Marketing Decision Making

BM032-3-3

Chapter 2
Information Needs for Marketing
Decisions
 LEARNING OUTCOME

Brief explanation on the difference

between data and information.
The importance of information for decision
making strategically.
Sources of information (internally and
externally)

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 The
Marketing
Research
Process

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 Step 1: Define the Problem
Avoid confusing symptoms of a problem with
the problem itself
The problem(s) should be agreed upon by
all concerned parties
Doing so helps to keep everyone concerned
in agreement and to keep the project
focused on solving the problem(s)
Doing so also helps to prevent the all-too-
common tendency to spend resources
attempting to answer interesting, but not
necessary questions

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 Step 2: Conduct exploratory research
An Informal investigation seeking to discover
the cause of a problem by discussing it with
informed internal and external sources
Company records such as sales and profit
analyses
Competitive data
Using Internal Data
Sales records, Financial statements, and
Marketing cost analyses
Sales analysis

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 Step 3: Formulate a Hypothesis
Hypothesis: a tentative explanation for
some specific event a statement about
the relationship among variables that
carries a clear implication for testing this
relationship
Sets the stage for more in-depth research
by further clarifying what researchers need
to test
Not all marketing research tests specific
hypotheses

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 Step 4: Create a Research Design
Research design: a series of decisions that,
taken together, comprise a master plan or
model for conducting marketing research
Must ensure that the study will measure what
the marketer intends to measure
Must also ensure an appropriate selection of
respondents

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 Step 5: Collect Data
Secondary data is data from previously
published or compiled sources (e.g. Census
data)
Almost always less expensive to gather
Less time is usually necessary to locate and use it
Primary data refers to data collected for the
first time specifically for a marketing research
study
Can provide richer, more detailed information than
secondary data

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 Step 6: Interpret and Present
Research Information
Findings must be presented to decision-
makers in a format that allows them to make
effective judgments
Cardinal rule of presenting marketing
research requires that it assists decision-
making rather than being an end in itself

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 The Research Report and Presentation:
Linking the Study and the Research User

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 Marketing Research Methods

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 Secondary Data Collection
Government Data
Nations most important source of marketing data
Most frequently used government statistics
Census information available at no charge
TIGER System: Topographically Integrated
Geographic Encoding and Referencing System
The system combines topographic features like railroads,
highways, and rivers with census data such as
household income figures

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 Secondary Data Collection
Private Data
Encyclopedia of Associations
Urichs Guide to International Periodicals
Sales & Marketing Managements Annual Survey
of Media Markets
Dialogs ABI/Inform
CompuServes Knowledge Index
Find/SVPs FindEx, the Directory of Market
Research Reports, Studies, and Surveys
Starch Readership Reports
A. C. Nielsens SalesNet

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 Secondary Data Collection
Online Sources of Secondary Data
Cyberspace sometimes simplifies the search for
secondary data
A Web-based research project can cost less, and
can yield significantly faster results than offline
research
Caveat Emptor should guide Internet searches for
secondary data

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 Sampling Techniques
Sampling: the process of
selecting survey respondents or other
research participants
Population (universe): total group that
researchers want to study
Census: a collection of data on all possible
members of a population or universe

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 Probability sample: sample that gives every
member of the population a known chance of
being selected
Simple random sample
Stratified sample
Cluster sample
Non-probability sample: arbitrary grouping
that produces data unsuited for most standard
statistical tests
Convenience sample
Quota sample

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 Survey Method
Telephone Interviews
An inexpensive and quick method for obtaining a small
quantity of relatively impersonal information
Relatively high response rates
Limitations include:
Only simple, clearly worded questions draw appropriate
responses
Personal information difficult to obtain
Respondents cant view pictures
Caller-ID

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 Survey Method
Personal Interviews
Best means for obtaining detailed information about
consumers
Interviewer can explain confusing or vague questions
Offer Good Flexibility
Mall intercepts
Limitations:
Slow
Expensive

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 Survey Method
Focus Groups
A Focus Group is an information gathering procedure
in marketing research that typically brings together 8
to 12 individuals to discuss a given subject
Can provide quick and relatively inexpensive insights
May not produce completely honest responses to
questions

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 Survey Method
Mail Surveys
Cost Effective
Provides anonymity that may encourage respondents to give
candid answers
Limitations include:
Typically low response rates
Take a long time to conduct
Questionnaires cannot answer unanticipated questions
that occur to respondents as they complete the forms
Complex questions may not be suitable
Bias from nonresponse

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 Survey Method
Fax Surveys
Low response rates and long follow-up times associated
with mail surveys have spurred interest in the alternative
of faxing survey documents
Faxing provisions may supplement mail surveys
Or, faxing may be the primary method for contacting
respondents and obtaining their answers

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 Survey Method
Online Surveys and Other Internet-Based Methods
Growing number of Internet users has sparked interest in
going online to conduct surveys . . . and even focus groups
Benefits include the lack of geographic restrictions, faster
turn-around time, and dramatically lower costs
Growth of the Internet is creating a need for new research
techniques to measure and capture information about
website visitors

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