Marketing Information Management
the process and methods used to gather information, analyze it, and report findings related to marketing goods and services. Why is Marketing Research important? 1. Businesses that do not pay attention to what consumers are buying and why are likely to make costly marketing mistakes. 2. Information obtained from research helps businesses increase sales and profits. |
OD 1 Describe how marketing information is used in business decisions
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OD 2 IDENTIFY WAYS TO OBTAIN MARKET DATA FOR MARKET RESEARCH (E.G., SURVEYS, INTERVIEWS, OBSERVATIONS)
Three Types of Market Research
1. Exploratory Research is used when you know little about a subject. ÞCheck with industry & government publications. You can organize a focus group of people whose opinions are studied to determine the opinions that can be expected from a larger population.
2. Descriptive Research
Develop a customer profile. Learn the age, gender, occupation, income, and buying habits of potential customers. Such information can be collected through questionnaires, interviews, or observation.
3. Historical Research involves studying the past. Trade associations and trade publications are two sources of useful historical data. Historical research might be useful to learn why a type of business has been successful or unsuccessful.
Market research is broken down into 2 types
Qualitative research
Quantitative research
Qualitative research
Used to discover consumer information whose validity can then be assessed with quantitative research ?’s
Questions to gather this type of information generally begin with “how” or “why”
This type of research is used to obtain information from smaller #’s of people
Often qualitative research will guide the development of quantitative research for a larger sample
Quantitative research
Often used to answer ?’s about quantities & amounts using a large sample of consumers
?’s used to gather this type of information often begin with “how many” or “how much”
This type of research can help assess validity & bring further scrutiny to qualitative data, & is most often used to obtain information from a large # of people
types of research questions
CLOSED-ENDED QUESTION: NOT FULLY ELABORATED ON, SHORT AND TO THE POINT
OPEN-ENDED QUESTION: A FULL EXPLANATION, GIVES A LOT OF INFORMATION
PRIMARY RESEARCH - INFO GATHERED FOR THE FIRST TIME - SURVEYS, TASTE TEST, ETC
SECONDARY RESEARCH - RESEARCH GATHERED FOR ANOTHER PURPOSE FROM ANOTHER SOURCE
FOCUS GROUP: A GROUP THAT YOU SAMPLE THINGS TO AND ASK QUESTIONS TO BASED ON WHO YOUR TARGET MARKET IS AND WHAT YOU ARE SAMPLING/SELLING
OBSERVATION: RECORDING WITHOUT COMMUNICATION OR INTERACTION
VIDEO
AUDIO
BAR-CODE
EYE TRACKERS
PREFORMING EXPERIMENTS
TEST MARKETS
SIMULATIONS
Primary Data
Research collected for the first time and relates directly to the collector’s study.
How do I collect primary data?
•Observation
•Interviews – in person, by phone, through mail
•Surveys
•Observe buyers at competitor’s site
•Focus groups
Facts collected for the 1st time for the problem under study
Can be obtained through the use of surveys, observation, & focus groups
A survey is a series of ?’s asked to a select & representative group of people to obtain quantitative data
Observation is an information-gathering technique that involves watching people by using other people or by using a camera
¨Observation gives information about what people do, but not about why they do it
A focus group is a small group of 8-15 people who provide qualitative data through their opinions about a business, its products, or other issues under the direction of a discussion leader
OD 3 Differentiate between primary and secondary data
Secondary Data
Information collected by someone else for their own purposes.
Where do I find Secondary Data?
•Internet
•Government and community organizations
•Website of the U.S. Census Bureau
•Chamber of Commerce
•Trade associations
•Trade publications
•Commercial research agencies
Secondary data are facts that have been collected previously for a purpose other than the problem being studied
Less expensive to obtain than primary data
Businesses often pick the secondary data they will use first & then decide which primary data to collect
Can be gathered from internal or external sources
-CUSTOMER RECORDS AND SALES INFORMATION
-PRODUCTION AND OPERATIONS REPORTS
-PERFORMANCE INFORMATION
EXTERNAL: PROVIDES AN UNDERSTANDING OF FACTORS OUTSIDE OF THE ORGANIZATION
-GOVERNMENT REPORTS
-TRADE AND PROFESSIONAL ASSOCIATIONS
-BUSINESS PUBLICATIONS
-COMMERCIAL DATA AND INFORMATION SERVICES
Five Steps in Market Research
Identify the problem
Analyze data
Choose the best solution
Follow up on the results
Three Types of Market Research
1. Exploratory Research is used when you know little about a subject. ÞCheck with industry & government publications. You can organize a focus group of people whose opinions are studied to determine the opinions that can be expected from a larger population.
