Download Chapter 4 Marketing Research

Chapter 4
Marketing Research:
Gather, Analyze, and Use
Information
The project - Develop a campaign
promoting tourism in Mauritius
 The Research Objective: Identify ‘why do people
love Mauritius’
 The Research Method:
– “The Laziest Person in the World” contest
– Sentence completion contest in print ads
• “I love Mauritius because _______”
• Answer: “___ I can surf, swim, sunbathe, hike, camp out in the rain
forest, eat great food, relax, energize, hit the casino and a million
other things in a place smaller than the palm of my hand”
– Insight: Mauritius: bursting at seams with things to do in spite of
being so small a place
 Ad baseline: Mauritius: 99% fun, 1% land
Knowledge Is Power
 Accurate, up-to-date,
relevant information
is the fuel that runs
the marketing engine
 Understanding
consumers’ value
needs is essential to
creating/delivering a
value proposition
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Knowledge Is Power
 Marketing information systems:
Determine what information marketing
managers need, then gathers, sorts,
analyzes, stores, and distributes
information to system users
 Marketing information systems include
multiple components
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Figure 4.2
The Marketing Information System
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Internal Company Data
 Internal data:
Information from within the company
to produce reports on the results of
sales and marketing activities
 Intranet:
Internal corporate communications
network that links company
departments, employees, and
databases
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Marketing Intelligence
 Marketing intelligence systems:
Method by which marketers get
information about everyday
happenings in the marketing Get the
scoop
environment
on mystery
– Example: Monitoring the Internet shopping!
and using “mystery shoppers”
 Futurists specialize in predicting
consumer trends
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It’s Debatable
Class Discussion Question
Faith Popcorn, the 1990’s “Nostradamus of Marketing”
according to Fortune magazine, is a well-known pop
culture futurist. Visit her Web site and view one or more
of the Trend Bank videos.
Put yourself in the position of the consumer goods
marketer of your choice. How will this trend impact the
marketing of your brand? Will it have a positive impact
or a negative impact? Why?
Visit Faith Popcorn’s BrainReserve
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Marketing Research
 Market research:
Collecting, analyzing, and interpreting
data about customers, competitors,
and the business environment to
improve marketing effectiveness
– Syndicated research
– Custom research
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Acquired Databases
 External databases can be used to
collect a variety of information from
different sources
The census
– Non-competing businesses
– Government databases
offers great
free information
 Misuse of databases can be
problematic and has led to do-not-call
lists and antispam laws
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Marketing Decision Support
Systems
 Marketing decision support systems:
Data plus analysis and interactive
software that allows managers to
conduct analyses and find the
information that they need
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Figure 4.3
The Marketing Decision Support System
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Searching for Gold: Data Mining
 Data mining:
Includes sophisticated analysis
techniques to take advantage of the
massive amount of transaction
information now available
 Analysts sift through data to identify
unique patterns of behavior among
different customer groups for use in
behavioral targeting
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It’s Debatable
Class Discussion Question
The popularity of social network sites such as
MySpace, Facebook, Second Life, and others has been
growing tremendously.
Under pressure to increase revenues, Facebook now
allows marketers to create brand pages, which after
being viewed by a user, feeds directly to that person’s
“friends.” Does this move to viral marketing violate the
privacy of Facebook’s users? Will it hurt membership?
