2. 2
Principles of Marketing
MKT3010
2
Segmentation, Targeting, and Positioning
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
Identify the five steps in the marketing research
process.
Describe the various secondary data sources.
Describe the various primary data collection
techniques.
Summarize the differences between secondary
data and primary data.
Examine the circumstances under which collecting
information on consumers is ethical.
LO1
LO2
LO3
LO4
LO5
3. 33
The Marketing Research Process
Answers to some research questions are readily accessible, as a simple data search would
show.
Principles of Marketing
MKT3010
Defining the objectives and research needs
Designing the research
Data collection process
Analyzing data and
developing insights
Action plan and
implementation
4. 44
Step 1: Defining Objectives and Research
Needs
Principles of Marketing
MKT3010
To determine whether to conduct research, two questions must be addressed: What? How?
What information is
needed to answer
specific research
questions?
How should that
information be
obtained?
5. 55
Step 2: Designing the Research
Principles of Marketing
MKT3010
In this step, researchers identify the type of data needed and determine the type of research
necessary to collect it.
Type of
data
Type of
research
6. 66
Step 3: Data Collection Process
Principles of Marketing
MKT3010
After answering why and how, researchers must determine where they can find the data.
Secondary data Primary data
8. 88
Step 5: Action Plan and Implementation
Principles of Marketing
MKT3010
A typical marketing research report would start with a two page executive summary. This would
highlight the objectives of the study, methodology and key insights. The body of the report would
go through the objectives of the study, issues examined, methodology, analysis and results,
insights and managerial implications. We would end with conclusions and any limitations or
caveats. Many consultants today, provide an executive summary, power point presentation of
the report, questionnaire and tabulated study results.
Executive Summary
Body
Conclusions
Limitations
Supplements including tables, figures,
appendicesDigital Vision/Getty Images
9. 99
Principles of Marketing
MKT3010
Check Yourself
1. What are the steps in the marketing research
process?
2. What is the difference between data and
information?
10. 1010
Principles of Marketing
MKT3010
External Secondary Data
Secondary data are plentiful and free, whereas syndicated data generally are more detailed but
can be very costly.
Syndicated
Data
Scanner
Research
Panel
Research
11. 1111
Internal Secondary Data
Principles of Marketing
MKT3010
Every day, consumers provide wide-ranging data that get stored in increasingly large databases.
Data Warehouse
Data Mining
13. 1313
Qualitative versus Quantitative Data
Collection Techniques
Principles of Marketing
MKT3010
Managers commonly use several exploratory research methods: observation, in-depth
interviewing, focus group interviews, and projective techniques. If the firm is ready to move
beyond preliminary insights, it likely is ready to engage in conclusive research, which provides
the information needed to confirm those insights and which managers can use to pursue
appropriate courses of action.
Data
collection
research
Qualitative research Quantitative research
15. 1515
Advantages and Disadvantages of Secondary
and Primary Data
Principles of Marketing
MKT3010
A summary of the advantages and disadvantages of each type of research.
Type Examples Advantages Disadvantages
Secondary
Research
Primary Research
Census data
Sales invoices
Internet information
Books
Journal articles
Syndicated data
Saves time in collecting data
because they are readily available
Free or inexpensive (except for
syndicated data)
May not be precisely relevant to
information needs
Information may not be timely
Sources may not be original, and
therefore usefulness is an issue
Methodologies for collecting data
may not be appropriate
Data sources may be biased
Observed consumer behavior
Focus group interviews
Surveys
Experiments
Specific to the immediate
data needs and topic at hand
Offers behavioral insights
generally not available from
secondary research
Costly
Time consuming
Requires more sophisticated
training and experience to design
study and collect data
16. 1616
Check Yourself
Principles of Marketing
MKT3010
1. What are the types of quantitative research?
2. What are the advantages and disadvantages of
primary and secondary research?
17. 1717
The Ethics of Using Customer Information
Principles of Marketing
MKT3010
A strong ethical orientation must be an integral part of a firm’s marketing strategy and decision
making. It is extremely important for marketers to adhere to ethical practices when conducting
marketing research.
Strong ethical
orientation
Adhere to ethical
practices
18. 1818
Check Yourself
Principles of Marketing
MKT3010
1. Under what circumstances is it ethical to use
consumer information in marketing research?
2. What challenges do technological advances pose
for the ethics of marketing research?
19. 1919
Glossary
Principles of Marketing
MKT3010
Data are raw numbers or other factual information that, on their own, have limited value to
marketers.
Experimental research is a type of quantitative research that systematically manipulates one
or more variables to determine which variables have a causal effect on another variable.
Marketing research consists of a set of techniques and principles for systematically collecting,
recording, analyzing, and interpreting data that can aid decision makers involved in marketing
goods, services, or ideas.
Panel research is a type of quantitative research that involves collecting information from a
group of consumers (the panel) over time.
Scanner research is a type of quantitative research that uses data obtained from scanner
readings of UPC codes at check-out counters.
Survey is a systematic means of collecting information from people that generally uses a
questionnaire.
Syndicated data are data available for a fee from commercial research firms such as
Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.