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Chapter 3: Chapter 3: Marketing Research: Marketing Research: Primary ResearchPrimary ResearchLesson 2Lesson 2

Marketing 11Marketing 11pp. 66-72pp. 66-72

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Marketing Research Marketing Research ProcessProcess

Problem Awareness Exploratory Research

Secondary DataCollection

Primary ResearchData Collection & Processing

Analysis & Interpretation

Recommendations & Action

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Primary ResearchPrimary Research

The collecting and recording of new data, called primary data, in order to resolve a specific problem, usually at high cost to the organization.

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Primary ResearchPrimary Research

Problem Definition

Objectives and Hypotheses

Sample Design

Data Collection Methods

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Sample DesignSample Design

A representative sample is essential in order to produce valid and reliable data.

Steps:1. Define Population

2. Identify Sampling Frame

3. Determine Type of Sample (probability or non probability)

4. Determine Sample Size

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Sample Design Sample Design ExampleExample Define the PopulationDefine the Population

– ““male golfers between the ages of 21 and 45 years male golfers between the ages of 21 and 45 years living in cities with over 500,000 residents.”living in cities with over 500,000 residents.”

Identify the Sampling FrameIdentify the Sampling Frame– Subscription list from Subscription list from GolfGolf magazine magazine– Telephone directoryTelephone directory

Determine the Type of SampleDetermine the Type of Sample– Probability Sample: pull 50 names out of a hatProbability Sample: pull 50 names out of a hat– Non-probability Sample: stand in the hallway and Non-probability Sample: stand in the hallway and

pass out survey to whoever walks bypass out survey to whoever walks by Determine the Sample SizeDetermine the Sample Size

– 10 % of total population10 % of total population– Minimum 200 respondentsMinimum 200 respondents

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Data Collection Data Collection MethodsMethodsPrimary ResearchPrimary Research

Survey

Observation

Experiment

Structured questionnaires

Personal or electronic means

Simulated or test market

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Survey:Survey:Fixed-Response Fixed-Response QuestioningQuestioning Survey created with Survey created with

predetermined questions and a predetermined questions and a selection of responses that are selection of responses that are easily filled in by the respondent. easily filled in by the respondent.

E.g. tick-off, multiple-choice, on a E.g. tick-off, multiple-choice, on a scale of 1 – 10, True or Falsescale of 1 – 10, True or False

Allows for easier analysis of resultsAllows for easier analysis of results

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Structured SurveyStructured Survey Screening questions at the beginningScreening questions at the beginning Central issue questions in the middleCentral issue questions in the middle

– Funnelling: general questions initially, Funnelling: general questions initially, progressing to more specific questionsprogressing to more specific questions

Classification/demographic questions Classification/demographic questions at the endat the end

Fixed-response questions that list Fixed-response questions that list possible answers are most popularpossible answers are most popular

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Example: Example: Structured Survey Structured Survey QuestionsQuestions1.1. Do you like ice cream?Do you like ice cream? Y / NY / N

(screening question)(screening question)

2.2. Rank the following ice cream flavours, Rank the following ice cream flavours, listing your favourite flavour as #1. listing your favourite flavour as #1. VANILLA __ CHOCOLATE __ STRAWBERRY__VANILLA __ CHOCOLATE __ STRAWBERRY__(central-issue question - Product)(central-issue question - Product)

3.3. Circle the most appropriate answer.Circle the most appropriate answer.I am a I am a student student / / teacherteacher / / administrator.administrator.(demographic question)(demographic question)

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Observation ResearchObservation Research Behaviour of respondent is observed and Behaviour of respondent is observed and

recordedrecorded Respondent might be unaware of the Respondent might be unaware of the

studystudy Examples: Examples:

– Hidden cameras used to analyze shoppers’ Hidden cameras used to analyze shoppers’ behaviour in the store: how they move behaviour in the store: how they move through the store, what they buy and where it through the store, what they buy and where it was displayed.was displayed.

– Store greeters used to observe demographics Store greeters used to observe demographics of customers entering the storeof customers entering the store

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Experimental Research Experimental Research / Test Marketing/ Test Marketing Placing a product for sale in one or more Placing a product for sale in one or more

small markets in order to observe its small markets in order to observe its performance with a defined marketing plan performance with a defined marketing plan (4 P’s) Test Marketing(4 P’s) Test Marketing

Example: Dairy Queen Chill & GrillExample: Dairy Queen Chill & Grill– Market opportunity: casual restaurant business is Market opportunity: casual restaurant business is

growinggrowing– New Product Idea: Updated store décor, table New Product Idea: Updated store décor, table

service, a premium burger patty, a new style of service, a premium burger patty, a new style of bun, and new grilled sandwichesbun, and new grilled sandwiches

– Test Markets: Fredericton & VancouverTest Markets: Fredericton & Vancouver

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Pros & Cons of Test Pros & Cons of Test MarketingMarketingPROSPROS:: Observe consumers’ reactions to productObserve consumers’ reactions to product Different marketing strategies can be tested Different marketing strategies can be tested

in different geographic marketsin different geographic markets Provides experience prior to expensive Provides experience prior to expensive

regional or national launchregional or national launch

CONSCONS:: Tips competition off to what you are planning Tips competition off to what you are planning

– they might beat you to it!– they might beat you to it! If a product stays in a test market too long it If a product stays in a test market too long it

may become out of date before it’s launched.may become out of date before it’s launched.

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Assignment:Assignment:

Homework:Homework:•Read Pg 66 – 72Read Pg 66 – 72•Complete WSH 3.2Complete WSH 3.2