3. Marketing Information Systems 8-3 Exhibit 8-1 Market Research Studies Internal Data Sources External Data Sources Databases Decision Support System (DSS) Marketing Manager Decisions Outcomes Marketing Models Information Technology Specialists Inputs ? Answers New Information Feedback Information Sources Questions and Answers Decision Maker Results
4. Marketing Research Process 8-4 Exhibit 8-2 Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Solving the Problem Early Identification of Solution Feedback to Previous Steps
5. Sources of Data 8-5 Exhibit 8-3 Secondary Data Sources Inside Company Outside Company Observation Questioning Primary Data Sources All Data Sources
6. Collecting Data 8-6 Primary Methods for Collecting Survey Data Mail Telephone Personal Interview
7. Interpreting Data 8-7 Key Issues in Data Interpretation Population Confidence Intervals Validity Sample
8. Key Terms Research Proposal Qualitative Research Focus Group Interview Quantitative Research Response Rate Consumer Panels Experimental Method Statistical Packages Population Sample Random Sampling Confidence Intervals Validity Marketing Information System (MIS) Intranet Decision Support System (DSS) Search Engine Marketing Model Marketing Research Scientific Method Hypotheses Marketing Research Process Situation Analysis Secondary Data Primary Data 8-8
Editor's Notes
Summary Overview Marketing Information Systems (MIS) help make information accessible. An MIS is an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make decisions. Understanding MIS: Key Concepts and Concerns Developing Data . The marketing manager should work with the MIS manager in designing what types of data should be included in the system. Although the exact information and questions that will be asked of it may not be known, the general categories of data and information can be identified. Intranet . Many firms even small ones now have their own intranet--a system for linking computers within a company. An intranet works like the Internet. Decision Support System . Some MISs have a decision support system or DSS. A DSS is a computer program that makes it easy for a marketing manager to get and use information while he or she is making decisions. This “real time” availability helps keep decisions as up-to-date as possible. Search Engine . A search engine is a computer program that helps a marketing manager find information that is needed. Marketing Model . Some DSSs provide managers with the option of even more interactivity. A marketing model is a statement of relationships among marketing variables. It allows a manager to see how answers to questions might change in various what-if situations. Availability . With the growing power of microcomputers and the accompanying PC software, even very small firms can develop an MIS. Availability of technology promises to make more and more firms able to identify changing customer needs quickly. Accessibility . There is a difference between information that is available and information that is readily accessible. Making the information instantly accessible over a computer network can be very useful. This slide relates to the material on pp. 212-216. Instructor’s Note: This slide corresponds to Exhibit 8-1 on p. 213 and Transparency 60. See also Overheads 75-77.
Summary Overview Marketing research consists of the procedures used to develop and analyze new information to help marketing managers make decisions. Whereas a MIS or DSS typically makes use of regularly collected recurrent information, marketing research is used to develop unique information to solve a new problem. Marketing research is based upon the principles of the scientific method -- a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them. A key feature of scientific investigation is the development of hypotheses -- educated guesses about likely causes and effects that can be measured objectively to help eliminate unnecessary risk taking in making decisions. The Marketing Research Process 1. Defining the Problem . This is the most important and often the most difficult step in the research process. The strategy planning framework of the firm can be useful at this step. A key consideration is to not confuse problems with symptoms. 2. Analyzing the Situation . A situation analysis is an informal study of what information is already available in the problem area. At this step it is important to ask colleagues what they know about your problem and to make use of secondary data -- information already gathered for other purposes -- to learn as much as possible about the problem. Developing a research proposal specifying what information will be obtained and how may be appropriate at the end of the situation analysis. 3. Getting Problem-Specific Data . Here you plan a formal research project to gather primary data. ( Instructor’s Note: Data collection is covered on the following slide ). 4. Interpreting the Data . For quantitative research, interpretation is greatly enhanced by use of a computer statistical package such as SPSS/PC+ or SAS. 5. Solving the Problem . In this step, you must use what you have learned to take effective action that implements a decision suggested by the research findings. This slide relates to the material on pp. 216-235. Instructor’s Note: This slide corresponds to Exhibit 8-2 on p. 218 and Transparency 61. See also Overhead 78. This slide and notes materials provide an overview of the research process. Each step is covered further on subsequent slides.
