Transcript Marketing Research

Marketing : An Introduction
An Asian Perspective
Armstrong, Kotler
& da Silva
4
Managing Marketing
Information
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-1
ROAD MAP: Previewing the Concepts
• Explain the importance of information to the
company and its understanding of the
marketplace.
• Define the marketing information system and
discuss its parts.
• Outline the steps in the marketing research
process.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-2
Case Study
Coach – Research Revamps Strategy
The Situation
• Firm began by offering
classically styled, highquality leather handbags.
• Women needed only two
purses in brown or black.
• Mid-1990s: sales slowed.
• Consumer preferences
changed as more women
entered the workforce.
• Designer bags made
Coach’s look plain.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
Copyright 2007, Prentice Hall,
4-3
Role of Information
Research’s Role
• Method: Interviews
14,000 women annually.
Watches trends for
“market voids.”
• Key research findings:
1) desire for “fashion
pizzazz” in handbags.
2) “Usage voids.”
• New products are created
to fill voids (wristlets,
fabric bags, Signature
line, etc.).
• Sales and earnings grow.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
Copyright 2007, Prentice Hall,
4-4
New Coke instead of classic
• New Coke Product Failure:
– Poor sales
– Over 1,500 phone calls a day from
angry customers
– Old Coke returns in only 3 months
• Was due largely to Research
Failure:
– Tested on taste only – not
intangibles
– Decisions based on 60% ratings
– All for $4 million!
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-5
The Importance of Information
• Companies need
information about
their:
– Customer needs
– Marketing environment
– Competition
• Marketing managers
do not need more
information, they
need better
information.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-6
Information Overload
“In this oh so
overwhelming
information age, it’s
all too easy to be
buried, burdened,
and burned out by
data overload.”
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-7
The Marketing Information System
Figure 4.1
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Marketing Information System
• An MIS consists of people, equipment,
and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to marketing
decision makers.
• The MIS helps managers to:
1. Assess Information Needs
2. Develop Needed Information
3. Distribute Information
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-9
Developing Marketing Information
• Internal Databases: Electronic collections of
information obtained from data sources within
the company.
• Marketing Intelligence: Systematic collection
and analysis of publicly available information
about competitors and developments in the
marketing environment.
• Marketing Research: Systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation facing
an organization.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-10
Internal Databases
• Electronic collections of information
obtained from data sources within the
company.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Marketing Intelligence
• Systematic collection and analysis of publicly
available information about competitors and
developments in the marketing environment.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-12
Marketing Research:
• Systematic design,
collection, analysis, and
reporting of data relevant
to a specific marketing
situation facing an
organization.
• Why sales declined?
• Are my customers
happy?
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-13
The Marketing Research Process
Figure 4.2
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Defining the Problem & Objectives
Exploratory
Research
Gather preliminary information
that will help define the problem
and suggest hypotheses.
Descriptive
Research
Describes things (e.g., market
potential for a product,
Demographics, and attitudes).
Causal
Research
Tests hypotheses about
cause-and-effect
relationships.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Exploratory
Research
• Collecting the preliminary information
regarding the problem
• Usually data will be collected by
secondary sources such as internet, books
etc.
• Informal Interviews, Case study analysis
etc. will help to collect more information
regarding the problem faced by the
company.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-16
Descriptive
Research
• Also known as Statistical research.
• More detailed analysis of the problem
faced
• Descriptive research answers the
questions who, what, where, when and
how...
• Results and conclusions are based on
mathematical/ statistical analysis
• Use primary data collection techniques
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Causal
Research
• Most detailed ways of doing research
• Analyze cause and effect relationships
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Developing the Research Plan
• Includes:
– Determining the exact information needed
– Developing a plan for gathering it efficiently
– Presenting the written plan to management
• Outlines:
– Sources of existing data
– Specific research approaches
– Contact methods
– Sampling plans
– Instruments for data collection
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-19
Gathering Secondary
Data
• Information that already
exists somewhere
– Internal databases
– Commercial data services
– Government sources
• Available more quickly and
at a lower cost than
primary data
• Must be relevant,
accurate, current, and
impartial
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-20
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Primary Data Collection
• Consists of information collected for the
specific purpose at hand.
• Must be relevant, accurate, current, and
unbiased.
• Must determine:
– Research approach
– Contact methods
– Sampling plan
– Research instruments
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Observational Research
• The gathering of primary data by
observing relevant people, actions, and
situations.
• Ethnographic research:
– Observation in “natural environment”
• Mechanical observation:
– People meters
– Checkout scanners
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-24
Survey Research
• Most widely used method for
primary data collection.
• Approach best suited for
gathering descriptive
information.
• Can gather information about
people’s knowledge, attitudes,
preferences, or buying behavior.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Experimental Research
• Tries to explain causeand-effect relationships.
• Involves:
– selecting matched groups
of subjects,
– giving different treatments,
– controlling unrelated
factors, and
– checking differences in
group responses.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
4-26
Strengths & Weaknesses of
Contact Methods
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Choosing the Sample
• Sample –
segment of
the population
selected to
represent the
population as
a whole.
© Armstrong, Kotler & da Silva
• Requires 3 Decisions:
– Who is to be
surveyed?
• Sampling unit
– How many people
should be surveyed?
• Sample size
– How should the
people in the sample
be chosen?
• Sampling
procedure
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An Asian Perspective
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Primary Data Collection
Research Instruments
Questionnaires
Mechanical Devices
• What questions to ask
• Form of each question
•Closed-ended
•Open-ended
• Wording
• Ordering
© Armstrong, Kotler & da Silva
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People Meters
Supermarket Scanners
Galvanometer
Eye Cameras
Marketing : An Introduction
An Asian Perspective
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MECHANICAL DEVICES
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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