The Marketing Research Process

Lesson Objectives

Explain the steps in designing and conducting marketing research

Compare primary and secondary dataCollect and interpret marketing

informationIdentify elements in a marketing research

report

Marketing Research Process

Defining the problemObtaining data

◦Secondary data◦Primary data

Analyzing the dataRecommending solutionsApplying the findings

Problem definition

What decisions need to be made and what information is needed?

Problem Definition

Objective Question

Determine guest satisfaction with facilities

Determine if vacationers and convention-goers differ in their levels of satisfaction

On a scale of 1 to 5, how would you rate the following resort facilities (list facilities)

What was the primary purpose of your visit?

Obtaining Data

Primary dataSecondary data

Primary Data

Data obtained for the first time and used specifically for a particular question, problem or issueSurvey method

◦Most frequently used◦Sample◦ Internet surveys◦ Interviews

Observation method◦Mystery shopping◦Point-of-sale research

Experimental method◦Test markets◦Package designs◦Media◦Promotions

Secondary Data

Information previously collected for another purposeInternal Sources

◦Monthly sales◦Customer locations

◦Customer buying patterns

◦Popular products

External Sources◦Internet Sources◦U.S. and State

Government◦Specialized

research companies◦Business

Publications◦Trade organizations

Let’s gather some primary data.....

COLA TASTE TEST

Marketing Research Process

Defining the problemObtaining data

◦Secondary data◦Primary data

Analyzing the dataRecommending solutionsApplying the findings

Secondary Data

Information previously collected for another purposeInternal Sources

◦Monthly sales◦Customer locations

◦Customer buying patterns

◦Popular products

External Sources◦Internet Sources◦U.S. and State

Government◦Specialized

research companies◦Business

Publications◦Trade organizations

Analyzing the Data

Process of compiling, analyzing and interpreting the results of primary and secondary data collection

NumberSelected Percent

Cola A 9 33.33%

Cola B 8 29.63%

Cola C 10 37.04%

Total 27 100.00%

Cola Taste PreferencesWoodstock High School Marketing Students

Recommending and Applying Solutions

Presented in Research Report

Clear and well supported

Additional research?Monitor resultsWas action

successful?

Developing a Questionnaire

Explain questionnaire validity and reliability

Define:◦Population◦Sample◦Error◦Bias

Design a marketing research surveyConduct a marketing research project

Validity and Reliability

Validity – questions asked measure what was intended to be measured

Reliability – research technique produces nearly identical results in repeated trials

Statistical Considerations

Population: size of your marketSample: number of people you are using in your research

◦Determined by acceptable errorConfidence Level (95%, e.g.)Confidence Interval (+/- 4%, e.g.)

◦Affects reliability and validityBias: researcher influence

Developing A Questionnaire

Open ended questions: respondents construct their own answers to the question

Forced-choice questions: respondents choose from a list of choices.

Rating Scales – respondents choose numerical or graded choices

Two- Choice Questions

Please answer Yes or No to the following:

1. Did the associates make you feel welcome?Yes No

2. Are you satisfied with the selection? Yes No

3. Was the service prompt? Yes No

Multiple Choice Questions

1. Please choose which of the following is most important to you when deciding where you shop for clothes:

A. Changing Rooms B. Customer Service C. PriceD. SelectionE. Store LocationF. Other _______________________

Rating Questions

1.Please rate the following:

Prices: Excellent Good Fair Poor

Selection: Excellent Good Fair PoorCustomer Service: Excellent Good Fair Poor

Rating Questions

On a scale from 1-10 how satisfied are you with the prices? (1 = poor and 10= excellent)

1 2 3 4 5 6 7 8 9 10

On a scale from 1-10 how satisfied are you with the merchandise selection? (1 = poor and 10= excellent)

1 2 3 4 5 6 7 8 9 10

Questionnaire Format

Use a variety of questionsWrite clear directions for each sectionWell written and easy to readNumber all questionsMessage at the bottom of each page if

more than one pageTest your questionnaire on a small group

The Marketing Research Process