Chapter 7: Marketing Research

Marketing Research
- Advanced market research & technology
- Virtual solution tools as a means of testing
- Large companies such as Proctor & Gamble (P&G) rely on this technology
- Improved insights into consumer responses
- Better service = better profits!

Marketing Research
- Consists of 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

Test Your Knowledge

- When conducting research, why must researchers assure respondents that the
information they provide will be treated as confidential?
- A) It is the law
- B) Customers will be more likely to make purchases
- C) Customers will be more likely to provide
honest responses
- D) It is a requirement of the Canadian Marketing Association

The Marketing Research Process

Step 1: Define the Research Objectives

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Step 2: Design the Research Plan

- Identify type of data needed
- Determine type of research necessary to collect the data
- Project objectives drive the type of data needed

Step 3: Collect Data

- Secondary Data
- Pieces of information that have been collected prior to the start of the focal
project
- Can be internal or external data
- Primary Data
- Data collected to address specific research needs
- Focus groups, interviews, surveys

Step 4: Analyze Data and Develop Insights

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- Converting data into information to explain, predict and/or evaluate a particular situation.

Step 5: Present an Action Plan

- PREPARE the results
- Executive summary
- Body of the report (objectives, methodology, findings)
- Conclusions
- Supplemental tables/appendices
- PRESENT the results
- Short & to the point
- Interesting & appropriate to style of audience
- No technical jargon!
- Recommendations

Test Your Knowledge

- Data can be collected from many different sources, including both secondary and
primary sources. All of the following about primary data sources is true EXCEPT:
- A) It is data that has been collected prior to the start of the project.
- B) It is data that addresses specific research needs.
- C) It can be expensive to gather & time consuming.
- D) It includes focus groups

Secondary Data
- Can be free or very inexpensive to obtain
- External sources:
- census data, trade journals, books, articles, reports
- can also be purchased from specialized research firms
- Downside: may not be specific or timely enough to solve the research needs
- Internal sources:
 - From the company/firm itself
- Invoices, customer lists, other reports created by the firm
- Firms use data mining techniques to decipher large amounts of data
- Downside: may not be the data you need or the right data

Testing Your Knowledge

- Pieces of information that have been collected prior to the start of the focal research
project is referred to as:
- A) Panel data
- B) Syndicated data
- C) Scanner data
- D) Secondary data

External Secondary Data Sources- Scanner

- A type of quantitative research that uses data obtained from scanner readings of UPC
codes at checkout counters.

Test Your Knowledge

- A type of quantitative research that uses data obtained from readings of UPC
codes at checkout counters is referred to as:
- A) Panel data
- B) Syndicated data
- C) Scanner data
- D) Primary data

Primary Data Collection Techniques

Qualitative Research
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Qualitative Research Methods

Qualitative Research Methods

- Examines purchase & consumption behaviour through personal or video camera
observance
- Ethnography – study people in their daily life setting

Qualitative Research Methods- Social Media

- Provides valuable information that could aid their marketing research and strategy
endeavours
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Test Your Knowledge

- The following represents a key advantage of using social media in research :
- A) Conversations are observed only
- B) No consent to study data
- C) One has access to a large potential sample
- D) Anonymity

Qualitative Research Methods- In-depth interviews

- Trained researchers ask questions, listen to & record answers
- They then pose additional questions to clarify

Qualitative Research Methods- Focus Groups

- A small group of people come together for an in-depth discussion
- Guided by a trained moderator
- An unstructured method of inquiry is used

Quantitative Research
- Information confirms early insights
- Uses surveys, formal studies, scanner & panel data
- Test the prediction or hypothesis

Quantitative Research Methods

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Do’s and Don’ts When Designing a Questionnaire

Web Surveys
- An important component of all quantitative surveys
- Ability to quickly design, launch, download & analyze data
- SurveyMonkey & Qualtrics are two popular online surveys
- Response rates are relatively high vs. other methods
Test Your Knowledge
- What is the typical response rate for online surveys?
A) 1 – 2 percent
B) 10 – 15 percent
C) 30 – 35 percent
D) 40 – 45 percent

Experimental Research
- systematically manipulates one or more variables to determine which variable(s) have a
causal effect