ch 8
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TRANSCRIPT
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The Marketing Research Function
Intro to Marketing Chapter 8
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Marketing Research Function
Purpose of research:
• To analyze competition performance
• to gauge acceptance of new products and package designs
• to develop promotional campaigns
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Development of the Marketing Research Function
Charles C. Parlin
How has technology affected research?
• It has allowed for storage of more data & simulation for testing.
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Marketing Research Process
1. Problem Definition• What is the problem?
For example: sales are dropping, new product is out, or new advertising
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2. Exploratory Research• Discover the cause of the problem
For example: Finding out why sales have dropped. Finding out is customers like the new product or advertising
• Using Internal DataAlso called Situational AnalysisSales records, financial statements
Marketing Research Process
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3. Formulating Hypothesis
• Guess about the outcome. It can be right or wrong
4. Research Design
• Test designed to see if
hypothesis is right or
wrong
Marketing Research Helped Kraft Develop the Product and Effective Advertising for Its DiGiorno Pizza
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5. Data Collection
• Collecting data to test the hypothesis
• Marketing Research Methods
• Secondary: previously published
• Primary: collected for the first time
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Interpreting and Presenting Information
Marketing Research is intended to assist in decision making, not be the final say.
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Marketing Research Methods
Secondary Data Collection
• Internalexample:sales records
• Externalexample: government
reports, census, Internet, industry publications
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• External Secondary Data
Advantages:Less expensive, abundant supplyTakes less time to gather
Disadvantages:May be outdatedMay be collected for a different
purpose so it’s irrelevant
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Sampling Techniques
Population or Universe
• Group the researcher wants to study
Census
• If all sources are contacted
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Sample• Representative
group• Must be
representative of target market - crucial for pertinent results
• Probability sample - every member has equal chance of being selected (random)
• Non-probability sample- on the street interview
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Primary Research Methods
1. Observation MethodFor example: traffic
count, license plate check, supermarket scanners, spies, recording of TV viewing habits, virtual reality
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2. Survey Method
• For example: personal interview, phone interview, computer interview, etc.
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Survey Method (cont.)• Telephone Interviews
Inexpensive High response rate ConvenientNo picture of item of discussionImpersonalBad ReputationInternationally phone connections are poorCaller ID’s screen callsUnlisted numbers are not reachable
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Survey Method (cont.)
Personal Interview
• Often the best method because rapport can be established
• Takes more time and money
• Can explain unclear questions
• Best for international information
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Survey Method (cont.)
Focus Groups
• 8-12 people can be too small to be reliable
• Widely used
• Generally video taped for late analysis
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Survey Method (cont.)
Mail Surveys
• Cost effective
• Only 40-50% return rate
• Effective for national studies buy not for international ones
• Junk mail reputation
• Based on effectiveness of US Post Office
Fax Surveys
• Novelty
• Faster results than mail
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Survey Method (cont.)
Online Surveys
• Fast
• Respondents are more truthful to the computer
• Cannot explain unclear questions
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3. Controlled Experiment Method
• Compares test groups to control groups
• Problems with trying to control the variables of real-life situations
• Done in field or lab
Testing a Global Advertisement
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TEST MARKETINGMost common method of experimental
data gathering
Introduces a product in a location that matches the target market demographics
Disadvantages • Expensive
• Competitors find about about products
• Some products are too expensive to produce for test marketing (cars)
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Conducting International Marketing Research
Language & Cultural Issues
US Government has good sources of information on the other countries