Marketing- Chapter 5
Marketing Research: Is a key pre-requisite to successful decision making. It is a set of techniques
and principles for systematically collecting, recording, analyzing and interpreting data that can aid
decision makers involved in marketing goods, services or ideas
Marketing research can provide valuable information that will help segmentation,
positioning and the 4P’s
It helps reduce some of the uncertainty marketers work under
Provides link between firms and environment, enabling customer orientation
Through constant monitoring of competitors firms can respond quickly to competitor
Identifies emerging opportunities and new and improved ways of satisfying customer
Using Marketing Information System to Create Value: An MIS is a set of procedures and
methods that apply to the regular, planned collection, analysis, and presentation of information that
then may be used in marketing decisions.
Provides a means to accumulate information from sources both internal and external to
Enables More informed decision making
Can be used to generate customized analysis or for individual marketing projects
Enables firms to react to changes and provide consumers with greater value
Firms must use data mining to extract information from large data warehouse
o Data mining: Uses a variety of statistical techniques to uncover previously
unknown patterns in the data, or relationships among variables.
The Ethics of Using Computer Information: Marketing researchers must be cerful not to
abuse their ability to access these data, which can in some cases be very sensitive materials.
Consumers want assurance that they have control over the information that has been
collected about them
Anxiety has led to government to enact legislation
o Privacy Act: governs collection, use, disclosure etc. of personal information
Researchers must assure consumers that the information they provide will be treated
will confidentiality and used solely for research purposes
CMA provides guidelines The Marketing Research Process: Will research be useful? Is top management committed to
the project and willing to abide by the result of the research?
Step 1: Define the Problem and Objectives
If problem is defined incorrectly you will end up with wrong solution
Must specify research objectives or questions to be answered
Poor design due to three factors
o Basing research on irrelevant questions
o Focusing on research questions that marketing research cannot answer
o Addressing research questions to which there is no answer
Step2: Design the Research Project : Identify the types of data needed and the types of research
necessary to collect it.
Secondary Data: Pieces of information that have already been collected from other sources and
are usually readily available.
o Census data, Journal Articles
o Syndicated data: Data available for a fee form commercial research firms. May provide
info about competitor prices shifting brand preferences and product usage in homes
o Generally secondary data can be quickly accessed for a relatively low cost
o May not be completely relevant because it was collected with a different purpose in
Primary Data: data collected to address specific research needs
o Collected in a variety of ways, surveys, interviews, observation etc.
o Helps to eliminate some of the problems inherent to secondary data
o Can be tailored to fit pertinent questions, however is takes longer, requires skilled
individuals, can be costly
o Bias : can exist in terms of researcher and population biases
o Reliability: the extent to which the same result is achieved when a study is repeated
under identical situations
o Validity: the extent to which a study measures what it is supposed to measure
o Sample: A segment or subset of the population that adequately represents the entire
composition of the populations interests
o Sampling: The process of a picking a sample
Who should be surveyed?
How big should the sample be?
What types of sampling procedures to use? 3: Data Collection Process
Exploratory Research Methods: Attempts to begin to understand the phenomenon of interest; also
provides initial information when the problem lacks any clear definition
Observation: Entails examining purchase and consumption behaviours through