3
Marketing Research
ROAD MAP: Previewing the Concepts
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
Professor Takada
4-2
ROAD MAP
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research process
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
Professor Takada
4-3
The Importance of Information
• Companies need
information about
their:
– Customer needs
– Marketing environment
– Competition
• Marketing managers
do not need more
information, they
need better
information.
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4-4
Information Overload
“In this oh so
overwhelming
information age, it’s
all too easy to be
buried, burdened,
and burned out by
data overload.”
Professor Takada
4-5
ROAD MAP
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research process
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
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4-6
The Marketing Information System
Professor Takada
4-7
Marketing Information System
• An 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
Professor Takada
4-8
Assessing Information Needs
• A good MIS balances the information
users would like against what they really
need and what is feasible to offer.
• Sometimes the company cannot provide
the needed information because it is not
available or due to MIS limitations.
• Have to decide whether the benefits of
more information are worth the costs.
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4-9
Developing Marketing Information
• Internal Databases: Electronic collections of
•
•
information obtained from data sources within
the company.
Marketing Intelligence: Systematic collection
and analysis of publicly available information
about competitors and developments in the
marketing environment.
Marketing Research: Systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation facing
an organization.
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4-10
ROAD MAP
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
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4-11
Marketing Research Defined
Systematic design, collection,
analysis, and reporting of data
and findings relevant to a specific
marketing situation facing a company.
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4-12
The Marketing Research Process
1
2
3
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4
4-13
The Problem Definition and Approach Development Process
Tasks Involved
Discussions with
Decision Makers
Interviews with
Experts
Secondary Data
Analysis
Qualitative
Research
Environmental Context of the Problem
Step 1: Problem Definition
Management Decision Problem
Marketing Research Problem
Step 2: Approach to the Problem
Analytical Framework
and Models
Research
Questions and Hypotheses
Step 3:Professor
Research
Design
Takada
Specification of
Information Needed
4-14
Discussion Between the Researcher and the DM
Focus of the DM
Focus of the Researcher
Symptoms
Underlying Causes
• Loss of Market Share
Discussion
• Superior Promotion by
Competition
• Inadequate Distribution
of Company’s Products
• Lower Product Quality
• Price Undercutting by a
Major Competitor
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4-15
A Classification of Market Research Designs
Research Design
Exploratory Research
Design
Conclusive Research
Design
Descriptive
Research
Cross-Sectional
Design
Causal Research
Longitudinal
Design
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4-16
Marketing Research Designs
Exploratory
Research
Gather preliminary information
that will help define the problem
and suggest hypotheses.
Descriptive
Research
Describes things (e.g., market
potential for a product,
Demographics, and attitudes).
Causal
Research
Tests hypotheses about
cause-and-effect
relationships.
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4-17
Some Alternative Research Designs
(a)
Exploratory
Research
•Secondary Data
Analysis
• Focus Groups
(b)
Conclusive Research
•Descriptive/Causal
(c)
Conclusive Research
•Descriptive/Causal
Exploratory
Research
•Secondary Data
Analysis
•Focus Groups
Conclusive Research
•Descriptive/Causal
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4-18
Focus Group in Session
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4-19
Developing the Research Plan
• Includes:
– Determining the exact information needed
– Developing a plan for gathering it efficiently
– Presenting the written plan to management
• Outlines:
– Sources of existing data
– Specific research approaches
– Contact methods
– Sampling plans
– Instruments for data collection
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4-20
A Classification of Marketing Research Data
Marketing
Research Data
Primary
Data
Secondary
Data
Quantitative
Data
Qualitative
Data
Descriptive
Survey
Data
Observational
and Other Data
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Causal
Experimental
Data
4-21
A Classification of Secondary Data
Secondary
Data
Internal
Ready to
Use
Requires
Further
Processing
External
Published
Materials
Syndicated
Services
Computerized
Databases
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4-22
Gathering Secondary Data
• Information that already exists somewhere
– Internal databases
– Commercial data services
– Government sources
• Available more quickly and at a lower cost
than primary data
• Must be relevant, accurate, current, and
impartial
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Primary Data Collection
• Consists of information collected for the
specific purpose at hand.
• Must be relevant, accurate, current, and
unbiased.
