Chapter 29 Conducting Marketing Research 1 Marketing Essentials Chapter 29 Conducting Marketing...

Chapter 29 Conducting Marketing Research 1

Marketing EssentialsMarketing Essentials

Chapter 29 Conducting Marketing Research

Section 29.1 Marketing Research


SECTION 29.1SECTION 29.1

What You'll LearnWhat You'll Learn

Marketing ResearchMarketing Research

The steps in conducting marketing research

The difference between primary and secondary data

The various methods used to collect primary and secondary data


SECTION 29.1SECTION 29.1 Marketing ResearchMarketing Research

Why It's ImportantWhy It's Important

Businesses that want to increase their customer base must have information about the attitudes and behaviors of customers and prospective customers. Marketing research can provide information for strategies that will increase sales and profits.



Key TermsKey Terms

problem definition

primary data

secondary data

survey method

sample

observation method

point-of-sale research

experimental method

data analysis



The five steps that a business follows when conducting marketing research are:

1. Defining the problem.

2. Obtaining data.

3. Analyzing the data.

4. Recommending solutions.

5. Applying the results.

The Marketing Research Process



Step 1: Defining the Problem

The most difficult step in the marketing research process is defining the problem. Problem definition occurs when a business clearly identifies a problem or research issue and the information that is necessary to solve it.



Step 2: Obtaining Data

In obtaining data, companies collect and examine data (facts) in terms of the problem or problems being studied. There are two types of data used in marketing research:

primary data

secondary data

Slide 1 of 2



Step 2: Obtaining Data

Primary data are data obtained for the first time and used specifically for the particular problem or issue under study.

Secondary data have already been collected for some purpose other than the current study. Secondary data are less expensive to collect than primary data.

Slide 2 of 2



Secondary data are obtained from both internal sources (within the company) and external sources (outside the company). Sources of secondary data include:

A business’s own marketing information system.

The Internet—digital dossiers provide company profiles, income statements, and balance sheets.

How Secondary Data are Obtained

Slide 1 of 2



U.S. government sources, such as the Small Business Administration, Department of Commerce, Census Bureau, and Securities and Exchange Commission.

Consumer and business information companies.

Business and trade publications.

How Secondary Data are Obtained

Slide 2 of 2



Advantages of Secondary Data

Secondary data can be obtained easily, since the data are either on the Internet, in corporate, public, and college libraries, or can quickly be purchased from syndicated services.



There are two major disadvantages associated with secondary data:

The existing data may not be suitable or available for the problem under study.

The data may not be accurate.

Disadvantages of Secondary Data



When marketing researchers cannot find the information they need from secondary data, they collect primary data. Primary data may be collected using three methods:

the survey method

the observation method

the experimental method

How Primary Data Are Obtained



The survey method, the most frequently used method, is a research technique in which information is gathered from people through the use of surveys or questionnaires.

In a census, researchers survey the entire target population.

More common is the use of a sample, a part of the target population that is assumed to represent the entire population.

The Survey Method

Slide 1 of 3



Surveys can be conducted in person, by phone, by mail, or by using Internet technologies.

The personal interview involves questioning people face-to-face, often in central locations such as shopping malls (a mall intercept interview).

A focus group interview involves 8 to 12 people brought together to evaluate a specific product, service, or idea.

The Survey Method

Slide 2 of 3



Less expensive than personal interviews are phone, mail, and Internet surveys.

Phone interviews often have low response rates.

Mail surveys have better, but still low, response rates.

Internet survey methods are increasing in popularity. They are quick; they eliminate data entry; and they allow real-time data collection.

The Survey Method

Slide 3 of 3



Charts such as this one are typically included in a research report. Why are charts often included?

Rating Quality of Service



The observation method is a research technique in which the actions of people are watched and recorded either by cameras or observers. Properly performed and recorded observations supply better results than survey techniques provide.

Mystery shoppers are researchers posing as customers in retail stores to evaluate salespeople.

The Observation Method

Slide 1 of 3




The observation technique may use either contrived or natural situations. The researcher sets up contrived observations. Example: Allowing children to play with selected

toys to determine which is most popular.In natural observation, customers or employees are viewed as they would normally act in a given situation. Example: Hidden cameras, traffic counts.

Slide 2 of 3




Point-of-sale researchers observe shoppers to decide which ones to choose as research subjects—shoppers buying a specific type of product, product brand, or shoppers who inspect a product but do not buy it. After observation, researchers approach the selected shoppers and ask them questions.

Slide 3 of 3



The Experimental Method

The experimental method, the least-often used method, is a research technique in which a researcher observes the results of changing one or more marketing variables while keeping certain other variables constant under controlled conditions.



Step 3: Analyzing the Data

Data analysis is the compiling, analyzing, and interpreting of the results of primary and secondary data collection.



Step 4: Recommending Solutions to the Problem

Successful research results in information that helps businesses make decisions on how to solve a problem. The conclusions drawn from the research usually are presented in an organized and well-written report.



Step 5: Applying the Results

Managers use the research report to make decisions about marketing strategies in relation to the researched problem or issue. In evaluating the research, managers may find that the research was inconclusive, additional research may be needed, or the research suggests specific courses of action.


29.1 ASSESSMENTASSESSMENT

Reviewing Key Terms and Concepts1. What are the five steps for designing and

conducting a research study?

2. Explain the difference between primary and secondary data.

3. Name the methods used most frequently to collect secondary data.

4. Name the methods used most frequently to collect primary data.

5. What is meant by data analysis?


29.1 ASSESSMENTASSESSMENT

Thinking Critically

Many retail stores now ask customers after each sale to give their phone number or ZIP code. Do you support this type of data collection? Why or why not?


29.1 Graphic OrganizerGraphic Organizer

The Marketing Research Process

Define theDefine theproblemproblem

ObtainObtainDataData

AnalyzeAnalyzeDataData

RecommendRecommendSolutionsSolutions

ApplyApplyResultsResults


Marketing EssentialsMarketing Essentials

End of Section 29.1

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