Download Market Research

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Market Research
Explain the use and benefits of a marketing information
system and market research.
marketing information system (MIS) A set of procedures and processes for
collecting, sorting, analyzing, and summarizing information on an ongoing basis
5
List and describe the research tools available to marketers.
6
Describe the advantages and disadvantages of primary
research tools.
l
2
l
Understand the importance and challenges of market research
to companies.
Market research is the process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending
actions to improve an organization’s marketing activities.
market research The process of collecting and analyzing information in order to
recommend actions to improve marketing activities
3
Differentiate between exploratory, descriptive, and causal
research.
Primary research data consists of qualitative or quantitative studies. Qualitative studies include focus groups, in-depth interviews, online communities/
bulletin boards, and social listening. Quantitative studies include surveys,
experiments, and observations.
l Secondary research data consists of internal company reports and external
online and offline published studies.
Figure 4–4
Quantitative research: Comparing techniques
TECHNIQUE
EXAMPLES
ADVANTAGES
DISADVANTAGES
Observations
•Portable People Meters
•Google Analytics
•Personal observations of consumer interactions
•Social listening
•Store scanner information
•Reflect actual behaviour
•Highly accurate when collected by
machines
•Mechanical observations reduce
interviewer bias
•Appropriate when respondents cannot clearly articulate opinions
•Do not indicate why consumers behave as they do
•Do not provide data on
attitudes and opinions
•Different researchers may
interpret behaviour differently
•May require further explanation
•Ethical questions exist
around privacy issues
Surveys
•Personal interviews
•Central location interviews such as mallintercepts
•Mail questionnaires
•Telephone interviews
•Internet surveys
•Can ask numerous questions
•Questions are standardized
•Interviewers can often probe for
in-depth answers
•Questions can be administered via
e-mail, mail, telephone, the Internet,
or in person
•Results can be biased by the
methodology
•Results can be influenced by
the interviewer
•Can be expensive and timeconsuming
Experiments
•Test markets
•Simulated test markets
•Lab experiments
•Researchers can change key
variables and measure results in a
controlled setting
•Can avoid costly failures by allowing
marketers to modify marketing
programs prior to full launch
•Can provide a more accurate reflection
and predictor of consumer behaviour
than other forms of research
•Can be expensive and timeconsuming
•Results can be difficult to
interpret
•Actual test markets may be
visible to the competition
•Difficult to find a representative sample
causal research Research designed to identify cause-and-effect relationships
among variables
descriptive research Research designed to describe basic characteristics of a
given population or to clarify their usage and attitudes
exploratory research Preliminary research conducted to clarify the scope and
nature of the marketing problem
4
l
l
l
l
l
l
Identify the step-by-step market research approach.
The first step in the research process is describing the problem, issue, or
opportunity and establishing the research objectives.
The second step involves designing the research plan. This involves identifying
the required information and designing methods to gather it.
During the third step, exploratory research is conducted.
The fourth step involves collecting quantitative research information.
The fifth step is when the data is analyzed and interpreted.
The final step is when the information is translated into reports that include
research highlights, necessary details, and recommendations for future
actions.
Figure 4–1
non-probability sampling Selecting a sample so that the
chance of selecting a particular
element of a population is either
unknown or zero
objectives Specific measurable
goals
probability sampling Selecting
a sample so that each element
of a population has a specific
known chance of being selected
sampling The process of gathering data from a subset of the
total population rather than from
all members of that particular
population
The basic market research process
1
Define problem/issue/opportunity
2
Design the research plan
3
Conduct exploratory and
qualitative research
(secondary data and primary data)
Collect exploratory secondary data
(sources such as internal company reports and external online
and offline published reports)
Collect exploratory primary data
(sources such as focus groups, in-depth interviews, online
communities, bulletin boards, and social listening)
4
Collect quantitative primary research
(online and offline approaches such as
surveys, experiments, and observations)
5
Compile, analyze, and interpret data
6 Generate reports and recommendations
experiment In marketing, changing a variable involved in a customer purchase
to find out what happens
focus group A research technique where a small group of people (usually six
to ten) meet for a few hours with a trained moderator to discuss predetermined
areas
in-depth interview A detailed interview where a researcher questions an individual at length in a free-flowing conversational style in order to discover information that may help solve a marketing problem
observational research Obtained by watching how people behave either in
person, or by using a machine to record the event
omnibus survey The voluntary participation of respondents in routine research
surveys that allow marketers to add a small number of questions to an existing
survey to receive cost-effective data
online research communities The use of consumer groups, brought together
privately in an online environment, to answer questions, respond to ideas, and
collaborate with researchers in real time
online research bulletin boards Private online static forums, without realtime dialogue and engaging conversations, where respondents can post their
responses to questions posed by researchers
panel A sample of consumers or stores from which researchers take a series of
measurements
primary data Information that is newly collected for a project
qualitative research A form of research that uses focus groups and in-depth
interviews to provide insightful and directional information that is not statistically
accurate
quantitative research Statistically reliable information that uses observational
and/or questioning techniques
questionnaire A means of obtaining information by posing questions in person,
through the mail, the telephone, e-mail, fax, or the Internet
Figure 4–5
Advantages and disadvantages of survey techniques
SURVEY
TECHNIQUE
ADVANTAGES
DISADVANTAGES
Personal
interview
•Can probe for detailed responses
•Can demonstrate marketing programs
•Can result in high levels of accuracy
•Time-consuming
•Expensive
•Interviewers can bias responses
Telephone
survey
•Can be conducted quickly and cheaply
•Computerized techniques allow for randomized
calling
•Appropriate when data is needed quickly
•People are reluctant to participate
•Low response rates
•Call-display features screen-out calls •Increasing number of people with no home
phone
•Interviews are limited to 5–10 minutes
•Interviewers can bias responses
•Questionable representativeness of samples
Mail survey
•No interviewer bias
•Useful for national surveys
•If using a panel, can track changes over time
•Can be affordable if part of a syndicated or
omnibus survey
•Lengthy time-lag for data collection
•Low response rates
•Questionable data accuracy
•Inability to probe respondents
Internet survey
•No interviewer bias
•Can be conducted quickly and cheaply
•Efficient for electronic data collection
•High Internet penetration can lead to good
sampling
•Can easily target customer databases
•Useful for national surveys
•If using a panel, can track changes over time
•Can be affordable if part of a syndicated or
omnibus survey
•Difficult to verify respondents’ identity
•Questionable data accuracy due to anonymity
•Inability to probe respondents
•Difficult to provide incentives for completion
•Some debate over sample representativeness
social listening Research that monitors public online consumer conversations on
social media sites such as social networks, blogs, and forums
secondary data Facts and figures that have already been recorded by a third
party
syndicated studies A hybrid of primary and secondary research whereby the
cost of a research study is shared among clients and made available at a price to
interested parties
test market A small localized region used to help determine whether consumers
will buy a new product or brand, or shop at a new store concept