Transcript Five-step approach to making decisions

Collecting and Using
Marketing
Information
© IRWIN
a Times Mirror Higher Education Group, Inc., company 1997
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Objectives
• Define marketing research and understand
why organizations engage in such research
• Identify the five steps that are taken in the
marketing research process
• Explain the four key elements used to define a
problem: the objectives, constraints,
assumptions, and measures of success
© IRWIN
a Times Mirror Higher Education Group, Inc., company 1997
2
Objectives (continued)
• Understand the types of studies and what
research questions each answers
• Know the different elements of information
collection to solve a problem: data source,
research approach, research instruments,
sampling methods, and contact methods
• Distinguish between the various contact
methods of collecting primary data is used in
marketing
© IRWIN
a Times Mirror Higher Education Group, Inc., company 1997
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Marketing Research
…the process of defining a marketing
problem and opportunity, systematically
collecting and analyzing information, and
recommending actions to improve an
organizations marketing activities
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a Times Mirror Higher Education Group, Inc., company 1997
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Why do Marketing Research?
.
. . to reduce the risks associated
with managing the marketing mix
and long-term planning.
 HOW?
.
. . by reducing uncertainty
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a Times Mirror Higher Education Group, Inc., company 1997
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Objective of Conducting Marketing Research
Perfect
Information
Accuracy
100%
0%
0%
100%
Amount Possible
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a Times Mirror Higher Education Group, Inc., company 1997
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What Types of Research are American
Corporations Doing?
Measurement of Market Potential
97%
Market Share Analysis
97%
Determination of Market Trends
97%
MIS
80%
Studies of Ad Effectiveness
76%
New Product Acceptance/Potential
76%
International Studies
49%
Social Values and Policies
39%
Ecological Impact Studies
23%
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25% 50%
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75%
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Characteristics of Good Marketing Research
•
•
•
•
•
•
•
Scientific Method
Research Creativity
Multiple Methods
Interdependence of Models and Data
Value and Cost of Information
Healthy Skepticism
Ethical Marketing
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a Times Mirror Higher Education Group, Inc., company 1997
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Five-step approach to making decisions
Step 1
Define the
problem
•
•
•
•
Objectives
Constraints
Assumptions
Measures of
success
Step 2
Step 3
Planning of
the research
• Research type
• Alternatives
• Uncertainties
© IRWIN
Collect
relevant
information
• Concepts
• Methods
• Data
• Secondary
data
• Primary
data
Step 4
Find a
solution
• Choose best
alternative
• Implement
the chosen
alternative
a Times Mirror Higher Education Group, Inc., company 1997
Step 5
Evaluate the
results
• The decision
• The decision
process
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Kinds of samples used in
marketing research Simple random
samples
Probability
Samples
Stratified random
samples
Cluster
samples
All Samples
Convenience
samples
Nonprobability
Samples
Judgment
samples
Quota
samples
© IRWIN
a Times Mirror Higher Education Group, Inc., company 1997
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Types of marketing information
Internal data
Concepts
• Hypothesis and
ideas
Methods
• Approaches to
help solve the
problem
Secondary data
Facts and Figures
• Already recorded
prior to the project
Data
• Facts and figures
pertinent to the
problem
• Financial statements, research
reports files, customer letters,
sales call reports, and
customer lists
External data
• U.S. Census reports, trade
association studies, and
magazines, business periodicals,
and commercial reports
Observational data
Primary data
Facts and Figures
• Newly collected for
the project
© IRWIN
• Mechanical and electronic
approaches
• Personal approaches
Questionnaire data
• Idea generation through in-depth
interviews and focus groups
• Idea evaluation through mail,
telephone, and personal surveys
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Plan of the Research
Three types of studies:
Exploratory
Research
Descriptive
Research
Decreasing Uncertainty
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Experimental
Research
Increasing Certainty
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Exploratory
Research
Descriptive
Research
Experimental
Research
Unaware of
the Problem
Aware of the
Problem
Problem Clearly
Defined
“Our Sales are
declining and we
don’t know why?”
“What kinds of
people buy our
product?”
“Would buyers
prefer this new
package design?”
“Would buyers
be interested in
this new product
idea?”
“What features
do buyers prefer
in our product?”
“Which of these
two advertising
campaigns is
more effective?”
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a Times Mirror Higher Education Group, Inc., company 1997
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Secondary Data
 Advantages
– Less expensive
– Obtained more easily and rapidly
 Disadvantages
– could be old and outdated
– collected periodically
– may be the wrong form
– may be innacurate
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a Times Mirror Higher Education Group, Inc., company 1997
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Primary Data
 Advantages
– more control over what is gathered
 Disadvantages
– can be very expensive
– subject to investigator’s decisions
– can be useful only in specific cases
© IRWIN
a Times Mirror Higher Education Group, Inc., company 1997
15
Comparison of mail, telephone,
and personal interview surveys
Basis of
Comparison
Mail Surveys
Telephone
Surveys
Personal
Interview Surveys
Cost per
completed survey
Usually the least
expensive,
assuming
adequate return
rate
Moderately expensive, assuming
reasonable
completion rate
Most expensive
because of
interviewer’s time
and travel expenses
Ability to probe
and ask complex
questions
Little, since selfadministered
format must be
short and simple
Some, since
interviewer can
probe and
elaborate on
questions
Much, since
interviewer can
show visuals, probe,
establish rapport
Opportunity for
interviewer to
bias results
None, since form
is completed
without
interviewer
Some, because of
voice inflection of
interviewer
Significant, because
of voice and facial
expressions of
interviewer
Anonymity given
respondent
Complete, since
no signature is
needed
Some, because of
telephone contact
Little, because of
face-to-face contact
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a Times Mirror Higher Education Group, Inc., company 1997
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