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Chapter 9 Marketing Research And Information Systems Objectives • Describe steps in conducting marketing research • Explore methods of gathering data for marketing research • Describe nature/role of information systems in marketing decision making • Understand how tools: databases, decision support systems, and the Internet facilitate marketing research • Identify key ethical and international considerations in marketing research Copyright © Houghton Mifflin Company. All rights reserved. 9|3 Marketing Research The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities. Marketresearch.com Copyright © Houghton Mifflin Company. All rights reserved. 9|4 Benefits Of Market Research • Facilitates strategic planning • Assess opportunities/threats • Ascertain potential for success • Determine feasibility Copyright © Houghton Mifflin Company. All rights reserved. 9|5 The Marketing Research Process Copyright © Houghton Mifflin Company. All rights reserved. 9|6 Identifying Need For Research = Problem • Departure from normal function • Typical problems requiring research • Discover reasons for exceeding goals • Identify/define opportunities or changes Copyright © Houghton Mifflin Company. All rights reserved. 9|7 Defining Problem • Nature/scope of situation • Clear definition of need • Determine precisely what research is to determine • How will research be used? Copyright © Houghton Mifflin Company. All rights reserved. 9|8 Designing the Research Project Research Design – an overall plan for obtaining the information needed to address a research problem or issue. Copyright © Houghton Mifflin Company. All rights reserved. 9|9 Hypothesis An informed guess or assumption about a certain problem or set of circumstances. Copyright © Houghton Mifflin Company. All rights reserved. 9 | 10 Types of Research • Exploratory Research – research conducted to gather more information about a problem or to make a tentative hypothesis more specific • Conclusive Research – research designed to verify insights through objective procedures and to help marketers in making decisions Copyright © Houghton Mifflin Company. All rights reserved. 9 | 11 Research Exploratory vs. Conclusive Copyright © Houghton Mifflin Company. All rights reserved. 9 | 12 Types Of Conclusive Research • Descriptive- clarifies characteristics of certain phenomena to solve a particular problem • Experimental- allows marketers to make casual inferences about relationships Copyright © Houghton Mifflin Company. All rights reserved. 9 | 13 Descriptive Research • Demand prior knowledge • Assume problem/issue is clearly defined • Some require statistical analysis and predictive tools • Marketer’s task – Choose adequate methods – Measure data Copyright © Houghton Mifflin Company. All rights reserved. 9 | 14 Experimental Research • Allows marketers to make causal deductions • Requires – Independent variable – Dependent variable • Provides strong evidence of cause and effect Copyright © Houghton Mifflin Company. All rights reserved. 9 | 15 Reliability and Validity • Reliability – identical results produced in repeated trials of the same research technique • Validity – research method measuring what it is supposed to measure Copyright © Houghton Mifflin Company. All rights reserved. 9 | 16 Data • Primary – observed/recorded or collected directly from respondents • Secondary – compiled both inside and outside the organization for some purpose other than the current investigation Copyright © Houghton Mifflin Company. All rights reserved. 9 | 17 Sources Of Secondary Data • • • • • • • • Organization’s database Accounting records Competitive information Trade associations Periodicals Gov’t publications Unpublished sources Online databases Copyright © Houghton Mifflin Company. All rights reserved. 9 | 18 Methods Of Collecting Primary Data • Population- all elements, units or individuals of interest to researchers for a specific study • Sample- limited number of units chosen to represent the characteristics of a total population Copyright © Houghton Mifflin Company. All rights reserved. 9 | 19 Sampling • Population – elements, units, or individuals of interest to researchers for a specific study • Sample – a limited number of units chosen to represent the total population • Sampling – selecting representative units from a total population Copyright © Houghton Mifflin Company. All rights reserved. 9 | 20 Probability Samples • Probability – every element in the population has a known chance of being selected for study – Random- all units in a population have an equal chance of appearing in the sample – Stratified- population is divided into common attributes and random sample chosen within each group Copyright © Houghton Mifflin Company. All rights reserved. 9 | 21 Nonprobability Sampling • Nonprobability- more subjective than probability because no way to calculate likelihood specific element will be chosen – Quota- researchers divide population into groups then arbitrarily choose from each group Copyright © Houghton Mifflin Company. All rights reserved. 9 | 22 Survey Methods • Mail – respondents answer questionnaire through mail Sample Mail Survey • Telephone – respondents’ answers are recorded by interviewer on the phone Sample Phone Survey • Online – respondents answer questionnaire via e-mail or website Sample Online Survey • Personal Interview Surveys – participants respond to survey questions face to face Copyright © Houghton Mifflin Company. All rights reserved. 9 | 23 Comparison of the Four Basic Survey Methods Copyright © Houghton Mifflin Company. All rights reserved. 9 | 24 Benefits Of Personal Interview • Rapport • More in-depth – Probes – Follow-up – Tests • Longer • Yield more information • Respondents can be carefully selected, reasons for nonresponse explored Copyright © Houghton Mifflin Company. All rights reserved. 9 | 25 Types Of Personal Interviews • In-home (door-to-door) • Focus group • Customer advisory boards • Telephone depth • Shopping mall intercept • On-site computer Copyright © Houghton Mifflin Company. All rights reserved. 9 | 26 Questionnaire Construction • Open-ended • Dichotomous • Multiple-Choice © Microsoft Power Point Clip Art Copyright © Houghton Mifflin Company. All rights reserved. 9 | 27 Observation Methods • Record individuals’ overt behavior • Direct contact avoided • Actions examined • May be combined with interviews • Can be biased- devices • Descriptive • Sample Observation Method Copyright © Houghton Mifflin Company. All rights reserved. 9 | 28 Interpreting Research Findings • Allow for continual evaluation • Conclusion – Display data in table format – Cross-tabulate • Statistical interpretation- analysis of what is typical or what deviates from the average Copyright © Houghton Mifflin Company. All rights reserved. 9 | 29 Reporting Findings • Clear, objective look • Point out deficiencies • Formal, written document • Determine level of detail • Summary/recommendations first Copyright © Houghton Mifflin Company. All rights reserved. © Microsoft Power Point Clip Art 9 | 30 Technology And Information Gathering And Analysis • Increasingly accessible • Customer relationship management enhanced • Permits internal research and quick information gathering • Access array of valuable information sources Copyright © Houghton Mifflin Company. All rights reserved. 9 | 31 Marketing Information Systems • Marketing Information Systems (MIS) – framework for managing and structuring information gathered from internal and external sources • Databases – Single-source data provided by single marketing research firm • Marketing Decision Support Systems (MDSS) – customized computer software that aids marketing managers in decision making • Internet and Online Information Services Copyright © Houghton Mifflin Company. All rights reserved. 9 | 32 Resources For Marketing Information Copyright © Houghton Mifflin Company. All rights reserved. 9 | 33 Issues In Marketing Research • Importance of ethical researchprofessional standards • International issues- allow for regional differences – Secondary to gain understanding of region – Field research Copyright © Houghton Mifflin Company. All rights reserved. 9 | 34 Top Marketing Research Firms Copyright © Houghton Mifflin Company. All rights reserved. 9 | 35