Download Marketing Research

Marketing Research
Chapter Three
Key Learning Points
The scope of marketing research activities
Where to find secondary sources of
information
Primary sources of marketing research
information
Developing estimates of market potential
Developing sales forecasts
The impact of the Internet on marketing
research
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-2
“Marketing research is the function
which links the consumer, customer,
and public to the marketer through
information – information used to
identify and define marketing
opportunities and problems; generate,
refine, and evaluate marketing actions;
monitor marketing performance; and
improve understanding of marketing as
a process.”
- The American Marketing Association
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-3
Table 3.1
Marketing Research Functions
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-4
Marketing Research
Common Uses of Research
Forecast sales
Refine product
concepts
Develop product
strategy
Understand the
competition
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
Market segmentation
Understand
consumers
Pretest advertising
Make price changes
Understand
perceptions
3-5
Figure 3.1
The Marketing Research Process
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-6
“Secondary information sources are
those that already exist and were not
developed for the particular problem
at hand.”
“Primary information sources are
those that are generated for the
particular problem being studied.”
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-7
Table 3.2
Marketing Research Data Sources
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-8
The Research Process
Internal Secondary Data Sources:
Internal sources of information exist
within the organization.
Past marketing plans
Sales call reports
Transaction information
Reverse engineering or
benchmarking reports
Web site visitation information
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-9
The Research Process
Internal Secondary Data Sources:
Information specialists may help.
Intranets share information well.
Obtaining information in a usable
format may be a problem.
Other departments aren’t always
willing to share information.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-10
The Research Process
External Secondary Data Sources
Trade associations
General business publications (e.g. Forbes)
Trade publications (e.g. Adweek)
Academic publications (e.g. Journal of
Advertising)
Corporate reports
Government publications and census
Internet discussion groups
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-11
Table 3.3
Data Source Examples
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-12
Figure 3.2
“Toy Industry” Google Search Results
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-13
The Research Process
Sources of Primary Data
Informal
Qualitative
Observation
Surveys
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
Panels
Experiments
Models and
simulations
3-14
The Research Process
Primary Data Sources: Informal
Many types of informal sources
Not representative samples
Can help to form hypotheses
Collected in different ways
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-15
Table 3.4
Qualitative versus Quantitative
Research
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-16
The Research Process
Primary Data Sources: Qualitative
Small samples
Not appropriate for statistical analysis
Results should not directly lead to
decisions
Produces consumer insights
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-17
The Research Process
Primary Data Sources: Qualitative
Phenomenological studies
Exploratory studies
Clinical studies
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-18
The Research Process
Qualitative Research: Focus Groups
May be used for exploratory, clinical,
or phenomenological purposes
Small groups
Discuss a topic in-depth
Moderators guide the discussion and
report results
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-19
Table 3.5
Characteristics of Focus Groups
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-20
The Research Process
Qualitative Research: Focus Groups
Most misused research technique
Technological advances are altering
focus group administration.
Zaltman metaphor elicitation
technique (ZMET)
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-21
Discussion Question
Visit Decision Analysts’ website and quickly
review the information related to Online Time
Extended Focus Groups.
Next, watch the video to gain a better
understanding of how it actually works.
What are some of the disadvantages and
advantages of the online-time extended
format compared to other methods?
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-22
The Research Process
Primary Research: Observations
and Ethnographic Research
Observation research:
One-way mirrors
In-home product audits
Physiological measures
In-store video monitoring
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-23
The Research Process
Primary Research: Observations
and Ethnographic Research
Ethnographic research
Often conducted by trained
anthropologists
Virtual shopping
See demo
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-24
The Research Process
Primary Research: Surveys
Questionnaires are administered as a
form of quantitative research.
Descriptive surveys
Scientific surveys
Key issues in survey design
Sampling considerations
Type of survey to be used
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-25
The Research Process
Sampling considerations
Population or “universe”
Sampling method
Probability samples are preferred.
Convenience samples may be used.
