1. The Marketing Research Function Intro to Marketing Chapter 8

2. Marketing Research Function Purpose of research: To analyze competition performance to gauge acceptance of new products and package designs to develop promotional campaigns

3. Development of the Marketing Research Function Charles C. Parlin How has technology affected research? It has allowed for storage of more data & simulation for testing.

5. Marketing Research Process 1. Problem Definition What is the problem? For example: sales are dropping, new product is out, or new advertising

6. Marketing Research Process 2. Exploratory Research Discover the cause of the problem For example: Finding out why sales have dropped. Finding out is customers like the new product or advertising Using Internal Data Also called Situational Analysis Sales records, financial statements

7. 3. Formulating Hypothesis Guess about the outcome. It can be right or wrong 4. Research Design Test designed to see if hypothesis is right or wrong Marketing Research Helped Kraft Develop the Product and Effective Advertising for Its DiGiorno Pizza

8. 5. Data Collection Collecting data to test the hypothesis Marketing Research Methods Secondary: previously published Primary: collected for the first time

10. External Secondary Data Advantages: Less expensive, abundant supply Takes less time to gather Disadvantages: May be outdated May be collected for a different purpose so it’s irrelevant

11. Sampling Techniques Population or Universe Group the researcher wants to study Census If all sources are contacted

12. Sample Representative group Must be representative of target market - crucial for pertinent results Probability sample - every member has equal chance of being selected (random) Non-probability sample- on the street interview

13. Primary Research Methods 1. Observation Method For example: traffic count, license plate check, supermarket scanners, spies, recording of TV viewing habits, virtual reality

14. 2. Survey Method For example: personal interview, phone interview, computer interview, etc.

15. Survey Method (cont.) Telephone Interviews Inexpensive High response rate Convenient No picture of item of discussion Impersonal Bad Reputation Internationally phone connections are poor Caller ID’s screen calls Unlisted numbers are not reachable

16. Survey Method (cont.) Personal Interview Often the best method because rapport can be established Takes more time and money Can explain unclear questions Best for international information

17. Survey Method (cont.) Focus Groups 8-12 people can be too small to be reliable Widely used Generally video taped for late analysis

18. Survey Method (cont.) Mail Surveys Cost effective Only 40-50% return rate Effective for national studies buy not for international ones Junk mail reputation Based on effectiveness of US Post Office Fax Surveys Novelty Faster results than mail

19. Survey Method (cont.) Online Surveys Fast Respondents are more truthful to the computer Cannot explain unclear questions

20. 3. Controlled Experiment Method Compares test groups to control groups Problems with trying to control the variables of real-life situations Done in field or lab Testing a Global Advertisement

21. TEST MARKETING Most common method of experimental data gathering Introduces a product in a location that matches the target market demographics Disadvantages Expensive Competitors find about about products Some products are too expensive to produce for test marketing (cars)

22. Conducting International Marketing Research Language & Cultural Issues US Government has good sources of information on the other countries