Mrkting Exam II Ch. 8

• Primary Data = Facts and Figures newly collected for a project
• v.
• Secondary Data = Facts and Figures that have already been collected for another purpose

*ALWAYS use Secondary Data first*

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending action

• Generation
• Purpose: uncover ideas to test during 'idea evaluation stage'
• Typical Methods: one-on-one conversations, focus groups, brainstorming sessions using small samples
• Kinds of Questions/data: open-ended, observational
• How results are analyzed: Qualitative analysis

• Evaluation
• Purpose: test ideas discovered in hypothesis generation stage to recommend marketing actions
• Typical Methods: mail, telephone, and personal interviews using large samples
• Kinds of Questions/data: fixed alternative
• How results are analyzed: Quantitative analysis

• 1. Focus Groups
• 2. Crayons
• 3. Collages
• 4. Personal Items from home
• 5. Ethnographic
• 6. Cool Hunters
• 7. Mystery Shoppers
• 8. Hypnosis

• A Qualitative Research Method
• An informal one-time session of 6-15 current or potential users of a product or service in which a discussion leader seeks their opinions on the firm's or a competitor's products or services.

• Can be used for: - idea generation
• - Development and Pre-testing of Questionnaires
• - Overall background information on product or service category

• A Qualitative Research Method
• where different colors represent different moods/attitudes towards a product

• A Qualitative Research Method
• When you do 'X', choose a picture that matches how you feel

• A Qualitative Research Method
• "bring something from home that represents how you feel when you have a migrane"

• A Qualitative Research Method
• If we watch people in their daily routine and see how they act, respond, and learn new behaviors

• A Qualitative Research Method
• "trend spotters" @ big locations; Rodeo Dr., Soho, Milan, Tokyo, etc

A Qualitative Research Method

• A Qualitative Research Method
• 10% > $, put under hypnosis and asked personal questions regarding sexuality and sensitive topics.
• Helps get more accurate information from people who may at first may feel sensitive to answering these questions

Sample: A segment of the population selected for market research to represent the population as a whole

• Definition - The selection of a sample using precise rules such that each element of the
• population has a specific known chance of being selected. This
• technique allows the sample to be representitive of the entire
• population and conclusions to be drawn about the entire population.

• 1. Simple Random Sample
• 2. Stratified Random Sample
• 3. Cluster Sample

• A Type of Probability Sampling
• Each element of the population has an equal chance of being chosen

• eg. having 20,000 cuctomers, and taking a sample of 200 with each customer having an equal probability of being chosen

• A Type of Probability Sampling
• The population is divided into groups and a simple random sample is then selected from each group.

• total # 20k # we take from each hat
• Charge Light 5,000 25
• Card Med. 10,000 50
• Usage Heavy 5,000 25

A Type of Probability Sampling

Random selection of entire groups of elements

• Systematic Cluster Sample
• Elements are chosen from a list of the population at fixed intervals
• eg. 20,000/100 = 200 or 400 or 600 etc....

• Area Cluster Sample
• Population is divided into geographical groups (census tracts, blocks, etc.) and a sequence of random samples is drawn from a series of geographic subdivisions.
• (A sample is NOT drawn from each geographic group)

Defined - The selection of a sample using arbitrary judgments so the chance of selecting a particular element may be unknown or 0. Samples may give biased data as it is NOT representative of a population.

• types - 1. Convenience Sample
• 2. Judgement Sample
• 3. Quota Sample

• Type of Non-probability Sampling
• The researcher selects from the most accessible population members from which to obtain information, usually with minimum time and cost.

• Type of Non-probability Sampling
• Researcher uses own judgement to select sample members who are good prospects for accurate information

Type of Non-probability Sampling

Type of conveinience and judgement sample whereby researcher specifies a mix of characteristics of respondents (sex, age, income, purchase volume, etc...)

• eg. x male: y female
• age 19-28: 29-40

• Does it provide the necessary decision-making information?
• Consider the respondent
• Simple, direct, & unbiased wording
• Editing, coding, & data processing requirements - The more expensive it is to interpret, the greater the $ the survay will cost.

• Completely unstructured: "what is your opinion of Delta Airlines?"
• Word Association: "What is the first word that comes to your mind when you hear the following?" - Airline ________, Delta________, & Travel________.
• Sentence Completion: "When I choose an airline, the most important consideration in my decision is _____________.

• Dichotomous: yes/no
• Multiple Choice: 3+ choices
• Likert Scale: Amount of agreement/disagreement

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Semantic Differences: Bipolar 7 pt. scale; direction & intensity of feeling

• Love ___ ___ ___ ___ ___ Hate
• Large ___ ___ ___ ___ ___ Small

Intention to buy scale: Describes intention to buy

Definitely Buy Probably Buy Not Certain Probably Not Buy Definitely Not Buy

• # HH using Prod. x 100 = US HH penetration
• US HH
• # products purchased = Buying Rate
• # HH using Prod.

eg. 100mil US HH & 40mil using product & 120mil prod. purchased

• 40mil/100mill * 100 = 40% penetration
• 120mil/40mil = 3 products per HH (Buying rate)

• 1. Define the Problem
• 2. Develop the Research Plan
• 3. Collect Relevant Information
• 4. Develop Findings
• 5. Take Marketing Actions

• Objectives - specific, measurable goals the decision maker seeks to achieve in solving a problem (SMART goals)
• Garbage in - Garbage out

• Exploratory Research - exploring the market
• Descriptive Research - talks about depth of relationship; how often & how you use a product/service
• Causal Research - If we do 'X' what is going to happen to 'Y'?

• Measures of success - criteria or standards used in evaluating proposed solutions to a problem.
• --> take personal opinion out & determine how you you will measure success

• Test for Market Research - Do different outcomes lead to different marketing actions?
• --> Is there another way to change things without doing this research?

• Specify the constraints on the research activity --> time & money
• Identify the data needed for marketing action
• Determine how to collect the data