Marketing Research
Midterm #1 Review
Chapters 1 - 5
Chapter 1
Learning Objectives:
I.
Terms:
• Marketing - function and process for creating, communicating and delivering value to customers
and for managing customer relationships
• Marketing research - (1) process of designing, (2) gathering, (3) analyzing and (4) reporting
information that may be used to solve a specific marketing problem
II. Marketing research is important because is is a way to implement the marketing concept, a means to
connect the marketer with the consumer and to make better business decisions while still serving
customers
III. Marketing research is to improve understanding and expand basic knowledge for a specific
situation; Has a beginning and end; Not available in internal reports, intelligence or DSS. Online
marketing research is a tool in marketing research that focuses online (ex. Online focus groups,
online survey); Looks at customer satisfaction, new product research, brand loyalty and employee
engagement / satisfaction
IV. Marketing Information System (MIS) - is a structure consisting of people, equipment and
procedures to gather sort, analyze, evaluate, and distribute, timely and accurate information to
marketing decision makers
1. Internal reports
2. Marketing Intelligence system
3. Marketing decision support systems (DSS)
4. Marketing research systems
V. Marketing research is a tool for MIS; It is for a specific problem; Has a narrow scope; One report:
MR report; Single problem at a time; Has a start and end. However, Marketing information system
is a continuous system; Helps make effective decisions; Wide scope so we can prevent for future; 4
different reports: plan report, periodic report, triggered report and demand report
Homework Questions:
I.
Marketing concept was coined by Theador Levitt, says that the key to achieving organizational goals
consists of the company being more effective than competitors in creating, delivering and
communicating customer value to chosen target markets; Buyer = seller
• Through:
1. Identify market opportunities and problems
2. Monitor marketing performance & see where our competitors are
3. Generate, refine & evaluate potential marketing actions
4. Improve marketing as a process
II. The primary reason for conducting marketing research is identify needs and wants to make the best
business decision
III. The roles and benefits of conducting good market research
• Improve firm efficiency
Marketing Research
Midterm #1 Review
Chapters 1 - 5
•
•
•
•
Identify market opportunities
Monitors our performance
Improves our capabilities
Generate, refine & evaluate potential marketing actions
IV. Research is not a good idea if the you don’t know what information you need, cost is higher than
benefit, information is already out there, you might risk your competitive advantage or the resources
are not available
V. Terms:
• Online research - use of computer networks to assist in any phase of the marketing process
• Web-based research - research conducted on Web applications
• Online survey research - the collection of data using computer networks
VI. Strategy is the selection of a segment of a company’s target market and designing the proper “mix” of
product / service, price, promotion and distribution to meet the wants and needs of the consumer
within the target
Other questions:
I.
II.
III.
IV.
V.
What is a market? It is a mutual exchange between buyers & seller
What is a market segment? Identified group of customers and their preferences, etc.
What is meant by forward marketing? B2C
What is meant by reverse marketing? B2B
What are the necessary conditions for marketing to occur? (1) Something to exchange, (2) 2 or more
people, (3) Communication and (4) mutual agreement
VI. Definition of products: (1) Goods + Services, (2) Goods + Services + Ideas, (3) Goods + Services +
1. Population
Ideas + People + Places
VII.
What will we do with the research? Financial improvement of the company
VIII. What is the R.A.T principle? Relevant, Accurate, Timely (up to 5 years)
IX. What is the iceberg principle? A metaphor that says 1/8 of the information is
2. Sample
above water and 7/8 of the information is under water. We need to do the
research.
X. What are the three components of any marketing research problem? (1)
Population, (2) sample, (3) conclusion
3. Conclusion
Marketing Research
Midterm #1 Review
Chapters 1 - 5
Chapter 2
Learning objectives:
I) The seven steps in the marketing research process are:
1. Establish the need
2. Define the problem
3. Determine the objectives
4. Determine Research design
5. Identify the types and sources of information
6. Determine how to access
7. Design data collection forms
8. Determine sample plan & size
9. Collect data
10. Analyze data
11. Present the final report
II) There is no need for researching if the information is already available, there are no funds timing may
be wrong. If Cost is greater than the benefit and we are talking about the long term, then we should
not conduct market researching.
III) The problem definition is important because if it is incorrect then everything done has been a waste.
