Marketing Research

1. 3 Marketing Research

2. ROAD MAP: Previewing the Concepts • Importance of information to the company and its understanding of the marketplace • Marketing information system • Marketing research • How companies analyze and distribute marketing information. • Special issues some marketing researchers face: • public policy and ethics issues. Professor Takada

3. ROAD MAP • Importance of information to the company and its understanding of the marketplace • Marketing information system • Marketing research process • How companies analyze and distribute marketing information. • Special issues some marketing researchers face: • public policy and ethics issues. Professor Takada

4. The Importance of Information • Companies need information about their: • Customer needs • Marketing environment • Competition • Marketing managers do not need more information, they need better information. Professor Takada

5. Information Overload “In this oh so overwhelming information age, it’s all too easy to be buried, burdened, and burned out by data overload.” Professor Takada

6. ROAD MAP • Importance of information to the company and its understanding of the marketplace • Marketing information system • Marketing research process • How companies analyze and distribute marketing information. • Special issues some marketing researchers face: • public policy and ethics issues. Professor Takada

7. The Marketing Information System Professor Takada

8. Marketing Information System • An MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. • The MIS helps managers to: • Assess Information Needs • Develop Needed Information • Distribute Information Professor Takada

9. Assessing Information Needs • A good MIS balances the information users would like against what they really need and what is feasible to offer. • Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations. • Have to decide whether the benefits of more information are worth the costs. Professor Takada

10. Developing Marketing Information • Internal Databases: Electronic collections of information obtained from data sources within the company. • Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. • Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Professor Takada

11. ROAD MAP • Importance of information to the company and its understanding of the marketplace • Marketing information system • Marketing research • How companies analyze and distribute marketing information. • Special issues some marketing researchers face: • public policy and ethics issues. Professor Takada

12. Marketing Research Defined Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company. Professor Takada

13. The Marketing Research Process 1 2 3 4 Professor Takada

14. Figure 2.3 The Problem Definition and Approach Development Process The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed Professor Takada Step 3: Research Design

15. Figure 2.5 Discussion Between the Researcher and the DM Discussion Discussion Between the Researcher and the DM Focus of the DM Focus of the Researcher • Symptoms • Loss of Market Share • Underlying Causes • Superior Promotion by Competition • Inadequate Distribution of Company’s Products • Lower Product Quality • Price Undercutting by a Major Competitor Professor Takada

16. Figure 3.4 A Classification of Market Research Designs A Classification of Market Research Designs Research Design Exploratory Research Design Conclusive Research Design Descriptive Research Causal Research Cross-Sectional Design Longitudinal Design Professor Takada

17. Marketing Research Designs • Exploratory • Research • Gather preliminary information • that will help define the problem • and suggest hypotheses. • Describes things (e.g., market • potential for a product, • Demographics, and attitudes). • Descriptive • Research • Tests hypotheses about • cause-and-effect • relationships. • Causal • Research Professor Takada

18. Figure 3.7 Some Alternative Research Designs Some Alternative Research Designs • Exploratory Research • Secondary Data Analysis • Focus Groups • Conclusive Research • Descriptive/Causal (a) • Conclusive Research • Descriptive/Causal (b) • Exploratory Research • Secondary Data Analysis • Focus Groups • Conclusive Research • Descriptive/Causal (c) Professor Takada

19. Focus Group in Session Professor Takada

20. Developing the Research Plan • Includes: • Determining the exact information needed • Developing a plan for gathering it efficiently • Presenting the written plan to management • Outlines: • Sources of existing data • Specific research approaches • Contact methods • Sampling plans • Instruments for data collection Professor Takada

21. Figure 6.3 A Classification of Marketing Research Data A Classification of Marketing Research Data Marketing Research Data Secondary Data Primary Data Quantitative Data Qualitative Data Causal Descriptive Survey Data Observational and Other Data Experimental Data Professor Takada

22. A Classification of Secondary Data A Classification of Secondary Data Secondary Data Internal External Ready to Use Syndicated Services Published Materials Requires Further Processing Computerized Databases Professor Takada