Summary Overview Researchers may need to gather primary and/or secondary data to help solve a problem. Secondary data is available from a number of sources, including internal and external ones. Much secondary data, particularly government information, is relative inexpensive or even free. Also, Internet search engines provide fast and easy access to data. Primary data is developed by the researcher specifically for the current problem and involves some form of observating and/or questioning. Sources of Secondary Data Internal Sources . All companies collect information about their business and much of it can be valuable to the marketing manager. Sales reports, the MIS, purchase orders, and other company documents can supply managers with a great deal of information. External Sources . Many other organizations develop secondary data, including: Libraries and On-line Services. Libraries contain substantial reference materials and usually access to one or more on-line computerized databases designed to search for information quickly. Government. Government data can be useful for estimating the size of markets. Government information is also very inexpensive. Private Companies. Many organizations specialize in developing valuable secondary information. Journals (ex: Sales & Marketing Management, Journal of Global Marketing) can be helpful. Firms like Claritas, Nielsen, and Donnelley Marketing Service can often provide secondary information cheaper than a firm can gather it. Source of Primary Data Primary data collection also offers several alternatives for obtaining information marketing managers need. Instructor’s Note: This topic is covered in greater detail on the following slide. This slide relates to the material on pp. 220-223. Instructor’s Note: This slide corresponds to Exhibit 8-3 on p. 221 and Transparency 62. See also Overhead 79.
Summary Overview In marketing research, collecting data usually involves developing primary data -- data gathered for the first time in response to the specific information needs of the research project (to answer a research question or solve a research problem). Primary data can be generated by either of two research approaches. Qualitative Research seeks in-depth, open-ended responses by consumers and may have a hidden purpose. Qualitative research is necessarily subjective. Quantitative Research seeks structured responses that can be summarized in numbers. Quantitative research is more objective and allows for quick processing using computers to find percentages, averages, and other statistics of interest. Qualitative Research Focus Group Interviews . The focus group is the most widely used qualitative research method. It involves 6 to 10 people in an informal setting. A skilled moderator leads the discussion with open ended questions on topics of interest and takes advantage of group dynamics to pursue comments in-depth. Focus group interviewing can be relatively inexpensive but can be overused and mistaken for “market facts.” Quantitative Research Surveys . Survey questionnaires using fixed responses can generate a wider and more representative view of the market than focus group interviewing. Administering a survey usually involves contacting respondents in one of three ways: Mail Surveys. A mail questionnaire is useful for administering a survey using extensive questioning. A problem with mail surveys is their low response rate -- often 25% or less. Phone Surveys. Telephone contact is fast and effective. The telephone also allows the researcher to contact physically dispersed markets and response rates are relatively high. In-Person Surveys. A personal interview is slower and more expensive but may be appropriate if a product needs demonstration or extensive explanation. Other Methods . Observation involves watching people behave in a given setting, either using a trained observer or mechanical means. Consumer panels provide diaries of product use that can be tabulated with checkout scanner data. Experimental methods use scientific controls and manipulate variables to help identify cause and effects. This slide relates to the material on pp. 223-232. See Overhead 80.
Summary Overview Interpreting the data collected from a research project is a critical step in turning raw data into information the marketing manager can use to make good decisions. As mentioned earlier, use of a statistical package for the computer makes this step much easier and faster. Interpreting the Data: Key Issues and Concerns Selecting Procedures and Tests . Cross-tabulation is one of the most frequently used approaches for analyzing and interpreting marketing research data. It shows the relationship of answers to two different questions. Teaching Tip: Most electronic spreadsheets now provide cross-tab support (sometimes called a pivot table), making this widely-used procedure even more accessible to small businesses. Population . A population is the total group of interest to the researcher or marketing manager. Sample . A sample is a smaller group, part of the relevant population. Because contacting an entire population typically isn’t feasible, using a sample to represent the population is more practical. The key here is representativeness -- how to ensure that the sample selected is likely to represent the larger population and how to estimate the likelihood that it does not represent the population. One method for meeting both needs is random sampling, where each member of the population has the same chance of being included in the sample. Confidence Intervals . Confidence intervals refer to the range on either side of an estimate that is likely to contain the true value for the whole population. Validity . Validity concerns the extent to which data measures what it is intended to measure. Because the wording of a survey can lead to misunderstandings about what a question means, it is very important to construct questions carefully to ensure validity in subjects’ responses. This slide relates to the material on pp. 232-235. See Overhead 81.