Marketing Essentials

 Chapter 29 Conducting Marketing Research

Section 29.1 Marketing Research

Chapter 29  Conducting Marketing Research 1

SECTION 29.1 Marketing Research

What You'll Learn

 The steps in conducting marketing

research
 The difference between primary and
secondary data
 The various methods used to collect
primary and secondary data

Chapter 29  Conducting Marketing Research 2

SECTION 29.1 Marketing Research

Why It's Important

Businesses that want to increase their

customer base must have information about
the attitudes and behaviors of customers and
prospective customers. Marketing research
can provide information for strategies that will
increase sales and profits.

Chapter 29  Conducting Marketing Research 3

SECTION 29.1 Marketing Research

Key Terms

 problem definition  observation method

 primary data  point-of-sale research
 secondary data  experimental method
 survey method  data analysis
 sample

Chapter 29  Conducting Marketing Research 4

SECTION 29.1 Marketing Research

The Marketing Research Process

The five steps that a business follows when

conducting marketing research are:
1. Defining the problem.
2. Obtaining data.
3. Analyzing the data.
4. Recommending solutions.
5. Applying the results.
Chapter 29  Conducting Marketing Research 5
SECTION 29.1 Marketing Research

Step 1: Defining the Problem

The most difficult step in the marketing

research process is defining the problem.
Problem definition occurs when a
business clearly identifies a problem or
research issue and the information that is
necessary to solve it.

Chapter 29  Conducting Marketing Research 6

 SECTION 29.1 Marketing Research

Step 2: Obtaining Data

In obtaining data, companies collect and

examine data (facts) in terms of the problem
or problems being studied. There are two
types of data used in marketing research:
 primary data
 secondary data

Slide 1 of 2 Chapter 29  Conducting Marketing Research 7

 SECTION 29.1 Marketing Research

Step 2: Obtaining Data

Primary data are data obtained for the first

time and used specifically for the particular
problem or issue under study.
Secondary data have already been collected
for some purpose other than the current
study. Secondary data are less expensive to
collect than primary data.

Slide 2 of 2 Chapter 29  Conducting Marketing Research 8

 SECTION 29.1 Marketing Research

How Secondary Data are Obtained

Secondary data are obtained from both internal
sources (within the company) and external
sources (outside the company). Sources of
secondary data include:
 A business’s own marketing information
system.
 The Internet—digital dossiers provide
company profiles, income statements,
and balance sheets.

Slide 1 of 2 Chapter 29  Conducting Marketing Research 9

 SECTION 29.1 Marketing Research

How Secondary Data are Obtained

 U.S. government sources, such as the
Small Business Administration,
Department of Commerce, Census
Bureau, and Securities and Exchange
Commission.
 Consumer and business information
companies.
 Business and trade publications.

Slide 2 of 2 Chapter 29  Conducting Marketing Research 10

SECTION 29.1 Marketing Research

Advantages of Secondary Data

Secondary data can be obtained easily,

since the data are either on the Internet,
in corporate, public, and college libraries,
or can quickly be purchased from
syndicated services.

Chapter 29  Conducting Marketing Research 11

SECTION 29.1 Marketing Research

Disadvantages of Secondary Data

There are two major disadvantages

associated with secondary data:
 The existing data may not be suitable
or available for the problem under
study.
 The data may not be accurate.

Chapter 29  Conducting Marketing Research 12

SECTION 29.1 Marketing Research

How Primary Data Are Obtained

When marketing researchers cannot find the

information they need from secondary data,
they collect primary data. Primary data may
be collected using three methods:
 the survey method
 the observation method
 the experimental method

Chapter 29  Conducting Marketing Research 13

 SECTION 29.1 Marketing Research

The Survey Method

The survey method, the most frequently used
method, is a research technique in which
information is gathered from people through the
use of surveys or questionnaires.
In a census, researchers survey the entire
target population.
More common is the use of a sample, a part of
the target population that is assumed to
represent the entire population.
Slide 1 of 3 Chapter 29  Conducting Marketing Research 14
 SECTION 29.1 Marketing Research

The Survey Method

Surveys can be conducted in person, by phone,

by mail, or by using Internet technologies.
The personal interview involves questioning
people face-to-face, often in central locations such
as shopping malls (a mall intercept interview).
A focus group interview involves 8 to 12 people
brought together to evaluate a specific product,
service, or idea.

