marketing-information management lap 5 seek and find marketing research

Marketing-Information Marketing-Information Management LAP 5Management LAP 5

Seek and FindSeek and FindMarketing ResearchMarketing Research

ObjectivesObjectives

Describe marketing research and its role in Describe marketing research and its role in business decision-making.business decision-making.

Describe the steps of the marketing-Describe the steps of the marketing-research process.research process.

Describe marketing research and its Describe marketing research and its role in business decision-making.role in business decision-making.

ObjectiveObjective

• Marketing researchers use a Marketing researchers use a systematic process similar to the systematic process similar to the scientific method.scientific method.

• Marketing research is extremely Marketing research is extremely important for decision-making important for decision-making about:about:

ProductsProducts

PricesPrices

PromotionsPromotions

CompetitorsCompetitors

Target marketsTarget markets

• With this knowledge, marketers With this knowledge, marketers contribute to business success.contribute to business success.

Important Facts About Marketing ResearchImportant Facts About Marketing Research

• Marketing research is the systematic Marketing research is the systematic gathering, recording, and analyzing gathering, recording, and analyzing of data about a specific issue, of data about a specific issue, situation, or concern.situation, or concern.

• It helps marketers keep up with It helps marketers keep up with trends and consumers.trends and consumers.

• It’s an important component of a It’s an important component of a marketing-information management marketing-information management system.system.

• It helps businesses to make better It helps businesses to make better decisions.decisions.

• It can vary in size and complexity.It can vary in size and complexity.

The Role of Marketing Research in The Role of Marketing Research in Decision-MakingDecision-Making

• Contributes to business Contributes to business success through informed, success through informed, effective decision-makingeffective decision-making

• Allows decisions to be based Allows decisions to be based on facts, not opinions, gut on facts, not opinions, gut reactions, or past reactions, or past experiencesexperiences

How Marketing Research Is UsedHow Marketing Research Is Used

• To solve specific marketing problemsTo solve specific marketing problems

• To identify problems that may or may To identify problems that may or may not be readily apparentnot be readily apparent

• To help implement the marketing To help implement the marketing conceptconcept

Marketing concept: a philosophy of Marketing concept: a philosophy of conducting business that is based on conducting business that is based on satisfying customer wants and needs satisfying customer wants and needs while achieving company goalswhile achieving company goals

Marketing research helps identify Marketing research helps identify those wants and needs.those wants and needs.


• To develop a customer profileTo develop a customer profile AgeAge IncomeIncome EducationEducation Spending patternsSpending patterns


• To analyze the business’s sales and To analyze the business’s sales and market sharemarket share

How well is the business performing?How well is the business performing? How do its sales compare with How do its sales compare with

industry sales?industry sales? What is its market share?What is its market share?


• To describe the target marketTo describe the target market Who?Who? How many?How many? Where?Where? Likes?Likes? Purchases?Purchases?


• To determine how to reach the target To determine how to reach the target marketmarket

What messages appeal to the target What messages appeal to the target market?market?

How frequently should the business How frequently should the business communicate with the target market?communicate with the target market?

Which promotional methods appeal to Which promotional methods appeal to the target market?the target market?

What advertising media are likely to be What advertising media are likely to be successful?successful?


• To forecast sales and trendsTo forecast sales and trends To predict future sales and trends, To predict future sales and trends,

businesses need to know what businesses need to know what customers are buying.customers are buying.


• To be more competitiveTo be more competitive How are we doing compared to our How are we doing compared to our

competitors?competitors? What could we do to beat the What could we do to beat the

competition?competition? What do customers expect of us and What do customers expect of us and

our competitors?our competitors? What characteristics do customers What characteristics do customers

associate with different brands?associate with different brands?


• To prevent unnecessary financial To prevent unnecessary financial losseslosses

What markets should be targeted?What markets should be targeted? What products should be offered?What products should be offered? What sales channels should be used?What sales channels should be used? What prices should be charged?What prices should be charged? What packaging should be used?What packaging should be used? How much inventory should be How much inventory should be

carried?carried? How should products be promoted?How should products be promoted?


• To keep up-to-dateTo keep up-to-date TrendsTrends StylesStyles Buying patternsBuying patterns


• To maintain or determine imageTo maintain or determine image What are customers saying about the What are customers saying about the

business?business? Are they satisfied?Are they satisfied?

