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After reviewing Chapter 2 from the textbook, post a 500-word synopsis of your understanding of the marketing concepts. In your posting, include questions about any marketing concepts that are unclear. chapter_2_marketing_research_process_and_systems_for_decision_making.pptx Unformatted Attachment Preview Chapter 2 Marketing Research: Process and Systems for Decision Making © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Chapter Outline • The role of marketing research • The marketing research process • Marketing information systems © McGraw-Hill Education Marketing Research • Process by which information about the environment is generated, analyzed, and interpreted for use in marketing decision making • Aids decision making and is not a substitute for it • Reduces risks associated with managing marketing strategies • Vital for investigating the effects of various marketing strategies after implementation © McGraw-Hill Education Figure 2.1: The Five Ps of the Research Process Jump to Figure 2.1:The Five Ps of the Research Process, Appendix © McGraw-Hill Education Purpose of the Research Managers and researchers need to discuss and clarify the current situation and develop a clear understanding of the problem • Should agree on: • Current situation involving the problem to be researched • Nature of the problem • Specific question or questions the research is designed to investigate This step influences the type of research to be conducted and the research design © McGraw-Hill Education Plan of the Research Details the nature of the research Includes explanation of sample design, measures, and analysis techniques Critical issues that influence a research plan include whether: • Primary or secondary data are needed • Qualitative or quantitative research is needed • The company will conduct its own research or contract with a marketing research specialist © McGraw-Hill Education Primary versus Secondary Data Primary data: Data collected specifically for the research problem under investigation Secondary data: Previously collected data that could be used for the problem at hand • Can be obtained from sources external or internal to the organization © McGraw-Hill Education Qualitative Research Involves face-to-face interviews with respondents designed to develop a better understanding of what they think and feel concerning a research topic Types • Focus groups: Involve discussions among a small number of consumers led by an interviewer • Designed to generate insights and ideas about products and brands • Long interviews: Conducted by an interviewer with a single respondent for several hours • Designed to find out how individuals perceive the products or how they are influenced by them © McGraw-Hill Education Quantitative Research, 1 Involves systematic procedures designed to obtain and analyze numerical data Types • Observational research: Involves watching people and recording relevant facts and behaviors • Survey research: Involves the collection of data by means of a questionnaire by mail, phone, online, or in person © McGraw-Hill Education Quantitative Research, 2 • Experimental research: Involves manipulating one variable and examining its impact on other variables • Mathematical modeling: Involves developing equations to model relationships among variables • Investigates the impact of different strategies and tactics on sales and brand choices using econometric and statistical techniques © McGraw-Hill Education Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 1 Method Advantages Disadvantages Focus groups • Depth of information collected • Flexibility in use • Relatively low cost • Data collected quickly • Requires expert moderator • Questions of group size and acquaintanceships of participants • Potential for bias from moderator • Small sample size Telephone surveys • Centralized control of data collection • More cost-effective than personal interviews • Data collected quickly • Resistance in collecting income, financial data • Limited depth of response • Disproportionate coverage of lowincome segments • Abuse of phone by solicitors • Perceived intrusiveness Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135 © McGraw-Hill Education Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 2 Method Advantages Disadvantages Mail surveys • Cost-effective per completed response • Broad geographic dispersion • Ease of administration • Data collected quickly • Refusal and contact problems with certain segments • Limited depth of response • Difficult to estimate nonresponse biases • Resistance and bias in collecting income, financial data • Lack of control following mailing Personal, indepth, Interviews • More depth of response than telephone interviews • Generate substantial number of ideas compared with group methods • • • • • Easy to transmit biasing cues Not-at-homes Broad coverage often infeasible Cost per contact high Data collection time may be excessive Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135 © McGraw-Hill Education Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 3 Method Advantages Disadvantages Mall intercepts • Flexibility in collecting data, answering questions, probing respondents • Data collected quickly • Excellent for concept tests, copy evaluations, other visuals • Fairly high response rates • Limited time • Sample composition or representativeness is suspect • Costs depend on incidence rates • Interviewer supervision difficult Internet surveys • Inexpensive, quickly executed • Visual stimuli can be evaluated • Real-time data processing possible • Can be answered at convenience of respondent • Responses must be checked for duplication, bogus responses • Respondent self-selection bias • Limited ability to qualify respondents and confirm responses • Difficulty in generating sample frames for probability sampling Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135 © McGraw-Hill Education Figure 2.4: Comparison of Data Collection Methods Used in Marketing Research, 4 Method Advantages Disadvantages Projective techniques • Useful in word association tests • Require trained interviewers of new brand names • Cost per interview high • Less threatening to respondents for sensitive topics • Can identify important motives underlying choices Observation • Can collect sensitive data • Accuracy of measuring overt behaviors • Different perspective than survey self-reports • Useful in studies of crosscultural differences • Appropriate only for frequently occurring behaviors • Unable to assess opinions of attitudes causing behaviors • May be expensive in datacollection-time costs Source: William Bearden, Thomas Ingram and Raymond LaForge, Marketing: Principles and Perspectives 5E, 2007, p. 135 © McGraw-Hill Education Company versus Contract Research Some marketing research suppliers have special expertise in a particular type of research • Makes them a better choice than doing the research internally Decision about whether the marketing research department has the ability to do a particular type of research itself or whether all or part of the research should be contracted with a research supplier must be made • Considerations • Schedules for task completion • Exact responsibilities of all involved parties • Cost © McGraw-Hill Education Performance of Research Preparing for data collection and actually collecting them • Tasks depend on the: • Type of research selected • Type of data needed • Cardinal rule in data collection • One should obtain and record the maximal amount of useful information subject to the constraints of time, money, and respondent privacy © McGraw-Hill Education Processing of Research Data Involves preparation of data for analysis and their actual analysis • Preparations include editing and structuring data and coding them for analysis • Appropriate analysis techniques depend on: • Nature of the research question • Design of the research • Interpreting and assessing the research results are critical • Marketing researchers should always double-check their analysis and avoid overstating the strength of their findings © McGraw-Hill Education Preparation of Research Report Research report: Complete statement of everything done in a research project • Includes: • Write-up of each of the stages • Strategic recommendations from the research • Should be clear and unambiguous with respect to what was done and what recommendations are made • Researchers should work closely with managers to ensure that the study and its limitations are fully understood © McGraw-Hill Education Criteria for Evaluating Marketing Research Reports, 1 Was the type of research appropriate for the research questions? Was the research well designed? • Was the sample studied appropriate for the research questions? • Were measures well developed, pretested, and validated? • Were the data analysis techniques the best ones for the study? Was there adequate supervision of data collection, editing, and coding? © McGraw-Hill Education Criteria for Evaluating Marketing Research Reports, 2 • Was the analysis conducted according to standards accepted in the field? • Do the findings make sense, given the research question and design, and were they considered in light of previous knowledge and experience? • Are the limitations of the study recognized and explained in detail? • Are the conclusions appropriately drawn or are they over- or understated? • Are the recommendations for marketing strategy clear and appropriate? © McGraw-Hill Education Test Marketing and Its Limitations, 1 Goal: To measure new product sales on a limited basis where competitive retaliation and other factors are allowed to operate freely • Helps estimate future sales potential • Limitations of test marketing • Test market areas are not representative of the market in terms of population characteristics, competition, and distribution outlets • Sample size and design are incorrectly formulated • Pretest measurements of competitive brand sales are not made or are inaccurate • Test scores do not give complete support to the study © McGraw-Hill Education Test Marketing and Its Limitations, 2 • Test-market products are advertised or promoted beyond a profitable level for the market in general • Effects of factors that influence sales are ignored in the research • Test-market period is too short to determine whether the product will be repurchased © McGraw-Hill Education Marketing Information Systems, 1 Computer-based systems that help gather, sort, store, and distribute information for marketing decisions Consist of a coordinated collection of data, tools, techniques, and models by which marketers gather and interpret relevant information for decision making © McGraw-Hill Education Marketing Information Systems, 2 Require the following types of software: • Database management software: Sorts and retrieves data from internal and external sources • Model base management software: Contains routines for manipulating data in order to make it useful for marketing decision making • Dialog system: Permits marketers to explore databases and use models to produce information to address their decision-making needs © McGraw-Hill Education Marketing Information Systems, 3 Designed to handle information from both internal and external sources • Internal information • Helps investigate the efficiency and effectiveness of various marketing strategies • Includes sales records, inventory data, and expenditure data • External information • Gathered from outside the organization • Concerns changes in the environment that could influence marketing strategies • Information from marketing research studies conducted by an organization is fed into marketing information systems to improve marketing strategy development © McGraw-Hill Education ... 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