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Instructor’s Manual
Chapter 5
Business Marketing Management
CHAPTER
5
MARKETING RESEARCH AND INFORMATION SYSTEMS
LEARNING OBJECTIVES
After reading this chapter, the student should be able to:
 Differentiate between business and consumer market research.
 Discuss the steps involved in the business marketing research process.
 Recognize when it is appropriate to use either inside or outside marketing research specialists.
 Understand the differences between primary and secondary sources of research data and be aware of
the disadvantages and drawbacks of each.
 Understand how business marketing research fits into a business marketing information system (MIS).
 Ascertain the major areas where marketing research is used.
 Understand how current technological and environmental factors affect the MIS and business
marketing research.
CHAPTER OVERVIEW
A number of major differences exist between consumer research and business research. Business
marketers are closer to their markets than are consumer marketers, and they can ascertain buyer preferences
more easily. Business marketing research focuses on buying decisions and the buying center, whereas
consumer research emphasizes product attributes and buyer motivation.
The extent to which business-to-business companies use marketing research studies is wide and varied.
The major areas where marketing research is conducted usually fall within one or more of the following
areas: market potential, market-share analysis, market characteristics, sales analysis, and forecasting.
Whereas marketing research is problem-oriented or project-oriented, a marketing information system
combines procedures, hardware, and software and then accumulates, interprets, and disseminates marketing
information as effectively as possible.
Marketing research is undertaken to gather reliable marketing information to facilitate planning and
control. Marketing research should be viewed as a process of primary phases and steps to include planning
the research design; preparation; field operations; processing, tabulations, analysis, and interpretation; and
reporting.
It is not unusual for business-to-business firms to utilize outside firms on a fee or contract basis to do
either some of all of their marketing research. The decision to use either inside or outside marketing
research specialists is somewhat similar to the business make-or-buy decision.
Information sources available to the business researcher include primary and secondary data.
Secondary data sources include both internal and external data. Internal secondary data include marketing
plans, company reports, and marketing information system (MIS) reports. External secondary data involve
government documents, commercial sources, professional publications, and a variety of other sources.
There are also disadvantages and drawbacks to secondary data that the business researcher must consider.
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Primary data sources include personal interviews, telephone surveys, and mail surveys. There are also
disadvantages and drawbacks to the use of primary data of which the business researcher must be aware.
The organization and staffing of business research departments varies greatly, depending largely on the
size and organizational structure of the individual company. These variations are the result of many
factors, including the assignment of certain research activities to other departments, the type of products
and markets involved, the relationship between the business firm and its advertising agency regarding who
does what research, the extent of new product development, the personalities and attitudes of top operating
executives, and the maintenance of a research library.
A systematic attempt must be made to ascertain both opportunities and potential pitfalls when
considering overseas expansion or export. The international marketer’s political environment is complex
and difficult but can be made easier if prior marketing research is conducted.
LECTURE OUTLINE
DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETING RESEARCH
THE BUSINESS MARKETING RESEARCH PROCESS
Define the Research Problem
Develop Research Objectives and Questions
Formulate a Research Plan
Execute Research Design
Prepare and Analyze Data
Prepare and Communicate Results
DEVELOPING INFORMATION SOURCES
Secondary Data Sources
Internal Sources
External Sources
Secondary Data on the Web
Governmental Sources
Commercial Sources
Professional Publications
Disadvantages of Secondary Data
Primary Data Sources
Personal Interviews
Telephone Surveys
Mail Surveys
Disadvantages of Primary Data
MARKETING RESEARCH VERSUS A MARKETING INFORMATION SYSTEM
MAJOR TASKS OF BUSINESS MARKETING RESEARCH
Market Potential
Market-Share Analysis
Market Characteristics
Sales Analysis
Forecasting
CRM and Database Development
Other Applications
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TECHNOLOGY AND ENVIRONMENTAL FACTORS IMPACTING MIS AND MARKETING
RESEARCH
TEACHING SUGGESTIONS
This chapter offers some excellent opportunities to use comparisons and contrasts, such as between
consumer and business research, primary and secondary data, and marketing research and marketing
information systems. This chapter also contains a great deal of detail that students may find tedious and
unimportant. The use of handouts and applications may enhance their learning of this material. For the
“Business Marketing in Action – Using Employment Search Web Sites to Learn About Marketing
Research Job Descriptions” assignment, the objective is to make the position responsibilities of
“business” marketing research positions come alive by having the students uncover actual job listings. The
objective of the “Business Marketing in Action – Patent Research” assignment is to get the students
looking at patent information sites. For the “Strategy at Work – Using Research to Develop Products
and their Marketing Strategy: Sandvik Saw and Tool Company” assignment, the objective is to
expose students to how one company might use research to develop its products. For the ethical
assignment, “What Would You Do? - Is it Patented if it Can’t be Enforced?” students are asked to
consider that while it is easy to say patent infringement is illegal and unethical, what should employees do
about it? In “Case 5-1 The T-Chem Corporation,” the objective is to get the students learning about the
real world state of marketing information systems from actual companies. Finally, in “Case 5-2 Superior
Software Systems (A) students are directed through the process of research a long list (49) of company
web sites.
