3-marketing research
TRANSCRIPT
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Prepared byPrepared byAngela Zigras, Seneca CollegeAngela Zigras, Seneca College
Deborah Baker, Texas Christian UniversityDeborah Baker, Texas Christian University
DECISION DECISION
SUPPORT SUPPORT
SYSTEMS AND SYSTEMS AND
MARKETING MARKETING
RESEARCHRESEARCH
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You will learn to ...You will learn to ...
1.1. Explain the concept and purpose of a Explain the concept and purpose of a marketing decision support system.marketing decision support system.
2. Define marketing research and explain its 2. Define marketing research and explain its importance to marketing decision making.importance to marketing decision making.
3. Describe the steps involved in conducting 3. Describe the steps involved in conducting a marketing research project.a marketing research project.
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You will learn to ...You will learn to ...
4. Discuss the growing importance of 4. Discuss the growing importance of
scanner-based research.scanner-based research.
5. Explain when marketing research should 5. Explain when marketing research should and should not be conducted.and should not be conducted.
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Marketing IntelligenceMarketing Intelligence
Everyday information about Everyday information about
developments in the developments in the
marketing environment that marketing environment that
managers use to prepare managers use to prepare
and adjust marketing plans.and adjust marketing plans.
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Decision Support SystemDecision Support System
An interactive, flexible An interactive, flexible
computerized information computerized information
system that enables system that enables
managers to obtain and managers to obtain and
manipulate information as manipulate information as
they are making decisions.they are making decisions.
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DSS System CharacteristicsDSS System Characteristics
CharacteristicsCharacteristicsof a of a
DSS SystemDSS System
CharacteristicsCharacteristicsof a of a
DSS SystemDSS System
InteractiveInteractive
FlexibleFlexible
Discovery-OrientedDiscovery-Oriented
AccessibleAccessible
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Database MarketingDatabase Marketing
The creation of a large The creation of a large
computerized file of computerized file of
customers’ and potential customers’ and potential
customers’ profiles and customers’ profiles and
purchase patterns.purchase patterns.
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Marketing ResearchMarketing Research
The process of planning, The process of planning,
collecting, and analyzing collecting, and analyzing
data relevant to a marketing data relevant to a marketing
decision.decision.
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Defining Market Research Defining Market Research (1)(1)
Research is the systematic and objective Research is the systematic and objective approach to investigate a specific approach to investigate a specific problem that needs a solution.problem that needs a solution.
Research is a process by which a series Research is a process by which a series of well thought out and carefully of well thought out and carefully executed activities enable one to executed activities enable one to enquire, investigate or examine a enquire, investigate or examine a problem to discover new facts to deal problem to discover new facts to deal with the problem.with the problem.
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Defining Research Defining Research (2)(2)
Systematic : well organised and plannedSystematic : well organised and planned Objectivity : unbiased and unemotionalObjectivity : unbiased and unemotional The information is used to identify and define The information is used to identify and define
opportunities and problems, and make opportunities and problems, and make recommendations on solutionsrecommendations on solutions
Market Research links consumer, customer and Market Research links consumer, customer and the public to the marketers through information.the public to the marketers through information.
Generate, refine and evaluate marketing Generate, refine and evaluate marketing actions, performance and the marketing actions, performance and the marketing process.process.
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Issues to consider with Problem definitionIssues to consider with Problem definition
PPast informationast information (secondary (secondary data/MIS)data/MIS)
RResources and constraintsesources and constraints OObjectivesbjectives BBuyer behuyer behaviouraviour (human or (human or
organisational)organisational) LLegal environmentegal environment EEconomic environmentconomic environment MMaarketingrketing and technological and technological
skillsskills
PP RR OO BB LL EE MM
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Roles of Marketing ResearchRoles of Marketing Research
DescriptiveDescriptive
DiagnosticDiagnostic
PredictivePredictive
Marketing Research Marketing Research
has three roles:has three roles:
Marketing Research Marketing Research
has three roles:has three roles:
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DiagnosticDiagnostic
PredictivePredictive
DescriptiveDescriptive
Gathering and presenting factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
Roles of Marketing ResearchRoles of Marketing Research
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Management Uses of Management Uses of Marketing ResearchMarketing Research
Improve the quality of decision makingImprove the quality of decision making
Trace problemsTrace problems
Focus on keeping existing customersFocus on keeping existing customers
Understand the ever-changing Understand the ever-changing marketplacemarketplace
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Steps in a Marketing Research Steps in a Marketing Research ProjectProject
CollectCollectDataData
CollectCollectDataData
Plan Design/Plan Design/Primary DataPrimary DataPlan Design/Plan Design/Primary DataPrimary Data SpecifySpecify
SamplingSamplingProcedureProcedure
SpecifySpecifySamplingSamplingProcedureProcedure
DefineDefineProblemProblemDefineDefine
ProblemProblem
AnalyzeAnalyzeDataData
AnalyzeAnalyzeDataData
Prepare/Prepare/PresentPresentReportReport
Prepare/Prepare/PresentPresentReportReport
Follow UpFollow UpFollow UpFollow Up
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Marketing ResearchMarketing Research
Marketing Marketing Research Research ProblemProblem
Marketing Marketing Research Research ProblemProblem
MarketingMarketingResearch Research ObjectiveObjective
MarketingMarketingResearch Research ObjectiveObjective
Management Management Decision Decision ProblemProblem
Management Management Decision Decision ProblemProblem
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.
