Marketing Research: Gather, Analyze, and Use Information Chapter Four.

Marketing Research:Marketing Research: Gather, Analyze, and Use Gather, Analyze, and Use

InformationInformation

Chapter FourChapter Four

4-2© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Chapter ObjectivesChapter Objectives

Explain the role of a marketing Explain the role of a marketing information system and marketing information system and marketing decision support system in marketing decision support system in marketing decision makingdecision making

Understand the data mining and how Understand the data mining and how marketers can put it to good use marketers can put it to good use

List and explain the steps and key List and explain the steps and key elements of the marketing research elements of the marketing research processprocess


Real People, Real Choices: Real People, Real Choices: Decision Time at Discover CardDecision Time at Discover Card

Which option should Ryan undertake? Which option should Ryan undertake? • Option 1:Option 1: Continue to use the same new Continue to use the same new

project prioritization process that has project prioritization process that has been used in the pastbeen used in the past

• Option 2:Option 2: Modify the process to include Modify the process to include existing consumer input Discover can existing consumer input Discover can easily accesseasily access

• Option 3:Option 3: Engage an outside firm to Engage an outside firm to assist Discover in developing a new assist Discover in developing a new processprocess


Knowledge Is PowerKnowledge Is Power

Marketing research provides accurate, Marketing research provides accurate, up-to-date, relevant information up-to-date, relevant information

Marketing research should be Marketing research should be conducted in an ethical mannerconducted in an ethical manner

Marketing information systems:Marketing information systems:

• Determine what information marketing Determine what information marketing managers need, then gathers, sorts, managers need, then gathers, sorts, analyzes, stores, and distributes analyzes, stores, and distributes information to system usersinformation to system users


Figure 4.1Figure 4.1The Marketing Information The Marketing Information

SystemSystem


Internal Company DataInternal Company Data

Internal dataInternal data• Information from within the companyInformation from within the company

• Used to produce reports on the results Used to produce reports on the results of sales and marketing activitiesof sales and marketing activities

• Commonly accessed via IntranetsCommonly accessed via Intranets

• Intranet: Intranet: Internal corporate communications Internal corporate communications network that links company network that links company departments, employees, and departments, employees, and databasesdatabases


Marketing IntelligenceMarketing Intelligence

Marketing intelligence systems:Marketing intelligence systems:Method by which marketers get Method by which marketers get information about everyday information about everyday happenings in the marketing happenings in the marketing environmentenvironment• Gathered via monitoring everyday Gathered via monitoring everyday

sources, observation, and discussions sources, observation, and discussions with salespeople or otherswith salespeople or others


It’s DebatableIt’s DebatableClass Discussion QuestionClass Discussion Question

One form of marketing intelligence gathering involves sorting through competitor’s trash in search of information.

Can businesses engage in this activity legally? Is it ethical?

What can firms do to protect themselves from this form of intelligence gathering?


Applying Marketing Applying Marketing IntelligenceIntelligence

Marketing managers use marketing intelligence to Marketing managers use marketing intelligence to predict fluctuations in sales or to forecast the predict fluctuations in sales or to forecast the future so they will be on top of developing trendsfuture so they will be on top of developing trends


Marketing ResearchMarketing Research

Market research:Market research:Collecting, analyzing, and interpreting Collecting, analyzing, and interpreting data about customers, competitors, data about customers, competitors, and the business environment to and the business environment to improve marketing effectivenessimprove marketing effectiveness• Syndicated researchSyndicated research

• Custom researchCustom research

Nielsen Reports and Downloads


Marketing ResearchMarketing Research


Acquired DatabasesAcquired Databases

External databases can be used to External databases can be used to collect a variety of information from collect a variety of information from different sourcesdifferent sources

• Non-competing Non-competing businessesbusinesses

• Government databases Government databases

Misuse of databases can be Misuse of databases can be problematic and has led to do-not-call problematic and has led to do-not-call lists and antispam lawslists and antispam laws

