Marketing Ch 10: Marketing research

The research process

1. Defining Objectives and Research Needs
2. Designing the Research
3. Data Collection Process
4. Analyzing Data and Developing Insights
5. Action Plan and Implementation

market research

a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.

Defining objectives and research needs

step one:
- What information is needed to answer specific research questions?
- How should that information be obtained?

Designing the research

Step two: Defining the Type of data, Secondary vs Primary and the Type of research, Qualitative Vs Quantitative to design the research.

Data Collection Process

Step 3 of the research process

Secondary data

Pieces of information that have already been collected prior to the start of the focal research project. both external and internal data sources

Primary data

Data collected to address specific research needs, focus groups, in depth interviews, and surveys


raw numbers or facts

inexpensive external secondary data

� Government Sources
� Census

syndicated data

data available for a fee from commercial research firms such as information Resources Inc. (IRI), National Purchase diary Panel, and ACNielsen

scanner data

A type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out countries

panel data

information collected from a group of consumers, organized into panels over time.

internal secondary data

� Data warehouse
� Data mining
� Credit card contains shopping info, collect data at point of sell
� Target was first to make sense 2nd internal data with pregnancy products.

data warehouse

Large computer files that store millions and even billions of pieces of individual data.

data mining

The use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stared in databases or relationships among variables


The number of consumers who stop using a product or service, divided by the average number of consumers of that product or service. (follow up with unhappy customers to reduce churn)


Organized, analyzed, interpreted data that offer value to marketers.

Qualitative research

Informal research methods, including observation, following social media sites, in-dept interviews, focus groups, and projective techniques

Qualitative methods

� Provides initial information
� Generally in?depth and unstructured
� Includes:
- Observation
- In?depth interviews
- Focus Groups
- Social Media Research
ex. Vid, motion buying habit

Observation research

An exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny.
- Manual, mechanical, ethnographic
- flee market, observing buying habits
ex. Vid, eye tracking technology

Social media research

� Monitoring blogs
� Online communities
� Sentiment mining
ex. bloggers, dedicated teens who blog and comment on products

Sentiment mining

Data gathering by evaluating customer comments posted through social media sites such as Facebook and Twitter.

In-dept interviews

An exploratory research techniques in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue.
� Limited number
� Somewhat unstructured
� Time consuming and c

Focus group

A research technique in which a small group of persons, 8 to 12, comer together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.

Quantitative research

Structure responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data.

Quantitative method

� Large numbers of respondents
� Statistically valid
� Can generalize
- It's most popular is survey (online + pen or paper)


A systematic means of collecting information from people that generally uses a questionnaire.
- Telephone Interviews
- Mall Intercept Interviews
- Mail survey
- In-Person Interviews
- Internet surveys

Issues with survey

� Interviewer bias
� Presence of interviewer may change responses
� Consumer unwillingness to participate.


A form that features a set of questions designed to gather information from respondents and thereby accomplish the researcher' objectives; questions can be either unstructured or structured.

Questionnaire issues

� Types of questions
� Ordering of questions
� Wording of questions

Unstructured questions

Open-ended questions that allow respondents to answer in their own words
� Fill in blank
� Projective technique If a Wendy's hamburger could talk to a McDonald's or a Burger King hamburger, what would it say?

Structured questions

Closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate.
� Likert scale
� Semantic Differencial

questions to avoid

Jargon or inappropriate terminology
Double barreled
Consumer unable to answer

Ordering of questions

� Sensitive, personal questions at end
� More difficult questions at end

Sampling fram

- Systematic sample
- Simple random
- Stratify random


� Changing a variable and analyzing results
� Usually change one of 4 Ps' (independent) and look at either sales or awareness (dependent)
� Field or Lab

Biometric data

Digital scanning of the physiological or behavioral characteristics of individuals as a means of identification.

Analyzing data and developing insights

Step 4 of the research process
- Converting data into info to explain, predict, for upper management

Action plan and implementation

Step 5 of the research process
- Executive Summary Body
- Conclusions
- Limitations
- Supplements including tables, figures, appendices
ex. Vid, domino faced their problem head on

secondary research advantages and disadvantages

advantages: saves time (already available), free or inexpensive (except syndicated)
disadvantages: not relevant, not timely, not be original, inappropriate methods, biased

primary research advantages and disadvantages

- specific to the immediate data needs and topic at hand
- offers behavioral insights generally not available from secondary research
dis: costly, time consuming, more sophisticated training and experience to design study and collect data

AMA guidelines for research 3

1. no selling/fundraising disguised in experiment 2. integrity by avoiding misery or omission of pertinent research data
3. fair treatment of clients and suppliers

Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if

the results will be used in making management decisions

Which of the following is true about quantitative research?

It confirms insights and provides a basis for taking a course of action.

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design

After defining the research objectives and designing the research, the next step is to collect data.begin to collect data

If a marketing researcher has to collect data under severe time constraints, which of the following types of data sources would probably be available soonest?

syndicated data

In the infamous Coke-New Coke taste test, 54 percent of consumers, using a blind taste test, preferred the New Coke formula to the existing formulation. This is an example of aNo __________ market research method.

Quantitative research is numeric/statistical in nature, as in this case where the precise percentage of consumers preferring one option to the other was measured.

What is a disadvantage of online focus groups, compared to offline focus groups?

They usually do not permit insights based on body language.