marketing research and information systems

Copyright © Cengage Learning. All rights reserved.

Chapter 4:Marketing Research and Information Systems

Pride/FerrellFoundations of MarketingFourth Edition

Prepared by Milton PressleyUniversity of New Orleans


Objectives• Define marketing research and understand its

importance.• Describe the basic steps in conducting

marketing research.• Explore the fundamental methods of

gathering data for marketing research.• Describe how tools such as databases,

decision support systems, and the Internet facilitate marketing information systems and research.

• Identify key ethical and international considerations in marketing research.


Marketing Research• The systematic design, collection, interpretation,

and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities.

Importance of Marketing Research

Irwin provides services to help companies better understand their customers’ needs


Discussion Question• Can you think of a situation in which you

would introduce a new product to a market where marketing research would be inappropriate?


The Benefits of Marketing • Facilitates strategic planning• Assess opportunities/threats• Ascertain potential for success• Determine feasibility• Improves marketer’s ability to make

decisions


The Marketing Research Process


Discussion Question• Which of the five steps of the marketing

research process is the most important?


Locating and Defining Issues or Problems

• Focusing on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation– Departures from normal or expected

marketing results– Typical problems requiring research– Discover reasons for exceeding/not

meeting goals– Evidence of possible or potential market

opportunities


Defining the Problem• Nature/scope of situation• Clear definition of need• Determine precisely what research is to

determine• How will research be used?


Designing the Research Project• Research Design– An overall plan for obtaining the

information needed to address a research problem or issue

• Hypothesis– An informed guess or assumption about a

certain problem or set of circumstances– Accepted or rejected hypotheses act as

conclusions for the research effort


Types of Research• Exploratory Research

– Conducted to gather more information about a problem or to make a tentative hypothesis more specific

– How are consumers car buying habits changing?

• Conclusive Research– Designed to verify insights through objective procedures and to

help marketers in making decisions– What % of consumers will consider an electric car purchase?

• Descriptive Research– Conducted to clarify the characteristics of certain phenomena to

solve a particular problem– How are consumers gathering information to assist in car buying?

• Experimental Research– Research that allows marketers to make causal inferences about

relationships


Differences Between Exploratory and Conclusive Research


Reliability and Validity• Reliability– A condition existing when a research

technique produces almost identical results in repeated trials

– also considered as ‘repeatability’ if results can be replicated

• Validity– A condition existing when a research

method measures what it is supposed to measure


Collecting Data• Primary data:

• Is observed, recorded or collected directly from respondents

• Is collected to address a specific problem that cannot be answered by secondary data alone

Primary Data Collection

M/A/R/C works with multinational companies to collect primary data to maintain strong brand equity


Collecting Data• Secondary data:

• Is compiled both inside and outside the organization

• Is for some purpose other than the current investigation


External Sources of Secondary Data


Web Exercise

Census: Click on the @ symbol to access the U.S. Census State and County Quick Facts Web Site. Once there, explore some of the information available for one or more states.

@

http://quickfacts.census.gov/qfd/index.html

http://quickfacts.census.gov/qfd/index.html


Discussion Question• Can you name any of the top marketing

research firms in the U.S.?• Which marketing research firm do you

think is the largest in terms of sales revenue?

Click on the @ for the answers

@

http://www.marketingcharts.com/topics/business-to-business/top-10-us-market-research-firms-10141/honomichl-top-10-marketing-research-organizations-us-2008jpg/

http://www.marketingcharts.com/topics/business-to-business/top-10-us-market-research-firms-10141/honomichl-top-10-marketing-research-organizations-us-2008jpg/


Methods of Collecting Primary Data• Population - all the elements, units, or individuals of

interest to researchers for a specific study• Sample - a limited number of units chosen to represent

the characteristics of the population• Sampling - the process of selecting representative units

from a total population


Probability Sampling• Probability sampling

– sampling technique in which every element in the population being studied has a known chance of being selected for study

• Random sampling – type of probability sampling in which all units in a

population have an equal chance of appearing in a sample

• Stratified sampling– type of probability sampling in which the

population is divided into groups according to a common attribute; a random sample is then chosen within each group


Nonprobability Sampling• Nonprobability sampling – sampling technique in which there is no

way to calculate the likelihood that a specific element of the population being studied will be chosen

• Quota sampling – nonprobability sampling technique in

which researchers divide the population into groups and then arbitrarily choose participants from each group


How Types of Sampling Align

Sampling

Probability

Random SamplingStratified Sampling

Nonprobability

Quota


Survey Methods• Mail Sample Mail Survey• Telephone Sample Phone Survey• Online Sample Online Survey• Personal Interview

