Chapter 2 Information Needs for Marketing Decisions LEARNING OUTCOME
Brief explanation on the difference
between data and information. The importance of information for decision making strategically. Sources of information (internally and externally)
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The Marketing Research Process
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Step 1: Define the Problem Avoid confusing symptoms of a problem with the problem itself The problem(s) should be agreed upon by all concerned parties Doing so helps to keep everyone concerned in agreement and to keep the project focused on solving the problem(s) Doing so also helps to prevent the all-too- common tendency to spend resources attempting to answer interesting, but not necessary questions
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Step 2: Conduct exploratory research An Informal investigation seeking to discover the cause of a problem by discussing it with informed internal and external sources Company records such as sales and profit analyses Competitive data Using Internal Data Sales records, Financial statements, and Marketing cost analyses Sales analysis
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Step 3: Formulate a Hypothesis Hypothesis: a tentative explanation for some specific event a statement about the relationship among variables that carries a clear implication for testing this relationship Sets the stage for more in-depth research by further clarifying what researchers need to test Not all marketing research tests specific hypotheses
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Step 4: Create a Research Design Research design: a series of decisions that, taken together, comprise a master plan or model for conducting marketing research Must ensure that the study will measure what the marketer intends to measure Must also ensure an appropriate selection of respondents
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Step 5: Collect Data Secondary data is data from previously published or compiled sources (e.g. Census data) Almost always less expensive to gather Less time is usually necessary to locate and use it Primary data refers to data collected for the first time specifically for a marketing research study Can provide richer, more detailed information than secondary data
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Step 6: Interpret and Present Research Information Findings must be presented to decision- makers in a format that allows them to make effective judgments Cardinal rule of presenting marketing research requires that it assists decision- making rather than being an end in itself
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The Research Report and Presentation: Linking the Study and the Research User
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Marketing Research Methods
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Secondary Data Collection Government Data Nations most important source of marketing data Most frequently used government statistics Census information available at no charge TIGER System: Topographically Integrated Geographic Encoding and Referencing System The system combines topographic features like railroads, highways, and rivers with census data such as household income figures
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Secondary Data Collection Private Data Encyclopedia of Associations Urichs Guide to International Periodicals Sales & Marketing Managements Annual Survey of Media Markets Dialogs ABI/Inform CompuServes Knowledge Index Find/SVPs FindEx, the Directory of Market Research Reports, Studies, and Surveys Starch Readership Reports A. C. Nielsens SalesNet
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Secondary Data Collection Online Sources of Secondary Data Cyberspace sometimes simplifies the search for secondary data A Web-based research project can cost less, and can yield significantly faster results than offline research Caveat Emptor should guide Internet searches for secondary data
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Sampling Techniques Sampling: the process of selecting survey respondents or other research participants Population (universe): total group that researchers want to study Census: a collection of data on all possible members of a population or universe
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Probability sample: sample that gives every member of the population a known chance of being selected Simple random sample Stratified sample Cluster sample Non-probability sample: arbitrary grouping that produces data unsuited for most standard statistical tests Convenience sample Quota sample
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Survey Method Telephone Interviews An inexpensive and quick method for obtaining a small quantity of relatively impersonal information Relatively high response rates Limitations include: Only simple, clearly worded questions draw appropriate responses Personal information difficult to obtain Respondents cant view pictures Caller-ID
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Survey Method Personal Interviews Best means for obtaining detailed information about consumers Interviewer can explain confusing or vague questions Offer Good Flexibility Mall intercepts Limitations: Slow Expensive
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Survey Method Focus Groups A Focus Group is an information gathering procedure in marketing research that typically brings together 8 to 12 individuals to discuss a given subject Can provide quick and relatively inexpensive insights May not produce completely honest responses to questions
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Survey Method Mail Surveys Cost Effective Provides anonymity that may encourage respondents to give candid answers Limitations include: Typically low response rates Take a long time to conduct Questionnaires cannot answer unanticipated questions that occur to respondents as they complete the forms Complex questions may not be suitable Bias from nonresponse
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Survey Method Fax Surveys Low response rates and long follow-up times associated with mail surveys have spurred interest in the alternative of faxing survey documents Faxing provisions may supplement mail surveys Or, faxing may be the primary method for contacting respondents and obtaining their answers
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Survey Method Online Surveys and Other Internet-Based Methods Growing number of Internet users has sparked interest in going online to conduct surveys . . . and even focus groups Benefits include the lack of geographic restrictions, faster turn-around time, and dramatically lower costs Growth of the Internet is creating a need for new research techniques to measure and capture information about website visitors