Principles
p
of Marketing
g
by
y JJeff Tanner and Mary
y Anne Raymond
y
Chapter 10
Gathering and Using Information:
Marketing
g Research and Market Intelligence
g
©2010 Flat World Knowledge, Inc.
Marketing
R
R_________
• A process of _________,
analyzing, and _________
marketing
g information.
• Used to improve a
company’s bottom line.
Ma ket
Market
I_________
• What are your
____________ up to?
• What is the business
______________ like?
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3
Marketing Research
• Develop product ideas and designs.
• Determine if there is demand for your product so you
know whether or not to produce it.
• Identify market segments for your product.
product
• Make pricing decisions.
• Evaluate p
packaging
g g types.
yp
• Evaluate in-store promotions.
• Measure the satisfaction of your customers.
• Measure the satisfaction of your channel partners.
• Evaluate the effectiveness of your Web site.
• Test the
h effectiveness
ff
off ads
d and
d their
h placement.
l
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4
Market Intelligence
• Market intelligence
g
is closely
y related to
marketing research.
• Involves gathering information on a
regular, ongoing basis.
• Needed to stay in touch with what
what’ss
happening in the marketplace.
• Students
St d t gather
th market
k t iintelligence
t lli
when
h
asking other students about the best
professors
f
for
f ttaking
ki classes.
l
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Marketing Information Systems
Learning
g Objectives
j
1. Describe the components of a marketing
information system
y
and each component’s
p
purpose.
p
the situations in which marketing
g research
2. Explain
should be used versus market intelligence.
3. Describe the limitations of market intelligence and
its ethical boundaries.
4. Explain when marketing research should and
should not be used.
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Marketing Information
Is an ongoing process
• Internal documents capture important information
The challenge
• To integrate the
h information
f
in a useful
f l manner
Tunnel vision of enterprise groups and departments
• Prevents various departments from timely sharing
information
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7
Marketing Information Systems (MIS)
Include the following components:
• A system for recording internally generated data
and reports.
reports
• A system for collecting market intelligence on an
ongoing
o
go g basis.
bas s.
• Marketing analytics software to help managers
with their decision making.
g
• A system for recording marketing research
information.
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Internally Generated Data and Reports
• Clickstream data is data generated about the
number of people who visit a Web site.
• An intranet looks like the Web,, but limits internal
sensitive information access to employees.
g using
g analytics
y
software allows
• Data mining
filtering data to retrieve relevant pieces to answer
specific questions.
• Large corporations often use multiple software
systems that can frustrate sharing important
i f
information
ti b
between
t
organization
i ti entities.
titi
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9
Market Intelligence
Not gathering market intelligence leaves a company vulnerable!
What is the business environment like?
What are competitors up to?
Gathering market intelligence involves a number of activities such as:
Scanning newspapers and reports.
Studying economic data produced
by the government.
Search engines and corporate Web sites
Competitor’s Web sites are a good place
to gain market
k intelligence.
ll
Monitor social networks—
Facebook and Twitter.
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10
Good Sources for Market Information
• P__________ The Economist, The Wall ______ Journal, Forbes,
Fortune Business Week
Fortune,
Week, The McKinsey Report,
Report Sales and
_________ Management, and The Financial Times.
• Trade Shows and Associations. Trade shows are another
way companies _______ about what their competitors are
doing.
• Sales_________.
Sales
A vital source of market intelligence are a
company’s salespeople.
• S_________ and Industry
y Experts.
p
Suppliers
pp
can p
provide a
wealth of information.
• Customers. How customers are _________ can provide
clues.
clues
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Gathering Intelligence
IIndustrial
d
i l
Espionage
• Not uncommon.
• Can use professionals.
Former And
Current
E l
Employees
• Can wittingly or
unwittingly reveal
proprietary information.
• Contracts usually forbid.
Intelligence
Gathering
• Can be taken too far.
• May create negative press.
press
• Standards of conduct do
exist.
