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Chapter Objectives
Marketing
Explain how marketers use information systems to
create value for customers

Discuss ethical issues firms encounter when
Chapter 5 conducting marketing research
Marketing Research
Describe the necessary steps to conduct marketing
research
and Information

Explain the differences between primary and
Systems
secondary data, and determine when should each
be used

Explain the differences between exploratory and
Ajax Persaud Dhruv Grewal conclusive research
Michael Levy Shirley Lichti

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Marketing Research Why Do Market Research?

Measure and forecast future demand
Consists of a set of techniques and
principles for systematically collecting, for your products and services
recoding, analyzing and interpreting data
Realistic view of the coming year
that can aid decision makers involved in
marketing goods, services or ideas.
Allocate needed resources (finite)

Make business changes proactively
instead of reactively

“Leading” edge versus “bleeding” edge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Using Marketing Information Systems

to Create Better Value The Ethics of Using Customer Information

Marketing Information Bottom Line: Marketing research should be used only

System (MIS) is a set of to produce unbiased, factual information.
procedures and methods
applied to the regular,
planned collection,
analysis, and
presentation of
information to be used in
marketing decisions.

Data warehouse?

Data mining?
Code of Standards and Ethics for Survey Research

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Why Is It Important To Keep The Market

Research Data “Real”? The Marketing Research Process

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Step 1: Defining the Problems

and Objectives Problems and Objectives
What information is needed
to answer specific research
questions? What are some “problems” or
“objectives” that businesses may
need market research to help them
solve or achieve?

How should that

information be
obtained?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Step 2: Designing the Research Project Determine Specific Information Needs

Target customer characteristics

Patterns of product use

Demand factors

Response of marketing channels

Customer reactions

Secondary data Primary data
Projected sales

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Advantages and Disadvantages of

Secondary and Primary Data Step 3: Data Collection Process

Exploratory research

Conclusive research

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Exploratory Versus Conclusive

Data Collection Exploratory Methods
Observation In-depth interview

Projective Technique
Focus group
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Using Exploratory Research Case in Point: Kit Kat Bars

Kit Kat bars were losing appeal

How can a firm use exploratory research to uncover Challenge among younger consumers
consumers’ attitudes toward their product/service? while remaining popular with
consumers aged 25 -40.

Qualitative interviews were

Answer conducted with younger
consumers. New forms of Kit Kat
bars were sampled. The interviews
were followed with focus groups.

The introduction of the Kit Kat

Results chunky, a single large Kit Kat bar.

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Focus Group Activity Focus Group Questions

Form groups of 4-6
Are you in favour of the sale of water in

With bottled water as the topic, use the plastic bottles on campus?
suggested questions on the next slide
Why? Why not?
to determine the feelings of your focus
Do you feel bottled water should be
group about these products. banned or controlled?

Be prepared to report what your
What are some alternatives?
research has found.

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Ethical Dilemma 9.1: Watching

Consumers Conclusive Research Methods

Marketing research firms dedicated to watching
consumers. Can be either:

Gather data that would not otherwise be available.

Should researchers get consent prior to observing? Descriptive Experimental

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What Not to Do When Designing a

Survey Research Questionnaire

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Case in Point: Derham Marketing

Web Surveying Research, Ltd.
Derham Marketing Research Limited was
looking for a reliable means of writing,
Challenge delivering and analyzing online surveys.

Response rates are
relatively high Partnering with Form Artist software that
Answer allowed the firm to have internal control
over their online surveys.

Respondents may lie less
Derham has saved money, kept costs

It is inexpensive down, increased control. Quantifiable
benefits: saved on average 2 days at

Results are processed least in project turnaround, and often up
to a week. Reporting can be the same
and received quickly
Results day, also saving up to a week. Electronic
files saved paper and clarified the
reporting procedure. The capacity to copy
and paste has saved further re-handling
and ensured accuracy of any information
carried across to the clients' own
systems.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Case in Point: It’s Beginning to Smell a

Using Experimental Research Lot Like Christmas
Retailers need to get shoppers
How can firms use experimental research to improve Challenge into the holiday spending mood.
value for customers and the firm?
Use an experiment to determine what
Answer factors in the retail environment
contribute to customers “holiday
spending mood”.

Retailers who used holiday music

and holiday scents together were
viewed more favorably, the
Results merchandise in the store was rated
higher, and purchase intentions
increased compared to retailers who
used either alone or non-congruent
music and scent.
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Scanner Research Panel Research

Group of consumers
Survey or sales receipts

Information Resources, Inc.

AC Nielsen

What if I
reduce my
price by
10%? What are they
buying or not
buying?

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Step 4: Analyzing Data Survey-Based Segments

Converting data into information to explain, predict and/or

evaluate a particular situation.
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Brand Research Step 5: Presenting Results

Attitudinal equity - Virgin Mobile
Present important findings

Company ultimately must
decide on correct
interpretation and how to
proceed

Assists decision-making
(remember past failures…)

Doing our best to measure
and forecast demand!

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Some past research mistakes… Homework

MasterCard “priceless” campaign should
not run
Groups for Group Project

The Seinfeld pilot got the lowest pre-test formed by June 1st
scores in NBC history

Individual Submission due

The Sony Walkman was predicted to fail
June 8th

New Coke was predicted to succeed

The better the research – the better your

Read Chapter 6
chances of predicting success!