Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
34 Cards in this Set
- Front
- Back
Marketing Research
|
The process of collecting and analyzing information in order to recommend actions
|
|
Decision:
|
a conscious choice from among two or more alternatives
|
|
Decision Making
|
The act of consciously choosing from alternatives
|
|
There are 5 steps to the marketing research approach:
|
1. Define the problem
2. Develop the research plan 3. Collect Relavant information 4. Develop Findings 5. Take Marketing Actions |
|
Define the problem
|
Set Research Objectives
• Research objectives are specific, measurable goals the decision maker seeks to achieve in conducting marketing research Measures of Success: Criteria or standards used in evaluation proposed solutions to a problem -Different research outcomes lead to different marketing strategies |
|
STEP 2: Develop the Research Plan
|
1. Specify Constraints
2. Identify the data needed for marketing decisions 3. Determined how to collect data Constraints: Restrictions placed on potential solutions to a problem -Marketing research studies often collect a lot of extra irrelevant data for marketing actions -Need to identify the important data |
|
Two Key Elements in deciding how to collect Data:
|
1. Concepts
2. Methods |
|
Concepts
|
are ideas about products or services
-In order to find out consumer reaction to a New Product, a new product concept is developed |
|
New Product Concept
|
A picture or verbal description of a product or service that might be offered for sale
|
|
Methods def and 2 types
|
The approaches that can be used to collect data to solve all or part of a problem
Special methods that are vital to marketing are: 1. Sampling 2. Statistical Inference |
|
Sampling-
|
Selecting a group of distributers, customers, or prospects…Asking them questions and treating their answers as typical of all whom they are interested
|
|
Statistical Inference-
|
Generalize results from the sample to much larger groups of distributers customers and prospects to help decide on marketing actions
|
|
STEP 3: Collect Relevant Information
|
Obtain secondary/primary data
|
|
Data and types
|
: The facts and figures related to a problem
Two Main Parts— 1. Secondary Data 2. Primary Data |
|
Secondary Data
|
Facts and figures that have already been recorded before the project at hand (internal and external)
|
|
Primary Data
|
Facts and figures that are newly collected for a project (observational, questionnaire, and other sources)
|
|
Secondary Internal Data
|
• Detailed sales breakdowns by product line, region, customer or sales rep
• Customer inquiries and complaints • Often the starting point for a new marketing research study |
|
Secondary External Data—
|
• Data published outside of the organization
• US census beau publishes a lot of reports • Surveys on American households • Economic Census= Vital to business firms selling their products/ services to organizations • Syndicated Panel- Economically answer questions • Some data services provide comprehensive info on household demographics, lifestyles, ect • A single firm can analyze, interrelate and present all this info • Trade associations, universities, business periodicals provide detailed data to market researchers and planners |
|
Rule when it comes to data
|
obtain secondary first
|
|
Advantages/Disadvantages to Secondary Data
|
Advantages—
1. Time Savings because data has already been collected/ published or existed internally 2. Low cost Free or inexpensive census reports 3. Greater Detail Disadvantages— • May be out of date, US census only collected every 5 to 10 years • Categories/ definitions might not be quite right for project • May not be specific enough |
|
Sources of Primary Data
|
Watching People, Social Networking, Panel Experiment, IT
|
|
Watching People
|
• Observing people and asking them questions are the two principal ways to collect new or primary data for a marketing study.
|
|
• observational data
|
o facts and figures obtained by watching, either mechanically or in person, how people actually behave is the way marketing researchers collect.
|
|
• Mechanical Methods
|
o National TV ratings
|
|
• Personal Methods
|
o Mystery shopper
o Watching women do laundry, clean the floor, etc. o ethnographic research is a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their “natural use environment” o can be costly and unreliable. o Can reveal what people do, but not why they do it. |
|
Social Networks-
|
Consumers often share their onions about the offerings they use or want
-Social Networks are more “in touch” with consumer lifestyles |
|
Panels and Experiments
|
-Panel: A sample of consumers or stores from which researchers take a series of measurements
-Experiment: Involves obtaining data by manipulating factors under tightly controlled conditions to test the cause and effect -Will changing an independent variable (cause) change the dependent variable (result) -Independent variables of interest are often called “drivers” are often 1 or more of the marketing mix |
|
Test Markets
|
Offer a product for sale in a small geographic are to help evaluate potential marketing actions
|
|
Information Technology
|
: Involves operating computer networks that can store and process data
|
|
Advantages of IT
|
-Can extract hidden information from large databases
-Data sources are stored, organized, managed in databases, which are collectively called data warehouses |
|
Data Mining
|
Extraction of hidden data/ predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions
*Success of data mining depends on how researchers/ managers analyze, select and interpret info |
|
Data Mining Advantages/Disadvantages
|
Advantages- compared with secondary data, primary data have the advantages of being more flexible and more specific to the problem being studied
Disadvantages- primary data are usually far more costly and time consuming to collect than secondary data |
|
STEP 4: Develop Findings
|
-Analyze data
-Facts uncovered by the consultant are vital -Present findings -Should be clear and understandable -Managers are responsible for actions |
|
STEP 5: Take Marketing Actions
|
-Make action recommendations
-Implement actions recommendations -Evaluate results • Evaluating the decision itself • Evaluating the decision process used |