The CharacteristicsThe Characteristicsof Marketing Researchof Marketing Research

• SystematicSystematic Step-by-stepStep-by-step

• AccurateAccurate Essential in all aspects of Essential in all aspects of

marketing researchmarketing research

ExactExact

PrecisePrecise


• ObjectiveObjective UnbiasedUnbiased

• ThoroughThorough SufficientSufficient

• TimelyTimely Due on a specific dateDue on a specific date


• ReliableReliable Producing the same data Producing the same data

every timeevery time

• ValidValid Measuring what the Measuring what the

researcher intends to researcher intends to measuremeasure

Who Uses Marketing Research?Who Uses Marketing Research?

• Businesses of all types and sizesBusinesses of all types and sizes The business’s size usually The business’s size usually

determines how it does marketing determines how it does marketing research.research.

• Large businessesLarge businesses Usually have their own marketing-Usually have their own marketing-

research departmentsresearch departments May also hire outside research May also hire outside research

consultantsconsultants

Who Uses Marketing Research?Who Uses Marketing Research?

• Small businessesSmall businesses Generally carry out marketing Generally carry out marketing

research on their ownresearch on their own Use data that they have on handUse data that they have on hand Gather data from published reports Gather data from published reports

and other sourcesand other sources Survey customers to learn about Survey customers to learn about

customers’ wants and needscustomers’ wants and needs

Describe the steps of the Describe the steps of the marketing-research process.marketing-research process.

ObjectiveObjective

The Marketing Research Process:The Marketing Research Process:Identify the Reason for the ResearchIdentify the Reason for the Research

• Identify the problem, issue, situation, Identify the problem, issue, situation, or concern to be researched.or concern to be researched.

• Determine:Determine: What kind of data to collectWhat kind of data to collect How much data to gatherHow much data to gather Why the data are neededWhy the data are needed Whether lessons learned fromWhether lessons learned from

the research will be worth the the research will be worth the potential costpotential cost

The Marketing Research Process:The Marketing Research Process:Set Research ObjectivesSet Research Objectives

• Objectives: Specific goals for the Objectives: Specific goals for the research projectresearch project

• Objectives fall into one or more Objectives fall into one or more categories based on the reason for categories based on the reason for the research:the research:

To explore the current situation To explore the current situation (a.k.a. exploratory research)(a.k.a. exploratory research) Helps researchers to clearly define Helps researchers to clearly define

reasons for researchreasons for research Involves the collection of qualitative Involves the collection of qualitative

data—respondents’ opinions and data—respondents’ opinions and personal interpretationspersonal interpretations



To define the current situation To define the current situation (a.k.a. descriptive research)(a.k.a. descriptive research) Is used to gather specific data Is used to gather specific data

related to the identified research related to the identified research problemproblem

Involves the collection of quantitative Involves the collection of quantitative data—facts and figures that can be data—facts and figures that can be presented in the form of a chart or presented in the form of a chart or graphgraph



To test the situation (a.k.a. causal or To test the situation (a.k.a. causal or conclusive research)conclusive research) Focuses on cause and effect Focuses on cause and effect

relationshipsrelationships Tests “Tests “whwhat if” theoriesat if” theories Determines the impact that one thing Determines the impact that one thing

has on anotherhas on another



To predict future situations (a.k.a. To predict future situations (a.k.a. predictive research)predictive research) Helps to forecast future business Helps to forecast future business

developmentsdevelopments

The Marketing Research Process:The Marketing Research Process: Develop Develop a Hypothesisa Hypothesis

• Hypothesis: a statement of Hypothesis: a statement of the expected outcomes of the the expected outcomes of the researchresearch

TestableTestable Based on the research Based on the research

objective(s)objective(s)

The Marketing Research Process:The Marketing Research Process: Determine Determine the Research Designthe Research Design

• Involves creating a written master Involves creating a written master plan for how the research will be plan for how the research will be carried outcarried out

• Helps to keep the project on trackHelps to keep the project on track

• Helps ensure that the business and Helps ensure that the business and the researcher have the same the researcher have the same informationinformation


• Addresses the following questions:Addresses the following questions: What types of data are needed?What types of data are needed?

Secondary dataSecondary data Are collected for purposes other Are collected for purposes other

than the project at handthan the project at hand Can be accessed quicklyCan be accessed quickly Are relatively inexpensiveAre relatively inexpensive Sometimes meet researchers’ needsSometimes meet researchers’ needs May not directly apply to the May not directly apply to the

problem at handproblem at hand


• Addresses the following questions:Addresses the following questions: What types of data are needed?What types of data are needed?

Primary dataPrimary data Up-to-dateUp-to-date RelevantRelevant Gathered specifically for the project Gathered specifically for the project

at handat hand


• Addresses the following questions:Addresses the following questions: How much data will be collected?How much data will be collected?

