Download Marketing Research

Chapter 7
Marketing Research,
Decision-Support
Systems, and Sales
Forecasting
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Objectives
1. Describe the development of the marketing
research function and its major activities.
2. List and explain the steps in the marketing
research process
3. Differentiate between the types and sources
of primary and secondary data.
4. Explain the different sampling techniques
used by marketing researchers.
5. Identify the methods by which marketing
researchers collect primary data.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Objectives
6. Discuss the challenges of conducting
marketing research in global markets.
7. Outline important uses of computer technology
and marketing research.
8. Identify the major types of forecasting methods
and explain the steps in the forecasting
process.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Marketing Research
• Marketing research: the
process of collecting and
using information for
marketing decisionmaking.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Marketing Research
Suppliers Classifications
• Syndicated Services
– An organization that regularly provides a
standardized set of data to all customers.
• Full-Service Research Suppliers
– An organization that contracts with clients to
conduct complete marketing research projects.
• Limited-Service Research Suppliers
– A marketing research firm that specializes in a
limited number of activities such as conducting
field interviews or performing data processing.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Products
& Services
Info
Press
Search
MRI+
MRI
Interactive
MEMRI
Staff
Directory
Top-Line
Reports
“Mediamark Research offers
comprehensive demographic, lifestyle,
product usage and exposure to all forms of
advertising media collected from a single
sample.”
Source Mediamark Web Site.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
Feedback on
Research and
Marketing Decision
Effectiveness
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
A well-defined
problem
– Permits the
researcher to focus
on securing the
exact information
needed for the
solution and
increases the
speed and
accuracy of the
research process.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
2. Conduct
Exploratory
Research
Feedback on
Research and
Marketing Decision
Effectiveness
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Exploratory Research
– Seeks to discover
the cause of a
specific problem by
discussing the
problem with
informed sources
both within and
outside the firm.
– Can include
evaluation of
company records.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
2. Conduct
Exploratory
Research
3. Formulating a
Hypothesis
Feedback on
Research and
Marketing Decision
Effectiveness
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Formulate a
Hypothesis
A tentative explanation
for some specific
event. A statement
about the relationship
among variables. It
sets the stage for more
in-depth research.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
2. Conduct
Exploratory
Research
3. Formulating a
Hypothesis
4. Creating a
Research Design
Feedback on
Research and
Marketing Decision
Effectiveness
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Create a Research
Design
–A master plan or
model for conducting
marketing research.
–Marketers must be
sure that the study will
measure what they
intend to measure.
–Important design
consideration is the
selection of
respondents.
Marketing Research
• Marketing research can provide important information
about your current or potential customer base.
– Information such as buying habits, needs, opinions,
and preferences are critical and can be obtained
through research.
– Research can be performed in many ways;
surveys, focus groups, personal interviews,
observation and field trials.
– In determining which technique to use
consideration needs to be given to how much
money you are willing to spend, the type of data
needed and how quickly you need the data.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
4. Creating a
Research Design
two kinds of data)
1.Secondary Data
2. Conduct
Exploratory
Research
3. Formulating a
Hypothesis
Collect Data (There are
Feedback on
Research and
Marketing Decision
Effectiveness
5. Collecting Data
a. Primary Data
b. Secondary Data
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
is information from
previously published
or compiled sources.
2.Primary data
refers to information
collected for the first
time specifically for
a marketing
research study.
The Marketing Research Process
1. Defining the
Problem
Perceived
Information
Need
2. Conduct
Exploratory
Research
3. Formulating a
Hypothesis
4. Creating a
Research Design
Feedback on
Research and
Marketing Decision
Effectiveness
5. Collecting Data
a. Primary Data
b. Secondary Data
6. Interpreting and
Presenting the
Research Information
Marketing
Decision
Based on
Information
Collected
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Interpret and Present
Research Information
–Interpret findings and
present them to decision
makers in a format that
allows management to
make effective judgments.
– Researchers must
remember to direct their
reports toward
management and not to
other researchers and
spell out their conclusions
in clear and concise terms.
Sampling Techniques
Sampling is the process of selecting survey
respondents or research participants. Samples can
be classified as:
• Probability Sample is one that gives every member
of the population a chance of being selected. Types of
probability samples include simple random samples,
stratified samples, and cluster samples.
or
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Sampling Techniques
Sampling is the process of selecting survey
respondents or research participants. Samples can
be classified as:
• Non-probability Sample is an arbitrary grouping
that does not permit the use of standard statistical
tests. Types of non-probability samples are
convenience samples and quota samples.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Primary Research Methods
•
•
Slide 1 of 2
Observation Method. Researchers view the overt actions of the subjects.
Survey Method. Ask questions to get information on attitudes, motives, and
opinions. Researchers can use either interviews or questionnaires.
A. Telephone Interviews.
– A quick and inexpensive method for obtaining a small quantity of
relatively impersonal information.
B. Personal Interviews.
– The Best means for obtaining detailed information about
consumers
C. Focus Groups.
– Brings together 8 to 12 individuals in one location to discuss a
subject of interest.
– Usually encourages a general discussion of a predetermined topic.
D. Mail Surveys.
– Cost-effective alternative and also provide anonymity.
– Help markets track consumer attitudes through ongoing research.
– Response rates are typically much lower than for personal
interviews.
– Usually takes a long time to conduct.
– Questionnaire cannot answer unanticipated questions that occur.
– Researchers must worry about bias.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Primary Research Methods
Slide 2 of 2
• Experimental Method. Least-used method for collecting primary
data. Most common use of this method by marketers is testmarketing.
– Three Problems with test-marketing:
– Test-marketing is expensive.
– Competitors quickly learn about the new product.
– Some products are not well-suited to test-marketing.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Marketing Decision Support
System
• A marketing decision
support system (MDSS)
consists of software that
helps users quickly
obtain and apply
information in a way that
supports marketing
decisions.
• MDSS can create
simulations or models to
illustrate the likely
results of changes in
marketing strategies or
market conditions.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
There are a number of firms available to help
in designing and implementing a Marketing
Decision Support System for a particular
business. This web site offers a variety of
valuable services to help in this area.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Forecasting
Basic to the marketing plan is forecasting.
• The two methods of forecast are:
– Qualitative - these techniques rely on subjective
data that repots opinions rather than exact
historical data.
– Quantitative - this method uses statistical
computations such as trend extensions, computer
simulations, and economic models.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.