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Prof. Richardson MKTG 116 slide 1
Chapter 5
Prof. Richardson MKTG 116 slide 2
Chapter 5
Introduction
Business which have “extra information” are more competitive.
The process of developing information through Market Research is becoming more complicated and is greatly enhanced and improved by using advanced telecommunications (e-mail, fax, internet etc.)
Prof. Richardson MKTG 116 slide 3
Chapter 5
“The quality of marketing planning decision depends on the quality of the information on which they are based” p. 76
Garbage In = Garbage Outgood market info = good marketing planning
Prof. Richardson MKTG 116 slide 4
Chapter 5
good market info = good marketing planning
There are many sources of Market Info
•customer complaints
•sales-force reports
•government statistics
•industry reports … and ... Page 76
Prof. Richardson MKTG 116 slide 5
Chapter 5
Marketing Research
The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.
Page 76
Prof. Richardson MKTG 116 slide 6
Chapter 5
Marketing Research
The critical task of the Marketing Manager is DECISION MAKING. P. 77
Marketing Research helps provide good information to help in decision making.
Prof. Richardson MKTG 116 slide 7
Chapter 5
Marketing Research
The information gathered during Marketing Research can help:• develop sales forecasts
• design new products, based on customer opinion
• create attractive packaging
• guide advertising plans
Page 77
Prof. Richardson MKTG 116 slide 8
Chapter 5
Marketing Research
Where do you get the info?
A. you can do it yourself by making someone in the company responsible for doing the research
B. you can hire an outside agency that specializes in Market Research
Page 78
Prof. Richardson MKTG 116 slide 9
Chapter 5
Marketing Research
Where do you get the info?
B. you can hire an outside agency that specializes in Market Research
There are 2 types of outside agencies
1. Full Service Research Supplier
2. Syndicated Service
Page 78
Prof. Richardson MKTG 116 slide 10
Chapter 5
Marketing Research
There are 2 types of outside agencies
1. Full Service Research Supplier
They will will handle all aspects, conduct interviews, send out questionnaires, do telephone polls etc. and provide a detailed report explaining all aspects of your potential customer base.
Page 78
Prof. Richardson MKTG 116 slide 11
Chapter 5
Marketing Research
There are 2 types of outside agencies
2. Syndicated Service
These types of companies gather various types of information and sell it (usually in subscription form) to clients that have regular needs.
• Restaurants can buy statistical information on eating habits and spending patterns
• Clothing companies can buy information on demographics and seasonal buying patterns as well as trend information.
Page 78
Prof. Richardson MKTG 116 slide 12
Chapter 5Fi
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5.1
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1.
2.
3.
4.
5.
6.
Page 79
6 Steps in the Market Research Process
Prof. Richardson MKTG 116 slide 13
Chapter 5
Problem Definition
You have to first know what you are looking for - this is not always so easy.
If your new chocolate bar isn’t selling well, you don’t automatically do market research on the “taste” - because maybe the reason has to do with the packaging.
Page 78
Prof. Richardson MKTG 116 slide 14
Chapter 5
Exploratory Research
“Learning about the problem area and beginning to focus on specific areas of study by discussing the problem with informed sources within the firm (a process often called situation analysis) and with knowledgeable others outside the firm (the informal investigation).”
Page 79
Often described as looking before you start looking
Prof. Richardson MKTG 116 slide 15
Chapter 5
Exploratory Research
One of the important things to do is review the existing situation to determine how things came to be that way - this is an important part of the Exploratory Research and is one of the reasons why companies hire outside agencies.
It is difficult for a company to “look at itself”
Page 80
Prof. Richardson MKTG 116 slide 16
Chapter 5
After the problem has been defined (Step 1), and an exploratory investigation (Step 2) has been conducted,
it is possible to then formulate a Hypothesis (Step 3)
Prof. Richardson MKTG 116 slide 17
Chapter 5
“A tentative explanation about the relationship between variables as a starting point for further testing.” TEXT
Hypothesis
The way of thinking about how something works - and using your original “guess” as a starting point for further investigationWTGR
Page 81
Stage 3
Prof. Richardson MKTG 116 slide 18
Chapter 5 Hypothesis
http://www.reinartz.com/mark4338/CLASS_4/sld006.htm
Prof. Richardson MKTG 116 slide 19
Chapter 5
The Research Design should be a plan for testing the Hypothesis.
