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Marketing research and information

Chapter five

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Why do marketers need to do research?

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What Good Information does for Marketers

o Helps gain a competitive edge.o Reduces the risks of marketing actions and strategy

implementation.o Provides key consumer insights.o Verifies intuitions and certain types of evidence.o Measures market performance.o Improves overall organizational effectiveness.

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Internal Data

o Internal databases store information (or in some cases paper files) Collected from different functions within the company The challenge is to integrate and make information usable (data-

mining)o Types of information that may be useful includes:

customer’s names, addresses, phone #, past purchases, responses to previous offers Demographic characteristics

o Intranet A company’s private decision support system that uses Internet

standards and technology.

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What’s Happening?

o http://www.parkwhiz.com/cowboys-stadium-parking/super-bowl-xlv-15459/

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Types of Data

o Secondary Data or information that has been gathered and

published by other parties. Publications, websites, directories.

o Primary Data or information that is gathered directly. from the

subjects of the research. Interviews, focus groups, observation, surveys,

experiments.

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What is marketing research?

o The systematic design, collection, analysis, and reporting of data relevant to a specific situation facing an organization

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Types of Marketing Researcho Exploratory research: marketing research to gather

preliminary information that will help define problems and suggest hypotheses Focus group discussions, personal interviews Gathering of secondary data

o Descriptive research: marketing research to better describe marketing problems, situations, or markets Surveys, observational studies

o Causal research: marketing research to test hypotheses about cause-and-effect relationships between variables of interest. Experiments in controlled conditions

Discussion Question

Question1 – page 134

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Observational Research

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

Video

Burke Inc. Methodologies

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The Research Process

1 2

3 4

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Research Process: Stage 1 defining the problem

o Problems are Often Opportunitieso Don’t Confuse Symptoms with the Real Problemo Exploratory Research

Descriptive research Causal research Focus group interview

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Research Process: Stage 2Planning the research design

o Research Using Primary Data Surveys Observation Experiments

o Research Designs Using Secondary Data (exhibit 5.4)

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Research Process: Stage 3Sampling, Collecting & Analyzing data

o Sampling Data Three questions:1. Who is to be sampled?2. How big should the

sample be?3. How should the sample

be selected? Sample Selection:

Probability Sample vs. nonprobability sample

o Collecting Data Pre-testing

o Analyzing Data Editing & Data analysis

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Research Process: Stage 4drawing conclusions and follow-up

o Drawing Conclusions

o Follow-up:get feedback!

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Typical Problems in Wording Questions

PROBLEM SAMPLE QUESTION EXPLANATION

Leading question

Ambiguous question

Unanswerable question

Two questions in one

Why do you like Wendy’s fresh meat hamburgers better than those of competitors made with frozen meat?

Do you eat at fast-food restaurants regularly? Yes No � �

What was the occasion for your eating your first hamburger?

Do you eat Wendy’s hamburgers and chili? Yes No� �

Consumer is led to make statement favoring Wendy’s hamburgers

What is meant by word regularly-once a day, once a month, or what?

Who can remember the answer? Does it matter?

How do you answer if you eat Wendy’s hamburgers but not chili?

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Typical Problems in Wording Questions

PROBLEM SAMPLE QUESTION EXPLANATION

Non-exhaustive question

Nonmutually exclusive answers

Where do you live? At home In dormitory� �

What is your age? Under 20 20-40 40 and over� � �

What do you check if you live in an apartment?

What answer does a 40-year old check?