CHAPTER 3

MARKETING RESEARCH AND INFORMATION SYSTEM

Important Topics of the Chapter

Differences Between Consumer and Business marketing research.

Major Tasks of marketing Research. Marketing Research Vs. MIS. The Marketing research Process. Make or Buy Decision in research. Information Sources in Marketing

research.

Business Vs. Consumer Marketing Research

Consumer BusinessUniverse Pop. Large SmallResp. Accessibility Difficult Concern Sample Size Large SmallResp. Definition Simple Difficult Interviews Easy DifficultOverall Study Cost Higher Smaller Cost per interview Less Higher

Focus of Business Marketing Research

Business Market uses qualitative and quantitative research including computer assisted telephone interview and multivariate techniques. Business marketers conduct customer satisfaction, new market analysis, segmentation and packaging research.

Technology and Marketing Research

New methods of data collection have increased the quality and the quantity of data.

Data collection methods become cheaper and faster:

• CATI• Internet data acquisition.• Scanner technology.• Remote data collection by sales and service

personnel.

Major tasks of Business Marketing Research

Market Potential• sales/profit potential

Market Share Analysis• Company Vs. Industry ratio

Market Characteristics• Understanding the market/customers

Sales Analysis• Sales goals Vs. sales records- customer, product, regions, price

Major Tasks of Business Research (cont.)

Forecasting• short and long term sales forecasting

Other applications• sales quotas, territory studies, marketing

audit, pricing tests, business trends

Marketing Research Vs. Marketing Information

MIS• computerized data base for gathering

accurate and timely information for key marketing professionals.

• It disseminate information in an almost infinite number combination on a regular basis depending upon what is needed.

• Information can be in finance, sales, production and accounting.

Marketing Research Vs. MIS (cont.)

StorageInternal Environment Editing Data Analysis Dec.External Environment Reports Routine and non-routine information

Marketing Research Vs. MIS (cont.)

Sources of MIS• Internal Environment

• Employee, financial resources

• External Environment• Market, competition, government

MIS• Data, editing and storage• Data analysis and modeling• Report generation and dissemination

Decision Process

Model of MIS System

Information Information out in

Macro

Internal

MIS

PeriodicReports

SpecialReports

Micro

Data Base Development

Information Sources• Secondary

• Internal• External• Government-SIC codes• Commercial sources• Professional publications• On-line and Internet

• Primary• Marketing Research

The Business Marketing Research Process

Planning the research design• Defining the problem

Preparation• Sampling• Designing the questionnaire

• open-ended • close-ended

• Data collection methods• Mail, telephone, personal, computer and

internet

Business Marketing Research Process

Field Operations• Scheduling and conducting interviews

Processing• Coding and editing data• Constructing data file

Tabulation and Interpretation• Analysis• Findings• Interpretation

Business Marketing Research Process

Processing• Coding and editing data• Constructing data file

Tabulation and Interpretation• Analysis• Findings• Interpretation

Reporting• Written report and presentation• Follow-up

Qualitative Vs. Quantitative Research

Qualitative Research:• Subjective and interpretive• Use open ended questions• Use small sample.• Use type recorder, videos.• Exploratory.

Quantitative Research:• Objective and statistical summarization.• Use Questionnaires, computers.• Large sample.• Descriptive or Causal.

Make-or-Buy Marketing Research

Cost Expertise Resources

• statistician, computer specialists

Organizational structure Legal and Administrative

requirements Confidentiality of information

Developing Information Sources

Secondary Data Sources:• Internal sources.• External sources.• Government sources:

• Census data.• Commercial sources:

• Survey of Industrial and commercial buying.• Thomas Register of American manufacturers.

• Professional publications.• Internet sources.

• Disadvantages of secondary data:• Accuracy and Coverage.• Collection problem.

Developing Information Sources (cont.)

Primary data Sources:• Personal Interviews.• Telephone Surveys.• Mail Surveys.• Research on the Internet.

Disadvantages of Primary Data:• Cost.• Response rate.• Importance of computer.• Statistical analysis.

International Marketing research

Language Culture Resources Training Attitudes of People Political climate