Download Market Research

CHAPTER
seven
Marketing research
Principles of Marketing
FIFTH EUROPEAN EDITION
Kotler, Armstrong,
Wong, Saunders
Previewing concepts (1)
• Explain the importance of information
to the company and its understanding
of the marketplace
• Define the marketing information system and
discuss its parts
• Outline the steps in the marketing research
process
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Previewing concepts (2)
• Explain how companies analyse and
distribute marketing information
• Discuss the special issues some marketing
researchers face, including public policy and
ethics issues
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Prelude case:
Market researching HIV/AIDS
in South Africa
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What is a
marketing information system?
A marketing information system
(MIS) includes the people, equipment,
and procedures to gather, sort,
analyse, evaluate, and distribute
needed, timely, and accurate
information to marketing decision
makers.
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Figure 7.1
The marketing information system
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Developing marketing information
Internal data
Marketing intelligence
Marketing research
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Developing marketing information
Marketing Birmingham
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Sources of
competitive intelligence
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Executives
Engineers
Scientists
Purchasing agents
Sales force
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Suppliers
Resellers
Customers
Published information
Competitors
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P&G went dumpster diving for
competitive information on Unilever
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What is marketing research?
Marketing research is the systematic
design, collection, analysis and
reporting of data relevant to a specific
marketing situation facing an
organisation.
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Figure 7.2
The marketing research process
Defining the problem and
research objectives
Developing the research
plan for collecting information
Implementing the
research plan
Interpreting and reporting
the findings
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Research Objectives
• Exploratory research seeks to gather
preliminary information that will help
define the problem and suggest
hypotheses
• Descriptive research describes thing like market
potential or consumer attitudes
• Causal research seeks to test hypotheses about
cause-and-effect relationships
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Information Needs
• Information collected specifically
for the purpose at hand is called
primary data
• Information collected already for some
other purpose is known as secondary data
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Evaluating secondary data
• How relevant is the data to the
project at hand?
• How accurate is the data?
• How current is the data?
• Were the data collected by an impartial
party?
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Decisions associated with
primary data collection
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Research approach
Contact method
Sampling plan
Research instruments
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Primary data collection:
research approaches
Observational
Survey
Experiment
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What is ethnographic research?
Ethnographic research is a form of
observational research that involves
sending trained observers to watch and
interact with consumers in their ‘natural
habitat.’
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IDEO used ethnographic research
to design a Marriott strategy
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What is survey research?
Survey research is the gathering of
primary data by asking people
questions about their knowledge,
attitudes, preferences, and buying
behaviour.
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Harris Interactive is a major provider
of custom survey solutions
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What is experimental research?
Experimental research is the
gathering of primary data by select
matched groups of subjects, giving
them different treatments, controlling
related factors and checking for
differences in group responses.
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Primary data collection:
contact methods
Mail
Telephone
Personal
Online
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Strengths and weaknesses
of contact methods
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Personal interviewing
• Focus group interviewing utilises a
small sample of typical consumers under
the direction of a group leader who elicits
their reaction to a stimulus such as an ad or
product concept
• Individual interviewing involves talking with
people in their homes or offices on the street or
in shopping centres
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Greenfield Online overcomes the a
weakness of online research by using
panel members
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Primary data collection:
sampling plan
Sampling unit
Sample size
Sampling procedure
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Designing a sample
• Who is to be surveyed?
• How many people should be
surveyed?
• How should the people in the sample
be chosen?
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Types of samples
Probability
• Simple random
• Stratified random
• Cluster
Nonprobability
• Convenience
• Judgement
• Quota
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Designing questionnaires
• Should questions be closed-ended
or open-ended?
• How should questions be worded?
• How should the questions be ordered?
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Designing questionnaires
Marketing Birmingham
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Mechanical instruments
• Eye cameras
• People meters
• Checkout scanners
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Analysing marketing information
Data may be analysed using advanced
statistical methods and the development
of econometric models
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Marketing research for small
business and non-profit organisations
• Research can be based on simple
observation
• Small scale surveys can be conducted using
convenience samples
• Managers can conduct simple experiments
• Secondary information is easily available
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Issues facing
international marketing research
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Diverse markets in different countries
Difficulty finding good secondary data
Difficulty recruiting good samples
Communication modes (telephone, internet)
may not be widespread
• Language is an obstacle
• Attitudes toward marketing research vary
• Illiteracy rates may limit participation
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Public policy and ethics
• Intrusions on consumer privacy
• Misuse of research findings
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ShopperTrak uses video mining
to monitor consumer behaviour
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Discussing the concepts (1)
• Determine how the activities in Figure 7.1
would apply to Reebok developing the
information it needs to market a new
running shoe.
• List three different sources of internal data useful
for a mobile phone company. How could the data
be useful for creating mobile phone services that
provide greater customer value and satisfaction?
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Discussing the concepts (2)
• Outline the strengths and weaknesses of
marketing research conducted online.
• How does your college use an intranet to
help its students access data?
• List three ways, using limited resources, in which
a director of fundraising for a small non-profit
organisation could gather information about
primary donor groups.
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