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Chapter 7
Marketing Research
Decision-Support
Systems, and Sales
Forecasting
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In this advertisement H&R
Block uses one numerical
statistic, generated by
Marketing Research, to
make a point.
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The Marketing Research Function
 Marketing research: the process of collecting and
using information for marketing decision-making
 Development of the Marketing Research
Function
First organized marketing research project done
by N.W. Ayer in 1879
First commercial research department in the
U.S. established by Charles C. Parlin for the
Curtis Publishing Co. in 1911
Parlin counted soup cans in garbage to
convince the Campbell soup Company that
working-class families would buy canned soup
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 L'Oreal Kids
Using Marketing
Research to
Match New
Products to
Potential
Customers.
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 Who Conducts Marketing Research
The size and organizational form of the
marketing research function is typically tied to
a given company’s structure
Many firms depend on independent marketing
research firms
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Types of
questions
Marketing
Research
can help
answer.
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Syndicated
Services
Organizations
that regularly
provide a
standardized set
of data to all
customers
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Full-Service Research Suppliers
Organizations that contract with clients to
conduct complete marketing research projects
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Limited-Service Research Suppliers
A marketing research firm that specializes in
selected activities
Customer Satisfaction Measurement Programs
Procedure for measuring customer feedback
against customer satisfaction goals
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The
Marketing
Research
Process
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 Shell
 Shell Followed
the Marketing
Research
Process to
develop its
“Count on
Shell”
Campaign
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Did eTrade conduct research to
establish that there may be a
need for their type of service?
Based on their success it is safe
to assume they did.
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 Step 1: Define the Problem
Avoid confusing symptoms of a problem with
the problem itself
The problem(s) should be agreed upon by
all concerned parties
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 Step 2: Conduct exploratory research
An Informal investigation seeking to discover
the cause of a problem by discussing it with
informed internal and external sources
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 Advertising Guided
by Exploratory
Research
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 Step 3: Formulate a Hypothesis
Hypothesis: a tentative explanation for
some specific event – a statement about
the relationship among variables that
carries a clear implication for testing this
relationship
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 Step 4: Create a Research Design
Research design: a series of decisions
that, taken together, comprise a master
plan or model for conducting marketing
research
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 Step 5: Collect Data
Secondary data is data from previously
published or compiled sources
Primary data refers to data collected for the
first time specifically for a marketing research
study
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 Step 6: Interpret and Present Research
Information
Findings must be presented to decisionmakers in a format that allows them to make
effective judgments
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 The Research Report and Presentation: Linking
the Study and the Research User
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The film industry is extremely
competitive and blunders are
costly. In order to enhance the
success rate of a film producers
can turn to marketing research.
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Class Discussion
How and why can
marketing research help to
prevent failures of new
businesses and new
products?
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Marketing Research Methods
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 Secondary Data Collection
Government Data
Nation’s most important
source of marketing data
Census information available at no charge
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 Persuading People to
Participate in Census
2000
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Census Agency
Advertisement to Help
Persuade People to Fill Out
Their Census 2000 Forms
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 Secondary Data Collection
Private Data
Encyclopedia of Associations provides
contact information for trade associations
that may have useful data
Other valuable information can be found
in:
Urich’s Guide to International Periodicals
Sales & Marketing Management’s Annual
Survey of Media Markets
Starch Readership Reports
A. C. Nielsen’s SalesNet scanner data
from supermarkets
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 Harris InfoSource
 One of many
providers of
secondary data
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 Secondary Data Collection
Online Sources of Secondary Data
Cyberspace sometimes simplifies the
search for secondary data
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 Bureau of Labor Statistics
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 Sampling Techniques
Sampling
Population
Census
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Probability sample: sample that gives every
member of the population a known chance of
being selected
Simple random sample
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Non-probability sample: arbitrary grouping
that produces data unsuited for most standard
statistical tests
Convenience sample
Quota sample
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 Primary Research Techniques
Observation Method
Researchers actually view, or watch, the
overt actions of the research subjects
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 Observation
research results in
new products
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Survey Method
Telephone Interviews
An inexpensive and quick method for
obtaining a small quantity of relatively
impersonal information
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Survey Method
Personal Interviews
Best means for obtaining detailed
information about consumers
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Survey Method
Focus Groups
A Focus Group is an information gathering
procedure in marketing research that
typically brings together 8 to 12 individuals
to discuss a given subject
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Survey Method
Mail Surveys
Cost Effective
Provides anonymity that may encourage
respondents to give candid answers
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Survey Method
Online Surveys and Other Internet-Based
Methods
Growing number of Internet users has
sparked interest in going online to conduct
surveys . . . and even focus groups
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Survey Method
Experimental Method
Scientific investigation in which a
researcher manipulates test groups and
compares the results with those of a
control group
The most common use to date has been
test marketing
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 Dryel
 Using the
Experimental
Primary Research
Method: P & G Test
Marketed Its New
Product Category –
Dryel Home Drycleaning in
Columbus, Ohio and
in Ireland
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 Conducting International Marketing Research
As corporations expand globally, they need to
gather knowledge about consumers in other
countries
A major secondary information source is the U.S.
Department of Commerce
Foreign Economic Trends and Their
Implications for the United States
Overseas Business Reports
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 A firm specializing in
Global Marketing
Research
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 Testing a Global
Advertisement
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Computer Technology in Marketing
Research
 Data Mining
The process of searching through
computer files to detect patterns
The data is stored in a huge database
called a data warehouse
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Sales Forecasting
 Estimate of company revenue for a specified
future period.
Qualitative Forecasting Techniques
Quantitative Forecasting Techniques
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 Qualitative Forecasting Techniques
These techniques rely on subjective data
Jury of Executive Opinion
Delphi Technique
Sales Force Composite
Survey of Buyer Intentions
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 Quantitative Forecasting Techniques
This method uses statistical computations
Test Markets
Trend Analysis
Exponential Smoothing
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Honda launches a unique vehicle
targeting a specific sought after
customer segment. Did their
marketing research improve their
understanding of the needs of this
target market?
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