MKTG 351: Chapter 9 - Market Research

Competitive Market Intelligence

 Ongoing process without any specific data requirement. 

1. Needs and wants change over time

2. Competitive market offerings change

3. Often collected by sales reps or third-party companies. 

Exploratory Research

Initial investigation into a phenomenon.

• Usually very open-ended in nature

• Focus groups

  • Some people talk more than others. Moderators should facilitate a balanced discussion that allows everyone to hear everything on both sides. 
    

Descriptive Research

Overall picture of the current state of the marketplace.

• Usually uses closed-ended surveys.

• Often used to confirm findings from exploratory research. 

Performance Monitoring Research

Assess the effectiveness of a marketing plan once that plan has been agreed upon.

Casually Research

Explains “why” something happens. 

• Relies on controlled experiments.

• Example: A/B testing of social media ad

Step 1: Identify and Formulate Research Problem

Step 1: Identify and Formulate Research Problem

• Define the Research Problem and Objectives

Step 2: Collect Secondary Data

Secondary data is used and collected for some other purpose, which is made accessible to researchers. Primary data is expensive because it must be obtained.

Advantages of Secondary Data

(1) Free/lower cost

(2) Easier to collect

(3) Saves time

(4) Helps create a refined problem statement. 

(5) May help you collect data that a company would have difficulty collecting (ie, census).

Disadvantages of Secondary Data

• May not be timely or current

• Quality control may influence accuracy and impartiality

• Information is not generated for your specific problem/opportunity → info is irrelevant 

Buying Research

 Syndicated data

• Collected by a third-party company to be sold to companies in a particular field.

• Generally high quality

• Expensive (but less expensive than trying to do it on your own).

Step 2b: Plan for Primary Data Collection

• Observation (Exploratory): ethnography, mystery shoppers, netnography (online)

• Survey (Descriptive): telephone, mail, mall, online 

• Interviews (Exploratory): individual, group interviews

• Experiments (Casual)

Step 3: Sampling Procedures

• Who is to be studied?

  • Universe or population of interest?

  • Individuals within the population of interest?

• How many people should be included in the sample size?

• How should the people in the sample be chosen?

  • Probability vs. Non-Probability

Probability vs. Non-Probability

• Probability: Simplified, stratified, cluster, systematic 

• Non-Probability: Convenience, judgement, quota, snowball

Probability (Random) Samples

Simple, Stratified, Cluster, Systematic

SSCS

Simple

Every single member of a population is chosen randomly, merely by chance.

Stratified

Divides the population into smaller groups that don’t overlap but represent the entire population.

Cluster

Divide the entire population of a wide geographic area into sections or clusters that represent a population of that area.

Systematic

Choose the sample members of a population at regular intervals.

Non-probability (Non-random) Samples

Convenience, Judgement, Quota, Snowball

Convenience

Ease of access to subjects such as surveying customers at a mall or passers-by on a busy street.

Judgement

Formed by the discretion of the researcher.

Quota

Based on a preset standard.

Snowball

Ask participants for contracts of other potential participants.

• Apply when the subjects are difficult to trace.

• May be helpful if there are topics that people wouldn't want to answer. 

Errors in Sampling

Frame, Non-response, Response, Random Errors

Frame

Did not adequately represent target sample.

Non-response

Some respondents refusal to participate.

Response

Respondents feel pressure to give the socially desirable answer or the questions are poorly worded

Random Errors

Too small and should be larger.

Step 4: Collecting Data

Can often be contracted to a field service firm.

Step 5: Analyzing Data

Can also be contracted to a field service firm.

Step 6: Preparing and Presenting Data

• The research team presents meaningful findings to the marketing management team.

• Marketing managers ultimately have responsibility for acting on research and making marketing decisions.