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Week 3 - 09.27.04 Marketing Research and Information Systems The Importance of Information Companies need information about their: Marketing environment Competition Customer needs Managers don’t need more information, they need better information. What is a Marketing Information System (MIS)? A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. The MIS helps managers to: 1. Assess Information Needs, 2. Develop Needed Information, 3. Distribute Information. The Marketing Information System Functions of a MIS: Developing Information Information Needed by Managers Can be Obtained From: Internal Data Computerized Collection of Information from Data Sources Within the Company. Marketing Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment (i.e. Technological). Marketing Research Design, Collection, Analysis, and Reporting of Data about a Specific Marketing Situation Facing the Organization. Marketing Information System: Developing Information Company Internal Databases Accounting Manufacturing sales and marketing customer service Marketing Information System: Developing Information Marketing Intelligence company personnel customers suppliers & resellers business publications trade shows competitive analysis information search firms The Marketing Research Process Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan -- collecting and analyzing the data Interpreting and reporting the findings Marketing Research Process Step 1. Defining the Problem & Research Objectives This video clip features Jerome Conlon, of Consumer Insights and Brand Planning, speaking about the marketing research done for Starbucks. Click to play. Click to return Exploratory Research •Gathers preliminary information that will help define the problem and suggest hypotheses. Descriptive Research •Describes things as market potential for a product or the demographics and consumers’ attitudes. Causal Research •Test hypotheses about causeand-effect relationships. Ownership of Cats and Dogs by Age Group Source: Maritz Poll Source: American Demographics, December 2000, p. 27. Adapted with permission. Top Ten Zip Codes for Spending on Fireworks Source: American Demographics, July 2000, p. 24. Adapted with permission. Marketing Research Process Step 2. Develop the Research Plan Research plan development follows these steps: Determining Specific Information Needs Gathering Secondary information Planning Primary Data Collection Develop the Research Plan Gathering Secondary Information Both Must Be: Information That Already Exists, collected for any purpose other than the one at hand. + Obtained More Quickly, Lower Cost. Relevant Accurate Current Impartial Online Databases - Might Not be Usable Data. Of f e r a we a l t h of i nf or ma t i o n t o mar k e t i ng d e c i s i o n mak e r s . Examples: •Lexis-Nexis •CompuServe •Dialog Information Collected for the Specific Purpose at Hand. Develop the Research Plan Planning Primary Data Collection Observational Research Gathering data by observing people, actions and situations Research Approaches Survey Research Asking individuals about attitudes, preferences or buying behaviors Experimental Research Using groups of people to determine cause-and-effect relationships Observation Research A research method that relies on three types of observation: people watching people people watching an activity machines watching people Observation Research People Watching People Types of Observation Research People Watching an Activity Machines Watching People Mystery Shoppers One-Way Mirrors Audits Traffic Counters Passive People Meter On Line http://www.bmiltd.com Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions. Observation Problem You have been hired by (a) to determine when, where, how and why students consume or use (b) . You have to use observation techniques. Explain how you proceed. Be creative but ethical. Forms of Survey Research In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups (Home and Central Location) Characteristics of Traditional Forms of Survey Research Questionnaire Design Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. An interview question that asks Closed-Ended the respondent to make a selection Question from a limited list of responses. ScaledResponse Question A closed-ended question designed to measure the intensity of a respondent’s answer. Types of Questions in Questionnaire Design Questionnaire Design On Line http://www.createsurvey.com Clear and Concise No Ambiguous Language Qualities of Good Questionnaires Unbiased Reasonable Terminology Sampling Procedure Universe Sample Probability Samples Non-Probability Samples Marketing Research Process Step 3. Implementing the Research Plan Collecting the Data Processing the Data Analyzing the Data Research Plan Marketing Research Process Step 4. Interpreting and Reporting Findings Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management. Step 1. Interpret the Findings Step 2. Draw Conclusions Step 3. Report to Management