MANAGING MARKETING INFORMATION

5-1. MANAGING MARKETING INFORMATION Marketing Research — The systematic design, collection, analysis, and reporting of data relevant to marketing information to help reduce uncertainty when making marketing decisions. COLLEGE OF BUSINESS ADMINISTRATION CHUNG-ANG UNIVERSITY PROF HYUNSUK SUH 2 The objectives of the current chapter are listed below. Objectives Understand the definition of a marketing information system Understand the basics of marketing research Understand the various methods of collecting and analyzing research information 0. Objectives 3 What is “Marketing Information and Research”? Marketing Information and Research  Marketing Information Systems Marketing Information Systems: People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.  Marketing Research Marketing Research: The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization Kotler and Armstrong, 2012, 2014 1. Marketing Information System 4 The examples of the sources of primary and secondary data are illustrated in the following diagram. Primary and Secondary Data Sources 1. Marketing Information System 5 What is “Marketing Research ”? Marketing Research 2. Marketing Research  The systematic and objective process of generating information to aid in making marketing decisions. Zikmund, 2003  It is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. Burns and Bush, 2003, 2007  The systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solution of problems in marketing. Malhotra, 2004, 2007, 2009, 2011, 2013 6 What is “Marketing Research ”? Marketing Research Definitions  Marketing research is a function that links the customer to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions, monitor marketing performance, and improve understanding of marketing as a process Churchill and Brown, 2007, 2010 2. Marketing Research 7 The Theory and Data Relationship THEORY DATA Inductive Reasoning Deductive Reasoning Ideas: What we think Reality: What we observe Empirical Generalization Hypothesis The deductive and inductive reasoning logically connect theory and the data, the evidences found in material world. 2. Marketing Research 8 Three different types of research design are described below. Research design in which the major emphasis is on gaining ideas and insights; it is particularly helpful in breaking broad, vague problem statements into smaller, more precise sub-problem statements. EXPLORTORY RESEARCH A type of conclusive research that has as its major objective the description of something; It is either the frequency of occurring something or relationship between variables – usually market characteristics or functions. DESCRIPTIVE RESEARCH A type of conclusive research where the major objective or emphasis is on determining cause-and-effect (causal) relationship one variable has an impact upon another. The terms “independent” and “dependent” variables are often employed in this context. CAUSAL RESEARCH Types of Research Design - Definition 2. Marketing Research 9 The characteristics and examples of different marketing research designs are shown below. Types of Research Design – Characteristics and Examples 2. Marketing Research Exploratory Research Descriptive Research Causal Research Characteristics  Classification of the nature of ambiguous problem to gain better understanding  Not intended to provide conclusive evidence to determine particular action  Description of characteristics of a population or phenomenon  It seeks to determine the answers to WHO, WHAT, WHEN, WHERE, and HOW questions  Based on previous understanding of the nature of the problem  Identify cause-and-effect relationships among variables  The management change one variable and then observe the effect on another variable Ambiguous Problem Aware of Problem Problem Defined  Our sales are declining and we do not know why?  Would people be interested in our new-product idea?  What kind of people are buying our product? Who buys our competitors’ product?  What features do buyers prefer in our product?  Will buyers purchase more of our product in a new package?  Which of the two advertising campaigns is more effective? Examples 10  -Becomes familiar with the basic facts, people, and concerns  -Generate many ideas and develop tentative theories and conjectures  -Determine the feasibility of doing additional research  -Formulate questions and refine issues for more systematic inquiry Review of the concepts. Exploratory vs. Descriptive vs. Causal Research Concept Review  -Provide an accurate profile of a group  -Describe a process, mechanism, or relationship  -Find information to stimulate new explanations  -Create a set of categories or classify types  -Provide a verbal or numerical picture  -Determine the accuracy of a principles or theory  -Find out which competing explanation is better  -Link different issues or topics under a common general statement  -Build and elaborate a theory so it becomes more complete  -Provide evidence to support or refute an explanation or prediction  -Extend a theory or principles into new areas or issues 2. Marketing Research [...]... of stereo equipment? _Price _In-store service _Brand name _Functions Guarantee / Warranty 30 Marketing Research — The systematic design, collection, analysis, and reporting of data relevant to marketing information to help reduce uncertainty when making marketing decisions 5-2 MANAGING MARKETING INFORMATION COLLEGE OF BUSINESS ADMINISTRATION CHUNG-ANG UNIVERSITY PROF HYUNSUK SUH 0 Objectives The... times? ? What would you choose and why? 22 3 Data Collection Methods-Survey Surveys produce appropriate information about marketing world by reflecting selfreported beliefs, opinions, characteristics, or past and present behaviors of the people Survey SURVEY A method of primary data collection in which information is gathered by communicating with a representative sample of people Characteristics of Survey... Job Interest Productivity 3 Data Collection Methods The methods for collecting marketing research data are illustrated below Research Methods 3 1 5 Experiment Observation 2 Questionnaire and Survey 4 Experiment Interview Focus group 12 3 Data Collection Methods-Observation The observation is being defined by the following marketing research gurus Definition: Observation The systematic activities of... overall sense of dissatisfaction with existing rental outlets, she hasn’t been able to isolate specific areas of concern Thinking back to a marketing research course she took in school, Armstrong decided that focus group research would be an appropriate method to gather information that might be useful in deciding whether to pursue further development of her idea to open a video rental store Questions:... questions may be needed to obtain the required information in an unambiguous manner Consider the following questions Are Several Questions Needed Instead of One? Example “Do you think Coca-Cola is a tasty and refreshing soft drink?” Such a question is called a double-barreled question, because two or more questions are combined into one To obtain the required information, two distinct questions should... behavior, intentions, attitudes, awareness, motivations, and demographic and lifestyle characteristics  Survey methods involve a structured questionnaire give to respondents and design to elicit specific information  Survey research is often called correlational research The survey researchers use correlations in statistical analysis 23 3 Data Collection Methods-Survey How long should a questionnaire... of causality? Establishing Causality Example ?   27 3 Data Collection Methods-Experiment The experimental technique is widely used in the marketing research to define the causal relationship between variables Experiment EXPERIMENT A research investigation in which conditions are controlled so that an independent variables can be manipulated... that down Anything else about your neighbor? 20 3 Data Collection Methods-Depth Interview When a questions calls for a respondent to choose an answer from a list, and the respondent has not done so, the marketing interviewer’s job is let respondent to choose the answer from the list Exampl e Probing “Closed” Questions Interviewer: How would you rate this product – Very Good Good, Fair, or Poor? Respondent:...2 Marketing Research The primary objective of quantitative research put heavy focus on the demonstration of “causality’ between the two variables The Causal Relationship Smoking 1 Mutual Relationship Disease . information 0. Objectives 3 What is Marketing Information and Research”? Marketing Information and Research  Marketing Information Systems Marketing Information Systems: People, equipment, and. 5- 1. MANAGING MARKETING INFORMATION Marketing Research — The systematic design, collection, analysis, and reporting of data relevant to marketing information to help reduce. Information System 5 What is Marketing Research ”? Marketing Research 2. Marketing Research  The systematic and objective process of generating information to aid in making marketing decisions.