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.
A broad-based problem that requires marketing research in order for managers to take proper actions.
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Objective setting Objective setting example 1example 1
Management ProblemManagement Problem::
Should a new product be launched?Should a new product be launched?
Research ObjectiveResearch Objective::
Determine consumer preference and Determine consumer preference and purchase intentions for the proposed purchase intentions for the proposed new product.new product.
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Objective setting Objective setting example 2example 2
Management ProblemManagement Problem::
Should the ad campaign be Should the ad campaign be changed?changed?
Research ObjectiveResearch Objective::
To determine effectiveness of the To determine effectiveness of the current campaign.current campaign.
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Objective setting Objective setting example 3example 3
Management ProblemManagement Problem::Should the price of the brand be Should the price of the brand be increased?increased?
Research ObjectiveResearch Objective::To determine the price elasticity of To determine the price elasticity of demand and the impact on sales and demand and the impact on sales and profits of various levels of price changes. profits of various levels of price changes.
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Sources of Secondary DataSources of Secondary Data
Marketing Research Firms
Trade and Industry Associations
National Research Bureaus
Professional Associations
Commercial Publications
Internal Information
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Secondary DataSecondary Data
Data previously collected Data previously collected
for any purpose other for any purpose other
than the one at hand.than the one at hand.
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Advantages of Secondary DataAdvantages of Secondary Data
Saves time and money if on targetSaves time and money if on target
Aids in determining direction for primary data Aids in determining direction for primary data collectioncollection
Pinpoints the kinds of people to approachPinpoints the kinds of people to approach
Serves as a basis of comparison for other Serves as a basis of comparison for other datadata
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Disadvantages of Secondary DataDisadvantages of Secondary Data
May not be on target with the research May not be on target with the research problemproblem
Quality and accuracy of data may pose Quality and accuracy of data may pose a problema problem
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The New Age of The New Age of Secondary InformationSecondary Information
The InternetThe InternetThe InternetThe Internet
wwwwww Search EnginesSearch Enginesand Directoriesand Directories
Sites of Interest toSites of Interest toMarketing ResearchersMarketing Researchers
Discussion GroupsDiscussion Groups
Periodical, Newspaper, and Book DatabasesPeriodical, Newspaper, and Book Databases
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Basic Types of DirectoriesBasic Types of Directories
Academic and Professional Academic and Professional DirectoriesDirectories
Commercial PortalsCommercial Portals
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Research DesignResearch Design
Specifies which research Specifies which research
questions must be questions must be
answered, how and when answered, how and when
the data will be gathered, the data will be gathered,
and how the data will be and how the data will be
analyzed.analyzed.
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Planning the Research DesignPlanning the Research Design
Which research Which research questions questions
must be answered?must be answered?
Which research Which research questions questions
must be answered?must be answered?
How and whenHow and whenwill data be will data be gathered?gathered?
How and whenHow and whenwill data be will data be gathered?gathered?
How willHow willthe datathe data
be analyzed?be analyzed?
How willHow willthe datathe data
be analyzed?be analyzed?
??
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Primary DataPrimary Data
Information collected for Information collected for
the first time. Can be the first time. Can be
used for solving the used for solving the
particular problem particular problem
under investigation.under investigation.
