Market ResearchMarket Research

Chapter 9Chapter 9

What is Market Research?What is Market Research?

““The process of The process of planning, collecting, and planning, collecting, and analyzing data relevant analyzing data relevant to a marketing to a marketing decision.”decision.”

Decision support systemDecision support system Why is marketing Why is marketing

research important?research important? ConcernsConcerns

Respondent knowledgeRespondent knowledge Respondent honestyRespondent honesty Respondent actionsRespondent actions

Source: http://www.era-az.com/xeber/market_research.png

The Marketing Research The Marketing Research ProcessProcess

Plan the Design & Gather Primary Data

Specify the Sampling Procedure

Collect the Data

Analyze the Data

Prepare & Present Report

Define the Problem

Follow Up

Step 1: Define the ProblemStep 1: Define the Problem

Marketing research problemMarketing research problem

Set the research objectivesSet the research objectives

Step 2: Plan the Design & Step 2: Plan the Design & Gather Primary DataGather Primary Data

Research DesignResearch Design Primary DataPrimary Data

Pros:Pros: Cons:Cons:

Secondary DataSecondary Data Pros:Pros: Cons:Cons:

Step 2: Plan the Design & Step 2: Plan the Design & Gather Primary DataGather Primary Data

Types of Primary Types of Primary ResearchResearch Survey researchSurvey research

In-home personal In-home personal interviewsinterviews

Mall-interceptMall-intercept Telephone Telephone

interviewsinterviews Mail surveysMail surveys Executive interviewsExecutive interviews Focus groups Focus groups

Source: http://www.sesrc.wsu.edu

Step 2: Plan the Design & Step 2: Plan the Design & Gather Primary DataGather Primary Data

Types of Primary ResearchTypes of Primary Research Survey research (cont’d)Survey research (cont’d)

Questionnaire DesignQuestionnaire Design Open-endedOpen-ended Close-endedClose-ended Scaled-responseScaled-response

Likert scaleLikert scale Semantic differential scaleSemantic differential scale

ErrorsErrors Leading questionsLeading questions Ambiguous questionAmbiguous question Unanswerable questionUnanswerable question 2-1 question2-1 question Nonexhaustive questionNonexhaustive question Nonmutually exclusive answersNonmutually exclusive answers

Step 2: Plan the Design & Step 2: Plan the Design & Gather Primary DataGather Primary Data

Types of Primary Types of Primary ResearchResearch Observation Observation

researchresearch Mystery shopperMystery shopper Behavioral targetingBehavioral targeting

Ethnographic Ethnographic researchresearch

Virtual shoppingVirtual shopping ExperimentsExperimentsSource: http://yoursecretshopper.com

Information OverloadInformation Overload

What is it?What is it? Information technologyInformation technology

DatabasesDatabases Sensitivity analysisSensitivity analysis Data MiningData Mining

Extraction of hidden predictive information Extraction of hidden predictive information from large databasesfrom large databases

Links between the two actions or productsLinks between the two actions or products

Step 3: Specify the Sampling Step 3: Specify the Sampling ProcedureProcedure

Population v. samplePopulation v. sample

Types of sampling proceduresTypes of sampling procedures Probability samplingProbability sampling

Random sampleRandom sample Nonprobability samplingNonprobability sampling

Convenience sampleConvenience sample

Step 4: Collecting the Data & Step 4: Collecting the Data & Step 5: Analyzing the DataStep 5: Analyzing the Data

Collecting the DataCollecting the Data In-houseIn-house Hire a companyHire a company

Analyze the dataAnalyze the data Statistical softwareStatistical software

SPSSSPSS

Step 6: Prepare & Present Step 6: Prepare & Present ResultsResults

Step 7: Follow UpStep 7: Follow Up Prepare & PresentPrepare & Present

Formal reportFormal report RecommendationsRecommendations

Follow UpFollow Up Additional researchAdditional research

Sales ForecastingSales Forecasting

Market or industry potentialMarket or industry potential Sales or company forecastSales or company forecast

Other ResearchOther Research

Internet researchInternet research AdvantagesAdvantages

Scanner-based Scanner-based researchresearch

Competitive Competitive Intelligence (CI)Intelligence (CI) Source: http://students.egfi-k12.org

Sales ForecastingSales Forecasting

How to ForecastHow to Forecast Top-Down ForecastTop-Down Forecast Buildup ForecastBuildup Forecast

Sales Forecasting Sales Forecasting TechniquesTechniques

Judgment of Decision MakerJudgment of Decision Maker Direct ForecastDirect Forecast Lost-horse forecastLost-horse forecast

Sales Forecasts TechniquesSales Forecasts Techniques

Knowledgeable groupsKnowledgeable groups Survey of Buyers’ Intentions ForecastSurvey of Buyers’ Intentions Forecast Salesforce Survey ForecastSalesforce Survey Forecast Jury of Executive Opinion ForecastJury of Executive Opinion Forecast Survey of ExpertsSurvey of Experts

Sales Forecasting Sales Forecasting Techniques Techniques

Statistical MethodsStatistical Methods Trend extrapolationTrend extrapolation

Look at past resultsLook at past results