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Final

RMG 400 Study Guide - Final Guide: Constant Contact


Department
Retail Management
Course Code
RMG 400
Professor
Hong Yu
Study Guide
Final

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Ch.4 Obtaining Assistance for Making Buying Decisions
MARKETING RESEARCH
The systematic process of gathering, recording, and analyzing information about problems
related to marketing; involves using information or data from many sources.
Using Marketing Research
One of the most frequent uses of marketing research is to locate information that describes current
economic and market conditions that would help you better understand the environment in which you
store operates.
Developing a customer profile will help you make day-to-day business decisions such as
selecting products to purchase and choosing which types of promotion to use.
Determining an area’s unemployment rate, new housing starts, and other similar economic data
can be used to make forecasts about future sales. Ex of economic data that buyers use are
commodity prices, building permits, unified orders for durable, stock prices, consumer
confidence, new plants/equipment, unemployment claims.
Many times buyers are faced with conflicting data when making a decision
Good marketing research allows you to anticipate and capitalize on changes occurring with customers.
The size of your store will affect how marketing research is conducted—most small retailers can’t afford
the money or the time to analyze hundreds of customer surveys so they rely on newspapers or
magazines or observing customer (informal surveys)
Collecting Data
Your first step should be to locate all relevant data from secondary sources (little or no cost):
Government agencies
Newspapers
Trade journals
Trade associations
In many situations, secondary data is not enough to help make a decision, need to collect primary data:
Primary data is collected by interviewing consumers
The key advantage is that it specifically relates to the problem being researched
Obtaining primary data may be time-consuming and expensive
When conducting marketing research, you are looking for answers, not just information; study the data
that you have collected and determine their meaning.
INTERNAL SOURCES include:
Store records
Management
Sales associates
Store Records
Increasingly, retailers are tracking more than just total sales, including types of products that
customers generally purchase together or characteristics of customers who purchase a
particular product
The key limitation to relying on sales and inventory records to predict consumer demand is that
they reveal only what you customers have purchased or not purchased; does not reflect what
the customer would have purchased if the merchandise had been in stock.
Some stores operate a formal Want slip system: A form is completed each time a customer requests a
product not in stock. Could help plan future merchandise assortments if a large number of you
customers are making similar requests. Cannot meet every customer request.
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