Drawing samples
Nonresponse bias can also damage
the validity of the results.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-26
Table 3.6
Trade-offs with Different Kinds of
Surveys
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-27
“A panel is a set of customers
who are enlisted to give responses
to questions or to provide data
repeatedly over a period of time.”
“The main benefit of a panel is the
ability to observe changes in
behavior caused by changes in
marketing variables or other
factors in the marketplace.”
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-28
Illustration
Loyalty programs such as those found at Food
Lion stores provide valuation information on
household purchasing behavior.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-29
The Research Process
Primary Data Source: Panel
Data forms
Problems with panel data:
Panel drop out
Representativeness
Conditioning may occur
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-30
The Research Process
Primary Data Source: Panel
Types of Panels:
Continuous reporting panels
• Ex: Mediametrix
Scanner panel
Special-purpose panels
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-31
Activity
Visit IRI’s website to learn more about scanner
panels, the type of information collected, and
how it can be used.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-32
The Research Process
Primary Data Source: Experiments
Experiments determine cause & effect.
Experimental features:
Manipulation
Control group
External validity
Internal validity
Conducted in the laboratory or field
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-33
The Research Process
Primary Data Source: Models and
Simulations
Developed to simulate a particular
marketing problem
Regression is typically used to
estimate the mathematical
relationships between two controllable
marketing variables.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-34
The Research Process
Global Considerations in Marketing
Research:
Research design is more complex.
Difficulties will arise in establishing
comparability and equivalence.
Standardization adds cost and time to
research process.
International marketing decisionmaking has an intrafunctional
character.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-35
Market Potential: “The maximum sales
of a product category reasonably
attainable under a given set of
conditions within a specified period of
time.”
Market Forecast: “The amount of sales
of a product category expected to be
achieved under a set of conditions
within a specified period of time.”
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-36
Potential and Forecasting
Market potential basic calculations:
Determine the potential buyers or
users of the products.
Determine the number of customers in
each group of buyers as identified in
step one.
Estimate the potential purchasing /
usage rate.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-37
Table 3.7
Market Potential Illustration
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-38
Potential and Forecasting
Estimating sales potential:
Multiply market potential by projected
market share.
Consider the relationship of the brand
development index (BDI) to the
category development index (CDI).
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-39
Potential and Forecasting
Category Development Index (CDI):
% of category sales in a geographic area X 100
% of the country’s population in area
Brand Development Index (BDI):
% of brand’s sales in a geographic area X 100
% of the country’s population in area
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-40
Table 3.8
Cell Phone Sales/Price Data
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-41
Potential and Forecasting
Why create forecasts?
Helps to anticipate growth
Aids in production planning
Important for budgeting
Used in scenario planning
Types of forecasting methods
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-42
Potential and Forecasting
Judgment methods rely on pure opinion.
Naïve extrapolation:
Current sales + X%
Sales force:
Compilation of sales force forecasts
Executive opinion:
Manager, internal or external expert
opinion
Delphi method:
Jury of experts
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-43
Potential and Forecasting
Counting methods use customer
data.
Market testing:
Focus groups, interviews, etc.
provide information for forming
forecast.
Market surveys:
Purchase intention survey questions
are used to determine sales
forecast.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-44
Table 3.9, Part 1
Summary of Forecasting Methods
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-45
Potential and Forecasting
Time-series methods use past sales
data.
Moving average
Exponential smoothing:
Combines current period sales with
current period forecast
Extrapolation:
Simple regression analysis or
analyzing slope of line and
extending to future
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-46
Potential and Forecasting
Association and causal methods
develop statistical models relating
market factors to sales.
Correlation
Regression analysis
Leading indicators
Econometric models
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-47
Table 3.9, Part 2
Summary of Forecasting Methods
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-48
Executive Summary
Marketing research is critical.
Primary and secondary data are used.
Collect secondary research at the
beginning of a research project.
Secondary data can be internal or
external to the firm.
Primary data comes from many sources.
Market potential estimates are useful.
Forecasts are useful and computed in
many different ways.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall
3-49