Download Chapter 6: Marketing Research

Learning Objectives
Chapter 6: Marketing Research
1. Define marketing research.
2. Describe the reasons for doing marketing
research (the five Cs) and explain why
marketing research is sometimes not done.
3. Explain how research is used in each step
of the hospitality and travel marketing
system.
4. List and describe the five key requirements
for good research information.
5. List in order and explain the six steps in the
marketing research process.
Learning Objectives
Chapter 6: Marketing Research
6. Describe the internal and external sources
of secondary research.
7. Explain the differences between primary
and secondary research and list their
respective advantages and disadvantages.
8. List and describe the primary research
methods and differentiate between
quantitative and qualitative research.
9. Explain the advantages and disadvantages
of personal interviews, mail, telephone, inhouse, self-administered, and online
surveys.
Learning Objectives
Chapter 6: Marketing Research
10. Explain the focus group approach and how
it can be used in making effective
marketing decisions.
Marketing Research
The function that links the consumer,
customer, and public to the marketer through
information. The information is used to:
1. Identify and define marketing opportunities
and problems.
2. Generate, refine, and evaluate marketing
actions.
3. Monitor marketing performance.
4. Improve understanding of marketing as a
process.
Reasons for Doing Marketing
Research: The Five Cs
1.
2.
3.
Customers: To determine how well
customer needs are being met, investigate
new target markets, and assess and test
new services and facilities.
Competition: To identify primary
competitors and pinpoint their strengths
and weaknesses.
Confidence: To reduce the perceived risk in
making marketing decisions.
Reasons for Doing Marketing
Research: The Five Cs
4.
5.
Credibility: To increase the believability of
promotional messages among customers.
Change: To keep updated with changes in
travelers’ needs and expectations.
Reasons for Not Doing Marketing
Research
1.
2.
3.
4.
5.
Timing: It will take to much time.
Cost: The cost of the research is too high.
Reliability: There is no reliable research
method available for doing the research.
Competitive intelligence: There is a fear
that competitors will learn about the
organization’s intentions.
Management decision: Management prefers
to use own judgment.
Five Key Requirements of Marketing
Research Information
1.
2.
3.
4.
5.
Utility: Can we use it? Does it apply to us?
Timeliness: Will it be available in time?
Cost-effectiveness: Do the benefits
outweigh the costs?
Accuracy: Is it accurate?
Reliability: Is it reliable?
Marketing Research Programs and
Projects
 Marketing Research Program:
A plan or program to investigate several
marketing opportunities or problems (several
projects).
 Marketing Research Project:
An individual element of a marketing research
program in which a specific marketing
opportunity or problem is investigated.
Marketing Research Process
1. Formulate Problem:
a. Define research problem
b. Identify research objectives and related
questions
2. Select Research Design And Data Collection
Method:
a. Collect and analyze secondary information
b. Select research design and primary data
collection method
Marketing Research Process
3.
a.
4.
a.
5.
a.
6.
a.
Select Sample And Collect Data:
Decide on sample design and collect
primary data
Analyze And Interpret Data
Analyze and interpret primary data
Prepare Research Report:
Draw conclusions and make
recommendations
Communication of the Research Results
Present results to all interested parties
Sources of Secondary Research
Information
Secondary Research
Internal Data
External Data
Registrations or reservations
Government agencies
Sales or customer mix
WWW. Magazines, journals,
newspapers, radio, TV
Databases
Inquiries
Unfulfilled reservations/
turn-aways
Associations
Research companies and
consultants
Universities and Colleges
Secondary and Primary Research
 Secondary:
Published information available from other
sources, either internal or external
 Primary:
Data collected for the first time, by a method
other than secondary research, to answer
specific questions.
Advantages and Disadvantages of
Secondary Research

1.
2.
3.

1.
Advantages
Inexpensive
Easily accessible
Immediately available
Disadvantages
Frequently outdated
2.
Potentially unreliable
3.
May not be applicable
Advantages and Disadvantages of
Primary Research

1.
2.
3.

1.
Advantages
Applicable and usable
Accurate and reliable
Up-to-date
Disadvantages
Expensive
2.
Not immediately available
3.
Not as readily accessible
Primary Research Methods & Techniques
Primary
Research
Quantitative Data
Surveys
Qualitative Data
Experiments
 Personal
interview
(intercepts)
 Mail
 In-house, selfadministered
 Telephone,
fax, e-mail, Web
Mechanical
observation
Simulation
Focus groups
Individual depth
interviews
Human
observation
Case studies
Primary Research Methods
1. Experimental (e.g., test marketing)
2. Observational (human and mechanical)
3. Survey (mail, telephone, personal interview,
in-house self-administered, online)
4. Simulation (mathematical and computer
modeling)
5. Focus groups (groups of 8 to 12 people with
moderator trying to reach a consensus of
opinions)
Personal Interviews
Advantages
1.
2.
3.
4.
5.
High response rate
Great flexibility (ability to adapt/explain
questions)
Can show or demonstrate items
Fuller explanations can be given
Very timely data
Personal Interviews
Disadvantages
1. Relatively expensive
2. Possibility of interviewer bias
3. Personal nature of questions (e.g., age or
income)
4. Respondents not relaxed (put on the spot)
5. Time may not be convenient for respondents
Mail Surveys
1.
2.
3.
4.
5.
6.
Advantages
Relatively inexpensive
No interviewer bias
Consistent questions (for all respondents)
Large number of respondents can be
included
Anonymity
Respondents can choose the most
convenient time to answer
Mail Surveys
Disadvantages
1.
2.
3.
Low response rates (relative to other
survey types)
Junk mail syndrome
Impersonal nature
Telephone Surveys

1.
2.
3.

1.
2.
3.
Advantages
More flexibility compared to mail surveys
Quick and inexpensive
High response rates
Disadvantages
More obtrusive than mail
Greater difficulties in rapport building
Long-distance calls are expensive
In-House, Self-Administered Surveys

1.
2.

1.
Advantages
Completed by customers within the
premises of a hospitality and travel
organization
Convenient
Disadvantages
Generate low response rates
Online Surveys

1.
2.

1.
Advantages
Relative speed and flexibility
Large and growing audience
Disadvantages
Technical skills and time required to
develop questionnaires