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Code of Ethics
for Market Intelligence Professionals
• To continually strive to increase the recognition and respect of the
profession.
• To comply with all applicable laws: domestic and international.
• To accurately
y disclose all relevant information,, including
g one's
identity and organization, prior to all interviews.
• To avoid conflicts of interest in fulfilling one's duties.
• To provide honest and realistic recommendations and conclusions
in the execution of one's duties.
• To promote this code of ethics within one's company, with thirdparty contractors and within the entire profession.
profession
• To faithfully adhere to and abide by one's company policies,
objectives and guidelines.
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Is Marketing Research Always Correct?
• The process isn’t
isn t foolproof
foolproof.
• Research studies have rejected a lot of
good ideas.
ideas
• Many things can go wrong along the way
that
h can affect
ff
the
h results
l off research
h and
d
the conclusions drawn from it.
• Following a seven-step process can
minimize the chances of error.
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Steps in the Marketing Research Process
Define the p
problem
Design the research
Design the data collection forms
Specify the sample
Collect the data
Analyze the data
Report the findings
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Define the Problem
• The most important step is to define the right
problem for researching. A problem half-defined
is a problem half-solved.
• Narrow down the parameters of the study to the
information you actually need to make a good
decision.
• Put the research objective into writing.
• A poorly defined problem to be researched will
result in lost time and wasted dollars.
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Design the Research
• Research d______—outlines
______
what _____ is to be g
gathered;;
from whom, how, and when to collect the data; and how
to _________ it once it’s been obtained.
• Data
D t sources:
1.
2.
3.
P_________ data is information to be collected, using hands-on
tools such as interviews or surveys, specifically for a certain
research
h project.
j
IIt iis expensive
i to collect
ll
and
d takes
k
considerable time.
S_________ data is information that has already been _________
f another
for
h purpose. Si
Since iit already
l d exists,
i
it
i is
i less
l
expensive
i
and readily available.
S____________research is primary data collected by marketing
research
h ______ on a regular
l b
basis
i and
d sold
ld to other
h companies.
i
©2010 Flat World Knowledge, Inc.
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Secondary Data Sources
• Libraries
• U.S. Census Bureau
• University of Michigan Survey Research
Center
• Marketing research aggregators such as
M k tR
MarketResearch.com
h
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Quality of Secondary Data
• Who gathered this information?
• For what purpose?
• What does the person or organization that gathered
the information have to gain by doing so?
• Was the information gathered and reported in a
systematic
i manner??
• Is the source of the information accepted as an
authority
th it by
b other
th experts
t in
i th
the field?
fi ld?
• Does the article provide objective evidence to
support the position presented?
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Types of Research Design
• Initial investigation
Exploratory off a problem
bl
Research
Design • Less structured
• Uses secondary data
• Gathering “hard”
Descriptive numbers
Research
U
surveys to
t
Design • Uses
answer questions
Categories
of Design
Causal
Research
Design
• Cause and effect
relationships
• Answers “what if”
q
questions
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Design the Data Collection Forms
Questionnaire Design
Q
g
•
•
•
•
•
•
How the questions are worded is extremely important.
Questions must be written in an unbiased neutral way.
The questions need to be clear and unambiguous.
Sensitive questions have to be asked carefully.
I
Income
questions
i
are unwelcome
l
but
b often
f
asked.
k d
Double-barreled questions ask two questions in one:
“Do
Do you think parents should spend more time with
their children and/or their teachers?”
• Open-ended questions ask respondents to elaborate
b are h
but
harder
d to tabulate
b l
than
h closed-ended
l d d d questions.
i
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Questionnaire Design
• If the q
questions are bad,, information g
gathered will be bad.
• Getting people to complete questionnaires can be difficult;
incentives can help.
• Testing the questionnaires face-to-face on a limited
number of respondents before sending improves
responses.
p
• Long surveys are less likely to be completed. Eliminate
questions of little value.
