Market Research

Chapter 9

What is Market Research? “The process of

planning, collecting, and analyzing data relevant to a marketing decision.”

Decision support system

Why is marketing research important?

Concerns Respondent knowledge Respondent honesty Respondent actions

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

The Marketing Research ProcessDefine the Problem

Plan the Design & Collect Primary Data

Specify the Sampling Procedure

Collect the Data

Analyze the Data

Prepare & Present the Report

Follow Up

Step 1: Define the Problem Marketing research problem

Set the research objectives

Step 2: Plan the Design & Gather Primary Data

Research Design Primary Data

Pros: Cons:

Secondary Data Pros: Cons:

Step 2: Plan the Design & Gather Primary Data

Types of Primary Research Survey research

In-home personal interviews

Mall-intercept Telephone interviews Mail surveys Executive interviews Focus groups

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

Step 2: Plan the Design & Gather Primary Data

Types of Primary Research Survey research (cont’d)

Questionnaire Design Open-ended Close-ended Scaled-response

Likert scale Semantic differential scale

Errors Leading questions Ambiguous question Unanswerable question 2-1 question Nonexhaustive question Nonmutually exclusive answers

Step 2: Plan the Design & Gather Primary Data

Types of Primary Research Observation

research Mystery shopper Behavioral targeting

Ethnographic research

Virtual shopping Experiments

Source: http://yoursecretshopper.com

Information Overload What is it? Information technology

Databases Sensitivity analysis Data Mining

Extraction of hidden predictive information from large databases

Links between the two actions or products

Step 3: Specify the Sampling Procedure

Population v. sample

Types of sampling procedures Probability sampling

Random sample Nonprobability sampling

Convenience sample

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

Collecting the Data In-house Hire a company

Analyze the data Statistical software

SPSS

Step 6: Prepare & Present Results

Step 7: Follow Up Prepare & Present

Formal report Recommendations

Follow Up Additional research

Other Research Internet research

Advantages

Scanner-based research

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

Sales Forecasting Market or industry potential Sales or company forecast

Sales Forecasting How to Forecast

Top-Down Forecast Buildup Forecast

Sales Forecasting Techniques

Judgment of Decision Maker Direct Forecast Lost-horse forecast

Sales Forecasts Techniques Knowledgeable groups

Survey of Buyers’ Intentions Forecast Salesforce Survey Forecast Jury of Executive Opinion Forecast Survey of Experts

Sales Forecasting Techniques

Statistical Methods Trend extrapolation

Look at past results