Slide 2 of 3 Chapter 29  Conducting Marketing Research 15

 SECTION 29.1 Marketing Research

The Survey Method

Less expensive than personal interviews are

phone, mail, and Internet surveys.
Phone interviews often have low response rates.
Mail surveys have better, but still low, response
rates.
Internet survey methods are increasing in
popularity. They are quick; they eliminate data
entry; and they allow real-time data collection.
Slide 3 of 3 Chapter 29  Conducting Marketing Research 16
SECTION 29.1 Marketing Research

Rating Quality of Service

Charts such as this one are typically included in a

research report. Why are charts often included?

Chapter 29  Conducting Marketing Research 17

 SECTION 29.1 Marketing Research

The Observation Method

The observation method is a research

technique in which the actions of people are
watched and recorded either by cameras or
observers. Properly performed and recorded
observations supply better results than survey
techniques provide.
Mystery shoppers are researchers posing
as customers in retail stores to evaluate
salespeople.
Slide 1 of 3 Chapter 29  Conducting Marketing Research 18
 SECTION 29.1 Marketing Research

The Observation Method

The observation technique may use either contrived
or natural situations.
The researcher sets up contrived observations.
 Example: Allowing children to play with selected
toys to determine which is most popular.
In natural observation, customers or employees
are viewed as they would normally act in a given
situation.
 Example: Hidden cameras, traffic counts.
Slide 2 of 3 Chapter 29  Conducting Marketing Research 19
 SECTION 29.1 Marketing Research

The Observation Method

Point-of-sale researchers observe shoppers

to decide which ones to choose as research
subjects—shoppers buying a specific type
of product, product brand, or shoppers who
inspect a product but do not buy it. After
observation, researchers approach the
selected shoppers and ask them questions.

Slide 3 of 3 Chapter 29  Conducting Marketing Research 20

SECTION 29.1 Marketing Research

The Experimental Method

The experimental method, the least-often

used method, is a research technique in
which a researcher observes the results of
changing one or more marketing variables
while keeping certain other variables
constant under controlled conditions.

Chapter 29  Conducting Marketing Research 21

SECTION 29.1 Marketing Research

Step 3: Analyzing the Data

Data analysis is the compiling, analyzing,

and interpreting of the results of primary and
secondary data collection.

Chapter 29  Conducting Marketing Research 22

SECTION 29.1 Marketing Research

Step 4: Recommending Solutions

to the Problem

Successful research results in information that

helps businesses make decisions on how to
solve a problem. The conclusions drawn from
the research usually are presented in an
organized and well-written report.

Chapter 29  Conducting Marketing Research 23

SECTION 29.1 Marketing Research

Step 5: Applying the Results

Managers use the research report to make

decisions about marketing strategies in
relation to the researched problem or issue.
In evaluating the research, managers may
find that the research was inconclusive,
additional research may be needed, or the
research suggests specific courses of action.

Chapter 29  Conducting Marketing Research 24

29.1 ASSESSMENT

Reviewing Key Terms and Concepts

1. What are the five steps for designing and
conducting a research study?
2. Explain the difference between primary and
secondary data.
3. Name the methods used most frequently to
collect secondary data.
4. Name the methods used most frequently to
collect primary data.
5. What is meant by data analysis?

Chapter 29  Conducting Marketing Research 25

29.1 ASSESSMENT

Thinking Critically
Many retail stores now ask customers after
each sale to give their phone number or
ZIP code. Do you support this type of data
collection? Why or why not?

Chapter 29  Conducting Marketing Research 26

29.1 Graphic Organizer

The Marketing Research Process

Define the
problem

Obtain
Data

Analyze
Data

Recommend
Solutions

Apply
Results

Chapter 29  Conducting Marketing Research 27

Marketing Essentials

End of Section 29.1

Chapter 29  Conducting Marketing Research 28