BELL RINGER

List five reasons why you think that some new businesses

have almost immediate success while others fail

miserably.

MARKETING IN

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MARKETING RESEARCH

• What?• Is the process and methods used to gather information, analyze

it, and report findings related to marketing goods and services.

• Who?• Small businesses- do not have a specific department dedicated to

MR. MR is done informally by owners, managers, employees or hire outside services.

• Large businesses- have specific research departments or hire outside consulting firms

• 6.2 billion spent annually on research

WHY MARKETING RESEARCH IS IMPORTANT?• Avoid costly marketing mistakes

• Increase sales and profits

• Helps manage and make 4P decisions

• Keep track of what competitors are doing

• Know what’s going on in the market• New trends• Consumer preferences• Customer satisfaction

HOW?Follow research process

3 main ways to collect primary data- survey, observations, experimental methods

Internet is a source of secondary data

MARKETING INFORMATION SYSTEMS

• Many businesses have sophisticated marketing info systems that generate, store, analyze, and distribute information for use in making marketing and other business decisions.

• Data that is collected, sorted and stored so the results can be put to good use.

• Databases are created with all types of information that is collected.• Winn Dixie Rewards Card

• Qualitative* vs. Quantitative*

• Attitude Research• Opinion research• Determine how people feel• Typically a satisfaction survey• Focus Groups

• Market Intelligence• Size and location of market• Competition• Market segmentation• Helps define potential target

markets• Sales forcasting

• Media Research• Advertising research• Focuses on issues of media

effectiveness, selection, frequency, and ratings

• Determine which media outlets to advertise in

• Product Research• Evaluating product design,

packaging, product usage, and consumer acceptance of new products.• Product testing• Focus groups

TYPES OF MARKETING RESEARCH

*Qualitative focuses on smaller #’s of people (fewer than 100) and answers questions why or how.*Quantitative gathers from large #’s of people and answers “how many” or “how much” with surveys and questionnaires.

MARKETING RESEARCH LIMITATIONS

• Limited by money and time

• Personnel needed

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MARKETING RESEARCH PROCESS

1. Define the problem

2. Obtain data

3. Analyze the data

4. Recommend solutions to the problem

5. Apply the results

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STEP 1: DEFINE PROBLEM

Problem definition - occurs when a business clearly identifies a problem and state the information needed to solve the problem.

Problems can focus on any part of the marketing mix.

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STEP 2: OBTAINING DATA

Data are collected and examined in terms of the problem(s) being studied

Primary Data - data obtained for the first time and used specifically for the particular problem under study.

Secondary Data - data already collected for some purpose other than the current study. Less expensive than primary data - try to use secondary data first before primary data.

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STEP 2: OBTAINING DATA

Sources of secondary data Internal sources

employees business records

External sources US government agencies Corporate, public, and university libraries Consumer and business information companies Business publications Trade publications, books, and journals

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STEP 2: OBTAINING DATA

Sources of primary data Individual company research Commercial research organizations

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STEP 2: OBTAINING DATA

4 methods to collect primary data1. Survey method - information is gathered from people directly

through the use of interviews or questionnaires. Most frequently used method.

Determine sample size - a part of the target population that is assumed to represent the entire population (the larger the sample, the more accurate it is) Why is sample size important to primary data collection? Size of

sample shows how much $ you will spend and shows how accurate research is.

Use personal interviews, focus groups, telephone interviews, mail survey, and online computers.

ME Ch. 33

2. INTERVIEWS

Questioning people face to face

Expensive

Originated in shopping malls

Focus Group is a type of personal interview Involves 8 to 12 people Lead by a moderator Open discuss with questioning to evaluate advertising, product design,

package design, or marketing strategy.

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ME Ch. 33

DOMINOS PIZZA MARKETING RESEARCH FOR PRODUCT IMPROVEMENT

http://www.youtube.com/watch?v=AH5R56jILag

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STEP 2: OBTAINING DATA

3. Observation Method - the actions of people are observed and recorded. Used to get information about customer behavior or preferences.

Contrived situations - researchers can control the testing situation Natural situations - customers or employees are viewed as they would

normally act in a given situation. Traffic count - count people or cars as they pass the store.

Point of sale research - a combination of contrived and natural. Observe shoppers and decide which ones to choose as research subjects.

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STEP 2: OBTAINING DATA

4. Experimental method - a research observes under controlled conditions the results of changing one or more marketing variables while keeping certain other variables constant. Often used to test new package designs, levels of media usage, and new promotions.

*Infrequently used because of cost

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STEP 3: ANALYZING THE DATA

Data analysis - the compiling, analyzing, and interpreting of the results of primary and secondary data collection.

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STEP 4: RECOMMENDATIONS

Conclusions are presented in a report.

Recommendations must be clear and well supported by the research data.

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STEP 5: APPLYING RESULTS

Use the research report to make decisions about next actions to take regarding the problem.

Inconclusive research - research does not help to solve the problem Additional research may be needed Research suggests specific course of action

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CONSTRUCTING THE QUESTIONNAIRE

Questionnaires should provide data that is valid.

• VALIDITY: data should measure what it was intended to measure.• EX: a researcher designs a questionnaire to measure a

retail store’s customer service. Questionnaires that are poorly written or that do not address customer service will NOT have validity.

Questionnaires should have reliability.

• RELIABILITY: reliability exists when a research technique produces nearly identical results in repeated trials.

• Questions should ask the same type of information from all the respondents.

• Questions should be clear and easily understood. • EX: Asking a respondent in a restaurant survey if their

food was hot, will not yield a reliable answer.

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WRITING QUESTIONS

Open ended - ask respondents to construct their own response to a question.

“How can we serve you better?”Difficult to categorize and tabulate

Close Ended - ask respondents to choose answers from possibilities given on a questionnaire.

multiple choice, yes/no, level of agreement or rating questions.

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WRITING QUESTIONNAIRES

Formattinghave different types of questionsclear directions for completing questionnaireexcellent visual appearance and designnumber all sectionsrefer to additional pages if necessary

DistributionMail first classHand signed cover letter explaining purpose of questionnaire

Postage paid return envelope