Marketing Research: From
Customer Insights to Actions
CHAPTER 8
Learning
Objectives
1. Identify the reason for conducting
marketing research.
2. Describe the five-step marketing
research approach that leads to
marketing actions.
3. Explain how marketing uses secondary
and primary data.
4. Discuss the uses of observations,
questionnaires, panels, experiments, and
newer data collection methods.
5. Explain how information technology and
data mining lead to marketing actions.
Marketing Research
Goes to the Movies
1. Test (or preview)
screenings.
2. Tracking studies.
(1) Are you aware of the film?
(2) Are you interested in seeing the
film?
(3) Will you see the film?
LO1
Identify the reason for conducting
marketing research.
Marketing research is the
process of defining a
marketing problem and
opportunity, systematically
collecting and analyzing
information, and
recommending actions.
• Decision • Decision Making
A decision is a The act of consciously
conscious choice choosing from among
from among two or alternatives.
more alternatives
THE CHALLENGES IN DOING GOOD MARKETING
RESEARCH
1. How can marketing research determine if consumers will
buy a product they have never seen, and never thought
about, before?
2. How can marketing research obtain answers that people
know but are reluctant to reveal?
3. How can marketing research help people accurately
remember and re- port their interests, intentions, and
purchases?
LO2
Describe the five-step marketing
research approach that leads to
marketing actions.
• Decision • Decision Making
A decision is a The act of consciously
conscious choice choosing from among
from among two or alternatives.
more alternatives
FIGURE 8-1Five-step marketing research approach
leading to marketing actions
LO 8-2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES
LEGO Group’s definition of “toy” has
changed dramatically in the past 50 years— LEGO Group’s MINDSTORMS®
from interlocking plastic bricks to construction EV3 TRACK3R
sets that create figures, vehicles, buildings,
and even robots.
One new version of a LEGO Group toy is the
MINDSTORMS® kit, which integrates
electronics, computers, and robots with
traditional LEGO Group bricks
STEP 1: DEFINE
THE PROBLEM
LO 8-2
SET THE RESEARCH o Be Specific, Measurable,
OBJECTIVES and Achievable
o Have a Clear Research
Purpose
o Must Lead to
Marketing Actions
LO 8-2
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES
Exploratory Research
provides ideas about a vague problem
Descriptive Research
involves trying to find the frequency with
which something occurs or the extent of a
relationship between two factors.
Causal Research
tries to determine the extent to which the
change in one factor changes another one
LO 8-2 STEP 1: DEFINE THE PROBLEM
Identify Possible Marketing Actions
Measure of success is the total
Measures of Success time spent with each of the two
potential new MINDSTORMS® kits
Criteria or standards used in until a device that can do simple
evaluating proposed solutions tricks is produced.
to the problem.
Different research outcomes, Marketing action: Market the kit
based on the measure of that produces an acceptable
success, lead to different device in the least amount of
marketing actions. playing time
LO 8-2 STEP 2: DEVELOP THE RESEARCH PLAN
The second step in the marketing research process requires that the
researcher :
(1)specify the constraints on the marketing research activity,
(2) identify the data needed for marketing actions, and
(3) determine how to collect the data.
HOW TO COLLECT
CONSTRAINT DATA NEEDED
THE DATA
The decision Concepts (ideas about
(1) must be made products or services)
LEGO Group’s marketers
in five weeks Methods are the
might want to know
(2) using 10 teams of approaches that can be
students’ math skills, time
middle schoolers playing used to collect data to
spent playing video games
with the two improved solve all or
MINDSTORMS® kits. part of a problem.
Special methods vital to marketing are
(1)Sampling - selecting a group of distributors,
customers, or prospects, asking them questions, and
treating their answers as typical of all those in whom
they are interested.
(2) Statistical inference- to generalize the results
from the sample to much larger groups of distributors,
customers, or prospects to help decide on marketing
actions.
LO3
Explain how marketing uses secondary
and primary data.
LO 8-3
STEP 3: COLLECT RELEVANT
INFORMATION/DATA
Data, the facts and figures related to the project, are divided into
two main parts: secondary data and primary data.
Secondary data are facts and figures that have already
been recorded prior to the project at hand. (internal and external secondary
data)
Primary data are facts and figures that are newly collected for the project.
FIGURE 8-2
Types of
marketing
information
LO 8-3
STEP 3: COLLECT RELEVANT DATA
SECONDARY DATA
Advantages
• Time Savings
• Inexpensive
Disadvantages
• Out of Date
• Definitions/Categories Not Right
• Not Specific Enough
LO4
Discuss the uses of observations,
questionnaires, panels, experiments,
and newer data collection methods.
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—WATCHING PEOPLE
Observational Data
o Mechanical Methods
• Nielsen’s People Meter • Nielsen’s TV Ratings
FIGURE 8-3 Nielsen Broadcast Ranking Report for network TV
primetime households for the week ending May 19, 2013
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—WATCHING PEOPLE
Personal Methods
• Mystery Shopper
• Ethnographic Research
Neuromarketing Methods
Consumers’ feelings toward products and brands
reside deep within the subconscious part of their
brains.
“anchoring effect”
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—ASKING PEOPLE
Questionnaire Data
Idea Generation Methods
Producing Ideas
Idea Evaluation Methods
Testing an Idea
Idea Generation
FOCUS
Methods GROUP
DEPTH
INTERVIEW MALL INTERCEPT
INDIVIDUAL ONLINE
INTERVIEW SURVEYS
TELEPHONE
INTERVIEW
PERSONAL
INTERVIEW
SURVEYS MAIL
SURVEYS Idea Evaluation
Methods
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—QUESTION FORMATS
Open-Ended Questions
Closed-End or Fixed
Alternative Questions
Dichotomous Questions
Semantic Differential Questions
Likert Scale Questions
Open-ended question
Dichotomous question
Multiple choice
FIGURE 8-4A
question Different types
of questions in
a sample
Attitudinal question Wendy’s survey
(Q1 – Q5)
Semantic differential
Scale question
Likert Scale question
FIGURE 8-4B
Media behavior question Different types of
questions in a
Usage behavior question
sample Wendy’s
survey (Q6 – Q9)
Demographic question
LO 8-4
STEP 3: COLLECT RELEVANT DATA
PRIMARY DATA—OTHER SOURCES
Four other methods of collecting
primary data exist
(1) social media,
(2)"panels and experiments,
(3) information technology, and
(4) data mining.
LO5
Explain how information technology and
data mining lead to marketing actions.
LO 8-5 STEP 4: DEVELOP FINDINGS
o Analyze the Data
• How are Sales?
• What Factors Contribute to
Sales Trends?
o Present the Findings
FIGURE 8-7
Marketing
dashboards that
present findings to
Tony’s marketing
manager that lead
to recommendations
and actions
LO 8-5 STEP 5: TAKE MARKETING ACTIONS
o Make Action
Recommendations
o Implement the Action
Recommendations
o Evaluate the Results
• The Decision Itself
• The Decision Process Used