The census offers great free information


Figure 4.2Figure 4.2The Marketing Decision The Marketing Decision

Support SystemSupport System


Table 4.1Table 4.1Examples of Questions an MIS Examples of Questions an MIS

and an MDSS Might Answerand an MDSS Might Answer


Searching for Gold: Data Searching for Gold: Data MiningMining

Data mining:Data mining:Sophisticated Sophisticated analysis techniques analysis techniques to take advantage of to take advantage of the massive amount the massive amount of transaction of transaction information now information now availableavailable


Searching for Gold: Data Searching for Gold: Data MiningMining

Data miningData mining

• Data warehousesData warehouses

• Reality miningReality mining

How location-based mobile advertising works


It’s DebatableIt’s DebatableClass Discussion QuestionClass Discussion Question

Location-based advertising and mobile marketing efforts are much more prominent in the United Kingdom than they are in America.

Why isn’t location-based advertising seen as much in the U.S.?

Does mobile marketing have a future? What actions must marketers take for this technique to succeed?

Check out How Adidas used mobile marketing


Figure 4.3Figure 4.3Uses of Data MiningUses of Data Mining


Figure 4.4Figure 4.4Steps in the Marketing Research Steps in the Marketing Research

ProcessProcess


Figure 4.5aFigure 4.5aMarketing Research DesignsMarketing Research Designs


Table 4.2Table 4.2Helpful Internet Sites for Marketing Helpful Internet Sites for Marketing

ResearchResearch

www.opinionresearch.com/www.opinionresearch.com/

www.census.govwww.census.gov

www.marketingpower.comwww.marketingpower.com

www.dialog.comwww.dialog.com

www.lexisnexis.comwww.lexisnexis.com


Figure 4.5bFigure 4.5bMarketing Research DesignsMarketing Research Designs


Exploratory (Qualitative) Exploratory (Qualitative) ResearchResearch

Exploratory research techniques Exploratory research techniques generate insights for future, more generate insights for future, more rigorous studiesrigorous studies

• Typically involve in-depth consumer Typically involve in-depth consumer probingprobing

• Take many forms:Take many forms:Focus groupsFocus groupsCase studiesCase studiesEthnographyEthnography

GoGurtsVideo


Descriptive (Quantitative) Descriptive (Quantitative) ResearchResearch

Descriptive research studies:Descriptive research studies:• Probe systematically into the problemProbe systematically into the problem

• Base conclusions on large numbers of Base conclusions on large numbers of observationsobservations

• Typically expresses results in Typically expresses results in quantitative terms quantitative terms

• Often use cross-sectional designOften use cross-sectional design

• Sometimes a longitudinal design is Sometimes a longitudinal design is used insteadused instead


Causal ResearchCausal Research

Causal research: Causal research: Technique that attempts to understand Technique that attempts to understand cause-and-effect relationshipscause-and-effect relationships• Experiments test predicted Experiments test predicted

relationships among variables in a relationships among variables in a controlled environmentcontrolled environmentIndependent variables are factors that Independent variables are factors that

might cause a changemight cause a changeDependent variables are those which Dependent variables are those which

measure a change in outcomemeasure a change in outcome


Casual ResearchCasual Research

Experiments are conducted in controlled Experiments are conducted in controlled environments in order to eliminate alternative environments in order to eliminate alternative explanations for the results foundexplanations for the results found


Survey MethodsSurvey Methods

Survey methods are used to interview Survey methods are used to interview respondentsrespondents

Questionnaires Questionnaires

• Mail questionnaireMail questionnaire

• Telephone interviewsTelephone interviews

• Face-to-face interviewsFace-to-face interviews

• Online questionnairesOnline questionnaires


Observation ResearchObservation Research

Observation: Observation: Data collection method where the Data collection method where the researcher records consumers’ researcher records consumers’ behaviors, often without their behaviors, often without their knowledgeknowledge