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Advantages of Primary DataAdvantages of Primary Data
Answers a specific research questionAnswers a specific research question
Data are currentData are current
Source of data is knownSource of data is known
Secrecy can be maintainedSecrecy can be maintained
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Disadvantages of Primary DataDisadvantages of Primary Data
ExpensiveExpensive
Quality declines if interviews are lengthyQuality declines if interviews are lengthy
Reluctance to participate in lengthy Reluctance to participate in lengthy interviewsinterviews
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Survey ResearchSurvey Research
The most popular technique The most popular technique
for gathering primary data in for gathering primary data in
which a researcher interacts which a researcher interacts
with people to obtain facts, with people to obtain facts,
opinions, opinions,
and attitudes.and attitudes.
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Forms of Survey ResearchForms of Survey Research
Focus GroupsFocus Groups
Internet SurveysInternet Surveys
Mail SurveysMail Surveys
Telephone Interviews(Home and Central Location)
Telephone Interviews(Home and Central Location)
Mall Intercept InterviewsMall Intercept Interviews
Computer-assisted Personal Interviewing
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Mall Intercept InterviewMall Intercept Interview
Survey research method Survey research method
that involves interviewing that involves interviewing
people in the common people in the common
areas of shopping malls.areas of shopping malls.
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Computer-Assisted Personal Computer-Assisted Personal InterviewingInterviewing
An interviewing method in An interviewing method in
which the interviewer reads which the interviewer reads
the questions from a the questions from a
computer screen and enters computer screen and enters
the respondent’s data the respondent’s data
directly into the computer.directly into the computer.
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Impact of the InternetImpact of the Internet
Allows better and faster decision makingAllows better and faster decision making
Improves ability to respond quickly to Improves ability to respond quickly to customer needs and market shiftscustomer needs and market shifts
Makes follow-up studies and research Makes follow-up studies and research easiereasier
Slashes labour-and time-intensive Slashes labour-and time-intensive research activitiesresearch activities
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Advantages of Internet SurveysAdvantages of Internet Surveys
Contact with the hard-to-reach
Contact with the hard-to-reach
Improved respondent participation
Improved respondent participation
Personalized questions and data
Personalized questions and data
Reduced costsReduced costs
Rapid development,Real-time reporting
Rapid development,Real-time reporting
Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of
Internet SurveysInternet Surveys
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Internet SamplesInternet Samples
UnrestrictedInternet Sample
UnrestrictedInternet Sample
ScreenedInternet Sample
ScreenedInternet Sample
RecruitedInternet Sample
RecruitedInternet Sample
A survey in which anyone with a computer and modem can fill out
the questionnaire.
A survey in which anyone with a computer and modem can fill out
the questionnaire.
An Internet sample with quotas based on desired sample
characteristics.
An Internet sample with quotas based on desired sample
characteristics.
A sample in which respondents are prerecruited and must
qualify to participate.
A sample in which respondents are prerecruited and must
qualify to participate.
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Other Uses of the InternetOther Uses of the Internet
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys
Publication and distributionof reports
Publication and distributionof reports
Data management and on-line analysis
Data management and on-line analysis
Collaboration in the management of a research project
Collaboration in the management of a research project
Distribution of requests for proposals
Distribution of requests for proposals
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Focus GroupFocus Group
Seven to ten people who Seven to ten people who
participate in a group participate in a group
discussion led by a discussion led by a
moderator.moderator.
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Advantages of Advantages of On-Line Focus GroupsOn-Line Focus Groups
SpeedSpeed
Cost-effectivenessCost-effectiveness
Broad geographic Broad geographic scopescope
AccessibilityAccessibility
HonestyHonesty
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Questionnaire DesignQuestionnaire Design
Open-EndedQuestion
Open-EndedQuestion
Closed-EndedQuestion
Closed-EndedQuestion
Scaled-Response Question
Scaled-Response Question
An interview question that encourages an answer phrased in
respondent’s own words.
An interview question that encourages an answer phrased in
respondent’s own words.
An interview question that asks the respondent to make a selection
from a limited list of responses.