A series of advance decisions that, taken together, make up a master plan or model for conducting the investigation.
Research Design
page 81
Stage 4
Prof. Richardson MKTG 116 slide 20
Chapter 5Research Design
http://www.reinartz.com/mark4338/CLASS_4/sld007.htm
Prof. Richardson MKTG 116 slide 21
Chapter 5
Collecting Data
• Collecting Data is often the expensive stage because it may involve paying people to make telephone calls, or hiring students to takes questionnaires to malls and ask shoppers to answer questions.
• This is time consuming as well as costly
Stage 5
Prof. Richardson MKTG 116 slide 22
Chapter 5
Data being collected for the first time.
Primary Data
Previously produced or published matter.
Secondary Data
Collecting Data Stage 5
Page 81
Prof. Richardson MKTG 116 slide 23
Chapter 5
Internal- eg. company sales records
ExternalPreviously published matter.(gov’t statistics, reports, newspaper articles etc.)
Secondary DataCollecting Data Stage 5
Page 83
Prof. Richardson MKTG 116 slide 24
Chapter 5
External- Government Sourceshttp://WWW.StatCan.CA/english/Pgdb/Economy/econom.htmhttp://WWW.StatCan.CA/english/Pgdb/People/Population/demo05.htm
The Canadian government produces so MUCH data from census and business reports that it is published in report. Some of these reports are free, some can be bought, and some customized information can be bought at a high price.
Secondary DataCollecting Data Stage 5
Page 83
Prof. Richardson MKTG 116 slide 25
Chapter 5
1. less expensive
2. less time
Advantages of Secondary Data
Collecting Data
Page 84
Prof. Richardson MKTG 116 slide 26
Chapter 5
1. It is usually less expensive than Primary Data - and if the purpose if just to determine a general trend, then for many situations, Secondary Data is O.K.
2. It takes less time to find Secondary Data (compared to doing new studies) and therefore you answer your questions more quickly, and get on with the business.
Advantages of Secondary Data
Collecting Data
Page 84
Prof. Richardson MKTG 116 slide 27
Chapter 5
1. Obsolete
2. Fit - relevance
Limitations of Secondary Data
Collecting Data
Page 85
Prof. Richardson MKTG 116 slide 28
Chapter 5
1. Obsolete - date it was produced may be old - this is why some companies pay for new Primary Data
2. Fit - relevance. Some Secondary Data is too vague to answer the questions
- therefore you need new Primary Data that is more specific
Limitations of Secondary Data
Collecting Data
Page 85
Prof. Richardson MKTG 116 slide 29
Chapter 5
Data being collected for the first time.
Primary Data
Collecting Data Stage 5
Page 85
1. Observation
2. Survey• Telephone• Mail• Personal Interview
3. Controlled Experiment
Prof. Richardson MKTG 116 slide 30
Chapter 5
Data being collected for the first time.
Primary Data
Collecting Data Stage 5
Page 85 ~ 86
1. Observation
• overt - watching how customers shop, what they look at, the features they like, asking for postal codes, counting cars- often used to evaluate how good some advertising is
• covert (technical eg. Hidden camera, POP computerized information)
Prof. Richardson MKTG 116 slide 31
Chapter 5
Data being collected for the first time.
Primary DataCollecting Data
Stage 5
Page 86
2. Survey• Telephone - inexpensive and fast- they are the majority of primary marketing research used by big marketing research companies• Mail - costs less, and more detailed questions can be asked, can be used in geographic segments• Personal Interview - the best method, but most expensive
Prof. Richardson MKTG 116 slide 32
Chapter 5
Data being collected for the first time.
Primary DataCollecting Data
Stage 5
Page 88
2. Survey• Personal Interview
- FOCUS GROUPS are a special type of personal interview• typically 8 ~ 12 people are shown something, then asked for comments• typically used in preparing TV commercials
Prof. Richardson MKTG 116 slide 33
Chapter 5
Data being collected for the first time.
Primary Data
Collecting Data Stage 5
Page 88
3. Controlled Experiment
- not used very often due to costs, but sometimes done by people who need to answer difficult questions
- the most common method is test marketing a target market segment, then look at the results and see what works, and what didn’t work
Prof. Richardson MKTG 116 slide 34
Chapter 5
Data being collected for the first time.