23. Gathering Secondary Data • Information that already exists somewhere • Internal databases • Commercial data services • Government sources • Available more quickly and at a lower cost than primary data • Must be relevant, accurate, current, and impartial Professor Takada

24. Primary Data Collection • Consists of information collected for the specific purpose at hand. • Must be relevant, accurate, current, and unbiased. • Must determine: • Research approach • Contact methods • Sampling plan • Research instruments Professor Takada

25. Primary Data Collection Research Instruments • Mechanical Devices • People Meters • Supermarket Scanners • Galvanometer • Eye Cameras • Questionnaires • What questions to ask • Form of each question • Closed-ended • Open-ended • Wording • Ordering Professor Takada

26. A Comparison of Primary and Secondary Data Professor Takada

27. Figure 7.3 Methods of Obtaining Quantitative Data in Descriptive Research OBSERVATION Information Obtained by Observing Behavior or Phenomena SURVEY Information Obtained by Questioning Respondents Methods of Obtaining Quantitative Data in Descriptive Research Quantitative Descriptive Research Professor Takada

28. Survey Research • Most widely used method for primary data collection. • Approach best suited for gathering descriptive information. • Can gather information about people’s knowledge, attitudes, preferences, or buying behavior. Professor Takada

29. Strengths & Weaknesses ofContact Methods Professor Takada

30. Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use mutually exclusive categories Allow for “other” in fixed response questions Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words Questionnaire Do’s and Don’ts Professor Takada

31. Question Types - Dichotomous In arranging this trip, did you contact American Airlines?  Yes  No Professor Takada

32. Question Types – Multiple Choice • With whom are you traveling on this trip? •  No one • Spouse • Spouse and children • Children only • Business associates/friends/relatives • An organized tour group Professor Takada

33. Question Types – Likert Scale • Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. •  Strongly disagree • Disagree • Neither agree nor disagree • Agree • Strongly agree Professor Takada

34. Question Types – Semantic Differential American Airlines Large ………………………………...…………….Small Experienced………………….………….Inexperienced Modern………………………..………….Old-fashioned Professor Takada

35. Question Types – Importance Scale • Airline food service is _____ to me. •  Extremely important • Very important • Somewhat important • Not very important • Not at all important Professor Takada

36. Question Types – Rating Scale • American Airlines’ food service is _____. •  Excellent • Very good • Good • Fair • Poor Professor Takada

37. Question Types –Intention to Buy Scale • How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? •  Definitely buy • Probably buy • Not sure • Probably not buy • Definitely not buy Professor Takada

38. Question Types –Completely Unstructured What is your opinion of American Airlines? Professor Takada

39. Question Types –Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________ Professor Takada

40. Question Types –Sentence Completion When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________. Professor Takada

41. Question Types –Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Professor Takada

42. Question Types –Picture (Empty Balloons) Professor Takada

43. Question Types – Thematic Apperception Test Make up a story that reflects what you think is happening in this picture. Professor Takada

44. Observational Research • The gathering of primary data by observing relevant people, actions, and situations. • Ethnographic research: • Observation in “natural environment” • Mechanical observation: • People meters • Checkout scanners Professor Takada

45. Observational Research Fisher-Price set up an observation lab in which it could observe the reactions of little tots to new toys. Professor Takada

46. Figure 8.3 Experimentation as Conclusive Research Experimentation as Conclusive Research Conclusive Research Descriptive Causal Experimentation Field Experiments Laboratory Experiments Professor Takada

47. Experimental Research • Tries to explain cause-and-effect relationships. • Involves: • selecting matched groups of subjects, • giving different treatments, • controlling unrelated factors, and • checking differences in group responses. Professor Takada

48. Sample – segment of the population selected to represent the population as a whole. Requires 3 Decisions: Who is to be surveyed? Sampling unit How many people should be surveyed? Sample size How should the people in the sample be chosen? Sampling procedure Choosing the Sample Professor Takada

49. Probability Simple random Stratified random Cluster Nonprobability Convenience Judgment Quota Types of Samples Professor Takada

50. Implementing the Research Plan Most Expensive & Subject to Error Collecting the Data Research Plan Processing the Data Analyzing the Data Professor Takada