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?