Primary Data
Collecting Data Stage 5
Page 88 ~ 89
3. Controlled Experiment
- Sometimes TEST products are used in cities like Calgary and Winnipeg, and then not followed up, so people there have a chance to use totally new products not available elsewhere
- eg. Winnipeg was the first city to try variable sizes of plastic soft drink bottled
Prof. Richardson MKTG 116 slide 35
Chapter 5
Test Marketing
The selection of areas considered reasonably typical of the total market, and introducing a new product to these areas with a total marketing campaign to determine consumer response before marketing the product nationally.
Collecting Data
Page 88 ~ 89
Prof. Richardson MKTG 116 slide 36
Chapter 5
The Data Collection Instrumentor, … “getting the info”
“Most of the work in Data Collection depends on the use of a good questionnaire”
• has to ask questions referring to specific objectives
• should be pre-tested, if it is new, so you can make any changes to the questions
Collecting Data
Page 89
Prof. Richardson MKTG 116 slide 37
Chapter 5
• Population (universe)
• Probability Sample
• Convenience
• Quota
• Simple Random
Sampling Techniques
• Census
• Nonprobability Sample
• Judgment
• Cluster
• Systematic Technique
Page 90
Prof. Richardson MKTG 116 slide 38
Chapter 5
Population (universe)
• the total group that the researcher wants to study
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 39
Chapter 5
Census
• if the total group is contacted, the results are known as a census (same term as used when the government does a census to get information on the citizens)
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 40
Chapter 5
Probability Sample
• a sample in which every member of the population has a known chance of being selected
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 41
Chapter 5
Nonprobability Sample
• a sample chosen in an arbitrary way so that each member of the population does not have a representative chance to be selected.
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 42
Chapter 5
Convenience Sample
• a sample chosen in an arbitrary way (a nonprobability sample) so that each member of the population does not have a representative chance to be selected. - BECAUSE they just used readily available respondents/participants
•eg. “CityTV on the street interviews”
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 43
Chapter 5
Judgement Sample
• a nonprobability sample of people with a specific attribute.
•eg. “CityTV on the street interviews” of people that DO NOT have political party affiliation - to determine how they voted, and who would win the election
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 44
Chapter 5
Quota Sample
• a nonprobability sample that is divided so that different segments or groups are represented in the total sample.
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 45
Chapter 5
Cluster Sample
• a probability sample that is used in groups
• used when it is difficult to ask everybody, so they pick some areas and ask everybody in that area (cluster)
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 46
Chapter 5
Simple Random Sample
• a probability sample in which everybody has an equal opportunity of being selected.
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 47
Chapter 5
Systematic Sample
• every 5th, or every “n”th person is selected. An example is market research people who call every 10th person in the phone book to get an opinion.
Sampling Techniques
Page 90
Prof. Richardson MKTG 116 slide 48
Chapter 5
Marketing Information Systems
Page 91
For some companies, market knowledge comes in on a regular basis.
Some stuff is “Data”, and some is “Information”
Data = statistics, opinions in surveys, facts, predictions etc.
Information = data RELEVANT to the Marketing Manager in making decisions
Prof. Richardson MKTG 116 slide 49
Chapter 5
Marketing Information Systems
Page 91
The most important thing is
RELEVANCE
Prof. Richardson MKTG 116 slide 50
Chapter 5
Marketing Information Systems
Page 91
The best way to get RELEVANT information is to establish a systematic approach and have a planned Marketing Information System
Prof. Richardson MKTG 116 slide 51
Chapter 5
Defn
A set of routine procedures to continuously collect, monitor, and present internal and external information on company performance and opportunities in the marketplace.
Marketing Information Systems
Page 91
Prof. Richardson MKTG 116 slide 52
Chapter 5
A set of routine procedures - things you do all the time
to continuously collect, monitor, - always gathering info
and present - give to the boss
internal and external information - inside the company, and from primary and secondary sources
on company performance - how you are doing
and opportunities in the marketplace.
Marketing Information Systems
Page 91
Prof. Richardson MKTG 116 slide 53
Chapter 5 Figure 5.2 Information Components of a Firm’s MIS
Page 92
Prof. Richardson MKTG 116 slide 54
Chapter 5
All of this depends on the ability of the company to use technology to help it be better than the competition
Marketing Information Systems