Learning objectives
1 Explain the concept and purpose of a
market information system
2 Define marketing research and explain
its importance to marketing decisionmaking
3 Describe the steps involved in
conducting a marketing research
project
4 Discuss the impact of electronic
scanner-based research
5 Explain when marketing research
should and should not be conducted
Learning objective
1
Explain the concept and purpose
of a market information system
1 Marketing intelligence
• Everyday information about
developments in the marketing
environment a that managers used to
compare and adjust marketing plans.
1 Linkage between DSS,
market research, MIS and
market intelligence
1 Decision support system
(DSS)
• An interactive, flexible computerised
information system that enables
managers to obtain and manipulate
information as they are making
decisions.
1 Characteristics of a DSS
•
•
•
•
Interactive
Flexible
Discovery-oriented
Accessible
1 Database marketing
• The creation of a large computerised
file of customers and potential customer
profiles and purchase patterns.
Learning objective
2
Define marketing research and explain
its importance to marketing decision-making
2 Marketing research
• The process of planning, collecting and
analysing data relevant to a marketing
decision.
2 Roles of marketing research
Improving quality of
decision-making
Understanding
changing
market place
Marketing
research
Gauging value,
measuring satisfaction
Tracing
problems
Keeping customers
Learning objective
3
Describe the steps involved in conducting
a marketing research project
3 The marketing
research process
3 Marketing research
Marketing
research
problem
Marketing
research
objective
Management
decision
problem
Determining what information is needed and
how that information can be
obtained efficiently and effectively.
The specific information needed
to solve a marketing research problem;
the objective should provide insightful
decision-making information.
A broad-based problem that
requires marketing research in order
for managers to take proper actions.
3 Research design
• Specifies which research questions
must be answered, how and when the
data will be gathered, and how the data
will be analysed.
3 Planning the research
design
• Which research questions must be
answered?
• How and when will data be gathered?
• How will the data be analysed?
3 Secondary data
• Data previously collected for any
purpose other than the one at hand.
3 Sources of secondary data
•
•
•
•
•
•
Internal corporate information
Government agencies
Trade and industry associations
Marketing research firms
Commercial publications
News media
3 Advantages of
secondary data
• Saves time and money if on target
• Aids in determining direction for
primary data collection
• Pinpoints the kinds of people to
approach
• Serves as a basis of comparison for
other data
3 Disadvantages of
secondary data
• May not be on target with the research
problem
• Quality and accuracy of data may pose
a problem.
3 Electronic
secondary information
• The Internet
–
–
–
–
–
–
Search engines and directories
Sites of interest to marketing researchers
Discussion groups
Periodical, newspapers and books
Databases
Web 2.0.
3 Primary data
• Information collected for the first time,
which can be used for solving the
particular problem under investigation.
3 Advantages of primary
data
•
•
•
•
Answers a specific research question
Data is current
Source of data is known
Secrecy can be maintained.
3 Disadvantages of primary
data
• Expensive
• Quality declines if interviews are
lengthy
• Reluctance to participate in lengthy
interviews.
3 Survey research
• The most popular technique for
gathering primary data, in which a
researcher interacts with people to
obtain facts, opinions and attitudes.
3 Forms of survey research
•
•
•
•
•
In-home interviews
Mail surveys
Mall intercept interviews
Internet surveys
Telephone interviews
(home and central location)
• Computer-assisted
3 Mall intercept interview
• Survey research method that involves
interviewing people in the common
areas of shopping malls.
3 Focus group
• A group of about 8 people who
participate in a discussion led by a
moderator.
3 Advantages of
on-line focus groups
•
•
•
•
•
Speed
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
3 Questionnaire design
Open-ended
question
An interview question that
encourages an answer phrased in a
respondent’s own words.
Closed-ended
question
An interview question that asks
the respondent to make a selection
from a limited list of responses.
Scaledresponse
question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
3 Questionnaire design
(cont.)
• Qualities of good questionnaires
–
–
–
–
Clear and concise
No ambiguous language
Unbiased
Reasonable terminology
3 Observation research
• A research method that relies on three
types of observation:
– people watching people
– people watching an activity
– machines watching people.
3 Observation research
(cont.)
People
watching
people
Types of
observation
research
People
watching
an activity
Machines
watching
people
Mystery shoppers
One-way mirrors
Audits
Traffic counters
Passive people meter
3 Mystery shoppers
• Researchers posing as customers who
gather observational data about a store
and collect data about
customer/employee interactions.
3 Experiment
• A method a researcher uses to gather
primary data.
3 Sampling procedure
Sample
Universe
A subset from a large
population.
The population from which
a sample will be drawn.
3 Probability samples
Probability
sample
Random
sample
A sample in which every element
in the population has a known
statistical likelihood of being
selected.
A sample arranged so that every
element of the population has an
equal chance of being selected.
3 Non-probability samples
Any sample in which little or no
Non-probability attempt is made to get a
representative cross-section of
sample
the population.
Convenience
sample
A form of non-probability sample
using respondents who are
convenient or readily
accessible to the researcher.
3 Types of samples
Probability
samples
Non-probability
samples
Simple random
sample
Convenience
sample
Stratified
sample
Judgement
sample
Cluster
sample
Quota
sample
Systematic
sample
Snowball
sample
3 Internet samples
Unrestricted A survey in which anyone with
a computer and modem can fill out
Internet
the questionnaire.
sample
Screened
Internet
sample
An Internet sample with quotas
based on desired sample
characteristics.
Recruited
Internet
sample
A sample in which respondents
are pre-recruited and must
qualify to participate.
3 Types of errors
•
•
•
•
Measurement error
Sampling error
Frame error
Random error
3 Types of errors (cont.)
Measurement Error when there is a difference
error
between the information desired and the
information provided by research.
Sampling
error
Frame
error
Random
error
Error when a sample somehow does not
represent the target population.
Error when a sample drawn from a
population differs from the target
population.
Error because the selected sample is
an imperfect representation of the overall
population.
3 Field service organisation
• A firm that specialises in interviewing
respondents on a subcontracted basis.
3 Field service firm (cont.)
• Provide:
–
–
–
–
–
focus group facilities
mall intercept locations
test product storage
kitchen facilities
retail audits.
3 Data analysis
• To interpret and draw conclusions from
the mass of collected data
• Qualitative data tends to use statistics
for its data analysis.
• Qualitative data tends to use pattern
matching for its data analysis
3 Cross-tabulation
• A method of analysing data that lets the
analyst look at the responses to one
question in relation to the responses to
one or more other questions.
Learning objective
4
Discuss the impact of electronic scanner-based
research
4 Scanner-based research
• A system for gathering information
from a single group of respondents by
continuously monitoring the advertising,
promotion and pricing they are exposed
to and the things they buy.
4 Two main scanner
research products
• BehaviorScan
• Tracks the
purchase of
households
through store
scanners
• InfoScan
• Sales tracking
service for
consumer
packaged goods
Learning objective
5
Explain when marketing research should
and should not be conducted
5 When and when not to
conduct marketing research
• How well does the firm know the
market?
• How much will the research cost?
• Will the research add value?
• How long will the research take?
• What is the quality of the research?