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Sommers < Barnes
Ninth Canadian Edition

Presentation by
Karen A. Blotnicky
Mount Saint Vincent University, Halifax, NS

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à hat marketing research is and how it
plays a role in decision making
à he systems that have been developed to
increase the usefulness of data
à How to conduct a marketing research
project
à hat kinds of organizations use marketing
research
à ecent changes in how marketing research
is conducted by Canadian firms
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à
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à s the development, interpretation and
communication of decision-oriented
information to be used in all phases of
the strategic marketing process
à esearch plays a role in marketing
planning, implementation, and
evaluation.
à esearchers become active in the
decision process by making information
useful to managers.
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à Competitive pressure
à Expanding markets
à he cost of mistakes
à rowing customer expectations
à ncreased market complexity

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à Syndicated research services
à Marketing information systems
à ecision support systems
à Non-recurring research projects

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à a MkS is generally computer-based and
involves the production, analysis, storage,
dissemination, and retrieval of
information to support marketing decision
making
à it generates reports and studies as needed
à it analyzes data using mathematical
models that simulate the ´real worldµ
à it integrates old and new data to update
information and to identify trends
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à a more sophisticated version of the MkS,
allowing managers to interact with the data
à the interactive capability of the { permits
retrieval of data, examination of
relationships, and preparation of custom
reports
à the establishment of a SS requires the use
of networked computer systems and the
integration of internal and external data
bases
à SS are costly to establish and operate
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à marketing data are available from many
sources and are stored in computer data
bases
à data may be contributed from sources both
within and outside the firm, including
customer purchase records
à customer loyalty programs contribute
valuable data on purchases made
à other valuable data are collected by
automated systems such as scanner-
equipped checkouts
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à atabase - collection of information
from a variety of internal & external
courses that is organized, stored, and
updated in a computer.
à ata arehouse - an enormous
collection of internal and external data
from millions of customers, suppliers,
etc.
à ata Mining - a technique to search,
inquire, and update ata arehouses
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à as Vegas casinos electronically monitor the
slot machine usage of slot club members.
à Samsonite uses information from product
registration cards (1.5 million per year) and
incoming calls to its 800 number.
à Kraft eneral Foods collects the names and
preferences of consumers who mail in
coupons.
à American Express can trace every purchase
made with its cards since 1991 to the
individual cardholders.
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à concept test: evaluates new product or
advertising ideas
à copy test: tests advertising content
à price responsiveness studies: tests how
customers will respond to various price
levels
à market-share analysis
à segmentation studies
à customer satisfaction studies: monitor how
customers feel about products and service
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1. efine the objective³the goals sought by the
researcher.
2. Conduct a situation analysis³a background
investigation.
3. Conduct an informal investigation³examine
readily available information.
4. Conduct a formal investigation³collect
primary and secondary data.
5. Analyze the data and prepare a report.
6. Conduct a follow-up³determine if and how
the research was used.
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à A hypothesis is an ©educated guessµ
about the solution to a problem that is
being investigated in marketing research
à he hypothesis provides a research
problem for the investigators which can
be tested scientifically
à Examples: sales of grocery items will
increase when placed at end-of-aisle
displays
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à the marketing decision maker must
decide whether he or she needs to
collect primary data or secondary data
à primary data are collected specifically
for the project while secondary data
already exist, having been collected for
another purpose
à syndicated data are collected by a
research supplier and may be sold to a
number of different clients
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à s the process of creating, executing, analyzing and
reporting on a project
à ccurs in the formal investigation stage of the
research process
à Prepare a form for collecting data.
à Consider question wording and response format
à ayout and sequence of questionnaire is
important
à Plan sample to ensure it is representative.
à Collect the data.
à Analyze data and present a report on it
à Show what results tell you about research objectives.
à Follow up to see what use data served
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à many marketing research projects involve
conducting a survey
survey, by administering a
questionnaire to a sample of respondents
à surveys produce quantitative data
à surveys may be conducted in person, by
telephone, in shopping centres, or by mail
à qualitative research is growing in
popularity as a means of obtaining deeply-
held opinions; includes focus groups and
depth interviews
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{
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à Surveys
à Personal interviews
à elephone or mail surveys
à nternet research
à ualitative esearch
à n-depth personal interviews, focus
groups
à bservation
à Personal or mechanical (scanners)
à Experiments
à aboratory
à Field (est Marketing)
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uestionnaires and other forms are used to
record responses and other data. Factors to
consider when designing a questionnaire:
à the wording of questions must ensure that
they are understandable and not leading
à questions may be in a fixed-answer or open-
ended format
à the layout of the questionnaire affects
responses
à questionnaires are pretested to identify
problems
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Æ)  
   
à As a secondary eb site tool for finding
online magazines, search resources, institutes,
government statistics (eg: www.Statcan.ca)
à As a data collection tool:
à nline surveys
à nline focus/discussion groups
à Concerns:
à Credibility of secondary data
à Bias in survey research
à ying in surveys and focus groups
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à these are less widely-used research
methods
à observation involves collecting data
usually without the knowledge of the
subject; may include watching consumers
as they shop or collecting data
electronically
à experimentation involves the
manipulation of one of more variables so
as to observe the effect; examples include
the use of test markets and of simulations
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à in survey research, it is advisable to select a
sample that is as „ „   as possible
à sample selection often contributes to 
à ideally, we would like to have a „

sample, but this is usually not possible
à most marketing surveys use
  
samples
à sample size must be large enough to
represent the population and to allow the
client to have confidence in the results
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à may be done inside or outside a company
à some large firms have small marketing
research departments which supervise the
work of outside consultants
à there are many research consultants and
full-service supplies across the country
à more and more companies are realizing
the importance of research to provide the
information needed for decision making
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à Pieces together information from a variety of
sources to obtain an overall picture of the
marketing strategies of competing firms
à nformation is from legal and publicly accessible
sources, including the nternet
à Concerns involve privacy and ethical use of
information
à Bill C-6: Personal nformation Protection and
Electronics ocument Act comes into effect in
Canada in January, 2001
à equires individuals· consent for information to
be used for any purpose other than that for
which it was originally intended
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à Major growth area due to improved
computer equipment and software to
collect and analyze data (scanners, data
analysis).
à atabase development is critical to sort
through all the information.
à esults of research not always
communicated well to executives.
à Many executives not convinced of the
value of systematic, continuing market
research.
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