Marketing Research: From

Customer Insights to Actions

CHAPTER 8
 Learning
Objectives
1. Identify the reason for conducting
marketing research.
2. Describe the five-step marketing
research approach that leads to
marketing actions.
3. Explain how marketing uses secondary
and primary data.
4. Discuss the uses of observations,
questionnaires, panels, experiments, and
newer data collection methods.
5. Explain how information technology and
data mining lead to marketing actions.
Marketing Research
Goes to the Movies

1. Test (or preview)

screenings.

2. Tracking studies.

(1) Are you aware of the film?

(2) Are you interested in seeing the
film?
(3) Will you see the film?
 LO1

Identify the reason for conducting

marketing research.
Marketing research is the
process of defining a
marketing problem and
opportunity, systematically
collecting and analyzing
information, and
recommending actions.
• Decision • Decision Making
A decision is a The act of consciously
conscious choice choosing from among
from among two or alternatives.
more alternatives
THE CHALLENGES IN DOING GOOD MARKETING
RESEARCH

1. How can marketing research determine if consumers will

buy a product they have never seen, and never thought
about, before?
2. How can marketing research obtain answers that people
know but are reluctant to reveal?
3. How can marketing research help people accurately
remember and re- port their interests, intentions, and
purchases?
LO2

Describe the five-step marketing

research approach that leads to
marketing actions.
• Decision • Decision Making
A decision is a The act of consciously
conscious choice choosing from among
from among two or alternatives.
more alternatives
FIGURE 8-1Five-step marketing research approach
leading to marketing actions
 LO 8-2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES

LEGO Group’s definition of “toy” has

changed dramatically in the past 50 years— LEGO Group’s MINDSTORMS®
from interlocking plastic bricks to construction EV3 TRACK3R
sets that create figures, vehicles, buildings,
and even robots.

One new version of a LEGO Group toy is the

MINDSTORMS® kit, which integrates
electronics, computers, and robots with
traditional LEGO Group bricks
 STEP 1: DEFINE
THE PROBLEM
LO 8-2

SET THE RESEARCH o Be Specific, Measurable,

OBJECTIVES and Achievable

o Have a Clear Research

Purpose

o Must Lead to
Marketing Actions
LO 8-2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES

 Exploratory Research
provides ideas about a vague problem

 Descriptive Research
involves trying to find the frequency with
which something occurs or the extent of a
relationship between two factors.

 Causal Research
tries to determine the extent to which the
change in one factor changes another one
LO 8-2 STEP 1: DEFINE THE PROBLEM
Identify Possible Marketing Actions
 Measures of Success
Criteria or standards used in
evaluating proposed solutions
to the problem.
Different research outcomes,
based on the measure of
success, lead to different
marketing actions.
Measure of success is the total
time spent with each of the two
potential new MINDSTORMS® kits
until a device that can do simple
tricks is produced.
Marketing action: Market the kit
that produces an acceptable
device in the least amount of
playing time
LO 8-2 STEP 2: DEVELOP THE RESEARCH PLAN

The second step in the marketing research process requires that the
researcher :

(1)specify the constraints on the marketing research activity,

(2) identify the data needed for marketing actions, and
(3) determine how to collect the data.
 HOW TO COLLECT
CONSTRAINT DATA NEEDED
THE DATA

The decision Concepts (ideas about

(1) must be made products or services)
LEGO Group’s marketers
in five weeks Methods are the
might want to know
(2) using 10 teams of approaches that can be
students’ math skills, time
middle schoolers playing used to collect data to
spent playing video games
with the two improved solve all or
MINDSTORMS® kits. part of a problem.
 Special methods vital to marketing are

(1)Sampling - selecting a group of distributors,

customers, or prospects, asking them questions, and
treating their answers as typical of all those in whom
they are interested.

(2) Statistical inference- to generalize the results

from the sample to much larger groups of distributors,
customers, or prospects to help decide on marketing
actions.
LO3

Explain how marketing uses secondary

and primary data.
 LO 8-3
STEP 3: COLLECT RELEVANT
INFORMATION/DATA

Data, the facts and figures related to the project, are divided into
two main parts: secondary data and primary data.

Secondary data are facts and figures that have already

been recorded prior to the project at hand. (internal and external secondary
data)

Primary data are facts and figures that are newly collected for the project.
FIGURE 8-2
Types of
marketing
information
LO 8-3
STEP 3: COLLECT RELEVANT DATA
SECONDARY DATA

 Advantages
• Time Savings
• Inexpensive

 Disadvantages
• Out of Date
• Definitions/Categories Not Right
• Not Specific Enough
LO4

Discuss the uses of observations,

questionnaires, panels, experiments,
and newer data collection methods.
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—WATCHING PEOPLE
 Observational Data
o Mechanical Methods

• Nielsen’s People Meter • Nielsen’s TV Ratings

FIGURE 8-3 Nielsen Broadcast Ranking Report for network TV
primetime households for the week ending May 19, 2013
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—WATCHING PEOPLE

 Personal Methods
• Mystery Shopper
• Ethnographic Research

 Neuromarketing Methods
Consumers’ feelings toward products and brands
reside deep within the subconscious part of their
brains.

“anchoring effect”
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—ASKING PEOPLE

 Questionnaire Data

 Idea Generation Methods

Producing Ideas

 Idea Evaluation Methods

Testing an Idea
 Idea Generation
FOCUS
Methods GROUP

DEPTH
INTERVIEW MALL INTERCEPT

INDIVIDUAL ONLINE
INTERVIEW SURVEYS

TELEPHONE
INTERVIEW
PERSONAL
INTERVIEW
SURVEYS MAIL
SURVEYS Idea Evaluation
Methods
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—QUESTION FORMATS

 Open-Ended Questions

 Closed-End or Fixed
Alternative Questions

 Dichotomous Questions

 Semantic Differential Questions

 Likert Scale Questions

Open-ended question

Dichotomous question
Multiple choice
FIGURE 8-4A
question Different types
of questions in
a sample
Attitudinal question Wendy’s survey
(Q1 – Q5)

Semantic differential
Scale question
 Likert Scale question

FIGURE 8-4B
Media behavior question Different types of
questions in a
Usage behavior question
sample Wendy’s
survey (Q6 – Q9)

Demographic question
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—OTHER SOURCES

Four other methods of collecting

primary data exist
(1) social media,
(2)"panels and experiments,
(3) information technology, and
(4) data mining.
LO5

Explain how information technology and

data mining lead to marketing actions.
LO 8-5 STEP 4: DEVELOP FINDINGS

o Analyze the Data

• How are Sales?

• What Factors Contribute to

Sales Trends?

o Present the Findings

FIGURE 8-7
Marketing
dashboards that
present findings to
Tony’s marketing
manager that lead
to recommendations
and actions
LO 8-5 STEP 5: TAKE MARKETING ACTIONS

o Make Action
Recommendations

o Implement the Action

Recommendations

o Evaluate the Results

• The Decision Itself
• The Decision Process Used