2. Descriptive Research
Develop a customer profile. Learn the age, gender, occupation, income, and buying habits of potential customers. Such information can be collected through questionnaires, interviews, or observation.
3. Historical Research involves studying the past. Trade associations and trade publications are two sources of useful historical data. Historical research might be useful to learn why a type of business has been successful or unsuccessful.
Market research is broken down into 2 types
Qualitative research
Quantitative research
Qualitative research
Used to discover consumer information whose validity can then be assessed with quantitative research ?’s
Questions to gather this type of information generally begin with “how” or “why”
This type of research is used to obtain information from smaller #’s of people
Often qualitative research will guide the development of quantitative research for a larger sample
Quantitative research
Often used to answer ?’s about quantities & amounts using a large sample of consumers
?’s used to gather this type of information often begin with “how many” or “how much”
This type of research can help assess validity & bring further scrutiny to qualitative data, & is most often used to obtain information from a large # of people
types of research questions
CLOSED-ENDED QUESTION: NOT FULLY ELABORATED ON, SHORT AND TO THE POINT
OPEN-ENDED QUESTION: A FULL EXPLANATION, GIVES A LOT OF INFORMATION
PRIMARY RESEARCH - INFO GATHERED FOR THE FIRST TIME - SURVEYS, TASTE TEST, ETC
SECONDARY RESEARCH - RESEARCH GATHERED FOR ANOTHER PURPOSE FROM ANOTHER SOURCE
FOCUS GROUP: A GROUP THAT YOU SAMPLE THINGS TO AND ASK QUESTIONS TO BASED ON WHO YOUR TARGET MARKET IS AND WHAT YOU ARE SAMPLING/SELLING
OBSERVATION: RECORDING WITHOUT COMMUNICATION OR INTERACTION
VIDEO
AUDIO
BAR-CODE
EYE TRACKERS
PREFORMING EXPERIMENTS
TEST MARKETS
SIMULATIONS
Primary Data
Research collected for the first time and relates directly to the collector’s study.
How do I collect primary data?
•Observation
•Interviews – in person, by phone, through mail
•Surveys
•Observe buyers at competitor’s site
•Focus groups
Facts collected for the 1st time for the problem under study
Can be obtained through the use of surveys, observation, & focus groups
A survey is a series of ?’s asked to a select & representative group of people to obtain quantitative data
Observation is an information-gathering technique that involves watching people by using other people or by using a camera
¨Observation gives information about what people do, but not about why they do it
A focus group is a small group of 8-15 people who provide qualitative data through their opinions about a business, its products, or other issues under the direction of a discussion leader
OD 3 Differentiate between primary and secondary data
Secondary Data
Information collected by someone else for their own purposes.
Where do I find Secondary Data?
•Internet
•Government and community organizations
•Website of the U.S. Census Bureau
•Chamber of Commerce
•Trade associations
•Trade publications
•Commercial research agencies
Secondary data are facts that have been collected previously for a purpose other than the problem being studied
Less expensive to obtain than primary data
Businesses often pick the secondary data they will use first & then decide which primary data to collect
Can be gathered from internal or external sources
- Internal sources are those from inside the business & include past sales & buying records
- External sources are those from outside the business, such as trade associations, trade publications, Internet sources, government sources (federal, state, & local governments), & market research companies
-CUSTOMER RECORDS AND SALES INFORMATION
-PRODUCTION AND OPERATIONS REPORTS
-PERFORMANCE INFORMATION
EXTERNAL: PROVIDES AN UNDERSTANDING OF FACTORS OUTSIDE OF THE ORGANIZATION
-GOVERNMENT REPORTS
-TRADE AND PROFESSIONAL ASSOCIATIONS
-BUSINESS PUBLICATIONS
-COMMERCIAL DATA AND INFORMATION SERVICES
Five Steps in Market Research
Identify the problem
- The retailer states the problem & the information needed to solve it
- The problem must be stated as simply & as clearly as possible so that research ?’s can be developed to provide the information needed
- Data are facts discovered in the market research process
- In this step, data related to the problem are collected & studied
- Primary data
- Secondary data
Analyze data
- In this step the data are compiled, studied, & interpreted
- It is important to note that data should be assessed carefully & objectively since the same data may mean different things to different people
Choose the best solution
- Once the data have been studied & analyzed conclusions can be drawn
- There are usually several conclusions that lead to several recommendations for solutions to the problem studied
- In this step, the best solution is recommended along with the reasons why it is the best option
- Recommendations should be presented in a written report
Follow up on the results
- Once the research is complete & the recommendations have been implemented, it is time to evaluate against the marketing results
- The business owner will want to know if the actions recommended by the research were successful or not