Marketing Research: From
Customer Insights to
Actions
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: (1 of 2)
1. Identify the reason for conducting
marketing research.
2. Describe the five-step marketing
research approach that leads to
marketing actions.
3. Explain how marketing uses
secondary and primary data.
©McGraw-Hill Education.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: (2 of 2)
4. Discuss the uses of observations,
questionnaires, panels, experiments, and
newer data collection methods.
©McGraw-Hill Education.
HOLLYWOOD LOVES MARKETING
RESEARCH!
A Film Industry
Secret: Research
• Movie Title Testing
• Concept Testing &
Script Assessment
• Test Screening
• Tracking Studies
• Social Listening
Pirates of the
Caribbean
Movie Trailer
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Top: ©Walt Disney Studios Motion Pictures/Photofest; Bottom: Composite image: ©vvs1976/iStock/Getty Images; ©Hilch/Shutterstock; ©Brilliantist Studio/Shutterstock
THE ROLE OF MARKETING RESEARCH

What is Marketing Research?
It is the process of defining a marketing
problem and opportunity, systematically
collecting and analyzing information and
recommending actions.
Maintain OBJECTIVITY

The Challenges in Doing
Good Marketing Research

Will consumers really buy a new product?
Will consumers give honest answers?
Will the purchase of consumers reflect their
real interest?


8-5
FIGURE 8-1 Five-step marketing research approach leading
to marketing actions.
©McGraw-Hill Education.
Jump to Appendix 1 long image
description
LO2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES

Be Specific, Measurable,
and Achievable

Have a Clear
Research Purpose

Must Lead to
Marketing Actions
From just bricks to
creating figures and
buildings
LEGO example
8-7
LO2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES

Exploratory Research
Exploring ideas about a vague problem /
No previous research has been done /
Qualitative

Descriptive Research
Finding the frequency of occurrence / preplanned design for analysis / Quantitative

Causal Research
Conducting experiments and tests
to determine cause effect
relationship / the extent to which
change in one factor changes
another.
Do consumers eat
Oreo cookies in the
morning or evening?
What is the
percentage of men
who like to go to the
movies?
If price increases are
consumer less likely
to buy our products?
8-8
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES (2 of 2)
Measures of Success
Criteria or standards used to evaluate the
proposed solutions to the problem
• Measure of Success: Playtime
• Children Spend More Time Playing with
New Design
• Possible Marketing Actions
• Introduce New Design
• Drop Old Design
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LO2

STEP 2: DEVELOP
THE RESEARCH PLAN
Specify Constraints
Ex: Limitations on time/money

Identify Data Needed
for Marketing Actions
Avoid collecting irrelevant data (ex. Which brick the
kids like the most)

Determine how to collect the
data
• Concepts – Ideas about Products
• Methods – Approaches to Collect Data
8-10
STEP 3: COLLECT RELEVANT
INFORMATION/DATA
LO3
Relevant Information for Rational, Informed
Marketing Decision

Data: facts and figures related to the
problem / relevant information

Secondary Data: facts and
figures have already been recorded prior to
the problem
 Internal
 External

Primary Data: facts and figures
newly collected for the problem.
Observational / Questionnaires / other
sources
8-11
FIGURE 8-2 Types of marketing information
©McGraw-Hill Education.
8-12
STEP 3: COLLECT RELEVANT DATA
SECONDARY DATA (1 of 5)
Internal:
• Marketing Input Data - Effort Expended to Make
Sales
• Marketing Outcome Data – Results of Marketing
Efforts
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description
LO3

STEP 3: COLLECT RELEVANT INFO/DATA
SECONDARY DATA
Internal
• Marketing Input Data:
data that relates to the effort
of generating sales
• Marketing Outcome Data:
data that relates to the results of
marketing efforts
©McGraw-Hill Education.
8-14
LO3
STEP 3: COLLECT RELEVANT INFO/DATA
SECONDARY DATA

External
• Census Bureau
 U. S.
2010
Census
 American
Community
Survey
• Trade Associations
• Business Periodicals
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8-15
MARKETING MATTERS
Online Databases and Internet Resources for Marketers
Sources of News and Articles:
• LexisNexis -• CNBC -• Wall Street Journal -• Fox Business -Sources of Statistical and Financial Data:
• FedStats -• Census Bureau -Portals and Search Engines:
• USA.gov -• Google –
©McGraw-Hill Education.
LO3
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA / WATCHING PEOPLE

