CHAPTER 10 MARKETING RESEARCH Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10-1 Marketing Research LEARNING OBJECTIVES LO1 Identify the five steps in the marketing research process. LO2 Describe the various secondary data sources. LO3 Describe the various primary data collection techniques. LO4 Summarize the differences between secondary data and primary data. LO5 Examine the circumstances under which collecting information on consumers is ethical. 10-2 Disney Ron S Buskirk/Alamy 10-3 McDonald’s Makeover 10-4 Market Research Outcome What might have Chef Boyardee learned in research to design this product and this print ad? Ad Courtesy of ConAgra Foods 10-5 Marketing Research Collecting Recording Analyzing Interpreting Decision Making 10-6 What Would You Do? Meet Aaron, a marketing researcher: • He has just finished giving a successful presentation to a major client. • The client has asked for a list of companies that participated in the study and copies of all the completed surveys. Ryan McVay/Getty Images CASRO 10-7 The Marketing Research Process Defining the objectives and research needs Designing the research Analyzing data and developing insights Developing and implementing an action plan Collecting the data 10-8 Step 1: Defining Objectives and Research Needs What information is needed to answer specific research questions? How should that information be obtained? 10-9 Step 2: Designing the Research Type of data Type of research 10-10 Step 3: Collecting the Data 10-11 ©Getty Images Step 4: Analyzing Data and Developing Insights Converting data into information to explain, predict and/or evaluate a particular situation. 10-12 Step 5: Developing and Implementing an Action Plan Executive Summary Body Conclusions Limitations Digital Vision/Getty Images Supplements including tables, figures, appendices 10-13 CHECK YOURSELF 1. What are the steps in the marketing research process? 2. What is the difference between data and information? 10-14 External Secondary Data Syndicated Data 10-15 Courtesy The Nielsen Co External Secondary Data Scanner Research IRI 10-16 External Secondary Data Panel Research Group of consumers Survey or sales receipts ©BananaStock/PunchStock What are they buying or not buying? Flying Colours Ltd/Getty Images 10-17 Internal Secondary Data Data Warehouse Data Mining 10-18 CHECK YOURSELF 1. What is the difference between internal and external secondary research? 10-19 Qualitative versus Quantitative Data Collection Techniques Qualitative research Quantitative research Data collection research 10-20 Data Collection Qualitative Research Observation Social Media In-depth interview Focus group In-Store Tracking Analytics 10-21 Describing the benefits How could Ziploc use qualitative research to design this ad? SC Johnson Co 10-22 CHECK YOURSELF 1. What are the types of qualitative research? 10-23 Survey Research 10-24 Web Surveying Response rates are relatively high Respondents may lie less Results are processed and received quickly Simon Fell/Getty Images It is inexpensive 10-25 Using Web Surveying The McGraw-Hill Companies, Inc/ John Flournoy, photographer How do firms successfully use web surveying? 10-26 Experimental Research AP Photo/Mary Altaffer 10-27 Advantages and Disadvantages of Secondary and Primary Data Type Examples Advantages Disadvantages Secondary Research Census data Sales invoices Internet information Books Journal articles Syndicated data Saves time in collecting data because they are readily available Free or inexpensive (except for syndicated data) May not be precisely relevant to information needs Information may not be timely Sources may not be original, and therefore usefulness is an issue Methodologies for collecting data may not be appropriate Data sources may be biased Primary Research Observed consumer behavior Focus group interviews Surveys Experiments Specific to the immediate data needs and topic at hand Offers behavioral insights generally not available from secondary research Costly Time consuming Requires more sophisticated training and experience to design study and collect data 10-28 CHECK YOURSELF 1. What are the types of quantitative research? 2. What are the advantages and disadvantages of primary and secondary research? 10-29 Debating Domestic Eavesdropping 10-30 The Ethics of Using Customer Information Strong ethical orientation Adhere to ethical practices 10-31 CHECK YOURSELF 1. Under what circumstances is it ethical to use consumer information in marketing research? 2. What challenges do technological advances pose for the ethics of marketing research? 10-32