Advertising on Facebook
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What Marketers Can Do with
Data Mining
 Data mining applications in marketing:
– Customer acquisition
– Customer retention and loyalty
– Customer abandonment
– Market basket analysis
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Steps in the Marketing
Research Process
 Step 1: Define the research problem
– Specifying research objectives
– Identifying consumer population of interest
– Placing the problem in an environmental
context
Burke Research Video
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Steps in the Marketing
Research Process
 Step 2: Determine the research design
– Determine whether secondary data are
available
– Determine whether primary data are required
and if so, what type:
• Exploratory research
• Descriptive research
• Causal research
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Figure 4.5
Marketing Research Designs
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Secondary and Primary Research
 Secondary data:
– Have been collected for some purposes other
than the problem at hand
Guideline.com (industry and trend reports)
Dialog.com (sorts firms by location, size, industry)
Lexisnexis.com (information database)
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Secondary and Primary Research
 Primary data:
– Information
collected directly
from respondents
to specifically
address the
question at hand
Look-Look employs an army
of “coolhunters” to report on
the latest trends
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Exploratory (Qualitative)
Research
 Exploratory research techniques
generate insights for future, more
rigorous studies
– Typically involve in-depth consumer probing
– Take many forms:
•
•
•
•
•
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Consumer interviews
Focus groups
Productive techniques
Case studies
Ethnography
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Descriptive (Quantitative)
Research
 Descriptive research studies:
– Probe systematically into the problem
– Base conclusions on large numbers of
observations
– Typically expresses results in quantitative
terms (averages, percentages, other stats)
• Cross-sectional design
• Longitudinal design
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Causal Research
 Cause-and-effect relationships:
A change in one thing causes a change
in something else
– Independent (cause) vs. dependent (change
in outcome) variables
– Experiments test predicted relationships
among variables in a controlled environment
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Steps in the Marketing Research
Process
 Step 3: Choose the method for
collecting primary data
– Survey methods are used to interview
respondents
– Questionnaires:
• loosely, moderately, or completely structured
– Observational research methods
– Online research
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Questionnaires
 Mail questionnaires
 Telephone interviews
 Face-to-face interviews
– Mall intercept
 Online questionnaires
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Observational Methods
 Observation:
Data collection method where the
researcher records consumers’
behaviors, often without their
knowledge
– Personal observation
– Mechanical observation
– Unobtrusive measures
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Observation Methods
Wireless users at the
Connection Court are
easily observed
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Unobtrusive measures such as
Garbology look for physical evidence
that remains after some action has
been taken
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Online Research
 Types of online research:
– Gathering information via consumer surfing
– Gathering information via Web site/
e-mail/chat room questionnaires/focus groups
 Online research used as part of:
– New-product development
– Estimating market response
– Exploratory research
 IM and focus groups
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Data Quality:
Garbage In, Garbage Out
 How much faith should marketing
managers place in research? Three key
considerations include:
– Validity
– Reliability
– Representativeness
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Figure 4.6
Completion Test
Obtaining accurate
information from
children can be very
difficult. To encourage
kids to express their
feelings, researchers
used this completion
test. Boys were asked
to write in the balloon
what they think the boy
in the drawing will say
when the girl asks,
“What program do you
want to watch next?”
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Step 4: Design the Sample
 Probability sampling:
– Each member of the population has some
known chance of being included
– Sample is representative of population, and
inferences about population are justified
 Types of probability sampling:
– Simple random sampling
– Systematic sampling
– Stratified sampling
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Step 4: Design the Sample
 Nonprobability sample
– Personal judgment used in selecting
respondents
– Some members of population have no
chance of being included so sample is not
representative of population
 Types of nonprobability sampling
– Convenience sampling
– Quota sampling
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Step 5: Collect the Data
 Challenges to gathering data in foreign
countries include:
– Differences in sophistication of research
operations
– Infrastructure/transportation challenges
– Lack of phones and/or low literacy rates
– Local customs and cultural differences
– Language translation difficulties
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Step 6: Analyze and Interpret
the Data
 Data must be analyzed and interpreted
to be meaningful
 Tabulation:
– Arranging data in a table or other summary
form to get a broad picture of overall
responses
 Cross-tabulation:
– Examining the data by subgroups to see how
results vary between categories
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Step 7: Prepare the Research
Report
 Research reports typically contain the
following sections:
– Executive summary
– Description of research methodology
– Discussion of results including tabulations,
cross-tabulations
– Limitations of study
– Conclusions and recommendations
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Ethics in Marketing Research
 Marketing research ethics:
Taking an ethical and above-board
approach to conducting marketing
research that does no harm to the
participant in the process of
conducting the research
– Researchers must provide full disclosure of
confidentiality and anonymity options
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