Marketing 351 Test #2

Front 1

Chapter 5

Back 1

Chapter 5

Front 2

What is Marketing Research?

Back 2

The systematic design, collection, interpretation and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities.

Front 3

Marketing Research is a process for...

Back 3

gathering information not currently available to decision makers.

Front 4

The value of Marketing Research is measured by what? (ITS MAIN BENEFIT)

Back 4

Improvements in a marketer’s ability to make decisions.

Front 5

Marketing Research can help a firm in what 3 ways besides its main benefit?

Back 5

1. Better understand market opportunities.
2. Find out for certain the potential for success for new products.
3. Determine the feasibility of a particular marketing strategy.

Front 6

Why do marketers approach marketing research as a process with logical steps?

Back 6

To maintain the control needed to obtain accurate information.

Front 7

What are the 5 steps in the Marketing Research Process?

Back 7

1. Locating and defining issues or problems.
2. Designing the research project.
3. Collecting data.
4. Interpreting research findings.
5. Reporting research findings.

Front 8

What does step 1 focus on?

Back 8

Understanding the nature of the situation.

Front 9

Typically during step 1, what is the first sign of a problem?

Back 9

First sign may be a departure from normal or expected results. Symptoms could be failure to meet sales goals or increasing expenses.

Front 10

What does CRM stand for and what is it frequently based on?

Back 10

Customer Relationship Management and it is frequently based on analysis of existing customers.

Front 11

Researchers and decision makers should remain in the problem or issue definition stage (step 1) until they...

Back 11

have determined precisely what they want from marketing research and how they will use it.

Front 12

What is a prerequisite for the next step (step 2) in the research process?

Back 12

Deciding how to refine a vague, broad, indefinite problem or issue into a precise, researchable statement.

Front 13

What is Research Design (step 2)?

Back 13

An overall plan for obtaining the information needed to address a research problem or issue.

Front 14

What is a hypothesis?

Back 14

An informed guess or assumption about a certain problem or set of circumstances.

Front 15

What are the two types of research marketers may elect to conduct?

Back 15

1. Exploratory Research
2. Conclusive Research

Front 16

Although each has a distinct purpose, the major differences between the two types of research are...

Back 16

formalization and flexibility, rather than the specific research methods used.

Front 17

What is Exploratory Research?

Back 17

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific.

Front 18

What is the main purpose of Exploratory Research?

Back 18

The main purpose of exploratory research is to better understand a problem or a situation and/or to help identify additional data needs or decision alternatives.

Front 19

What is Conclusive Research?

Back 19

Research designed to verify insights through objective procedures and to help marketers in making decisions.

Front 20

When is Conclusive Research used?

Back 20

When the marketer has one or more alternatives in mind and needs assistance in the final stages of decision making.

Front 21

What does conclusive research assume and what might it use?

Back 21

It assumes that the problems are clearly defined. It may use statistical analysis (hypothesis testing, confidence intervals).

Front 22

What are two types of Conclusive Research?

Back 22

1. Descriptive Research
2. Experimental Research

Front 23

What is Descriptive Research?

Back 23

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem.

Front 24

Descriptive research range from...

Back 24

general surveys of customers educations, occupations, or ages to specifics on how often teenagers consumer sports drinks or how often customers buy new pairs of athletic shoes.

Front 25

What is Experimental Research?

Back 25

Research that allows marketers to make “causal inferences” about relationships.

Front 26

What does experimental research require? Basically what does this provide evidence of?

Back 26

It requires that an independent variable be manipulated and the resulting changes in a dependent variable be measured.

It provides evidence of cause and effect.

Front 27

What are the differences between Exploratory and Conclusive Research?

Back 27

EXPLORATORY:

Generate insights
Vague data needs
Data source ill-defined
Open-ended data
Small non-random sample
Flexible data collection
Qualitative
Tentative inferences


CONCLUSIVE

Verify specific hypotheses
Clear data needs
Well-defined data sources
Structured data collection
Large, random sample
Defined data collection
Questionnaires
Final inferences

Front 28

In designing research, marketing researchers must ensure that research techniques are both...

Back 28

reliable and valid.

Front 29

Research is considered reliable if...

Back 29

it produces almost identical results in repeated trials.

Front 30

Research is considered valid if...

Back 30

if the research method measures what it is supposed to measure, not something else.

Front 31

For the 3rd step of the research process, what two kinds of data are available?

Back 31

1. Primary Data
2. Secondary Data

Front 32

What is primary data?

Back 32

Data observed and recorded or collected directly from respondents.

Front 33

Why is primary data collected?

Back 33

It is collected to address problems that cannot be answered by secondary data alone.

Front 34

What is secondary data?

Back 34

Data complied both inside and outside the organization for some purpose other than the current investigation.

Front 35

What are some examples of external sources of secondary data?

