last updated 2010 Jan 20 
- small changes made 2012 Jan 17 and 21st

Material for this unit originally (Oct 2009) came from the Chpt 8 of text Basic Marketing 12th ed. