9 Marketing Research Dr. Close. Role of Research Defined as: –“the planning, collecting, and analyzing information to improve marketing decisions.” A.

9Marketing Research

Dr. Close

Role of Research• Defined as:

– “the planning, collecting, and analyzing information to improve marketing decisions.”

• A decision Support System (DSS)• Keep isolated marketing managers in touch with markets.• What’s hot? What’s not?• DSS: Interactive, flexible, discovery-oriented & accessible• Create customer profiles via database marketing

Marketing Research • Scientific Method:

– Is the objective and orderly process for testing ideas about relationships between variable(s).

– Hypothesis is an educated guess about relationship between variables (if a, then b).

– Is this the best way to understand consumers?

Marketing Research

• Ethics (politicians find “weak” spots)– Withhold info: ads, phone-in poll, what else?– Privacy: “war on debt faith gift”– “Fake” surveys: telemarketer– Any other examples?– Internet examples?

Marketing Research Steps

1. Identify the problems (or opportunity)• Is the most difficult and important (Cingular

wireless: product failures: cast about reasons: lack of image; $300 million BBDO)

• Book: often outside specialists must understand situation.

• Budget constraints an issue.

Research Brings New Ideas

Marketing Research Steps

2. Plan Research Design & Collect Data

• Quick and cost effective (eliminates need)• Secondary data (Vans: law; skatepark)

– Information already collected and or published– Study information already available

• End: decide if information is still needed• If so, conduct a new, original (primary) research

study • Market research is what I do almost every day!

How the Internet has Changed Secondary and Primary Data

Collection Methods

Marketing Research Steps

Plan to gather data: surveys2b. If primary data, have to collect data

yourself• Questioning: survey (Scales)

– Set of questions to collect information directly from subjects (open or closed ended)

– Self administer or in person (at events, malls)– Problem: low response rates 10% is good, 36% diss)– Problem (from low response): representative– Online surveys (zoomerang.com.surveymonkey.com)

Marketing ResearchMarketing Research Process

Plan to gather data: novel methods2b. Depth interviews

• Observing “you can observe a lot, just be looking”• Advantage: natural inquiry (kids), and gather information

without influencing customers.• What about disadvantages??

• “Mystery shoppers” (what are examples??)• Scanner data: collect buying information (unlimited use)• Netnography/ethnography• Online/focus groups/

Marketing Research

Plan to gather data: experiments2b. Data

• Experimenting – Two similar groups

» Differ on one item of importance» Hold all else constant

– Advantage: causation (Eckerd; 20 stores; POP; Atkins death)

– Disadvantage: naturalism (is it so fake?) LeSportsac vs K-Mart

– Look on the back of a prescription drug print ad….that is an experiment

K-MartImpression of K-Mart?

How would you research consumers

Marketing Research Steps

5. Analyse/Interpret data• Solve with statistics• Issues:

– Reliability: consistency (same result in repeated trials; scale for weight)

– Validity: measure what you intend to (accurate standardized tests

– Statistical software assists you

SPSS vs. SAS

Marketing Research Steps

5. Analyze the data (not just interesting)

• Run cross-tabs• Hypothesis testing• Association Measures• Regression Analysis• Structural Equation Models

Marketing Research6. Prepare/Present Report or Manuscript

– Solve objectives clearly– Search for the “better question” (ask about food

quality in dining hall; everyone talks about price or location)

– Tailor to audience (executive or expert scholars

7. Follow up- How could your improve?- Was a decision made based on your study?- Build a relationship

Summary

• Read: Uses of Internet in marketing information

• Know the steps and methods (surveys, experiments, observations, etc.)

• Others:– Define research– Purpose of research– Qualitative v/s Quantitative

• Any questions??