Transcript The Marketing Research Process (continued)

Copyright © 2005 Pearson Education Canada Inc.
Managing Marketing Information
•Chapter 6
•Powerpoint slides
•Extendit! version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing: 6th Canadian Edition
Learning Objectives
6.2
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• After studying this chapter, you should be able to:
– Explain the importance of information to the company
– Define the marketing information system and discuss its parts
– Outline the four steps in the
marketing research process
– Explain how companies analyze and
distribute marketing information
– Discuss the special issues some
marketing researchers face,
including public policy and ethics
issues
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Opening Vignette: The New Coke Debacle
6.3
• Coca-Cola began over 100 years, one of the world’s best known and
valuable brands
• “Don’t mess with Mother Coke” ignored in 1985, when the original
formulation was changed
• Poor marketing research blamed
• Two years, and $7.8 million spent on taste
testing proved that consumers like the taste
of “new Coke” better than Pepsi and
existing Coke
• Research dealt only with taste, did not
explore consumers’ attachment to the
product, and all of its intangibles
• Coke Classic quickly introduced, new
Coke quietly fades into the background
Principles of Marketing: 6th Canadian Edition
6.4
Why Marketing Information?
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• The marketing concept:
– Achieve organizational objectives by
• Determining needs and wants of target consumers
• Delivering satisfaction
• Better than competitors
• To successfully practice the
marketing concept, marketers
need information,
• To properly determine:
– Environmental changes
– What customers want, and
– What the competition is
doing
Figure 1.3
Principles of Marketing: 6th Canadian Edition
The Marketing Information System
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• People, equipment,
and procedures
6.5
Figure 6.1
– To gather, sort,
analyze, evaluate,
and distribute
• Needed, timely, and
accurate
information to
marketing decision
makers
Principles of Marketing: 6th Canadian Edition
The Marketing Information System
6.6
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• Assessing information needs:
– Remember, the objective is to make better marketing decisions
– Must consider needs of all users
– Must balance information wants
with decision making needs and
feasibility (and costs) of offering it
– The value of information comes
from its use, not its existence
• Developing information:
– Internal data
– Marketing intelligence (on
competitors) (
– Marketing research (design,
collection, analysis, reporting)
Principles of Marketing: 6th Canadian Edition
Developing Information
6.7
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• Internal data:
– Information collected from different sources within the company,
and stored within the organization’s information system
• Accounting system
• Operations/production
• Sales reporting system
• Past research studies
– Internal data is cheap, quick, and easy
– May not be in a usable form for the
decision to be made
– May be too much information to sort
through
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Developing Information
6.8
• Marketing intelligence:
– Systematic collection and analysis of publicly
available information about competitors and market
developments
– Proactive approach to
keeping track of what is
going on within the
organization’s marketing
environment
• Sources: employees,
customers, trade shows,
websites, marketing
communications, suppliers,
resellers, professional
information services, and
“dumpster diving”
Principles of Marketing: 6th Canadian Edition
6.9
The Marketing Research Process
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• Marketing research:
– Systematic design, collection, analysis, and reporting data relevant
to a specific marketing situation facing the organization
– A multi-step, purpose-driven process
– Measure effectiveness of marketing actions, sales potential, try
to understand consumer behaviour, customer needs, distribution
systems
– Can be done by company personnel or contracted out to outside
companies
Figure 6.2
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.10
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• Defining the problem
– Helps to know what you are looking for!
– Can be the most difficult step in the process
– Need to scope the project large enough in order to understand what
really causes the problem. It can be done through:
Figure 6.2
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.11
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Objectives of research
– Exploratory research:
• Research conducted to gather information to help better define problems and
opportunities
• Secondary research, focus group discussions and depth interviews are
commonly used for this purpose
– Descriptive research:
• Research conducted to better describe marketing problems, situations, or
markets, such as
• Demographic characteristics of markets, attitudes of consumers, and market
potential for a product
• Surveys and personal interviews are commonly used
– Causal research:
• Research to test cause and effect relationships between variables of
interest, such as experiments
Figure 6.2
Principles of Marketing: 6th Canadian Edition
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The Marketing Research Process (continued)
6.12
• Developing the research plan:
– Translating the research objectives into specific information needs
– Research plan presented in a written proposal for approval
• Gathering data
– Secondary data: information that already exists, having been
collected for another purpose
• Internal data, academic, and commercial sources
• Faster and cheaper than primary data collection, but may not
be in a suitable form for decision making
• Helps to see what work has already been done in the area
– Primary data collection:
• Information collected for the specific purpose
• Must look for relevance, accuracy, current, and unbiased
Principles of Marketing: 6th Canadian Edition
Selected External Information Sources
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Business data:
–
–
–
–
–
–
–
–
–
–
–
–
–
Scott’s directories
Canadian trade index
AC Nielson
Information Resources Inc.