Collecting Data Through Surveys

Infosurv assists clients in the development and execution of online surveys

http://www.nysl.nysed.gov/libdev/libs/pldtools/guide/h-clstm.htm

http://www.nysl.nysed.gov/libdev/libs/pldtools/guide/h-clstm.htm

http://www.cssurveys.com/Telephone_Example.htm

http://www.cssurveys.com/Telephone_Example.htm

http://www.statpac.com/online-surveys/onepage-survey.htm

http://www.statpac.com/online-surveys/onepage-survey.htm


Social Networking and Surveys• Social networking sites– can be used to gather useful information in

understanding consumer decisions – provide a new way for marketers to conduct market research.


Forms of Personal Interviews• Focus-group

• observation of group interaction when members are exposed to an idea or concept

• In-home/Door-to-Door • takes place in respondents’ homes

• Customer advisory boards • small groups of actual customers providing feedback

on ideas, products, marketing strategies Kentucky Fried Chicken “Mom’s Matter”• Telephone depth

• combines ability to probe with confidentiality Computer Assisted Telephone Interviewing (CATI)• Shopping-mall intercept

• interviewing a % of persons walking through malls

http://www.brandweek.com/bw/news/restaurants/article_display.jsp?vnu_content_id=1003020643&CFID=8666623&CFTOKEN=90006191

http://www.brandweek.com/bw/news/restaurants/article_display.jsp?vnu_content_id=1003020643&CFID=8666623&CFTOKEN=90006191

http://srcweb.berkeley.edu/compAsstNew.html

http://srcweb.berkeley.edu/compAsstNew.html


Benefits of a Personal Interview• Rapport• More in-depth

– Probes– Follow-up– Tests

• Longer• Yield more information• Respondents can be carefully selected, reasons for

nonresponse explored• Allow you greater flexibility


Questionnaire ConstructionQuestion Types

• Open-Ended QuestionWhat is your general opinion about coffee shops? ________________________________________________

_______________________________________________• Dichotomous Question

Have you ever purchased a coffee product?Yes _____ No _____

• Multiple-Choice QuestionWhat income group are you in?$0-$19,000 _____$20,000-$59,999 _____$60,000-$99,000 _____more than $100,000 _____


Observation Methods• Direct contact with subject is avoided to

reduce possible awareness of observation process.

• Physical conditions, subject actions, and demographics are noted.

• Observations may be combined with same subject interviews.

• Data gathered may be influenced by observer bias.


• Statistical interpretation - focuses on what is typical or what deviates from the

average

Interpreting Research

Companies like Market Strategies can help interpret the data collected from market research and offer insight into the areas investigated


Reporting Research Findings

• Prepare a formal, written document• Clear, objective look• Point out deficiencies• Formal, written document• Determine level of detail• Summary/recommendations first


Using Technology to Improve Marketing

Using Technology

Re Rez uses some of the most advanced marketing research technology to assist clients


Technology and Information Gathering and Analysis

• Increasingly accessible• Customer relationship management

enhanced• Permits internal research and quick

information gathering• Access array of valuable information

sources


Types of Technology Used

• Marketing Information Systems (MIS) – framework for managing and structuring

information gathered from internal and external sources

• Databases – Single-source data provided by single

marketing research firm• Marketing Decision Support Systems (MDSS) – customized computer software that aids

marketing managers in decision making


The Importance of Ethical Marketing Research


International Issues in Marketing Research

–Modification of data-gathering methods to account for regional differences

– Use of two-pronged approach to international marketing research

– Consider sociocultural, economic, political, legal, and technological forces


After Reviewing This Chapter You Should Be Able to:

• Define marketing research and explain its importance.

• Describe the basic steps in conducting marketing research.

• Discuss the fundamental methods of gathering data for marketing research.

• Describe how tools such as databases, decision support systems, and the Internet facilitate marketing information systems and research.

• Identify key ethical and international considerations in marketing research.


• Marketing research• Research design• Hypothesis• Exploratory research• Conclusive research• Descriptive research• Experimental research• Reliability• Validity• Primary data• Secondary data• Population• Sample• Sampling• Probability sampling• Random sampling

• Quota sampling• Mail survey• Telephone survey• Online survey• Personal interview survey• In-home (door-to-door) interview• Focus-group interview• Customer advisory boards• Telephone depth interview• Shopping mall intercept interview• Statistical interpretation• Marketing information system (MIS)• Database• Single-source data• Marketing decision• support system (MDSS)

marketing research and information systems

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