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Chapter 2
Marketing Research: Process and
Systems for Decision Making
Key Terms
Marketing Research, Primary Data, Secondary Data, Qualitative
Research, Quantitative Research, Focus Groups, Long
Interviews, Observational Research, Survey Research,
Experimental Research, Mathematical Modeling, Cardinal Rule,
Test Marketing
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Role of Market Research
 Process by which information about environment is
generated, analyzed, and interpreted
 Aids decision making and is not a substitute for it
 Can reduce risks associated with managing
marketing strategies
 Vital for investigating the effects of various
marketing strategies after implementation
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The Marketing Research Process
The Five Ps of the Research Process
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Purpose of the Research
 At the end of this stage, managers and researchers
should agree on
 Current situation involving the problem to be
researched
 Nature of the problem
 Specific question or questions the research is
designed to investigate
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Plan of the Research
 Critical issues that influence the research plan include
 Whether primary or secondary data are needed
 Whether qualitative or quantitative data are needed
 Whether the company would conduct its own research or
contract with a marketing research specialist
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Plan of the Research
 Primary versus Secondary Data
 Primary data – Collected for specific problem under
investigation
 Secondary data – Previously collected data that
could be used for problem at hand
 Usually more cost-effective
 May not always be available for strategy-specific
questions
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Plan of the Research
Some Syndicated Data Providers
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Plan of the Research
Some Syndicated Data Providers (Continued)
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Plan of the Research
 Qualitative versus Quantitative Data
 Qualitative – Typically involves face-to-face
interviews
 Focus groups
 Long interviews
 Quantitative – Systematic procedures to obtain and
analyze numerical data
 Observational research
 Survey research
 Experimental research
 Mathematical modeling research
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Plan of the Research
 Company versus Contract Research
 Research is done internally, or through external
sources
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Plan of the Research
A Comparison of Data Collection Methods Used in Marketing
Research
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Plan of the Research
A Comparison of Data Collection Methods Used in Marketing
Research (Continued)
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Conducting Research
 Performance of research
 Cardinal rule of collecting data – Obtain and record
maximal amount of useful data
 Time, money and respondent privacy constraints
 Processing of research data – Includes preparation of
data for analysis and their actual analysis
 Interpret and assess research results by identifying
relationships among variables or differences between
groups
 Preparation of research report
 Clear and unambiguous, with strategic recommendations
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Conducting Research
Eight Criteria for Evaluating Marketing Research Reports
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Research Limitations
 Test market areas are not fully representative of the
market
 Sample size and design have been formulated
incorrectly due to budget constraints
 Pretest measurements of competitive brand sales
have been not made or are inaccurate
 Test scores do not give complete support to the study
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Research Limitations
 Test market products are advertised or promoted
beyond a profitable level for the market in general
 Researchers ignore the effects of factors that influence
sales
 Test-market period is too short to determine whether
the product will be repurchased
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Ethical Responsibilities
 Responsibilities to respondents
 Preserving respondent anonymity
 Avoiding mental stress for respondents
 Avoiding questions detrimental to respondents
 Avoiding the use of dangerous equipment or techniques
 Avoiding deception of respondents
 Avoiding coercion of respondents
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Ethical Responsibilities
 Responsibilities to clients
 Providing confidentiality
 Providing technical integrity
 Providing administrative integrity
 Providing guidance on research usage
 Responsibilities to subordinate employees
 Creating an ethical work environment
 Avoiding opportunities for unethical behavior
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Marketing Information Systems (MIS)
 Coordinated collection of data, tools, and techniques
involving both computer hardware and software
 Requires three types of software:
 Database management software – For sorting and
retrieving data from internal and external sources
 Model base management software – Contains routines
for manipulating data
 Dialog system – Allows for exploration of data and uses
models to produce information for decision making
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Marketing Information Systems (MIS)
 Internal information includes such things as sales
records
 Investigates efficiency and effectiveness of various
marketing strategies
 External information concerns changes in environment
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Marketing Information Systems (MIS)
Some Information Sources for Marketing Information Systems
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Marketing Information Systems (MIS)
Some Information Sources for Marketing Information Systems
(Continued)
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