Transcript Chapter 29 Section 29.1

Marketing Essentials
n Chapter 29 Conducting Marketing Research
Section 29.1 Marketing Research
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SECTION 29.1
Marketing Research
What You'll Learn
 The steps in conducting marketing
research
 The difference between primary and
secondary data
 The various methods used to collect
primary and secondary data
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SECTION 29.1
Marketing Research
Why It's Important
Businesses that want to increase their
customer base must have information about
the attitudes and behaviors of customers and
prospective customers. Marketing research
can provide information for strategies that will
increase sales and profits.
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SECTION 29.1
Marketing Research
Key Terms
 problem definition
 observation method
 primary data
 point-of-sale research
 secondary data
 experimental method
 survey method
 data analysis
 sample
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SECTION 29.1
Marketing Research
The Marketing Research Process
The five steps that a business follows when
conducting marketing research are:
1. Defining the problem.
2. Obtaining data.
3. Analyzing the data.
4. Recommending solutions.
5. Applying the results.
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SECTION 29.1
Marketing Research
Step 1: Defining the Problem
The most difficult step in the marketing
research process is defining the problem.
Problem definition occurs when a
business clearly identifies a problem or
research issue and the information that is
necessary to solve it.
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SECTION 29.1
Marketing Research
Step 2: Obtaining Data
In obtaining data, companies collect and
examine data (facts) in terms of the problem
or problems being studied. There are two
types of data used in marketing research:
 primary data
 secondary data
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SECTION 29.1
Marketing Research
Step 2: Obtaining Data
Primary data are data obtained for the first
time and used specifically for the particular
problem or issue under study.
Secondary data have already been collected
for some purpose other than the current study.
Secondary data are less expensive to collect
than primary data.
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SECTION 29.1
Marketing Research
How Secondary Data are Obtained
Secondary data are obtained from both internal
sources (within the company) and external
sources (outside the company). Sources of
secondary data include:
 A business’s own marketing information
system.
 The Internet—digital dossiers provide
company profiles, income statements,
and balance sheets.
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SECTION 29.1
Marketing Research
How Secondary Data are Obtained
 U.S. government sources, such as the
Small Business Administration,
Department of Commerce, Census
Bureau, and Securities and Exchange
Commission.
 Consumer and business information
companies.
 Business and trade publications.
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SECTION 29.1
Marketing Research
Advantages of Secondary Data
Secondary data can be obtained easily,
since the data are either on the Internet,
in corporate, public, and college libraries,
or can quickly be purchased from
syndicated services.
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SECTION 29.1
Marketing Research
Disadvantages of Secondary Data
There are two major disadvantages
associated with secondary data:
 The existing data may not be suitable
or available for the problem under
study.
 The data may not be accurate.
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SECTION 29.1
Marketing Research
How Primary Data Are Obtained
When marketing researchers cannot find the
information they need from secondary data,
they collect primary data. Primary data may
be collected using three methods:
 the survey method
 the observation method
 the experimental method
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SECTION 29.1
Marketing Research
The Survey Method
The survey method, the most frequently used
method, is a research technique in which
information is gathered from people through the
use of surveys or questionnaires.
In a census, researchers survey the entire
target population.
More common is the use of a sample, a part of
the target population that is assumed to
represent the entire population.
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SECTION 29.1
Marketing Research
The Survey Method
Surveys can be conducted in person, by phone,
by mail, or by using Internet technologies.
The personal interview involves questioning
people face-to-face, often in central locations such
as shopping malls (a mall intercept interview).
A focus group interview involves 8 to 12 people
brought together to evaluate a specific product,
service, or idea.
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SECTION 29.1
Marketing Research
The Survey Method
Less expensive than personal interviews are
phone, mail, and Internet surveys.
Phone interviews often have low response rates.
Mail surveys have better, but still low, response
rates.
Internet survey methods are increasing in
popularity. They are quick; they eliminate data
entry; and they allow real-time data collection.
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SECTION 29.1
Marketing Research
Rating Quality of Service
Charts such as this one are typically included in a
research report. Why are charts often included?
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SECTION 29.1
Marketing Research
The Observation Method
The observation method is a research
technique in which the actions of people are
watched and recorded either by cameras or
observers. Properly performed and recorded
observations supply better results than survey
techniques provide.
Mystery shoppers are researchers posing
as customers in retail stores to evaluate
salespeople.
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SECTION 29.1
Marketing Research
The Observation Method
The observation technique may use either contrived
or natural situations.
The researcher sets up contrived observations.
 Example: Allowing children to play with selected
toys to determine which is most popular.
In natural observation, customers or employees
are viewed as they would normally act in a given
situation.
 Example: Hidden cameras, traffic counts.
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SECTION 29.1
Marketing Research
The Observation Method
Point-of-sale researchers observe shoppers
to decide which ones to choose as research
subjects—shoppers buying a specific type
of product, product brand, or shoppers who
inspect a product but do not buy it. After
observation, researchers approach the
selected shoppers and ask them questions.
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SECTION 29.1
Marketing Research
The Experimental Method
The experimental method, the least-often
used method, is a research technique in
which a researcher observes the results of
changing one or more marketing variables
while keeping certain other variables
constant under controlled conditions.
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SECTION 29.1
Marketing Research
Step 3: Analyzing the Data
Data analysis is the compiling, analyzing,
and interpreting of the results of primary and
secondary data collection.
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SECTION 29.1
Marketing Research
Step 4: Recommending Solutions
to the Problem
Successful research results in information that
helps businesses make decisions on how to
solve a problem. The conclusions drawn from
the research usually are presented in an
organized and well-written report.
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SECTION 29.1
Marketing Research
Step 5: Applying the Results
Managers use the research report to make
decisions about marketing strategies in
relation to the researched problem or issue.
In evaluating the research, managers may
find that the research was inconclusive,
additional research may be needed, or the
research suggests specific courses of action.
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29.1 ASSESSMENT
Reviewing Key Terms and Concepts
1. What are the five steps for designing and
conducting a research study?
2. Explain the difference between primary and
secondary data.
3. Name the methods used most frequently to
collect secondary data.
4. Name the methods used most frequently to
collect primary data.
5. What is meant by data analysis?
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29.1 ASSESSMENT
Thinking Critically
Many retail stores now ask customers after
each sale to give their phone number or
ZIP code. Do you support this type of data
collection? Why or why not?
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29.1 Graphic Organizer
The Marketing Research Process
Define the
problem
Obtain
Data
Analyze
Data
Recommend
Solutions
Apply
Results
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Marketing Essentials
End of Section 29.1
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