• Must determine:
– Research approach
– Contact methods
– Sampling plan
– Research instruments
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4-24
Primary Data Collection
Research Instruments
Questionnaires
Mechanical Devices
• What questions to ask
• Form of each question
•Closed-ended
•Open-ended
• Wording
• Ordering
•
•
•
•
People Meters
Supermarket Scanners
Galvanometer
Eye Cameras
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4-25
A Comparison of Primary and Secondary Data
__________________________________________________________________________
PRIMARY DATA
SECONDARY DATA
________________________________________________________________
Collection purpose
For the problem at hand
For other problems
Collection process
Very involved
Rapid and easy
Collection cost
High
Relatively low
Collection time
Long
Short
______________________________________________________________________
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4-26
Methods of Obtaining Quantitative Data in
Descriptive Research
Quantitative Descriptive
Research
SURVEY
Information Obtained
by Questioning Respondents
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OBSERVATION
Information Obtained
by Observing Behavior or
Phenomena
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Survey Research
• Most widely used method for primary data
collection.
• Approach best suited for gathering
descriptive information.
• Can gather information about people’s
knowledge, attitudes, preferences, or
buying behavior.
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4-28
Strengths & Weaknesses of
Contact Methods
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Questionnaire Do’s and
Don’ts
• Ensure questions are free •
of bias
•
• Make questions simple
•
• Make questions specific
• Avoid jargon
•
• Avoid sophisticated words
• Avoid ambiguous words •
Avoid negatives
Avoid hypotheticals
Avoid words that could
be misheard
Use mutually exclusive
categories
Allow for “other” in fixed
response questions
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4-30
Question Types Dichotomous
In arranging this trip, did you contact American
Airlines?
 Yes  No
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Question Types – Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
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4-32
Question Types – Likert Scale
Indicate your level of agreement with the following
statement: Small airlines generally give better
service than large ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
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4-33
Question Types – Semantic
Differential
American Airlines
Large ………………………………...…………….Small
Experienced………………….………….Inexperienced
Modern………………………..………….Old-fashioned
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Question Types – Importance
Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
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4-35
Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor
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4-36
Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
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4-37
Question Types –
Completely Unstructured
What is your opinion of American Airlines?
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Question Types –
Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
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4-39
Question Types –
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________.
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4-40
Question Types –
Story Completion
“I flew American a few days ago. I noticed that the
exterior and interior of the plane had very bright
colors. This aroused in me the following thoughts
and feelings.” Now complete the story.
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
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4-41
Question Types –
Picture (Empty Balloons)
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Question Types –
Thematic Apperception Test
Make up a story that reflects what you think is
happening in this picture.
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4-43
Observational Research
• The gathering of primary data by
observing relevant people, actions, and
situations.
• Ethnographic research:
– Observation in “natural environment”
• Mechanical observation:
– People meters
– Checkout scanners
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4-44
Observational Research
Fisher-Price set up an observation lab in which it could observe the reactions of
little tots to new toys.
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4-45
Experimentation as Conclusive Research
Conclusive
Research
Descriptive
Causal
Experimentation
Field
Experiments
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Laboratory
Experiments
4-46
Experimental Research
• Tries to explain cause-and-effect
relationships.
• Involves:
– selecting matched groups of subjects,
– giving different treatments,
– controlling unrelated factors, and
– checking differences in group responses.
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4-47
Choosing the Sample
• Requires 3 Decisions:
• Sample – segment of
the population selected to
represent the population
as a whole.
– Who is to be
surveyed?
• Sampling unit
– How many people
should be surveyed?
• Sample size
– How should the people
in the sample be
chosen?
• Sampling procedure
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4-48
Types of Samples
Probability
• Simple random
• Stratified random
• Cluster
Nonprobability
• Convenience
• Judgment
• Quota
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4-49
Implementing the Research Plan
Collecting the
Data
Processing the
Data
Research Plan
Analyzing the
Data
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Interpreting & Reporting Findings
Managers and researchers must work together
when interpreting research results.
Step 1. Interpret the Findings
Step 2. Draw Conclusions
Step 3. Report to Management
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4-51
Characteristics of Good
Marketing Research
 Scientific method
 Research creativity
 Multiple methods
 Interdependence
 Value and cost of information
 Healthy skepticism
 Ethical marketing
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4-52
Tools to Measure Marketing Plan
Performance
Sales
Analysis
Market Share
Analysis
Expenseto-Sales
Analysis
Financial
Analysis
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4-53
Market Share Analysis
• Overall market share
• Relative market share
Professor Takada
4-54
The Control-Chart Model
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4-55
Simplified Profit-and-Loss Statement
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4-56
The Measures of Market Demand
Potential
Market
Available
Market
Target
Market
Penetrated
Market
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4-57
Ninety Types of Demand Measurement
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Market Demand Functions
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4-59
Market Demand Functions
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4-60
Estimating Current Demand
• Total market potential
• Area market potential
– Market buildup method
– Multiple-factor index method
• Brand development index
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4-61
Calculating Brand Development Index
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Estimating Future Demand
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
• Past-Sales Analysis
• Market-Test Method
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4-63
Purchase Probability Scale
Do you intend to buy an automobile within
the next 6 months?