• Personal observation Personal observation

• Unobtrusive measuresUnobtrusive measures

• Mechanical observationMechanical observation


Online ResearchOnline Research

Advantages of online researchAdvantages of online research Types of online research:Types of online research:

• Gathering information via consumer surfing Gathering information via consumer surfing

• Gathering information via online sourcesGathering information via online sources

Cookies allow marketers to track consumersCookies allow marketers to track consumers Predictive technology is made possible by Predictive technology is made possible by

online researchonline research Concern over consumer privacy is growingConcern over consumer privacy is growing Disadvantages of online research Disadvantages of online research


Data Quality:Data Quality:Garbage In, Garbage OutGarbage In, Garbage Out

How much faith should marketing How much faith should marketing managers place in research? Three key managers place in research? Three key considerations include:considerations include:

• ValidityValidity

• ReliabilityReliability

• RepresentativenessRepresentativeness


Step 4: Design the SampleStep 4: Design the Sample

Probability sampling:Probability sampling:• Each member of the population has Each member of the population has

some known chance of being includedsome known chance of being included

• Sample is representative of population, Sample is representative of population, and inferences about population are and inferences about population are justifiedjustified

Types of probability sampling:Types of probability sampling:• Simple random sampling Simple random sampling

• Systematic sampling Systematic sampling

• Stratified sampling Stratified sampling


Step 4: Design the SampleStep 4: Design the Sample

Nonprobability sampleNonprobability sample• Personal judgment is used in selecting Personal judgment is used in selecting

respondentsrespondents

• Some members of population have no Some members of population have no chance of being included so sample is chance of being included so sample is not representative of populationnot representative of population

Types of nonprobability samplingTypes of nonprobability sampling• Convenience sampling Convenience sampling

• Quota sampling Quota sampling


Step 5: Collect the DataStep 5: Collect the Data

Garbage (collector) Garbage (collector) in, garbage outin, garbage out

Data gathering in Data gathering in foreign countries:foreign countries:

• A number of key A number of key challenges exist challenges exist


Step 6: Analyze and Interpret Step 6: Analyze and Interpret the Datathe Data

Data must be analyzed and interpreted Data must be analyzed and interpreted to be meaningfulto be meaningful

Tabulation: Tabulation: • Arranging data in a table or other Arranging data in a table or other

summary form to get a broad picture of summary form to get a broad picture of overall responsesoverall responses

Cross-tabulation: Cross-tabulation: • Examining the data by subgroups to Examining the data by subgroups to

see how results vary between see how results vary between categoriescategories


Table 4.4Table 4.4Examples ofExamples of Data Tabulation and Data Tabulation and

Cross-Tabulation TablesCross-Tabulation Tables


Step 7: Prepare the Research Step 7: Prepare the Research ReportReport

Research reports typically contain the Research reports typically contain the following sections:following sections:

• Executive summaryExecutive summary

• Description of research methodsDescription of research methods

• Discussion of study results Discussion of study results

• Limitations of studyLimitations of study

• Conclusions and recommendationsConclusions and recommendations


Real People, Real Choices: Real People, Real Choices: Decision Made at Discover CardDecision Made at Discover Card

Ryan chose option 3Ryan chose option 3

•Why do you think that Ryan chose to Why do you think that Ryan chose to engage an outside firm to assist engage an outside firm to assist Discover in developing a new process? Discover in developing a new process?


Keeping It Real:Keeping It Real: Fast-Forward to Fast-Forward to Next Class Decision Time at (RED)Next Class Decision Time at (RED)

Meet Julie Cordua, VP MarketingMeet Julie Cordua, VP Marketing——(RED)(RED) (RED) works with international brands to (RED) works with international brands to

make unique products and directs up to make unique products and directs up to 50% of gross profits to the Global Fund50% of gross profits to the Global Fund

The decision to be made: The decision to be made: Is partnering with mass market Is partnering with mass market international brands the optimal way international brands the optimal way to generate money for the to generate money for the Global Fund?Global Fund?


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