Chapter 6:Getting the Marketing Information

We Need

Obtaining Good Information

information is key to sound decision making there is an important distinction between data and

information marketing research involves the development,

interpretation, and communication of information to support strategic marketing

marketing information may be collected by a firm or by a research supplier on its behalf, or may come from a marketing information system

Scope of Marketing Research

Marketing research projects are designed to provide managers with answers about:

1. What’s happening in the market

2. Whether new products are attractive

3. Customer and non-customer characteristics

4. What factors influence buying decisions

5. Whether prices and advertising are attractive

6. Whether they like dealing with us

7. How solid our customer relationships are

Qualitative or Quantitative?

qualitative research is growing in popularity as a means of obtaining deeply-held opinions; includes focus groups and individual depth interviews

many marketing research projects involve conducting a survey, by administering a questionnaire to a sample of respondents

surveys produce quantitative data surveys may be conducted in person, by phone or

the Internet, in shopping centres, or by mail

Observation and Experimentation these are less widely-used research methods observation involves collecting data usually

without the knowledge of the subject; may include watching consumers as they shop or collecting data electronically (e.g. on the Web)

experimentation involves the manipulation of one of more variables so as to observe the effect; examples include the use of test markets and of simulations

Planning the Research Project a typical marketing research project will

involve a series of stages:1. defining the objectives of the client2. conducting a situation analysis3. conducting an informal investigation4. conducting the formal investigation;

collecting the data5. analyzing data and preparing a final report6. following up

Approaches to Marketing Research the marketing decision maker must decide

whether he or she needs to collect primary data or secondary data

primary data are collected specifically for the project while secondary data already exist, having been collected for another purpose

syndicated data are collected by a research supplier and may be sold to a number of different clients

The Research Project

Conducting a typical research project will involve several steps:

1. Decide whether primary data are needed

2. Decide how to collect the data through qualitative or quantitative methodologies

3. Design a questionnaire or interview guide

4. Select a sample

5. Collect the data

6. Proceed to data analysis and preparation of a report

Figure 6-1 Marketing Research Procedure

Data-collection Forms questionnaires and other forms are used to record

responses and other data questionnaire design is often a source of bias the wording of questions must ensure that they

are understandable and not leading questions may be in a variety of formats the layout of the questionnaire affects responses questionnaires are pretested to identify problems

Planning the Sample

in survey research, it is advisable to select a sample that is as representative as possible

sample selection often contributes to bias ideally, we would like to have a random sample,

but this is usually not possible most marketing surveys use convenience samples sample size must be large enough to represent the

population and to allow the client to have confidence in the results

Information in Databases marketing data are available from many

sources and are stored in computer databases data may be obtained from sources within and

outside the firm, including customer purchase records

customer loyalty programs contribute valuable data on purchases made

other valuable data are collected by automated systems such as scanner-equipped checkouts

Marketing Information Systems

generally computer-based and involves the production, analysis, storage, dissemination, and retrieval of information to support marketing decision making

it generates reports and studies as needed it integrates old and new data to update

information and to identify trends it analyzes data using mathematical models that

simulate the “real world”

Who Does Marketing Research?

may be done inside or outside a company some large firms have small marketing

research departments which supervise the work of outside consultants

there are many research consultants and full-service supplies across the country

more and more companies are realizing the importance of research to provide the information needed for decision making

Issues in Marketing Research

The main issue facing marketing research is the protection of consumer privacy

Canada has enacted privacy legislation that affects how research may be conducted

At a practical level, researcher must address:Integration of data sourcesObtaining a deeper understanding of consumersGaining greater acceptance of research