The project’s scope affects the The project’s scope affects the amount of data needed.amount of data needed.


• Addresses the following questions:Addresses the following questions: Where will researchers find the data?Where will researchers find the data?

Sampling: the process of choosing Sampling: the process of choosing a a representative group of customers to representative group of customers to surveysurvey

Whom should researchers survey?Whom should researchers survey? How many should be surveyed?How many should be surveyed? How should those to survey be How should those to survey be

selected?selected?



Internal data:Internal data: Usually secondary dataUsually secondary data Found within the businessFound within the business



External dataExternal data External secondary data are found External secondary data are found

outside the business in publications outside the business in publications written and published by others.written and published by others.

External primary data are gathered External primary data are gathered specifically for the project at hand.specifically for the project at hand.


• Addresses the following questions:Addresses the following questions: What primary data-collection methods What primary data-collection methods

will be used?will be used? SurveySurvey

Is the most popular data-collection Is the most popular data-collection methodmethod

Involves developing and administering Involves developing and administering a questionnairea questionnaire



will be used?will be used? ObservationObservation

Involves gathering data by watching Involves gathering data by watching customers physically and/or customers physically and/or electronicallyelectronically



will be used?will be used? ExperimentExperiment

Tests cause and effect relationshipsTests cause and effect relationships Includes test marketingIncludes test marketing


• Addresses the following questions:Addresses the following questions: How will the data be analyzed?How will the data be analyzed?

The way in which researchers plan to The way in which researchers plan to review and evaluate data affects the review and evaluate data affects the amount of data collected.amount of data collected.

If analyzed by hand, the amount of data If analyzed by hand, the amount of data must be limited.must be limited.

If analyzed by computer, researchers If analyzed by computer, researchers can collect much more data.can collect much more data.

The Marketing Research Process:The Marketing Research Process: Collect Collect the Needed Datathe Needed Data

• Involves surveying, observing, Involves surveying, observing, and/or experimentingand/or experimenting

• Is the most expensive step in Is the most expensive step in the research processthe research process

• Can be tedious, leading to Can be tedious, leading to mistakesmistakes

The Marketing Research Process:The Marketing Research Process: Analyze Analyze the Datathe Data

• Data must be analyzed to be useful.Data must be analyzed to be useful. Data by themselves are just a Data by themselves are just a

collection of facts.collection of facts. Data must be evaluated to determine Data must be evaluated to determine

how they relate to the research how they relate to the research objectives.objectives.

Data that have been interpreted and Data that have been interpreted and transformed into a useful form transformed into a useful form become information.become information.

• Data analysis software and statistical Data analysis software and statistical programs can quickly determine what programs can quickly determine what raw data really mean.raw data really mean.

The Marketing Research Process: Make The Marketing Research Process: Make Recommendations Based on FindingsRecommendations Based on Findings

• When research is complete, When research is complete, researchers prepare a written researchers prepare a written research report and suggest a research report and suggest a course of action for the business.course of action for the business.

• The research report includes:The research report includes: The original research objectives The original research objectives

and hypothesisand hypothesis The research methodologyThe research methodology Research resultsResearch results Limitations to the researchLimitations to the research The researchers’ recommendations The researchers’ recommendations

for the businessfor the business

• Think about your school’s extra-curricular activities, CTSOs, or school-based enterprises.

Do any of the groups conduct marketing research?

If so, what types of data do they collect?

How do they collect the data? How do they use the data?

• What group could benefit most from conducting marketing research?

Why should the group conduct research?

What data should it collect? What data-collection methods

should it use?

• Certaine wants to hire the Harrison & Hayes (H & H) marketing-research firm to conduct research on some of its newer products.

• Certaine is offering ample funding.

• There are strings attached: Certaine wants to select the

research sample. H & H cannot publicize any

derogatory data about the company or its products.

• H & H is tempted to sign the contract.

The firm could make lots of money

The project could put H & H on the “A” list of marketing researchers.

• What would you do if you were Harrison and Hayes?

• Would you accept Certaine’s offer?

MBAResearchAcknowledgments

Original DevelopersChristopher C. Burke,

April J. Miller, MBAResearch

Version 1.0

Copyright © 2010MBA Research and Curriculum Center®

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marketing-information management lap 5 seek and find marketing research

Documents

marketing research slide

marketing research process

role of marketing research

marketing researchers

specific marketing problemsto

marketing conceptto

business decisionmaking

business success