Chapter 10: Gathering and Using Information: Marketing Research and Market Intelligence
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Transcript of Chapter 10: Gathering and Using Information: Marketing Research and Market Intelligence
by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond
Principles of Marketing
Chapter 10Chapter 10Gathering and Using Information: Gathering and Using Information: Marketing Research and Market Marketing Research and Market
IntelligenceIntelligence
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Marketing ResearchMarketing Research
• Develop product ideas and designs.• Determine if there is demand for your product so you
know whether or not to produce it.• Identify market segments for your product.• Make pricing decisions.• Evaluate packaging types.• Evaluate in-store promotions.• Measure the satisfaction of your customers.• Measure the satisfaction of your channel partners.• Evaluate the effectiveness of your Web site.• Test the effectiveness of ads and their placement.
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Market IntelligenceMarket Intelligence
• Market intelligence is closely related to marketing research.
• Involves gathering information on a regular, ongoing basis.
• Needed to stay in touch with what’s happening in the marketplace.
• Students gather market intelligence when asking other students about the best professors for taking classes.
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Learning Objectives1.Describe the components of a marketing
information system and each component’s purpose.
2.Explain the situations in which marketing research should be used versus market intelligence.
3.Describe the limitations of market intelligence and its ethical boundaries.
4.Explain when marketing research should and should not be used.
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Marketing Information SystemsMarketing Information Systems
Marketing InformationMarketing Information
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Marketing Information Systems (MIS) Marketing Information Systems (MIS)
Include the following components:• A system for recording internally
generated data and reports.• A system for collecting market intelligence
on an ongoing basis.• Marketing analytics software to help
managers with their decision making.• A system for recording marketing research
information.
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Internally Generated Data and Internally Generated Data and ReportsReports
• Clickstream data is data generated about the number of people who visit a Web site.
• An intranet looks like the Web, but limits internal sensitive information access to employees.
• Data mining using analytics software allows filtering data to retrieve relevant pieces to answer specific questions.
• Large corporations often use multiple software systems that can frustrate sharing important information between organization entities.
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Market IntelligenceMarket Intelligence
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Good Sources for Market Good Sources for Market InformationInformation
• Publications. The Economist, The Wall Street Journal, Forbes, Fortune, Business Week, The McKinsey Report, Sales and Marketing Management, and The Financial Times.
• Trade Shows and Associations. Trade shows are another way companies learn about what their competitors are doing.
• Salespeople. A vital source of market intelligence are a company’s salespeople.
• Suppliers and Industry Experts. Suppliers can provide a wealth of information.
• Customers. How customers are behaving can provide clues.
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Gathering IntelligenceGathering Intelligence
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Code of Ethics Code of Ethics for Market Intelligence for Market Intelligence
ProfessionalsProfessionals• To continually strive to increase the recognition and respect
of the profession. • To comply with all applicable laws: domestic and
international. • To accurately disclose all relevant information, including
one's identity and organization, prior to all interviews. • To avoid conflicts of interest in fulfilling one's duties. • To provide honest and realistic recommendations and
conclusions in the execution of one's duties. • To promote this code of ethics within one's company, with
third-party contractors and within the entire profession. • To faithfully adhere to and abide by one's company policies,
objectives and guidelines.
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Is Marketing Research Always Is Marketing Research Always Correct?Correct?
• The process isn’t foolproof.• Research studies have rejected a lot of
good ideas.• Many things can go wrong along the
way that can affect the results of research and the conclusions drawn from it.
• Following a seven-step process can minimize the chances of error.
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Steps in the Marketing Research Steps in the Marketing Research ProcessProcess
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Define the Problem Define the Problem
• The most important step is to define the right problem for researching. A problem half-defined is a problem half-solved.
• Narrow down the parameters of the study to the information you actually need to make a good decision.
• Put the research objective into writing.• A poorly defined problem to be researched
will result in lost time and wasted dollars.
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Design the ResearchDesign the Research
• Research design—outlines what data is to be gathered; from whom, how, and when to collect the data; and how to analyze it once it’s been obtained.
• Data sources:1. Primary data is information to be collected, using hands-on
tools such as interviews or surveys, specifically for a certain research project. It is expensive to collect and takes considerable time.
2. Secondary data is information that has already been collected for another purpose. Since it already exists, it is less expensive and readily available.
3. Syndicated research is primary data collected by marketing research firms on a regular basis and sold to other companies.
