MM2711 Introduction to Marketing

1. MM2711Introduction to Marketing Marketing Research Week 12

2. 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?

3. Roles of Marketing Research • Gathering and presenting factual statements Descriptive Diagnostic • Explaining data • Attempting to estimate the results of a planned marketing decision Predictive

4. 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.

5. 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.

6. The Marketing Research Process

7. Step 1: Defining the Objectives and Research Needs

8. Step 2: Designing the Research Project Secondary data Primary data

9. 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.

10. 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.

11. Conclusive Research Methods Descriptive Experimental

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

13. Web Surveying • Response rates are relatively high • Respondents may lie less • It is inexpensive • Results are processed and received quickly

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

15. Information Resources, Inc. AC Nielsen What if I reduce my price by 10%? Scanner Research Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters.

16. Panel Research Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time. Group of consumers Survey or sales receipts What are they buying or not buying?

17. Step 4: Analyzing Data Converting data into information to explain, predict and/or evaluate a particular situation.

18. Step 5: Presenting Results

19. 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?

20. Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.

21. Advantages of Primary Data • Answers a specific research question • Data are current • Source of data is known • Secrecy can be maintained

22. Disadvantages of Primary Data • Expensive • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews

23. Secondary Data Data previously collected for any purpose other than the one at hand.

24. Internal Information Marketing Research Firms Trade and Industry Associations National Research Bureaus Professional Associations Commercial Publications Sources of Secondary Data

25. 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.

26. 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

27. Disadvantages of Secondary Data • May not be on target with the research problem • Quality and accuracy of data may pose a problem

28. Qualitative and Quantitative Data • Qualitative data • Not numerical • Labels or categories • Quantitative data • Numerical • Be processed statistically (e.g. calculating mean, max, min, etc)

29. 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, …)

30. Quantitative data examples • Voltage • Height • Weight • Exam score • Number of students arriving late for class • Number of days to complete a task