0.00 No
0.20 Slight possibility
0.40 Fair possibility
0.60 Good possibility
0.80 High possibility
1.00 Certain
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ROAD MAP
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research process
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
Professor Takada
4-65
Customer Relationship Management
• Many companies utilize CRM
– Capture customer information from all sources
– Analyze it in depth
– Apply the results to build stronger relationships.
• Companies look for customer touch points.
• CRM analysts develop data warehouses and
use data mining techniques to find
information out about customers.
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4-66
Distributing and Using Marketing Information
Routine Information for
Nonroutine Information for
Special Situations
Decision Making
Information Must be Distributed
to the Right People at the Right Time
Intranets
Extranets
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4-67
ROAD MAP: Previewing the Concepts
• Importance of information to the company
and its understanding of the marketplace
• Marketing information system
• Marketing research process
• How companies analyze and distribute
marketing information.
• Special issues some marketing researchers
face:
– public policy and ethics issues.
Professor Takada
4-68
Other Marketing Research Considerations
Marketing Research in Small Businesses and Nonprofit
Organizations
International Marketing Research
Public Policy and Ethics in Marketing Research
Professor Takada
4-69
Research Services
Roper ASW, Inc.
provides companies
with information
resources “from Brazil
to Eastern Europe; from
Cape Town to Beijing—
if you are there, Roper
ASW, Inc. is there.”
Click Here to Visit RoperASW
Professor Takada
4-70
Top 25 Global Research Organizations
2000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
1999
1
2
3
4
5
—
6
8
10
11
9
14
12
15
13
16
18
17
19
20
—
21
25
—
—
Organization
AC Nielsen Corp.
IMS Health Inc.
The Kantar Group
Taylor Nelson Sofres plc
Information Resources Inc.
VNU Inc.
NFO WorldGroup Inc.
GfK Group
Ipsos Group SA
Westat Inc.
NOP World
Aegis Research
Arbitron Inc.
Video Research Ltd.
Maritz Research
The NPD Group Inc.
Opinion Research Corp.
INTAGE Inc.
J.D. Power and Associates
Roper Starch Worldwide Inc.
Jupiter Media Metrix Inc.
Dentsu Research Inc.
IBOPE Group
Harris Interactive Inc.
MORPACE International Inc.
Headquarters
Stamford, Conn.
Westport, Conn.
Fairfield, Conn.
London
Chicago
New York
Greenwich, Conn.
Nuremberg
Paris
Rockville, Md.
London
London
New York
Tokyo
St. Louis
Port Washington, N.Y.
Princeton, N.J.
Tokyo
Agoura Hills, Calif.
Harrison, N.Y.
New York
Tokyo
Rio de Janeiro
Rochester, N.Y.
Farmington Hills, Mich.
Parent
company
U.S.
U.S.
U.K.
U.K.
U.S.
U.S.
U.S.
Germany
France
U.S.
U.K.
U.K.
U.S.
Japan
U.S.
U.S.
U.S.
Japan
U.S.
U.S.
U.S.
Japan
Brazil
U.S.
U.S.
Total
Global research
Revenues1
(US$ millions)
$1,577.0
1,131.2
928.5
709.6
531.9
526.9
470.5
444.0
304.2
264.4
246.1
232.2
206.8
174.3*
172.0
164.3
123.9
119.3*
104.0
73.9
69.1
67.6
60.7
56.0
54.3
Percent of
global
revenues from
outside home
country
67.0%
62.5
71.4
75.2
25.0
2.6
62.4
62.4
78.3
0.0
60.0
32.2
3.4
0.0
31.5
17.0
28.9
1.8*
15.4
14.3
15.0
0.3
31.8
5.4
26.1
$8,812.7
49.3%
1
Total revenues that include nonresearch activities for some companies are significantly higher.
* For fiscal year ending March 31, 2001.
Professor Takada
4-71
A Sample of Marketing Research Jobs
Professor Takada
4-72
Rest Stop: Reviewing the Concepts
• Explain the importance of information to the
•
•
•
•
company.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research process.
Explain how companies analyze and distribute
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and ethics
issues.
Professor Takada
4-73