CHAPTER seven Marketing research Principles of Marketing FIFTH

CHAPTER seven Marketing research Principles of Marketing FIFTH EUROPEAN EDITION Kotler, Armstrong, Wong, Saunders

Previewing concepts (1) • Explain the importance of information to the company and its understanding of the marketplace • Define the marketing information system and discuss its parts • Outline the steps in the marketing research process Principles of Marketing 5 e, © Pearson Education 2008 2

Previewing concepts (2) • Explain how companies analyse and distribute marketing information • Discuss the special issues some marketing researchers face, including public policy and ethics issues Principles of Marketing 5 e, © Pearson Education 2008 3

Prelude case: Market researching HIV/AIDS in South Africa Principles of Marketing 5 e, © Pearson Education 2008 4

What is a marketing information system? A marketing information system (MIS) includes the people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. Principles of Marketing 5 e, © Pearson Education 2008 5

Figure 7. 1 The marketing information system Principles of Marketing 5 e, © Pearson Education 2008 6

Developing marketing information Internal data Marketing intelligence Marketing research Principles of Marketing 5 e, © Pearson Education 2008 7

Developing marketing information Marketing Birmingham Principles of Marketing 5 e, © Pearson Education 2008 8

Sources of competitive intelligence • • • Executives Engineers Scientists Purchasing agents Sales force • • • Suppliers Resellers Customers Published information Competitors Principles of Marketing 5 e, © Pearson Education 2008 9

P&G went dumpster diving for competitive information on Unilever Principles of Marketing 5 e, © Pearson Education 2008 10

What is marketing research? Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation. Principles of Marketing 5 e, © Pearson Education 2008 11

Figure 7. 2 The marketing research process Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan Interpreting and reporting the findings Principles of Marketing 5 e, © Pearson Education 2008 12

Research Objectives • Exploratory research seeks to gather preliminary information that will help define the problem and suggest hypotheses • Descriptive research describes thing like market potential or consumer attitudes • Causal research seeks to test hypotheses about cause-and-effect relationships Principles of Marketing 5 e, © Pearson Education 2008 13

Information Needs • Information collected specifically for the purpose at hand is called primary data • Information collected already for some other purpose is known as secondary data Principles of Marketing 5 e, © Pearson Education 2008 14

Evaluating secondary data • How relevant is the data to the project at hand? • How accurate is the data? • How current is the data? • Were the data collected by an impartial party? Principles of Marketing 5 e, © Pearson Education 2008 15

Decisions associated with primary data collection • • Research approach Contact method Sampling plan Research instruments Principles of Marketing 5 e, © Pearson Education 2008 16

Primary data collection: research approaches Observational Survey Experiment Principles of Marketing 5 e, © Pearson Education 2008 17

What is ethnographic research? Ethnographic research is a form of observational research that involves sending trained observers to watch and interact with consumers in their ‘natural habitat. ’ Principles of Marketing 5 e, © Pearson Education 2008 18

IDEO used ethnographic research to design a Marriott strategy Principles of Marketing 5 e, © Pearson Education 2008 19

What is survey research? Survey research is the gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour. Principles of Marketing 5 e, © Pearson Education 2008 20

Harris Interactive is a major provider of custom survey solutions Principles of Marketing 5 e, © Pearson Education 2008 21

What is experimental research? Experimental research is the gathering of primary data by select matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses. Principles of Marketing 5 e, © Pearson Education 2008 22

Primary data collection: contact methods Mail Telephone Personal Online Principles of Marketing 5 e, © Pearson Education 2008 23

Strengths and weaknesses of contact methods Principles of Marketing 5 e, © Pearson Education 2008 24

Personal interviewing • Focus group interviewing utilises a small sample of typical consumers under the direction of a group leader who elicits their reaction to a stimulus such as an ad or product concept • Individual interviewing involves talking with people in their homes or offices on the street or in shopping centres Principles of Marketing 5 e, © Pearson Education 2008 25

Greenfield Online overcomes the a weakness of online research by using panel members Principles of Marketing 5 e, © Pearson Education 2008 26

Primary data collection: sampling plan Sampling unit Sample size Sampling procedure Principles of Marketing 5 e, © Pearson Education 2008 27

Designing a sample • Who is to be surveyed? • How many people should be surveyed? • How should the people in the sample be chosen? Principles of Marketing 5 e, © Pearson Education 2008 28

Types of samples Probability • Simple random • Stratified random • Cluster Nonprobability • Convenience • Judgement • Quota Principles of Marketing 5 e, © Pearson Education 2008 29

Designing questionnaires • Should questions be closed-ended or open-ended? • How should questions be worded? • How should the questions be ordered? Principles of Marketing 5 e, © Pearson Education 2008 30

Designing questionnaires Marketing Birmingham Principles of Marketing 5 e, © Pearson Education 2008 31

Mechanical instruments • Eye cameras • People meters • Checkout scanners Principles of Marketing 5 e, © Pearson Education 2008 32

Analysing marketing information Data may be analysed using advanced statistical methods and the development of econometric models Principles of Marketing 5 e, © Pearson Education 2008 33

Marketing research for small business and non-profit organisations • Research can be based on simple observation • Small scale surveys can be conducted using convenience samples • Managers can conduct simple experiments • Secondary information is easily available Principles of Marketing 5 e, © Pearson Education 2008 34

Issues facing international marketing research • • Diverse markets in different countries Difficulty finding good secondary data Difficulty recruiting good samples Communication modes (telephone, internet) may not be widespread • Language is an obstacle • Attitudes toward marketing research vary • Illiteracy rates may limit participation Principles of Marketing 5 e, © Pearson Education 2008 35

Public policy and ethics • Intrusions on consumer privacy • Misuse of research findings Principles of Marketing 5 e, © Pearson Education 2008 36

Shopper. Trak uses video mining to monitor consumer behaviour Principles of Marketing 5 e, © Pearson Education 2008 37

Discussing the concepts (1) • Determine how the activities in Figure 7. 1 would apply to Reebok developing the information it needs to market a new running shoe. • List three different sources of internal data useful for a mobile phone company. How could the data be useful for creating mobile phone services that provide greater customer value and satisfaction? Principles of Marketing 5 e, © Pearson Education 2008 38

Discussing the concepts (2) • Outline the strengths and weaknesses of marketing research conducted online. • How does your college use an intranet to help its students access data? • List three ways, using limited resources, in which a director of fundraising for a small non-profit organisation could gather information about primary donor groups. Principles of Marketing 5 e, © Pearson Education 2008 39