Download Ch 4 - International Business courses

Marketing Research:
Gather, Analyze, and Use Information
Chapter Four
© 2012 Pearson Education, Inc. publishing as Prentice-Hall
Chapter Objectives
 Explain the role of a marketing
information system and marketing
decision support system in marketing
decision making
 Understand the data mining and realize
how marketers can put it to good use
 List and explain the steps and key
elements of the marketing research
process
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Real People, Real Choices:
Decision Time at Discover Card
 Which option should Ryan undertake?
• Option 1: Continue to use the same new
project prioritization process that has
been used in the past
• Option 2: Modify the process to include
existing consumer input Discover can
easily access
• Option 3: Engage an outside firm to
assist Discover in developing a new
process
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Knowledge Is Power
 Marketing research provides accurate,
up-to-date, and relevant information
 Marketing research should be
conducted in an ethical manner
 Marketing information systems:
• Determine what information marketing
managers need, then gathers, sorts,
analyzes, stores, and distributes
information to system users
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Marketing Information Systems
 Marketing information systems (MIS)
include multiple components:
• Data:
Internal
company data
Marketing intelligence
Marketing research
Acquired database
• Computer hardware and software
• Information for marketing decisions
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Internal Company Data
 Internal data:
• Information from within the company
• Used to produce reports on the results
of sales and marketing activities
• Commonly accessed via Intranets
• Intranet:
Internal corporate communications
network that links company
departments, employees, and
databases
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Marketing Intelligence
 Marketing intelligence systems
Method that marketers use to gather
information about everyday
happenings in the marketing
environment
• Gathered via monitoring everyday
sources, observation, and discussions
with salespeople or others
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Marketing Research
 Market research:
Collecting, analyzing, and interpreting
data about customers, competitors,
and the business environment to
improve marketing effectiveness
• Syndicated research
• Custom research
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Acquired Databases
 External databases can be used to
collect a variety of information from
different sources:
• Non-competing businesses
• Government databases
 Misuse of databases can be
problematic and has led to do-not-call
lists and anti-spam laws
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Marketing Decision Support
Systems
 Marketing decision support systems:
Data plus analysis and interactive
software that allow managers to
conduct analyses and find the
information that they need
• Includes statistical and modeling
software tools
• Helps answer “What if” type questions
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Searching for Gold: Data Mining

Data mining:
Sophisticated analysis techniques to take
advantage of the massive amount of
transaction information available now
• Data warehouses
• Reality mining
• Data mining applications in marketing:
 Customer
acquisition
 Customer retention and loyalty
 Customer abandonment
 Market basket analysis
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Steps in the Marketing
Research Process
 Step 1: Define the research problem:
• Specifying research objectives
• Identifying the consumer population of
interest
• Placing the problem in an
environmental context
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Steps in the Marketing
Research Process
 Step 2: Determine the research design
• Determine whether secondary data are
available
• Determine whether primary data are
required and if so, what type:
Exploratory
research
Descriptive research
Causal research
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Secondary and Primary Research
 Secondary data
• Information collected for some purpose
other than the problem at hand
 Primary data:
• Information collected directly from
respondents to specifically address the
question at hand
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Exploratory (Qualitative) Research
 Exploratory research techniques
generate insights for future, more
rigorous studies
• Typically involve in-depth consumer
probing
• Take many forms:
Focus
groups
Case studies
Ethnography
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Descriptive (Quantitative)
Research
 Descriptive research studies:
• Probe systematically into the problem
• Base conclusions on large numbers of
observations
• Typically expresses results in
quantitative terms
• Often use cross-sectional design
• Sometimes a longitudinal design is
used
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Causal Research
 Causal research:
Technique that attempts to understand
cause-and-effect relationships
• Experiments test predicted
relationships among variables in a
controlled environment:
Independent
variables are factors that
might cause a change
Dependent variables are those which
measure a change in outcome
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Steps in the Marketing Research
Process
 Step 3: Choose the method to collect
primary data:
• Determine which survey methods are
most appropriate
• Determine which observational
methods are most appropriate
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Survey Methods
 Survey methods are used to interview
respondents
 Questionnaires:
• Mail questionnaire
• Telephone interviews
• Face-to-face interviews
• Online questionnaires
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Observation Research
 Observation:
Data collection method where the
researcher records consumers’
behaviors, often without their
knowledge
• Personal observation
• Mechanical observation
• Unobtrusive measures
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Online Research


Advantages of online research
Types of online research:


Cookies allow marketers to track consumers
Predictive technology is made possible by
online research
Concern over consumer privacy is growing
Disadvantages of online research


• Gathering information via consumer surfing
• Gathering information via online sources
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Data Quality:
Garbage In, Garbage Out
 How much faith should marketing
managers place in research? Three key
considerations include:
• Validity
• Reliability
• Representativeness
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Step 4: Design the Sample
 Probability sampling:
• Each member of the population has
some known chance of being included
• Sample is representative of population,
and inferences about population are
justified
 Types of probability sampling:
• Simple random sampling
• Systematic sampling
• Stratified sampling
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Step 4: Design the Sample
 Nonprobability sample:
• Personal judgment is used in selecting
respondents
• Some members of population have no
chance of being included so sample is
not representative of population
 Types of nonprobability sampling:
• Convenience sampling
• Quota sampling
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Step 5: Collect the Data


Conclusions are only as good as the quality
of data collected
Challenges associated with gathering data in
foreign countries include:
• Differences in sophistication of research
•
•
•
•
operations
Infrastructure/transportation challenges
Lack of phones and/or low literacy rates
Local customs and cultural differences
Language translation difficulties
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Step 6: Analyze and Interpret
the Data
 Data must be analyzed and interpreted
to be meaningful
 Tabulation:
• Arranging data in a table or other
summary form to get a broad picture of
overall responses
 Cross-tabulation:
• Examining the data by subgroups to
see how results vary between
categories
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Step 7: Prepare the Research
Report
 Research reports typically contain the
following sections:
• Executive summary
• Description of research methods
• Discussion of study results
• Limitations of study
• Conclusions and recommendations
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Real People, Real Choices:
Decision Made at Discover Card
 Ryan chose option 3
• Why do you think that Ryan chose to
engage an outside firm to assist
Discover in developing a new process?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Keeping It Real: Fast-Forward to
Next Class Decision Time at (RED)
 Meet Julie Cordua, VP Marketing—(RED)
 (RED) works with international brands to
make unique products and directs up to
50% of gross profits to the Global Fund
 The decision to be made:
Is partnering with mass market
international brands the optimal way
to generate money for the
Global Fund?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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