1
I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Collecting and Using
Marketing
Information
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Objectives
Define marketing research and understand
why organizations engage in such research
Identify the five steps that are taken in the
marketing research process
Explain the four key elements used to define a
problem: the objectives, constraints,
assumptions, and measures of success
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Objectives (continued)
Understand the types of studies and what
research questions each answers
Know the different elements of information
collection to solve a problem: data source,
research approach, research instruments,
sampling methods, and contact methods
Distinguish between the various contact
methods of collecting primary data is used in
marketing
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Marketing Research
the process of defining a marketing
problem and opportunity, systematically
collecting and analyzing information, and
recommending actions to improve an
organizations marketing activities
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Why do Marketing Research?
. . . to reduce the risks associated
with managing the marketing mix
and long-term planning.
HOW?
. . . by reducing uncertainty
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Objective of Conducting Marketing Research
100%
100%
0%
0%
Amount Possible
A
c
c
u
r
a
c
y
Perfect
Information
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
What Types of Research are American
Corporations Doing?
Measurement of Market Potential
Market Share Analysis
Determination of Market Trends
MIS
Studies of Ad Effectiveness
New Product Acceptance/Potential
International Studies
Social Values and Policies
Ecological Impact Studies
25% 50% 75%
23%
97%
97%
97%
80%
76%
76%
49%
39%
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Characteristics of Good Marketing Research
Scientific Method
Research Creativity
Multiple Methods
Interdependence of Models and Data
Value and Cost of Information
Healthy Skepticism
Ethical Marketing
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Five-step approach to making decisions
Define the
problem
Objectives
Constraints
Assumptions
Measures of
success
Step 1
Planning of
the research
Research type
Alternatives
Uncertainties
Collect
relevant
information
Concepts
Methods
Data
Secondary
data
Primary
data
Find a
solution
Choose best
alternative
Implement
the chosen
alternative
Evaluate the
results
The decision
The decision
process
Step 2 Step 3 Step 4 Step 5
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Kinds of samples used in
marketing research
Simple random
samples
Probability
Samples
Nonprobability
Samples
Stratified random
samples
Cluster
samples
Convenience
samples
Judgment
samples
Quota
samples
All Samples
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Types of marketing information
Concepts
Hypothesis and
ideas
Methods
Approaches to
help solve the
problem
Secondary data
Facts and Figures
Already recorded
prior to the project
Primary data
Facts and Figures
Newly collected for
the project
Internal data
Financial statements, research
reports files, customer letters,
sales call reports, and
customer lists
External data
U.S. Census reports, trade
association studies, and
magazines, business periodicals,
and commercial reports
Observational data
Mechanical and electronic
approaches
Personal approaches
Questionnaire data
Idea generation through in-depth
interviews and focus groups
Idea evaluation through mail,
telephone, and personal surveys
Data
Facts and figures
pertinent to the
problem
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Plan of the Research
Three types of studies:
Exploratory
Research
Descriptive
Research
Experimental
Research
Decreasing Uncertainty Increasing Certainty
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Exploratory
Research
Descriptive
Research
Experimental
Research
Unaware of
the Problem
Aware of the
Problem
Problem Clearly
Defined
Our Sales are
declining and we
dont know why?
What kinds of
people buy our
product?
Would buyers
prefer this new
package design?
Would buyers
be interested in
this new product
idea?
What features
do buyers prefer
in our product?
Which of these
two advertising
campaigns is
more effective?
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Secondary Data
Advantages
Less expensive
Obtained more easily and rapidly
Disadvantages
could be old and outdated
collected periodically
may be the wrong form
may be innacurate
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Primary Data
Advantages
more control over what is gathered
Disadvantages
can be very expensive
subject to investigators decisions
can be useful only in specific cases
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I RWI N a Times Mirror Higher Education Group, Inc., company 1997
Comparison of mail, telephone,
and personal interview surveys
Basis of
Comparison
Cost per
completed survey
Ability to probe
and ask complex
questions
Opportunity for
interviewer to
bias results
Anonymity given
respondent
Mail Surveys
Usually the least
expensive,
assuming
adequate return
rate
Little, since self-
administered
format must be
short and simple
None, since form
is completed
without
interviewer
Complete, since
no signature is
needed
Telephone
Surveys
Moderately ex-
pensive, assuming
reasonable
completion rate
Some, since
interviewer can
probe and
elaborate on
questions
Some, because of
voice inflection of
interviewer
Some, because of
telephone contact
Personal
Interview Surveys
Most expensive
because of
interviewers time
and travel expenses
Much, since
interviewer can
show visuals, probe,
establish rapport
Significant, because
of voice and facial
expressions of
interviewer
Little, because of
face-to-face contact
