Chapter 4 - Marketing Researh

What is marketing research?

The process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions.

What is the main purpose of marketing research?

To reduce risk and improve marketing decisions.

What are 3 challenges in conducting good marketing research?

• Predicting demand for completely new products

• obtaining personal information consumers are reluctant to reveal

• accurately recalling past interests, intentions, and purchases.

What are the five steps of the marketing research approach?

1. Define the problem

2. Develop the research plan

3. Collect relevant information

4. Develop findings

5. Take marketing actions.

Why is feedback important in the five-step research approach?

It allows researchers to learn lessons that can improve future research.

What is Step 1 of the marketing research approach?

Define the problem, issue, or opportunity

What is the purpose of Step 1?

Clearly identify the marketing problem or opportunity and clarify research objectives, often by posing a question to answer.

What are research objectives?

Specific, measurable goals that guide marketing research.

What are two common marketing research objectives?

Discover consumer needs and wants, and determine why a product is not selling.

What are measures of success?

Criteria or standards used to evaluate proposed solutions to a marketing problem.

Why should possible marketing actions be identified in Step 1?

Different research outcomes and measures of success can lead to different marketing actions.

What happens if research objectives are too broad?

The problem may not be researchable.

What happens if research objectives are too narrow?

The value of the research results may be seriously diminished.

What is Step 2 of the marketing research approach?

Develop the research plan - Specify constraints, identify the data needed for marketing actions, and determine how to collect the data.

What are constraints?

Restrictions placed on potential solutions to a problem.

What should effective marketing research focus on collecting?

Data that will lead to effective marketing actions.

What are concepts in marketing research?

Ideas about products or services.

What are methods in marketing research?

Approaches used to collect data to solve all or part of a problem.

Why do researchers use samples instead of a complete census?

Studying every person in a population is usually too time-consuming and costly.

What is sampling?

The process of gathering data from a subset of a population instead of every member.

What is probability sampling?

Selecting a sample in which each population element has a specific, known chance of selection.

What is non-probability sampling?

Selecting a sample in which the chance of choosing a particular population element is unknown or zero.

What is the difference between probability and non-probability sampling?

Probability sampling uses known selection chances; non-probability sampling has unknown or zero selection chances for some elements.

What is Step 3 of the marketing research approach?

Collect the relevant information.

What is data in marketing research?

Facts and figures related to a research project.

What are the two main categories of marketing research data?

Primary data and secondary data.

What is secondary data?

Facts and figures that have already been recorded by a third party or previously collected.

What is primary data?

Original data collected specifically for the research project.

What is the difference between primary and secondary data?

Primary data is collected specifically for the current project; secondary data already exists.

What are two types of secondary data sources?

Internal data and external data.

What are examples of internal secondary data?

Financial statements, sales reports, and customer communications.

What are examples of external secondary data?

Census reports, trade association studies, business periodicals, and internet-based reports.

What are the three categories of primary data collection shown in the diagram?

Observational data, questionnaire data, and other sources.

What are examples of observational data collection?

Mechanical methods, personal observation, and neuromarketing methods.

What are two types of questionnaire methods?

Idea generation methods and idea evaluation methods.

What are other sources of primary data? (5 points)

Social media, panels and experiments, information technology and the Internet of Things, and data mining.

What qualitative research uses groups to talk with a moderator for several hours about predetermined topics?

Focus groups

What is social listening?

Monitoring public online consumer conversations and images across social networks, blogs, and public forums.

What is Step 4 of the marketing research approach?

Develop findings by analyzing data and presenting the results.

What is information technology in marketing research?

Computing resources used to collect, store, and analyze data.

What is data mining?

Processing large amounts of data with sophisticated software to identify correlations and patterns that improve business decisions.

What are examples of internal data sources in the intelligent marketing enterprise platform?

Customer orders, customer data, inventory, sales calls, and promotions.

What are examples of external data sources in the intelligent marketing enterprise platform? (5 points)

Global sources, trade associations, census data, the Internet of Things, and single-source services.

What is the role of a data warehouse in the marketing research diagram?

To store and organize internal and external databases for analysis.

What 3 technologies are included in the cloud environment shown in the diagram?

Data storage, cloud computing capabilities, and artificial intelligence.

What is Step 5 of the marketing research approach?

Make action recommendations, implement actions, and evaluate results.

What two aspects are evaluated after marketing actions are taken?

The decision itself and the decision-making process used.

What is a sales forecast?

The total number of units of a product a firm expects to sell during a specified period under specified environmental conditions and marketing efforts.