Exam 2 Ch 8

Front 1

Marketing Research

Back 1

The process of collecting and analyzing information in order to recommend actions

Front 2

Decision:

Back 2

a conscious choice from among two or more alternatives

Front 3

Decision Making

Back 3

The act of consciously choosing from alternatives

Front 4

There are 5 steps to the marketing research approach:

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1. Define the problem
2. Develop the research plan
3. Collect Relavant information
4. Develop Findings
5. Take Marketing Actions

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Define the problem

Back 5

Set Research Objectives
• Research objectives are specific, measurable goals the decision maker seeks to achieve in conducting marketing research

Measures of Success: Criteria or standards used in evaluation proposed solutions to a problem

-Different research outcomes lead to different marketing strategies

Front 6

STEP 2: Develop the Research Plan

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1. Specify Constraints
2. Identify the data needed for marketing decisions
3. Determined how to collect data

Constraints: Restrictions placed on potential solutions to a problem

-Marketing research studies often collect a lot of extra irrelevant data for marketing actions

-Need to identify the important data

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Two Key Elements in deciding how to collect Data:

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1. Concepts
2. Methods

Front 8

Concepts

Back 8

are ideas about products or services

-In order to find out consumer reaction to a New Product, a new product concept is developed

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New Product Concept

Back 9

A picture or verbal description of a product or service that might be offered for sale

Front 10

Methods def and 2 types

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The approaches that can be used to collect data to solve all or part of a problem

Special methods that are vital to marketing are:
1. Sampling
2. Statistical Inference

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Sampling-

Back 11

Selecting a group of distributers, customers, or prospects…Asking them questions and treating their answers as typical of all whom they are interested

Front 12

Statistical Inference-

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Generalize results from the sample to much larger groups of distributers customers and prospects to help decide on marketing actions

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STEP 3: Collect Relevant Information

Back 13

Obtain secondary/primary data

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Data and types

Back 14

: The facts and figures related to a problem

Two Main Parts—
1. Secondary Data
2. Primary Data

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Secondary Data

Back 15

Facts and figures that have already been recorded before the project at hand (internal and external)

Front 16

Primary Data

Back 16

Facts and figures that are newly collected for a project (observational, questionnaire, and other sources)

Front 17

Secondary Internal Data

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• Detailed sales breakdowns by product line, region, customer or sales rep
• Customer inquiries and complaints
• Often the starting point for a new marketing research study

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Secondary External Data—

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• Data published outside of the organization
• US census beau publishes a lot of reports
• Surveys on American households
• Economic Census= Vital to business firms selling their products/ services to organizations
• Syndicated Panel- Economically answer questions
• Some data services provide comprehensive info on household demographics, lifestyles, ect
• A single firm can analyze, interrelate and present all this info
• Trade associations, universities, business periodicals provide detailed data to market researchers and planners

Front 19

Rule when it comes to data

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obtain secondary first

Front 20

Advantages/Disadvantages to Secondary Data

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Advantages—
1. Time Savings because data has already been collected/ published or existed internally
2. Low cost Free or inexpensive census reports
3. Greater Detail
Disadvantages—
• May be out of date, US census only collected every 5 to 10 years
• Categories/ definitions might not be quite right for project
• May not be specific enough

Front 21

Sources of Primary Data

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Watching People, Social Networking, Panel Experiment, IT

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Watching People

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• Observing people and asking them questions are the two principal ways to collect new or primary data for a marketing study.

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• observational data

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o facts and figures obtained by watching, either mechanically or in person, how people actually behave is the way marketing researchers collect.

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• Mechanical Methods

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o National TV ratings

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• Personal Methods

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o Mystery shopper
o Watching women do laundry, clean the floor, etc.
o ethnographic research is a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their “natural use environment”
o can be costly and unreliable.
o Can reveal what people do, but not why they do it.

Front 26

Social Networks-

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Consumers often share their onions about the offerings they use or want
-Social Networks are more “in touch” with consumer lifestyles

Front 27

Panels and Experiments

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-Panel: A sample of consumers or stores from which researchers take a series of measurements
-Experiment: Involves obtaining data by manipulating factors under tightly controlled conditions to test the cause and effect

-Will changing an independent variable (cause) change the dependent variable (result)
-Independent variables of interest are often called “drivers” are often 1 or more of the marketing mix

Front 28

Test Markets

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Offer a product for sale in a small geographic are to help evaluate potential marketing actions

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Information Technology

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: Involves operating computer networks that can store and process data

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Advantages of IT

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-Can extract hidden information from large databases

-Data sources are stored, organized, managed in databases, which are collectively called data warehouses

Front 31

Data Mining

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Extraction of hidden data/ predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions

*Success of data mining depends on how researchers/ managers analyze, select and interpret info

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Data Mining Advantages/Disadvantages

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Advantages- compared with secondary data, primary data have the advantages of being more flexible and more specific to the problem being studied
Disadvantages- primary data are usually far more costly and time consuming to collect than secondary data

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STEP 4: Develop Findings

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-Analyze data
-Facts uncovered by the consultant are vital

-Present findings
-Should be clear and understandable
-Managers are responsible for actions

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STEP 5: Take Marketing Actions

Back 34

-Make action recommendations
-Implement actions recommendations
-Evaluate results
• Evaluating the decision itself
• Evaluating the decision process used