marketing research: getting information for marketing decision making to accompany basic marketing,...

Marketing Research:Getting Information for Marketing Decision Making

Marketing Research:Getting Information for Marketing Decision Making

To Accompany Basic Marketing, 14th Editionby William D. Perreault, Jr. and E. Jerome McCarthyTo Accompany Basic Marketing, 14th Editionby William D. Perreault, Jr. and E. Jerome McCarthy

Your host:

David J. UrbanProfessor of Marketing

VirginiaCommonwealthUniversity

Your host:

David J. UrbanProfessor of Marketing

VirginiaCommonwealthUniversity

Key Topics in Marketing ResearchKey Topics in Marketing Research

What is it? What is it?

Why is it important?Why is it important?

How is it done?How is it done?

MarketingResearch

MarketingResearch

Marketing Research DefinedMarketing Research Defined

Marketing Research consists of the proceduresto develop and analyze new information

to help marketing managers make decisions.

Marketing research gets the "facts" notalready available in the marketing

information system.

Who Does “Custom” Marketing ResearchWho Does “Custom” Marketing Research

In-house research departmentsIn-house research departments

Custom research firmsCustom research firms

Consulting firmsConsulting firms

MarketingResearchSuppliers

MarketingResearchSuppliers

Advertising agenciesAdvertising agencies

Syndicated servicesSyndicated services

Colleges and universitiesColleges and universities

Internationalization of Marketing ResearchInternationalization of Marketing Research

The Importance of Marketing ResearchThe Importance of Marketing Research

Reason #1: Not getting the right information is the fastest path to marketing disaster.

• Base marketing strategies on valid evidence and analysis

Don’t blow it!

The Importance of Marketing ResearchThe Importance of Marketing Research

Reason #2: research is often done poorly … and with serious consequences

• Managers may not know much about research

• Quality of suppliers is highly variable

• Research is often done on a crisis basis

The Importance of Marketing ResearchThe Importance of Marketing Research

Reason #3: big changes are underway because of technology

• Instant feedback and rapid change

• “Real time” data

• Lack of understanding about how to use the tools

• Changes do not happen all at once

Ethical Issues in Marketing ResearchEthical Issues in Marketing Research

Withheld informationWithheld information

Acceptability of FindingsAcceptability of Findings

Research vs. SellingResearch vs. Selling

EthicalIssues

EthicalIssues

“Lying” with Statistics“Lying” with Statistics

Marketing Research Process – Step 1Marketing Research Process – Step 1

Definingthe

Problem

Definingthe

Problem

EarlyIdentification

ofSolution

EarlyIdentification

ofSolution

• Most important and difficult part of the process

• What do we need to know?

• What pieces of information will give us what we need?

• Manager and researcher must work together

Researcher – Manager CollaborationResearcher – Manager Collaboration

That overpaid yuppie is clueless--she doesn’t even know how a chi-square is computed

That marketing researchgeek doesn’t understandmy business--she doesn’t even know my competitors!

I stats

Marketing Research Process – Step 2Marketing Research Process – Step 2

Definingthe

Problem

Definingthe

Problem

Analyzingthe

Situation

Analyzingthe

Situation

Feedback to Previous Steps

EarlyIdentification

ofSolution

EarlyIdentification

ofSolution

• What information is already available

• Expert interviews and case studies

• Secondary data

An Example of Secondary DataAn Example of Secondary Data

Marketing Research Process – Step 3Marketing Research Process – Step 3

Definingthe

Problem

Definingthe

Problem

Analyzingthe

Situation

Analyzingthe

Situation

GettingProblem-Specific

Data

GettingProblem-Specific

Data

EarlyIdentification

ofSolution

EarlyIdentification

ofSolution

Feedback to Previous Steps

Primary Data -- QualitativePrimary Data -- Qualitative

Primary Data - QuantitativePrimary Data - Quantitative

QuestioningQuestioning

Mail, telephone, face-to-face, and internet surveys

Primary Data - QuantitativePrimary Data - Quantitative

QuestioningQuestioning

ObservationObservation

Mail, telephone, face-to-face, and internet surveys

Human or machine observers

Primary Data - QuantitativePrimary Data - Quantitative

QuestioningQuestioning

ObservationObservation

ExperimentsExperiments

Mail, telephone, face-to-face, and internet surveys

Human or machine observers

Cause and effect relationships

The Research ProposalThe Research Proposal

A good research proposal keeps the process on track

Whatdata will becollected

Whatdata will becollected

Quality controlstandards that will

be used

Quality controlstandards that will

be used

How itwill be

collected

How itwill be

collected

From whomFrom whom

What itwill cost

What itwill cost

How longit will take

How longit will take

Who will

analyze it

Who will

analyze it

ResearchProposal

ResearchProposal

Marketing Research Process – Step 4Marketing Research Process – Step 4

Definingthe

Problem

Definingthe

Problem

Analyzingthe

Situation

Analyzingthe

Situation

GettingProblem-Specific

Data

GettingProblem-Specific

Data

Inter-preting

Data

Inter-preting

Data

EarlyIdentification

ofSolution

EarlyIdentification

ofSolution

Feedback to Previous Steps

Data InterpretationData Interpretation

Is the sample representative?Is the sample representative?

Is the data reliable?Is the data reliable?

Is the data valid?Is the data valid?

KeyIssues

KeyIssues

Are the statistical techniques appropriate?Are the statistical techniques appropriate?

Data InterpretationData Interpretation

Marketing Research Process – Step 5Marketing Research Process – Step 5

Definingthe

Problem

Definingthe

Problem

Analyzingthe

Situation

Analyzingthe

Situation

GettingProblem-Specific

Data

GettingProblem-Specific

Data

Inter-preting

Data

Inter-preting

Data

Solvingthe

Problem

Solvingthe

Problem

EarlyIdentification

ofSolution

EarlyIdentification

ofSolution

Feedback to Previous Steps

Information Enters a DatabaseInformation Enters a Database

MarketResearchStudies

MarketResearchStudies

InternalData

Sources

InternalData

Sources

ExternalData

Sources

ExternalData

Sources

DatabasesDatabases

Inputs

InformationSources

Questionsand Answers

DecisionMaker Results

Support Systems Interact with the DatabaseSupport Systems Interact with the Database

MarketResearchStudies

MarketResearchStudies

InternalData

Sources

InternalData

Sources

ExternalData

Sources

ExternalData

Sources

DatabasesDatabases

DecisionSupportSystem(DSS)

DecisionSupportSystem(DSS)

MarketingModels

MarketingModels

InformationProcessingSpecialists

InformationProcessingSpecialists

Inputs

?

AnswersN

ew In

form

atio

n

InformationSources

Questionsand Answers

DecisionMaker Results

Decisions and OutcomesDecisions and Outcomes

MarketResearchStudies

MarketResearchStudies

InternalData

Sources

InternalData

Sources

ExternalData

Sources

ExternalData

Sources

DatabasesDatabases

DecisionSupportSystem(DSS)

DecisionSupportSystem(DSS)

MarketingManager

Decisions

MarketingManager

DecisionsOutcomesOutcomes

MarketingModels

MarketingModels

InformationProcessingSpecialists

InformationProcessingSpecialists

Inputs

?

AnswersN

ew In

form

atio

n

Feedback

InformationSources

Questionsand Answers

DecisionMaker Results

Marketing Strategy Planning ProcessMarketing Strategy Planning Process

CustomersNeeds and other

SegmentingDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

External Market EnvironmentExternal Market EnvironmentTechnology Political & Legal Social & Cultural EconomicTechnology Political & Legal Social & Cultural Economic

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria