Three Part Target Market Selection and Research
Chapter 06
Marketing Research and Information Systems
Chapter Learning Objectives
1. To define marketing research and understand its importance 2. To describe the basic steps in conducting marketing research 3. To explore the fundamental methods of gathering data for marketing research 4. To understand how tools such as databases, decision support systems, and the Internet facilitate marketing information systems and research 5. To identify key ethical and international considerations in marketing research
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Chapter Outline
The Importance of Marketing Research The Marketing Research Process
Locating and Defining Problems or Research Issues Designing the Research Project Collecting Data Interpreting Research Findings Reporting Research Findings
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Chapter Outline (contd)
Using Technology to Improve Marketing Information Gathering and Analysis
Marketing Information Systems Databases Marketing Decision Support Systems
Issues in Marketing Research
The Importance of Ethical Marketing Research International Issues in Marketing Research
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The Importance of Marketing Research
Marketing Research
The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
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The Benefits of Marketing Research
Helps firms stay in touch with customers changing attitudes and purchase patterns Aids in the development of marketing mixes that match the needs of customers Assists in better understanding of market opportunities Determine the feasibility of a particular marketing strategy Improves marketers ability to make decisions
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Figure 6.1: The Five Steps of the
Marketing Research Process
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Locating and Defining Problems or Research Issues
Focusing on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation
Departures from normal or expected marketing results Biases in marketing information that distort its meaning Evidence of possible or potential market opportunities
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Designing the Research Project
Research Design
An overall plan for obtaining the information needed to address a research problem or issue
Hypothesis
An informed guess or assumption about a certain problem or set of circumstances Accepted or rejected hypotheses act as conclusions for the research effort
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Types of Research
Exploratory Research
Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
Conclusive Research
Research designed to verify insights through objective procedures and to help marketers in making decisions Descriptive Research
Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
Experimental Research
Research that allows marketers to make causal inferences about relationships
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Source: A. Parasuraman, Dhruv Grewal, and R. Krishnan, Marketing Research (Boston: Houghton Mifflin, 2007).
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Research Reliability and Validity
Reliability
A condition existing when a research technique produces almost identical results in repeated trials
Validity
A condition existing when a research method measures what it is supposed to measure
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Collecting Data
Types of Data
Primary data: data observed and recorded or collected directly from respondents Secondary data: data complied both inside and outside the organization for some purpose other than the current investigation
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Source: Adapted from Tutorial: Finding Information for Market Research, KnowThis.com www.knowthis.com/tutorials/marketing/information-for-market-research/ (accessed Jan. 23, 2007).
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Source: Adapted from Tutorial: Finding Information for Market Research, KnowThis.com www.knowthis.com/tutorials/marketing/information-for-market-research/ (accessed Jan. 23, 2007).
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Methods of Collecting Primary Data
Sampling
Population: all the elements, units, or individuals of interest to researchers for specific study Sample: a limited number of units chosen to represent the characteristics of a total population
Types of Sampling
Probability: each element has an known chance for study Random: each element has an equal chance for study Stratified: study population divided into like groups Nonprobability: elements likelihood of study is unknown Quota: population is grouped and elements are arbitrarily chosen
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Survey Methods
Mail Survey Telephone Survey Online Survey Personal Interview Survey
In-home (door-to-door) interview Focus-group interview Customer advisory boards Telephone depth interview Shopping mall intercept interviews
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Questionnaire Construction
Open-Ended Question
What is your general opinion about coffee shops? _____________________________________________________ _______________________________________________
Dichotomous Question
Have you ever purchased a coffee product? Yes _____ No _____
Multiple-Choice Question
What income group are you in? $0-$19,000 _____ $20,000-$59,999 _____ $60,000-$99,000 _____ more than $100,000 _____
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Observation Methods for Data Collection
Direct contact with subject is avoided to reduce possible awareness of observation process. Physical conditions, subject actions, and demographics are noted. Observations may be combined with same subject interviews. Data gathered may be influenced by observer bias.
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Interpreting Research Findings
Statistical Interpretation
Analysis of survey data to determine what is typical or what deviates from the average that indicates:
How widely the responses vary How the responses are distributed Which hypotheses are supported Which hypotheses are rejected Whether construction errors have invalidated the surveys results
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Reporting Research Findings
Take an objective look at survey findings
Report deficiencies and reasons for deficiencies
Prepare a formal, written document
Summary and recommendations
Short, clear, and simply expressed for executives
Technical report
Contains more detailed information about research methods and procedures and important data gathered
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Using Technology to Improve Marketing Information Gathering and Analysis
Marketing Information Systems
A framework for the management and structurin...