Dun & Bradstreet
Dialog
LEXIS-NEXIS
Dow Jones Interactive
Hoovers Online
CNN
Marketing journals
Trade publications
General business magazines
6.13
Government data:
–
–
–
–
Statistics Canada
Industry Canada Strategis
SEDAR
Securities and Exchange
Commission
– Stat-USA
• Internet data:
– CyberAtlas
– Internet Advertising Bureau
– Jupiter Media Metrix
Source: Table 6.1
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.14
Primary data collection methods
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• Observational research:
– Gathering of primary data by strictly observing relevant
people, actions, and situations
– Ethnographic research combines observation with
interviews to get a better insight
– Mechanical observation: scanner data
– Useful but difficult to ascertain feelings, attitudes, or
motives
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.15
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• Survey research:
– Gathering primary data by asking people questions
– Good to know about people’s knowledge, attitudes, preferences,
and buying behaviour
– Best suited for gathering descriptive information
– Single-source data systems:
• Electronic monitoring systems that link exposure to various marketing
activities through advertising (using meters) and what they buy in
stores (checkout scanners)
• Survey research is flexible but may suffer bias due to self-reporting or
lack of understanding of what is being asked
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.16
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• Experimental research:
– Gathering primary data by selecting matched groups of subjects
– Giving them different treatments
– Controlling unrelated factors
– Checking for differences in group responses
• Experimental research is used when attempting to explain cause and
effect relationships
• Difficult to control for all situations or variables that have an
influence on behaviour
Principles of Marketing: 6th Canadian Edition
6.17
Contact Methods
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Table 6.3
Mail
Telephone
Personal
Online
Flexibility
Poor
Good
Excellent
Good
Quantity of data collected
Good
Fair
Excellent
Good
Excellent
Fair
Poor
Fair
Control of sample
Fair
Excellent
Fair
Poor
Speed of data collection
Poor
Excellent
Good
Excellent
Response rate
Poor
Good
Good
Good
Cost
Good
Fair
Poor
Excellent
Control of interviewer effect
Source: Adapted with permission from Marketing Research: Measurement and Method,
7th ed., by D.S. Tull and D.I. Hawkins, MacMillan Publishing Company, 1993
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.18
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• Sample:
– A segment of the population selected for marketing research
– To represent the population as a whole
• Who should be surveyed?
Sampling unit
• How many should be surveyed?
Sample size
• How should they be chosen?
Sampling procedure
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.19
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• Research instruments:
–
–
–
–
–
Questionnaires are the most commonly used
Mechanical devices are the other option
Questions asked can be open or closed
Writing good (valid) questions can be difficult
Wording and
order are
important
– Pre-testing is
important to
ensure good
results
Principles of Marketing: 6th Canadian Edition
The Marketing Research Process (continued)
6.20
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• Implementing the research plan:
– Collecting, processing, and analyzing the information
– Data collection is expensive and most subject to error
– Field work needs to be supervised to ensure accuracy
• Interpreting the results:
– Attempting to find meaning to the data collected
– Need to be careful to avoid bias in interpretation; getting the
answer that was favored in the beginning or that suits a particular
political agenda (Challenging a report made by a coworker)
Figure 6.2
Principles of Marketing: 6th Canadian Edition
Customer Relationship Management
6.21
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• Customer relationship management (CRM):
– Managing detailed information about individual
customers at all “touch pointst to maximize customer
loyalty through a better servicing (Bell, Banks)
– Use data warehouses and use
datamining techniques to dig out
relevant information
– Purpose is to make better use of the
information the company already
has
– The goal is to provide higher levels
of customer service
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Other Marketing Research Considerations
6.22
• Research in small businesses and non-profit
organizations
• International marketing research
• Public policy and ethics in
marketing research:
– Privacy of information
– Selling under the guise of
conducting research activities
– Misuse of research findings for
promotional purposes
– Acceptable lies and non acceptable
ones
Principles of Marketing: 6th Canadian Edition
In Conclusion…
6.23
Copyright © 2005 Pearson Education Canada Inc.
• The learning objectives for this chapter were:
– Explain the importance of information to the company
– Define the marketing information system and discuss its parts
– Outline the four steps in the
marketing research process
– Explain how companies analyze and
distribute marketing information
– Discuss the special issues some
marketing researchers face,
including public policy and ethics
issues
Principles of Marketing: 6th Canadian Edition