Chapter 29: Conducting Marketing Research
29.1: The Marketing Research Process
Five steps in conducting marketing research
Step 1:
Most difficult step
Occurs when a business identifies a problem (research question) and what is to solve it (information needed to answer it)
are used to develop the actual questions that will be included in the research
instrument.
Ex. Objective: satisfaction, Question: On a scale of 1 to 5…
Step 2: Data are collected and examined in terms of the problem or
problems being studied Data – facts
– data obtained for the first time and sued specifically for the particular problem or issue under study
Secondary data –
Less expensive
How Secondary Data Are Obtained
sources – sources within the company
Marketing information system – getting data used to measure month sales, determine the geographic
distribution of customers, track customer buying patterns, and identify popular items on the market
External sources –
Most often collected by internet sources, U.S. and State government sources, specialized research companies, and business publications and trade organizations
Internet Sources
Company’s description of its products, services offered, locations, sales revenue, number of employees, product specifications, and pricing All information should be Digital – provide company
profiles on public corporations
Profiles on public corporations, income statements, and balance sheets
Data regarding population demographics, specific markets, industries, products, economic news, export information, and legislative trends can be accessed online for free or minimal cost
Ex. FedWorld
Publications can be useful when analyzing information
Ex. Census of the Population and Statistical Abstract of the United States
Specialized Research Companies
Also called
demographic data, five-year forecasts, consumer purchase information, business data, census information, and consumer classification reports
Ex. Mediamark Research, Inc
and Trade Organizations
Advantages of Secondary Data
Can be obtained , because the data are on the Internet; in corporate, public, and college libraries; or available for purchase from syndicated services
Saves and Disadvantages of Secondary Data
Existing data may not be for the problem under study
May sometimes be Ex. Census may not be correct for the current
year
How Primary Data Are Obtained
Large companies frequently have their own marketing research staff to conduct primary research for the company
Both large and small companies make use of
The Survey Method
Most frequently used method
1.
– survey the entire target population (if small)
Usually too large, and time and money are limited
Sample –
Size depends on money and degree of accuracy needed (larger sample, more accurate)
2. Must decide what type of survey to conduct
In person, by phone (using personal calls and prerecorded messages), by mail (regular and e-mail), or by using the internet.
3.
Technological Method
Online surveys and focus group chat sessions
Automated dialers – increase number of telephone survey responses by placing multiple calls and automatically rejecting those with busy signals and answering machines
– allow a prerecorded voice to qualify a respondent and then ask a series of survey questions
– similar to voicemail that lead callers through a series of questions
Interviews
– conduct interviews in central locations
Focus group interview – involves people who are brought together to evaluate advertising, a particular product, package design, or a specific marketing strategy under the direction of a skilled moderator
Moderator must direct the discussion to accomplish the objectives of the study
Facilities usually include conference rooms, observation rooms, and audio-tape and videotape equipment
Disadvantage – cost, takes time Telephone
quick, efficient, relatively inexpensive
Limited by Mail survey
Relatively inexpensive, large audience, honest responses, less intrusive
response rate, increase with incentive to complete
Internet survey
Quick and tabulated
Limited to individuals with access, people dislike uninvited surveys
The Observation Method
– research who poses as a customer and goes into a business to observe employees and operations
Disadvantage – cannot measure or , person does, not why Advantage – faster than interviews, better results
Point-of-sale research – powerful form of research that combines natural observation with personal interviews to get people to explain buying behavior
Observe shoppers to decide which ones to choose as research subjects
Then,
Research technique in which a researcher observes the results of changing one or more marketing
variables while keeping all the other variables constant under controlled conditions.
Often used to test new package designs, media usage, and new promotions
Not common because of and inaccuracy
Step 3:
Process of compiling, analyzing, and interpreting the results of primary and secondary data collection
Computer process that uses statistical methods to extract new information from large amounts of data
Must be and well supported by the research data
Include:
Title page
Acknowledgements of people who assisted in the research effort
Table of contents
List of tables, figures, charts, and graphs
– problem, importance, definitions, limitations, and basic assumptions
Review of the research information –
– research technique or techniques used to obtain primary data
Findings
Recommendations
Summary and conclusions Bibliography
Step 5:
Can be inconclusive, additional research needed, or suggest specific courses of action
29.2: The Marketing Survey
Businesses need valid and reliable data to make good decisions.
Marketing researchers must construct survey instruments that will provide information needed to make decisions.
Constructing the Questionnaire
– questions asked measure what was intended to be measure
Reliability –
Ask for same type of info from all Clear and easily understood
Must be clear, properly written, formatted, and administered
Writing Questions
Open-ended questions –
Ex. What changes or additions to this coat would you recommend?, general comments, or suggestions Difficult to categorize and tabulate
– ask respondents to choose answers from possibilities given on a questionnaire.
Simplest to write and easiest to tabulate
Yes/No Questions
Used only when asking for a response on one issue
– help guide respondents to answer only those questions that apply
Multiple-Choice Questions
When constructing, important to make the options
mutually exclusive and comprehensive enough to include every possible response
Other – increase
Rating from very satisfied to very dissatisfied, or from excellent to poor
Level of Agreement Questions
When assessing or , write descriptive statements that describe those attitudes or opinions
Basic Guidelines for Writing Questions
and
ranking or scaling for similar questions No leading questions – suggest a correct answer
Ex. X or more reasonable Z?
No questions that cause respondents to guess
Ex. How many students in your high school drink coffee on a daily basis?
– allows for correction of misleading questions, directions, or problems on the questionnaire
Formatting
Great appearance and to appeal
Dark ink, easy to read type Short
Heading or numbers on sections
Place note to continue on the bottom of pages Content Formatting
Clear directions
Demographic questions at More likely to answer
At beginning only to
Administering the Questionnaire Deadlines
In-Person Surveys
Brief explanation of purpose on survey
plan established for selecting participants
Reactions to visual materials may be collected Incentives
May offer incentives for participation
