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Chapter 4: Market Research

Knowledge is Power
Accurate, up-to-date, relevant information is the fuel that runs the marketing engine

Marketing Information System

Determines what information marketing managers need,
then gathers, sorts, analyzes, stores, and distributes information to system users

Figure 4.2: The Marketing Information System

4 Types of Data
Internal Company Data
Know some examples Intranet (define)

Marketing Intelligence
Know some examples Information about trends in the external environment Futurists/scenarios
Competitive intelligence Industrial espionage
Look-Look employs an army of coolhunters to report on the latest trends

4 Types of Data (Continued)

Marketing Research
Collect, analyze, and interpret data about customers, competitors, and the business environment to improve marketing effectiveness Syndicated research Custom research

Acquired Databases
Purchase other companies data (say, customer list) Government databases Misuse of customer data is an issue

Data mining: Includes sophisticated analysis techniques to take advantage of the massive amount of transaction information now available Analysts sift through data to identify unique patterns of behavior among different customer groups for use in behavioral targeting Behavioral Targeting Uses of data mining
Customer acquisition Customer retention and loyalty Customer abandonment Market basket analysis

Customer Relationship Management: Data Mining

Create categories of customers based on purchase history and other data

Figure 4.4: Steps in the Research Process

Define the Problem Determine Research Design Choose Data Collection Method

Design the Sample

Collect the Data Analyze and Interpret Data Prepare the Research Report
Burke Research Video

Steps in the Marketing Research Process

Step 1: Define the research problem
Specifying research objectives Identifying consumer population of interest Placing the problem in an environmental context

Step 2: Determine the Research Design

Specifying exactly what information marketers will collect and what type of study they will do Determine whether secondary data are available
Secondary data: Have been collected for some purposes other than the problem at hand

Determine whether primary data are required and if so, what type:
Primary data: Information collected directly from respondents to specifically address the question at hand Exploratory research Descriptive research Causal research

See next slide: Primary vs. Secondary data/research

Figure 4.5: Marketing Research Design

Exploratory (Qualitative) Research

Exploratory research techniques generate insights for future, more rigorous studies
Typically involve in-depth consumer probing

Take many forms: Types of Exploratory Research

One-on-one interviews with consumers Focus group: Projective techniques: Case study Ethnography

Descriptive (Quantitative) Research

Probes systematically into the problem Hypothesis testing Bases conclusions on large sample size Results typically expressed in quantitative terms (averages, percentages, other stats)
Cross-sectional design: one point in time Longitudinal design: over time


Causal Research
Cause-and-effect relationships: a change in one thing causes a change in something else
Independent (cause) vs. dependent (change in outcome) variables Experiments: test predicted relationships among variables in a controlled environment
Lab or field study


Step 3: Choose the Method for Collecting Primary Data

Survey Methods: (dont worry about survey methods) Observational methods: data collection where the researcher records consumers behaviors, often without their knowledge
Personal observation Mechanical observation Unobtrusive measures

Online Research (next slide)


Online Research Applications

Web metrics: track consumers while they are surfing Cookies allow a Web sponsor to track a surfers moves Surveys:
New product development Estimating market response Exploratory research (online focus groups) IM (Instant Messaging)
Communities of customers; harness power of online communities

Steps 4, 5, 6, and 7
Step 4: Design the Sample
Dont worry about sampling techniques (MKTG 366)

Step 5: Collect the Data

Challenges to gathering data in foreign countries

Step 6: Analyze and Interpret the Data Step 7: Prepare the Research Report


Ethics in Marketing Research

Marketing research ethics: Taking an ethical and above-board approach to conducting marketing research that does no harm to the participant in the process of conducting the research
Researchers must provide full disclosure of confidentiality and anonymity options SUGGING* is unethical and against AMA code of conduct

Two other topics:

Neuromarketing Prediction markets, p. 105