• Surveys can be delivered via phone, in person, by mail,
and computer.
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Sample Selection
• A sample is a subset of potential buyers that are
representative of the entire target population—
whether it consists of a million people, a couple
hundred thousand, a few hundred, or a dozen.
• A sampling error is any type of marketing
research mistake that results because a sample
was utilized.
• A sampling
li fframe iis the
h list
li ffrom which
hi h the
h
sample is drawn.
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Sample Types
Nonprobability
Probability
P
b bilit
Sample
Sample
Each participant has
an equal, non
non-zero
zero chance
of being selected.
The chance is known
because the total number
of people in the sampling
frame is known.
known
©2010 Flat World Knowledge, Inc.
A sample that’s
not drawn
in a systematic way.
Used because
it’s readily available
and convenient.
24
Collect the Data
Surveys data can be collected in many
different ways:
• Face-to-face
Face to face (can be computer aided).
aided)
• Telephone (can be computer aided or
completely
l l automated).
d)
• Mail and hand-delivery.
• E-mail and the Web.
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Data Collection Issues
• When conducted face-to-face or administered by a
person over th
the phone,
h
labor
l b iis _________ and
d ________.
• Mailing out _____________ is costly, and the response
rates can be _______..
• Data collected by a computer either over the telephone
or on the Internet can be very cost effective and, in some
cases, free.
f
• Web surveys are ______—a major plus. Face-to-face and
mailed surveys often take weeks to collect.
• Surveyors and observers need to be ________ to avoid a
wide disparity between how different observers and
interviewers _________ the
h data.
d
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Collecting Global Marketing Research Data
• Gathering
g marketing
g research data in foreign
g countries
poses special challenges.
• Face-to-face surveys are commonly used in third-world
countries
t i tto collect
ll t information
i f
ti from
f
people
l who
h cannott
read or lack phones and computers.
• Translating
g surveys
y is an issue.
• Back translation is used to determine if anything is lost
in translations.
• Indigenous research companies are frequently used to
avoid cultural and language issues.
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Analyze the Data
• Step
p 6 involves analyzing
y g the data to ensure it’s as
accurate as possible.
• Once all of the data is collected, the researchers begin the
d t cleaning—removing
data
l
i
i duplicated
d li t d d
data.
t
• Software (PASW, which was formerly known as SPSS) is
then used to tabulate,, or calculate,, the basic results of the
research.
• Results frequently use statistics, such as the standard
d i ti
deviation,
the
th mean, and
d median
di for
f each
h question.
ti
• The two most common criteria used to test the
soundness of a study are (1) validity and (2) reliability.
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Write the Research Report
and Present Its Findings
The six basic elements of a research report are as follows.
1 Titl
1.
Title P
Page. The
Th title
titl page explains
l i what
h t the
th reportt iis about,
b t when
h it was
conducted, by whom, and who requested it.
2. Table of Contents. The table of contents outlines the major parts of the report.
3 Executive Summary.
3.
Summary The executive summary summarizes all of the details in
the report in a very quick way.
4. Methodology and Limitations. The methodology section of the report explains
the technical details of how the research was designed
g
and conducted.
5. Findings. The findings section is a longer, fleshed-out version of the executive
summary that goes into more detail about the statistics uncovered by the
research that bolster the study’s findings.
6. Recommendations. The recommendations section should outline the course of
action that should be taken based on the findings of the research and reflect the
purpose of the project.
©2010 Flat World Knowledge, Inc.
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Key Takeaways
• Proper definition of the problem to be researched is
critical to a successful program.
• Testing questionnaires prior to distribution will expose
problems in design.
design
• Probability samples can be projected to entire
populations with a known error.
• Nonprobability samples cannot be projected, but can still
generate important research information.
• Marketing
M k ti research
h programs need
d validity
lidit and
d
reliability checks.
p
g results of a research should follow an
• Reporting
accepted format.
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