Back 35

GOVERNMENT:
Census
Dept. of Labor

TRADE ASSNS

PUBLIC SOURCES:
Magazines
Newspapers
Internet

SUBSCRIPTION:
Hoover’s
Nielson
Arbitron
Sales and Marketing Management magazine

Also includes an organizations own database, unpublished sources, and online databases.

Front 36

What are methods of collecting primary data?

Back 36

Sampling
Surveys
Observation
Experimentation

Front 37

Define Population, Sample, and Sampling.

Back 37

Population – all the units (people) of interest to researchers.

Sample – a limited number of units (people) used to represent the characteristics of the population.

Sampling – the process of selecting the sample units.

Front 38

What are the two main types of sampling, and some examples of each?

Back 38

PROBABILITY:
Random
Stratified
Used with conclusive research


NONPROBABILITY:
Quota
Convenience
Used with exploratory research

Front 39

What is the difference between Probability and Nonprobability sampling?

Back 39

Probability = Every element in the population has a known chance of being selected for study.

Nonprobability = It is more subjective than probability sampling because there is no way to calculate the likelihood that a specific element of the population will be chosen.

Front 40

What are some ways to gather primary data?

Back 40

Observation
Mail
Telephone
Online
Personal interview
In-home
Focus group
Customer advisory boards
Shopping mall intercept

Front 41

In Interpreting Findings (step 4) what is done first?

Back 41

Put the data into graphs, charts, and tables.

Front 42

What is Statistical Interpretation?

Back 42

Analysis of what is typical and what deviates from the average.

Front 43

What else is key is step 4?

Back 43

The data requires careful interpretation.

Managers must understand how the results can be used to make decisions.

Front 44

After interpreting the research findings (step 4), the researchers must do what for step 5 (Report Findings)

Back 44

They must prepare a report on the findings that the decision makers can understand and use. Researchers must also take care to avoid bias and distortion.

Front 45

What all is done in step 5 and what are some things that must be kept in mind?

Back 45

Formal report (maybe PowerPoint summary)

Executive summary/recommendations first.

Consider intended audience.

Point out any limitations in the data.

Front 46

What is the Marketing Information System (MIS)?

Back 46

A framework for managing and structuring information gathered regularly from sources inside and outside the organization.

Front 47

What is a Database?

Back 47

A collection of information arranged for easy access and retrieval.

Front 48

What is Single-Source Data?

Back 48

Information provided by a single marketing research firm.

Front 49

What is a Marketing Decision Support System (MDSS)?

Back 49

Customized computer software that aids marketing managers in decision making.

Front 50

Chapter 6

Back 50

Chapter 6

Front 51

The 4 requirements to be a market?

Back 51

1. Need
2. Ability
3. Willingness
4. Authority

Front 52

2 Types of markets?

Back 52

1. Consumer (households for consumption, no profit)
2. Business (profit, manufacturing, or daily operations)

Front 53

What is a consumer market also known as? Business?

Back 53

Business-to-Consumer (B2C)

Business-to-Business (B2B)

Front 54

5 step process when selecting target market?

Back 54

1. Identify appropriate target strategy.
2. Determine which segmentation variables to use.
3. Develop market segment profiles.
4. Evaluating relevant market segments
5. Actual selection of specific target markets

Front 55

Undifferentiated targeting strategy?

Back 55

One strategy for an entire market, good for homogenous market.

Front 56

Concentrated and Differentiated targeting strategy?

Back 56

Good for heterogenous market.

Concentrated: directs marketing efforts toward a single market segment through one marketing mix.

Differentiated: Directs customized marketing efforts at 2 or more segments.

Front 57

5 conditions that must exist for effective market segmentation?

Back 57

1. Customers need for product should be heterogeneous.
2. The segments of the market should be identifiable and visible.
3. The total market should be divided so segments can be compared with respect to estimated sales, costs, and profits.
4. At least one segment needs to have enough profit potential to justify developing and maintaining a special marketing mix for that segment.
5. The firm must be able to reach the chosen segment with a particular marketing mix.

Front 58

What are segmentation variables?

Back 58

Segmentation variables are the characteristics of individuals, groups, or organizations used to divide a total market into segments. Should have to do with the consumers need for or use of the product.

Front 59

Segmentation variables for consumer markets can be grouped into what 4 categories?

Back 59

1. Demographic (age, gender, race, income, etc)
2. Geographic (population, climate, etc)
3. Psychographic (Personality traits, motives, lifestyle)
4. Behavioristic (volume usage, brand loyalty, expected benefits, price sensitivity)

Front 60

Segmentation variables for business markets can be grouped into what 4 categories?

Back 60

1. Geographic location
2. Type of organization
3. Customer size
4. Product use

Front 61

Chapter 7

Back 61

Chapter 7