An interview question that asks the respondent to make a selection
from a limited list of responses.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
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Questionnaire DesignQuestionnaire Design
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Clear and ConciseClear and Concise
No Ambiguous LanguageNo Ambiguous Language
UnbiasedUnbiased
Reasonable TerminologyReasonable Terminology
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Observation ResearchObservation Research
A research method that A research method that
relies on three types of relies on three types of
observation:observation:people watching peoplepeople watching people
people watching an activitypeople watching an activity
machines watching peoplemachines watching people
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Observation ResearchObservation Research
Mystery Shoppers
One-Way Mirrors
Types ofTypes ofObservationObservation
ResearchResearch
Types ofTypes ofObservationObservation
ResearchResearchAudits
Machines Watching
People
Machines Watching
People
People People Watching Watching
PeoplePeople
People People Watching Watching
PeoplePeople
People People Watching Watching an Activityan Activity
People People Watching Watching an Activityan Activity
Traffic Counters
Passive People Meter
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Mystery ShoppersMystery Shoppers
Researchers posing as Researchers posing as
customers who gather customers who gather
observational data about observational data about
a store and collect data a store and collect data
about customer/employee about customer/employee
interactions.interactions.
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ExperimentExperiment
A method a researcher uses A method a researcher uses
to gather primary data. to gather primary data.
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Sampling ProcedureSampling Procedure
SampleSample
UniverseUniverse
A subset from a large population.A subset from a large population.
The population from which a sample will be drawn.
The population from which a sample will be drawn.
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Probability SamplesProbability Samples
ProbabilitySample
ProbabilitySample
A sample in which every element in the population has a known statistical
likelihood of being selected.
A sample in which every element in the population has a known statistical
likelihood of being selected.
Random Sample
Random Sample
A sample arranged so that every element of the population has an equal change of being selected.
A sample arranged so that every element of the population has an equal change of being selected.
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Nonprobability SamplesNonprobability Samples
NonprobabilitySample
NonprobabilitySample
Convenience Sample
Convenience Sample
Any sample in which little or no attempt is made to get a representative
cross-section of the population
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
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Sampling ProcedureSampling Procedure
UniverseUniverse
SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
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Types of ErrorsTypes of Errors
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Measurement ErrorMeasurement Error
Sampling ErrorSampling Error
Frame ErrorFrame Error
Random ErrorRandom Error
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Types of ErrorsTypes of Errors
Measurement Error
Measurement Error
Sampling Error
Sampling Error
Frame Error
Frame Error
Random Error
Random Error
Error when there is a difference between the information desired and the
information provided by research
Error when there is a difference between the information desired and the
information provided by research
Error when a sample somehow does not represent the target population.
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 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.
Error because the selected sample is an imperfect representation of
the overall population.
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Field Service FirmField Service Firm
A firm that specializes in A firm that specializes in
interviewing respondents on interviewing respondents on
a subcontracted basis. a subcontracted basis.
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Collecting DataCollecting Data
Focus group facilitiesFocus group facilities
Mall intercept locationsMall intercept locations
Test product storageTest product storage
Kitchen facilitiesKitchen facilities
Retail auditsRetail audits
Field Service Firms ProvideField Service Firms Provide
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Types of SamplesTypes of Samples
Probability Probability SamplesSamples
Probability Probability SamplesSamples
Simple Random Sample
Stratified Sample
Cluster Sample
SystematicSample
Non-Probability Non-Probability SamplesSamples
Non-Probability Non-Probability SamplesSamples
Convenience Sample
JudgmentSample
Quota Sample
SnowballSample
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Cross-TabulationCross-Tabulation
A method of analyzing data A method of analyzing data
that lets the analyst look at that lets the analyst look at
the responses to one the responses to one
question in relation to the question in relation to the
responses to one or more responses to one or more
other questions. other questions.
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Preparing and Presenting Preparing and Presenting the Reportthe Report
Concise statement of the research Concise statement of the research objectivesobjectives
Explanation of research designExplanation of research design
Summary of major findingsSummary of major findings
Conclusion with recommendationsConclusion with recommendations
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Following UpFollowing Up
Were the recommendations followed?Were the recommendations followed?
Was sufficient decision-making Was sufficient decision-making information included in the report?information included in the report?
What could have been done to make What could have been done to make the report more useful?the report more useful?
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Scanner-Based ResearchScanner-Based Research
A system for gathering A system for gathering
information from a single information from a single
group of respondents by group of respondents by
continuously monitoring continuously monitoring
the advertising, promotion, the advertising, promotion,
and pricing they are and pricing they are
exposed to and the things exposed to and the things
they buy.they buy.
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When Should Marketing When Should Marketing Research be Conducted?Research be Conducted?
Where there is a high Where there is a high level of uncertainty level of uncertainty
When value of research When value of research information exceeds the information exceeds the cost of generating the cost of generating the informationinformation