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Secondary Data SourcesSecondary Data Sources
• Libraries• U.S. Census Bureau• University of Michigan Survey
Research Center• Marketing research aggregators such
as MarketResearch.com
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Quality of Secondary DataQuality of Secondary Data
• Who gathered this information?• For what purpose?• What does the person or organization that
gathered the information have to gain by doing so?
• Was the information gathered and reported in a systematic manner?
• Is the source of the information accepted as an authority by other experts in the field?
• Does the article provide objective evidence to support the position presented?
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Types of Research DesignTypes of Research Design
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Categoriesof Design
Design the Data Collection FormsDesign the Data Collection Forms
Questionnaire Design• How the questions are worded is extremely important.• Questions must be written in an unbiased neutral way.• The questions need to be clear and unambiguous.• Sensitive questions have to be asked carefully.• Income questions are unwelcome but often asked.• Double-barreled questions ask two questions in one:
“Do you think parents should spend more time with their children and/or their teachers?”
• Open-ended questions ask respondents to elaborate but are harder to tabulate than closed-ended questions.
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Questionnaire DesignQuestionnaire Design
• If the questions are bad, information gathered will be bad.
• Getting people to complete questionnaires can be difficult; incentives can help.
• Testing the questionnaires face-to-face on a limited number of respondents before sending improves responses.
• Long surveys are less likely to be completed. Eliminate questions of little value.
• Surveys can be delivered via phone, in person, by mail, and computer.
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Sample SelectionSample Selection
• A sample is a subset of potential buyers that are representative of the entire target population— whether it consists of a million people, a couple hundred thousand, a few hundred, or a dozen.
• A sampling error is any type of marketing research mistake that results because a sample was utilized.
• A sampling frame is the list from which the sample is drawn.
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Sample TypesSample Types
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Collect the DataCollect the Data
Surveys data can be collected in many different ways:
• Face-to-face (can be computer aided).
• Telephone (can be computer aided or completely automated).
• Mail and hand-delivery.• E-mail and the Web.
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Data Collection IssuesData Collection Issues
• When conducted face-to-face or administered by a person over the phone, labor is intensive and costly.
• Mailing out questionnaires is costly, and the response rates can be low.
• Data collected by a computer either over the telephone or on the Internet can be very cost effective and, in some cases, free.
• Web surveys are fast—a major plus. Face-to-face and mailed surveys often take weeks to collect.
• Surveyors and observers need to be trained to avoid a wide disparity between how different observers and interviewers record the data.
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Collecting Global Marketing Research Collecting Global Marketing Research DataData
• Gathering marketing research data in foreign countries poses special challenges.
• Face-to-face surveys are commonly used in third-world countries to collect information from people who cannot read or lack phones and computers.
• Translating surveys is an issue.• Back translation is used to determine if anything
is lost in translations.• Indigenous research companies are frequently
used to avoid cultural and language issues.
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Analyze the DataAnalyze the Data
• Step 6 involves analyzing the data to ensure it’s as accurate as possible.
• Once all of the data is collected, the researchers begin the data cleaning—removing duplicated data.
• Software (PASW, which was formerly known as SPSS) is then used to tabulate, or calculate, the basic results of the research.
• Results frequently use statistics, such as the standard deviation, the mean, and median for each question.
• The two most common criteria used to test the soundness of a study are (1) validity and (2) reliability.
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Write the Research Report Write the Research Report and Present Its Findingsand Present Its Findings
The six basic elements of a research report are as follows. 1. Title Page. The title page explains what the report is about, when it was
conducted, by whom, and who requested it.2. Table of Contents. The table of contents outlines the major parts of the
report.3. Executive Summary. The executive summary summarizes all of the
details in the report in a very quick way. 4. Methodology and Limitations. The methodology section of the report
explains the technical details of how the research was designed and conducted.
5. Findings. The findings section is a longer, fleshed-out version of the executive summary that goes into more detail about the statistics uncovered by the research that bolster the study’s findings.
6. Recommendations. The recommendations section should outline the course of action that should be taken based on the findings of the research and reflect the purpose of the project.
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Key TakeawaysKey Takeaways
• Proper definition of the problem to be researched is critical to a successful program.
• Testing questionnaires prior to distribution will expose problems in design.
• Probability samples can be projected to entire populations with a known error.
• Nonprobability samples cannot be projected, but can still generate important research information.
• Marketing research programs need validity and reliability checks.
• Reporting results of a research should follow an accepted format.
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