Research for Marketing

Marketing Research and Information Systems

What is Information?

Information is a difference that makes a difference. _{Gregory Bateson}

Information is news of difference that makes a difference to the one recieving the news.

If the world were not always different from moment to moment, information gathering would be irrelevant.

Data and information are not the same.

Merely processing data does not guarantee that you will have information.

Marketing Decision Support System

A decision support system (DSS) is a set of computer software programs that help managers make marketing mix decisions.

Marketing Decision Support System includes:

Market Response Models:

What elasticities are there to the various marketing mix variables?

What functional forms do responses to changes in competitors and own marketing mix variables?

Collection of internal and external data

Analysis of internal and external data to extract information

Collection and analysis of Marketing Intelligence

Record of competitor activities

Marketing information system and storage

Dissemination of information to decision-makers

Integration of extracted information into company objectives/plans

Research Process

Research is a non-linear iterative process.

AMA Definition of Marketing Research

Specifies the information needed

Designs the method of collecting information

Manages and implements the data collection process

Analyzes the results

Communicates the findings and implications

Primary vs Secondary Data

Main primary research approaches

Observation

Questionning

Hybrid approaches

Varieties of Observational Research

Electronic Observational Research

Bar-coding and scanning

Traffic counts

Hidden in-store observation stations

Questioning aka survey research

Mail Surveys

Phone Surveys

Intercept Surveys (computer aided or not)

Web-based surveys (email and/or web forms)

Professional interviewers (door to door, invitation etc.)

Hybrid methods involve some interaction with customers

Qualitative observation research

Customer visits in business-to-business marketing

Electronic observational research

Decision support systems

Voice of the customer

Hands-on consumer research

Focus Group Research -- special hybrid very common

A focus group is a carefully recruited group of Six to twelve people who participate in a free wheeling, One to two hour discussion that focuses on a particular Subject, such as product usage, shopping habits, etc.

Secondary Research

Statistical Abstract of the United States

Census data, Excellent Site

Google's Scholarly Database of Academic publications

www.stat-usa.com

www.yahoo.com

www.altavista.com

Technical Research Issues

Reliability

Validity

Sampling considerations

Representativeness is the Key

Random insures representative

Stratified samples

Clustered Samples

Quota samples

Convenience samples

Market Response Models:

What elasticities are there to the various marketing mix variables?

What functional forms do responses to changes in competitors and own marketing mix variables?

Competitor Research

Researching the history of the market Identifies the marketing mix and product dimensions on which sellers have competed

Levels of Competition

Current and Potential Competition

Auditing current competitors

Identification of rivals from whom you are gaining business and to whom you are losing business

New Competitive Threats Audit

A Competitive Analysis Checklist

Evaluate w/respect to:

Financial Position

Market Position

Product Position

Price Position

Inbound Logistics

Production Process

Outbound Logistics

Trade Relations

Advertising & Promotions

Sales Force Process

Channel Research

Types of Marketing Research Firms

Syndicated Service Firms

Full-Service Research firms

Types of Marketing Research Firms

Collect and distribute for many firms

Firms share the cost

Examples: A.C. Nielson, J.D. Powers, Simmons, Arbitron

Collect and distribute for one client

Client assumes entire cost of project

Research firm takes over marketing research function on behalf of client