ANSWERS TO REVIEW QUESTIONS
1. Define marketing research. Point out the major differences between business and consumer marketing
research.
Marketing research is the objective, systematic, and exhaustive search for and analysis of
data relevant to the identification and solution of problems in the field of marketing. The
major differences between business and consumer marketing research are detailed in
Exhibit 5-1.
2. Explain and elaborate on the primary phases of a research project.
The marketing research process gathers reliable marketing information to reduce
uncertainty to tolerable levels and facilitate planning and control at a reasonable
cost. Marketing research may be viewed as a process of six steps. The six steps are
as follows: (1) define the research problem, (2) develop research objectives and
questions, (3) formulate a research plan, (4) execute the research design, (5)
prepare and analyze data, and (6) prepare and communicate results.
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3. Distinguish between primary and secondary data, and between internal and external secondary data.
Identify the primary types of external secondary data. How can technology assist the researcher in
locating relevant external secondary data?
Primary data are organized and collected for a specific problem, have not been collected
previously, and must be generated by original research. Secondary data already exist and
are relevant to the problem or question faced by the researcher. Internal secondary data
exist within the decision-maker’s firm, and external secondary data are found outside the
decision-maker’s firm. Government documents, professional publications, and databases
are three major sources of external secondary data. On-line vendors provide access to
over two hundred databases in a variety of disciplines, including science and technology
and business and economics.
4. Distinguish between personal interviews, telephone surveys, and mail surveys as methods of collecting
primary data. Discuss some of the major disadvantages of both primary and secondary data sources.
In a personal interview, the researcher is in the presence of the respondent, allowing
maximum versatility of questioning techniques and a variety of question types. A
telephone interview is the most convenient means of reaching respondents but lacks a
visual dimension. Mail interviews are the most economical and are useful when a lengthy
questionnaire is used, yet they are the easiest to ignore. Speed, cost, and an unwillingness
of the respondent to provide data are drawbacks to the use of primary data. Secondary
data may not be recent, the coverage may not be adequate for the intended purposes, the
sample may not be adequate, and the data might be biased due to the nature of the sponsor
or the objectives of the original study.
5. Distinguish between marketing research and a marketing information system. What are the basic
components of a marketing information system, and how is a marketing information system used?
Whereas marketing research is problem- or project-oriented, a marketing information
system (MIS) combines procedures, hardware, and software and then accumulates,
interprets, and disseminates important data through reports to key business marketing
decision makers. Components of a marketing information system include an internal
marketing environment, an external marketing environment, a marketing information
system, a marketing management information-processing model, and a decision unit. The
1990s and beyond will show that an MIS will serve as a nerve center, providing
instantaneous information and monitoring the marketplace continuously so that
management can adjust activities as conditions change.
6. Identify and elaborate on the seven major tasks of business marketing research.
The seven major areas where business marketing information is gathered and
marketing research is conducted are as follows: (1) market potential – marketing
research may be undertaken in order to clarify the maximum total sales and profit
potential of existing and new product markets; (2) market-share analysis –
marketing research is assigned the task of determining the ratio of sales revenue of
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the firm to the total sales revenue of all firms in the industry, including the firm
itself; (3) market characteristics – marketing research helps to identify
opportunities and set objectives in the area of market characteristics; (4) sales
analysis – business marketing research is also a tool used in controlling marketing
programs where actual sales records are compared with sales goals to identify
strengths and weaknesses; (5) forecasting – both short-range and long-range
forecasting are vital inputs to the marketing planning process; (6) CRM and
database development – marketing research as well as other marketing personnel
are charged with gathering information for a firm’s CRM and database
development; and (7) other applications – marketing research may also gather
information for setting sales quotas, pricing, test-marketing and advertising
research, and the like…
7. Explain the importance of information technology and marketing research. What does the marketing
manager need to know and understand about the relationship between information technology and
marketing research?
Information technology and other environmental factors have changed the way
marketers gather and use marketing research data in decision-making activity.
Researchers can collect passive and active data or directed data. Because of the
wide-open operation of the Internet, researchers may have difficulties because of
fears involving personal privacy. The advent of what are called “gatekeeper
technologies” may also serve as a barrier to gathering information.
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