Homework questions:
I) Describe each of the stages:
1. Establish a need
2. Define the problem
• Look at:
i. What was supposed to happen vs. What did happen
ii. What did happen vs. What could have happened
• Consider:
- Independent variable: does not change
- Dependent variable: may change
- Extraneous variable: you are not intentionally studying
- Latent variable - hidden or not suggested
- Spurious variable: something is showing up and we don’t know why
• 85 % / 15% rule
- 85% is the stuff we know where it is coming from and 15% is what we don’t
(spurious)
3. Determine the research objectives
• 2-3 objectives (5 max)
4. Determine the research design and methodology
(1) Exploratory
Marketing Research
Midterm #1 Review
Chapters 1 - 5
(2) Descriptive
(3) Casual
5. Identify information types and sources
(1) Primary
(2) Secondary
6. Determine how to source data
- Typically a survey
7. Design the data collection form or pre-existing one
8. Sample form
• Don’t send more than 3 times
• There is no “best” sample
• Want 70-75% response rate
1. Population
• Determine:
9. Collection of data
• Have trained people
• Non-sampling error
3. Conclusion
2. Sample
10. Data analysis
• Data cleaning, data entry, anticipation of findings, predictive value
11. Prepare and present final report
II) The second task is the most important because defining the problem gives the direction for everything
III) Defining the problem is trying to understand where the company is not being accurate and looking for
the issues. Objectives are what we want to do when the problem is solved.
Marketing Research
Midterm #1 Review
Chapters 1 - 5
Chapter 3:
Homework Questions:
1. Marketing research firms can be categorized as internal suppliers or as external suppliers. Explain
what is meant by each, and give and example to support your decision
• Internal suppliers - means an entity within the firm that supplies marketing research
- They may:
1. Have their own formal departments
2. Have no formal department but make at least a single individual or a committee
responsible for marketing research
3. Assign no on responsibility for conducing marketing research
- They include:
- Full service - syndicated data services, Standardized service, Customized services,
and Online research services
• External suppliers - are outside firms hired to fulfill a firm’s marketing research needs
- They may divide themselves, or combine: Function (data analysis, data collection, etc.),
Type of research application (customer satisfaction, advertising effectiveness, etc.),
Geography, Type of customer
- They include:
- Limited service: Field services, Market segment specialist, Sample Design &
distribution services, Data analysis services and Specialized research technique
services
2. Distinguish between each of limited-service, full-service, syndicated data service, standardized
services, customized services, and online research services firms
• Limited-service: supplier firms typically specialize in on or at most, a few marketing research
activities
• Full-service: have ability to conduct the entire marketing research project for the buyer firms. They
can be broken down into:
• Syndicated data service: firms collect information that is made available to multiple
subscribers
• Standardized service: firms provide syndicated data. Each client gets different data, but the
process used to collect the data is standardized so that it may be offered to many clients at a
cost less than that of a custom designed project
• Customized service: firms offer a variety of research services that are tailored to meet the
client’s specific needs
• Online research services firm: the use of computer networks, including the Internet, to
assist in any phase of the marketing research process, including development of the problem,
research design, data gathering, analysis, and report distribution
Marketing Research
Midterm #1 Review
Chapters 1 - 5
3. Explain how an online marketing research firm is different than any other marketing research firm
It is done online vs the other traditional measures. It is less time consuming and less costly.
4. What advantage does a company have when it has its own marketing department? Explain the
different way it which such a department can be internally organized
-
Do not have to worry about what information they will access
They can be inline with your own ideas
Can be cheaper in the long run
You have a lot of data which you can use to implement it for other reasons
Better stream of communication
Marketing research departments are usually organized according to one or a combination of the
following functions:
1. Areas of application - companies organize the research function around the areas to
which the research is being applied
2. Marketing function
- Product research
- Ad research
- Pricing research
- Channel of distribution research
3. Research process - such as data analysis or data collection
5. Proper ethical conduct is an issue faced by the marketing research industry. Discuss any three issues
of this nature, making sure how each can potentially be solved
1. Lying to employees, customers, vendors or the public
2. Withholding needed information
3. Giving or taking “bribes, kickbacks, or inappropriate gifts
6. Discuss each of the two philosophies that formulate the basis for ethical decision making
1. Deontology: focuses on the rights of the individual. If an individual’s rights are violated, then
the behaviour is not ethical
2. Teleology: philosophy that focuses on the trade-off between individual costs and group
benefits. If benefits out-weigh costs, the behaviour is judged to be ethical
Marketing Research
Midterm #1 Review
Chapters 1 - 5
Chapter 4:
Learning objectives:
I) Symptom is the result of the problem where as the problem is what causes of the symptom.
