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Chapter 4
Marketing Research:
Gather, Analyze, and Use
Information
Chapter Objectives
 Explain the role of the marketing information
system and the marketing decision support
system in marketing decision making
 Understand data mining and how marketers
can put it to good use
 List and explain the steps and key elements
of the marketing research process
 Appreciate the importance of high ethical
standards in marketing research
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Real People, Real Choices:
Decision Time at Plan-It Marketing
 What marketing research strategy
would maximize results of the research
within a reasonable budget?
– Option 1: conduct exploratory qualitative
study
– Option 2: conduct quantitative survey of
700+ leisure and business travelers
– Option 3: conduct viability study with both
qualitative exploratory study and
confirmatory quantitative study
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Knowledge Is Power
 Accurate, up-to-date, relevant
information is the fuel that runs the
marketing engine
 Marketing information systems:
– Determine what information marketing
managers need, then gathers, sorts,
analyzes, stores, and distributes information
to system users
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Marketing Information Systems
 Marketing information systems (MIS)
include multiple components:
– Data:
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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
to produce reports on the results of
sales and marketing activities
 Intranet:
Internal corporate communications
network that links company
departments, employees, and
databases
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Marketing Intelligence
 Marketing intelligence systems:
Method by which marketers get
information about everyday
happenings in the marketing
environment
– Example: Monitoring the Internet and using
“mystery shoppers”
 Futurists specialize in predicting
consumer trends
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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 antispam 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
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Searching for Gold: Data Mining
 Data mining:
Includes sophisticated analysis
techniques to take advantage of the
massive amount of transaction
information now available
 Analysts sift through data to identify
unique patterns of behavior among
different customer groups for use in
behavioral targeting
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What Marketers Can Do with
Data 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 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:
– Have been collected for some purposes 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:
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Consumer interviews
Focus groups
Productive techniques
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 (averages, percentages, other stats)
• Cross-sectional design
• Longitudinal design
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Causal Research
 Cause-and-effect relationships:
A change in one thing causes a change
in something else
– Independent (cause) vs. dependent (change
in outcome) variables
– Experiments test predicted relationships
among variables in a controlled environment
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Steps in the Marketing Research
Process
 Step 3: Choose the method for
collecting primary data
– Survey methods are used to interview
respondents
– Questionnaires:
• loosely, moderately, or completely structured
– Observational research methods
– Online research
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Questionnaires
 Mail questionnaires
 Telephone interviews
 Face-to-face interviews
– Mall intercept
 Online questionnaires
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Observational Methods
 Observation:
Data collection method where the
researcher records consumers’
behaviors, often without their
knowledge
– Personal observation
– Mechanical observation
– Unobtrusive measures
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Online Research
 Types of online research:
– Gathering information via consumer surfing
– Gathering information via Web site/
e-mail/chat room questionnaires/focus groups
 Online research used as part of:
– New-product development
– Estimating market response
– Exploratory research
 IM and focus groups
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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 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
 Challenges to 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 methodology
– Discussion of results including tabulations,
cross-tabulations
– Limitations of study
– Conclusions and recommendations
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Ethics in Marketing Research
 Marketing research ethics:
Taking an ethical and above-board
approach to conducting marketing
research that does no harm to the
participant in the process of
conducting the research
– Researchers must provide full disclosure of
confidentiality and anonymity options
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Real People, Real Choices:
Decision Made at Plan-It Marketing
 Cindy chose option 3, conducting both
qualitative and quantitative research
– Implementation: Concept design was refined
using input from qualitative research;
quantitative study of 700 business and leisure
travelers confirmed viability of Priceline’s
business model concept
– Measuring success: Used total unduplicated
reach and frequency analysis
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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?
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Publishing as Prentice Hall
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