CHAPTER
MARKETING
RESEARCH:
FROM
INFORMATION
TO ACTION
Marketing Research
The process of planning,
collecting, and analyzing
data relevant to a marketing
decision.
Reasons to use
Marketing Research
 Improve the quality of decision making
 Trace problems
 Focus on keeping existing
customers
 Understand the ever-changing
marketplace
Marketing Research
Why Good Marketing Research is Difficult
–Dishonesty
–Intention mismatched to behavior
–Newness has no comparative basis
The Marketing Research Process
Define
Problem
Plan Design/
Primary Data
Prepare/
Present
Report
Follow Up
Specify
Sampling
Procedure
Analyze
Data
Collect
Data
Secondary Data
Data previously collected
for any purpose other
than the one at hand.
ALWAYS
USE THIS FIRST
Sources of Secondary Data
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
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
Disadvantages of Secondary Data
 May not answer the exact question of your
research problem
 Quality-Don’t know who gathered it and how
the data was gotten

Accuracy of data may pose a problem-Don’t
know age of the info and how biased the
survey was
Primary Data
Information
collected for
the first time.
ALWAYS
USE THIS LAST
Advantages of Primary Data
 Answers a specific research question
 Data are current
 Source of data is known
 Secrecy can be maintained
Disadvantages of Primary Data
 Expensive
 Quality declines if interviews
are lengthy
 Reluctance to participate in lengthy
interviews
Types of Primary Data Gathering
 1. Survey Research
 2. Observational Research
Survey Research
The most popular technique
for gathering primary data
in which a researcher
interacts with people to
obtain facts, opinions,
and attitudes.
Forms of Survey Research
Internet surveys
Mail Surveys
Mall Intercept Interviews
“Cool Hunters”
Telephone Interviews
Focus Groups7-10 people
who participate in a group
discussion led by a moderator
Comparison of three kinds of surveys
COMPARISON OF SURVEY TECHNIQUES
Questionnaire Design
Open-Ended
Question
An interview question that
encourages an answer phrased in
respondent’s own words.
An interview question that asks
Closed-Ended
the respondent to make a selection
Question
from a limited list of responses.
ScaledResponse
Question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
Typical problems in wording questions
TYPICAL PROBLEMS IN WORDING QUESTIONS
Observation Research
A research method
that does not involve
personal interaction
between interviewer
and subject.
Observation Research
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
Observational Research
Advantages
Disadvantages
1. Eliminates bias from
the interviewing
process
1. Data collection costs
are high
2. Does not relay on the
respondent's
willingness to
provide data
2. Subjective,
unsolicited info is
limited
3. No insight on the
problem that you
didn’t think to
consider
FIGURE 8-2 Types of marketing information
TYPES OF DATA
Compiling and Delivering the Report
Data MiningUse of technology to search through data
records looking for useful information.
finds statistical links that highlight opportunities
+
When Should Marketing
Research be Conducted?
 When value of research
information exceeds the
cost of generating the
information
 When time in which to
decide is short-use your
instincts here
Concept Check
1. What is the difference between
secondary and primary data?
A: Secondary data are facts and
figures that have already been
recorded before the project at
hand, whereas primary data are
facts and figures that are newly
collected for the project.
Concept Check
2. What are some advantages and
disadvantages of secondary data?
A: Advantages include time savings, low
cost, and a greater level of detail.
Disadvantages are that the data may be
out of date, the definitions or categories
may not be right, and not being specific
enough for the project.
Concept Check
1. What is the difference between
observational and questionnaire data?
A: Observational data are facts and
figures obtained by watching, either
mechanically or in person, how people
actually behave. Questionnaire data
are facts and figures obtained by asking
people about their attitudes, awareness,
intentions, and behaviors.
Concept Check
2. Which survey provides the greatest
flexibility for asking probing
questions: mail, telephone, or
personal interview?
A: personal interview survey
Concept Check
1. What is data mining?
A: Data mining is the extraction of
hidden predictive information
from large databases to find
statistical links that suggest
marketing actions.