CONDUCTING
MARKETING
RESEARCH
29.1: The Marketing Research Process
Five steps in conducting marketing
research
1. Defining the problem 2. Obtaining data
3. Analyzing the data
4. Recommending solutions 5. Applying the results
Each step depends on the steps that
Step 1: Defining the
Problem
Most difficult step
Occurs when a business clearly identifies
a problem (research question) and what is needed to solve it (information needed to answer it)
Objectives are used to develop the
actual questions that will be included in the research instrument.
Ex. Objective: satisfaction, Question: On a
Step 2: Obtaining Data
Data are collected and examined in
terms of the problem or problems being studied
Data – facts
2 types:
Primary data – data obtained for the first time
and sued specifically for the particular problem or issue under study
Secondary data – already been collected for
some purpose other than the current study
Less expensive
How Secondary Data Are Obtained
Internal 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 – sources outside the company
Most often collected by internet sources, U.S.
and State government sources, specialized
Internet Sources
Company’s description of its products,
services offered, locations, sales revenue,
number of employees, product specifications, and pricing
All information should be verified
Digital dossiers – provide company profiles on
public corporations
Profiles on public corporations, income
statements, and balance sheets
Ex. Hoover’s Online, Factiva, LexisNexis, Mergent
U.S. and State Government
Sources
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
Specialized Research
Companies
Also called syndicated services
Sell demographic data, five-year
forecasts, consumer purchase
information, business data, census
information, and consumer classification reports
Business Publications and Trade Organizations
Ex. Forbes, BusinessWeek, Wall Street
Advantages of Secondary
Data
Can be obtained easily, because the
data are on the Internet; in corporate,
public, and college libraries; or available for purchase from syndicated services
Disadvantages of
Secondary Data
Existing data may not be suitable for the
problem under study
May sometimes be inaccurate
Ex. Census may not be correct for the
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 research organizations
May be collected using the survey
The Survey Method
Research technique in which information is
gathered from people through the use of surveys or questionnaires
Most frequently used method
1. Must determine number of people to include
Census – survey the entire target population (if
small)
Usually too large, and time and money are limited
Sample – part of the target population that
represents it accurately
Size depends on money and degree of accuracy needed
The Survey Method
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. Write the questions according to the
Technological Method
Online surveys and focus group chat sessions
Fax broadcasting – businesses send questionnaires to
select group of fax numbers
Automated dialers – increase number of telephone
survey responses by placing multiple calls and
automatically rejecting those with busy signals and answering machines
Digital surveys – allow a prerecorded voice to qualify
a respondent and then ask a series of survey questions
Interactive voice response – similar to voicemail that
Interviews
Mall intercept interview – conduct interviews in
central locations
Focus group interview – involves 8 to 12 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,
Interviews
Advantage – easier to get people to respond, easy to
administer
Disadvantage – cost, takes time
Telephone
quick, efficient, relatively inexpensive
Limited by Do-Not-Call
Mail survey
Relatively inexpensive, large audience, honest responses, less intrusive
10% response rate, increase with incentive to complete
Internet survey
Quick and automatically tabulated
The Observation Method
Research technique in which the actions of
people are watched and recorded either by cameras or by observers
Mystery shopper – research who poses as a
customer and goes into a business to observe employees and operations
Disadvantage – cannot measure attitudes or
motivation, person does, not why
Advantage – faster than interviews, better
The Observation Method
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
Approach shoppers and ask questions right
The Experimental Method
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 cost and
Step 3: Analyzing the Data
Process of compiling, analyzing, and
Data Mining
Computer process that uses statistical
Step 4: Recommending Solutions to the Problem
Must be clear 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
Introduction – problem, importance, definitions, limitations, and
basic assumptions
Review of the research information – results of any secondary data
Procedures used – research technique or techniques used to obtain
primary data
Findings
Recommendations
Summary and conclusions
Appendixes
Step 5: Applying the Results
Can be inconclusive, additional research
needed, or suggest specific courses of action
Monitor changes to know if actions are
successful
Research effort is success if resulting
decisions lead to increased profits through better sales, increased
29.2: The Marketing Survey
Businesses need valid and reliable data
to make good decisions. Marketing researchers must construct survey
Constructing the
Questionnaire
Validity – questions asked measure what
was intended to be measure
Reliability – produces nearly identical
results in repeated trials
Ask for same type of info from all Clear and easily understood
Must be clear, properly written,
Writing Questions
Open-ended questions – ask respondents to
construct their own response to a question
Ex. What changes or additions to this coat would you
recommend?, general comments, or suggestions
Difficult to categorize and tabulate
Forced-choice questions – ask respondents to
choose answers from possibilities given on a questionnaire.
Simplest to write and easiest to tabulate
Can be 2-choice, multiple-choice, rating, ranking,
Yes/No Questions
Used only when asking for a response on
one issue
Filter questions – help guide respondents
Multiple-Choice Questions
When constructing, important to make
the options mutually exclusive and
comprehensive enough to include every possible response
Rating Scale Questions
Rating from very satisfied to very
Level of Agreement
Questions
When assessing attitudes or opinion,
Basic Guidelines for Writing Questions
Clearly and briefly
Same ranking or scaling for similar questions
No leading questions – suggest a correct answer
Ex. X or more reasonable Z?
Avoid bias – a systematic error introduced by
encouraging one outcome or answer over the others No questions that cause respondents to guess
Ex. How many students in your high school drink coffee on
a daily basis?
Formatting
Great visual appearance and design to
appeal
Dark ink, easy to read type
Short
Heading or numbers on sections
Place note to continue on the bottom of
Content Formatting
Clear directions
Demographic questions at end
More likely to answer
Administering the
Questionnaire
Deadlines
Mailed – first-class, hand-signed cover
letter (explain purpose and deadline, personalized if respondent known,
In-Person Surveys
Brief explanation of purpose on survey
Unbiased plan established for selecting
participants
Reactions to visual materials may be
Incentives
May offer incentives for participation
Ex. Receive coupon, or drawing for cash