II) Invitation to bid is a call to contractors to submit a proposal on a project for a specific product or
service. A Request for proposal announces the funding available, background information on the
issue and a request for specifications. The main differences is that ITB focuses more about the
cheaper pricing and it doesn't allow for creativity of the marketing researcher.
Homework Questions:
I) Problem formulation is determining he information that is needed to address the research situation
II) Issues with he problem formulation can come from irrelevant or misleading information, mental set or
assumptions made
III) Main purpose of the marketing research proposal is to communicate the who, what, where, when and
how of research and the information along with the costs associated with it
IV) The managers should supply internal information, objectives, and work along side the marketer
V) The managerial value of a research proposal is a market profile, it allows you to identify target
consumers
VI) Two common approaches for budget is:
1. Standard rate - estimate dollar cost per activity
2. Apply standard hourly rate - total number of hours per
activity
VII)
GANTT Chart - shows the amount of work done in certain
periods of time in relation to the amount planned. It keeps track of
the activities, time frame and budget.
A
Activity (s)
report
VIII)
The components required in a marketing research proposal is:
1. Title page
2. Table of Contents
3. Executive summary
4. Statement of problem / opportunity
5. Objectives
6. Description of design and methodology
C
Budgetary /
Allowances
A
B
C
…
- After you complete the chart you will present a final
B
Time Frame
Total Cost
Marketing Research
Midterm #1 Review
Chapters 1 - 5
7. Schedule (ex. GANTT)
8. Outline of budget
9. Appendices & Reference
Chapter 5:
Learning Objectives:
I) Research design is the road map or blue print for conducting the marketing research project. It
provides the details of each step in the research process.
II) The importance of creating a proper design for a marketing research project is so we can use the
proper tools to solve the issue. Each problem is unique but they have similar characteristics which we
can use to (1) find the best plan to use to resolve the problem and (2) because basic market research
designs are able to be matched given the problem and research objectives
III) Three types of marketing research is:
1. Exploratory - is conducted to clarify the scope and nature of the marketing problem
2. Descriptive - describes basic characteristics of a given population or to profile particular
marketing situations
3. Causal - identifies cause-and-effect relationships among variable
IV) Non-conclusive is when meaning may be insufficient with findings. Conclusive are findings that are
generated and are practically useful in reaching conclusions or deciding making.
V) Types of descriptive marketing research:
1. Cross sectional research - measure units from a sample of a population at one point in time;
“Snap Shot”
2. Longitudinal research - repeatedly measure the same sample over a long period of time;
“Movies”
VI) Experimental research design - manipulating an independent variable to see how it affects a
dependent variable, while controlling the effect of additional extraneous variables, type of causal
marketing research
VII)
Test marketing - commonly used to indicate an experiment, study or test that is conducted in a
field setting
• Types:
1. Standard test market - firm tests the donut or marketing mix variables through the
company’s normal distribution channel
2. Controlled test market - conducted by outside research firms that guarantee distribution
of the product through pre-specified types and numbers of distributors
3. Electronic test market - those in which a panel of consumers has agreed to carry
identification cards that each consumer presents when buying goods and services
• Can be use to:
1. Test sales potential for new product or service
2. Test variations in the marketing mix
Marketing Research
Midterm #1 Review
Chapters 1 - 5
Homework Questions:
I) Research is always necessary. It is the basis of the written contract and a blueprint.
II) Data collecting tools:
Exploratory
Descriptive
Causal
Objective
Discovery of ideas and
insights
Describes market features
or functions
Determine cause-andeffect relationships
Characteristics
Flexible, versatile, & often Marked by prior
the front end of the total
formulation of specific
research design
hypotheses. Preplanned
and structured design
Manipulation of one or
more independent
variables, control of
mediating variables
Methods
Expert surveys, pilot
surveys, case studies,
secondary data, qualitative
research, focus group
Secondary data, surveys,
panel discussions,
observational data
Experiments, test markets
1. Cross-sectional
2. Longitudinal
1. Independent
2. Dependent
Kinda good for info
systems, data banks,
syndicated services,
qualitative, experiments
and good for surveys
Good for experiments but
somewhat good for
syndicated services and
surveys
Variables
Good for:
Info systems, data banks,
syndicated services,
Qualitative data and
somewhat surveys
III) The differences between the basic functions of market research in a domestic and international
environment would be that you need a section for interpretation.
IV) The international marketing research is more difficult because it is more expensive and research
reliability varies from country to country. You also need to have someone to interpret the data
appropriately.
V) The “uncontrollable” or “environmental” factors are:
• Political
• Economic
• Social-cultural
• Technological
• Legal