Marketing Research: Process and Systems for Decision Making

Flashcard maker : Henry Smith
Marketing Research
process by which info about the firm’s environment is generated, analyzed, and interpreted
aids decision making and is not a substitute for it
Marketing Research Effects
can reduce risks associated with managing and altering marketing strategies
vital for understanding the effects of changes in marketing strategies, and when to implement changes
enables the firm to get answers
Aspects of Marketing
1. Independent Variable (causes) to Marketing Mix (controllable)
2. Dependent Variables (effects) to behavioral response (awareness, knowledge, liking, preferences, intent to buy)
3. Situational factors (uncontrollable) to moderate variables (demand, comp, legal, economic, climate)
4. Performance measures- determined by dependent variable/behavioral response (sales, ROI, cost, profit, image)
Higher Price
= lower intent to buy
connecting the independent variables to the dependent variables
relationships b/t independent and dependent variables discovered through marketing research
identifying variables that moderate the relationships b/t the independent and depended
5 P’s of the Research Process
1. Purpose
2. Plan
3. Performance
4. Processing
5. Preparation
1. determine why research is needed and what to accomplish
2.must determine current situation, nature of the problem, 3. specific questions to investigate
Spells out nature of the research to be conducted
whether primary or secondary data needed
qualitative or quantitative
conduct own research or hire marketing specialist
Primary Data
collected specifically for the research problem under investigation
Secondary Data
previously collected data that could be used for the problem at hand
Qualitative Data
involves face to face interviews with respondents
focus groups
long (depth) interviews
Components Marketing Research Problem
Components Marketing Research Problem
refined statements of the specific components of the problem
unproved statement about factor that is of interest to researcher; possible answer to research question
Management Decision Problem vs Marketing Research Problem
management decision problem is narrow minded while marketing research problem focuses on the underlying causes and information
Quantitative Data
involves systematic procedures designed to obtain and analyze numerical data
observational research
survey research
experimental research
Observational Research
involves watching people and recording relevant facts and behaviors
Survey Research
*most popular* involves the collection of data by means of a questionnaire based on the hypotheses that need to be tested
Sampling Plan
1. Sampling Unit: who is to be surveyed?
2. Sample Size: How many people should be surveyed?
3. Sampling Procedure: How should respondents be chosen? Where should the survey be undertaken?
Experimental Research
involves manipulating one variable and examining its impact on other variables – popular in academia, not in industry
factors and interactions are commonly found in marketing research
Conducting Marketing Research
company will conduct its own research or contract with a marketing research specialist
marketing mix models
company versus contract research
Marketing Mix Models
analyze date from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities
Company vs Contract Research
most large consumer companies have marketing research departments that can perform research, many do so on contract basis
in either case, schedules for task completion, the exact responsibilities of all involved parties, and cost need to be considered
involves preparing for data collection and collecting them
Cardinal Rule
obtain and record the maximal amount of useful info, subject to the constraints of time, money, and respondent privacy
includes preparation of data for analysis and their actual analysis
appropriate analysis techniques depend on the nature of the research question and design of research
critical part of this stage is interpreting and assessing the research results
research report is complete statement of everything done in a research project
includes write-up of each of previous stages, should be clear and unambiguous with respect to what was done
Limitations of the Research Process
test marketing
Problems that could invalidate test marketing study results:
not representative of the market
sample size and design are incorrectly formulated
pretest measurements of comp. brand sales are not made or are inaccurate
test market products are advertised or promoted beyond a profitable level
effects of factors that influence sales are ignored in the research
test-market period is too short to determine whether the product will be repurchased
Test Marketing
major goal is to measure new product sales on limited basis where competitive retaliation and other factors are allowed to operate freely
Marketing Decision Support System
coordinated collection of data, tools, and techniques involving both computer hardware and software
use this to gather and interpret relevant info for decision making
requires database management software for sorting, retrieving, and analyzing data from internal and external sources

Get instant access to
all materials

Become a Member