Observational Data:
Observing people and asking
them questions
•
Mechanical Methods: like people meter of Nielson Media
Research / attached to TV, VCRs, DVDs… to track channels
and programs being viewed.
•
Personal Methods: Watching consumers in person or
recording them. Mystery shopper / video taping /
ethnographic research (study of behavior)
•
Neuromarketing method: The use of brain scanning to
analyze the buying process. Ex campbell soup labels
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8-17
FIGURE 8-3 Nielsen Broadcast Ranking Report for network TV primetime households
for the week of August 14, 2017.
©McGraw-Hill Education.
Rank Program
Network Rating
Views
(000)
1
America’s Got Talent (Tu)
NBC
7.7
13,444
2
America’s Got Talent
(Wed)
NBC
7.5
10,891
3
60 Minutes
CBS
5.0
7,796
4
Big Brother (Th)
CBS
3.8
6,478
5
Big Bang Theory
CBS
3.8
5,877
6
Big Brother (Sun)
CBS
3.7
6,325
7
Big Brother (Wed)
CBS
3.7
6,277
8
NCIS
CBS
3.7
5,737
9
CMA Fest 2017
ABC
3.6
5,740
10
NCIS: New Orleans
CBS
3.5
5,326
Nielsen
Ratings
LO4
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—ASKING PEOPLE


Questionnaire Data
Idea Generation Methods
1. Individual Interviews:
Single researcher asking
questions to one respondent
• Depth Interviews
(special kind of individual interview):
researchers ask lengthy , free-flow
kind of questions to probe for underlying
Ideas and feelings
©McGraw-Hill Education.
8-19
LO4
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—ASKING PEOPLE
2. Focus Groups
Informal sessions 6 to 10 customers (past, current or potential)
during which a moderator asks opinion questions about the firm’s
products as well as those of competitors to collect usage trends

Idea Evaluation Methods


Testing the ideas generated previously
Involves questionnaires (Personal, by
mail, email, over the phone, online)
 Open ended
 Closed ended or Fixed Alternative
Questions



©McGraw-Hill Education.
Likert scale (strongly agree /
strongly disagree)
Dichotomous (yes / no)
Semantic differential scale (5 point
scale)
8-20
FIGURE 8-4A (Q1) Sample Wendy’s
survey: Open-ended question
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FIGURE 8-4A (Q2) Sample Wendy’s
survey: Dichotomous question
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FIGURE 8-4A (Q3) Sample Wendy’s survey: Multiple
choice question
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description
FIGURE 8-4A (Q5) Sample Wendy’s survey: Semantic
differential scale question
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description
FIGURE 8-4B (Q6) Sample Wendy’s survey: Likert
scale question
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description
STEP 3: COLLECT RELEVANT INFO/DATA
LO4
PRIMARY DATA / OTHER SOURCES

Social Media

Panels and Experiments

Information Technology
and Data mining (scanners
in supermarkets)
©McGraw-Hill Education.
8-26
STEP 3: COLLECT RELEVANT INFO/DATA
+/– OF SECONDARY DATA

Advantages
+/– OF PRIMARY DATA

• More Specific
to the Problem
• Time Savings
• Inexpensive

Disadvantages
Advantage

Disadvantages
• Out of Date
• Expensive
• Definitions/Categories Not Right
• Time Consuming
to Collect
• Not Specific Enough
©McGraw-Hill Education.
8-27
STEP 4: DEVELOP FINDINGS

Analyze the Data
• How are Sales?
• What Factors
Contribute to
Sales Trends?

Present the Findings
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8-28
FIGURE 8-7 Marketing dashboards that present findings to Tony’s
marketing manager that lead to recommendations and actions.
©McGraw-Hill Education.
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description
STEP 5: TAKE MARKETING ACTIONS
LO5

Make Action
Recommendations

Implement the Action
Recommendations

Evaluate the Results
• The Decision Itself
• The Decision Process Used
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8-30