2. Exam Type Questions
1. Explain the importance of
information to the company
and its understanding of the
marketplace.
2. Outline the steps in the
marketing research process.
3. What is meant by primary and
secondary data?
3. Managing Marketing
Information
Information needs of organization:
customer value & satisfaction
Competitors, resellers, and other forces
in the marketplace
Wal-Mart daily data equivalent to 96000
DVDs
Marketers need better information
Marketing information system: consists
of people, equipment, and procedures to
gather, sort, analyze, evaluate and
distribute needed, timely, and accurate
information to marketing decision
makers.
4. Developing Information
Internal databases: electronic collection of
consumer and market information obtained from
data sources within the company network.
Accounting department keeps detailed records
of sales, costs, and cash flows.
Operations department reports on production
schedules, shipments, and inventories.
Marketing department furnishes information on
customer transactions, demographics,
psychographics, and buying behavior.
Pizza Hut database: 40 million US households
gleaned from 7,500 restaurants. Coupon offers
on the basis of data.
6. Marketing Intelligence
The systematic collection
and analysis of publicly
available information about
consumers, competitors
and developments in the
marketing environment
7. Marketing Intelligence
Quizzing employees
Benchmarking products
Researching the internet
Trade shows and exhibitions
Annual reports
Business publications and ads
Trash bins routing
Microsoft vs Google example
8. Marketing Research
Formal studies of specific situations
Samsung Plasma, Pizza Hut sales
Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization.
Market potential, market share, formulate
marketing mix strategy
Own research department, consultants,
research companies (ACNielson)
9. Marketing Research Process
Involves four steps: defining
the problem and research
objectives, developing the
research plan, implementing
the research plan, and
interpreting and reporting
the findings.
10. Defining the Problem and
Research Objectives
A difficult ask: the manager may know that
something is wrong, without knowing the specific
causes.
Once problem defined, research objectives must
be set.
Exploratory research: to gather preliminary
information that will help define problems and
suggest hypotheses.
Descriptive research: to better describe marketing
problems, situations, or markets, such as the
market potential for a product or the
demographics and attitudes of customers.
Causal research: to test hypotheses about cause
and effect relationship. For example, would 10 %
decrease in tuition fee result in an enrollment
increase.
11. Defining the Research Plan
Specific information needs
Existing data and spells specific
research approaches, contact
methods, sampling plans and
instruments to gather data
Campbell soup example
Written proposal contains
research costs
12. Secondary Data
Information that already exists
somewhere, having been collected
for other purpose.
Internal data bases, buying
secondary reports, online data
bases (Dialog, ProQuest,
LexisNexis)
Can be obtained more quickly at
lower cost
Needed information may not exist
13. Primary Data
Information collected for the
specific purpose at hand.
Relevant, accurate, current and
unbiased
Collection of primary data may
involve research approaches,
contact methods, sampling
plan, and research instruments.
14. Research Approaches
Observational research: the
gathering of primary data by
observing relevant people,
actions, and situations.
Example bank
(neighborhood conditions,
location of competing
branches, traffic routes)
15. Ethnographic Research
A form of observational
research that involves
sending trained observers to
watch and interact with
consumers in their “natural
habitat” Example Marriot
hotel
17. Experimental Research
Gathering primary data by
selecting matched groups of
subjects giving them
different treatments,
controlling related factors,
and checking differences in
groups.
19. Sampling Plan
Drawing conclusions about
large group of customers by
studying a small sample of
the total consumer
population.
Sampling decision for a car
20. Probability Sample
Simple random sample: every member of
the population has a known and equal
chance of selection.
Stratified random sample: the population
is divided into mutually exclusive groups
(such as age groups), and random
samples are drawn from each group
Cluster (area) sample: the population is
divided into mutually exclusive groups
(such as blocks), and the researchers
draws a sample of the groups to
interview
21. Non Probability Sample
Convenience sample: the researcher
selects the easiest population
members from which to obtain
information
Judgment sample: the researcher uses
his or her judgment to select
population members who are good
prospects of accurate information.
Quota sample: the researcher finds
and interviews a prescribed number of
people in each of several categories
24. Interpreting and Reporting the
Findings
Interpret findings, draw
conclusion and report
them to management.
Mangers too have to
interpret information
Both share responsibility