond different in controlled situations • Research less valuable

15. Step 3: Analyzing the Data • Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

16. Step 4: Recommending Solutions to the Problem • Successful research results in information that helps managers make decisions about problems • Conclusions drawn from research are usually present at report

17. Step 5: Applying the Results • If data gathered does not help answer questions, results are inconclusive and more research is needed • If data gathered does help, recommendations are acted on and monitored

18. Follow up Questions • What are the five steps of the marketing research process? • What is the difference between primary and secondary research? 3. Why is Step #1 of the marketing research process so important? (Define the problem?)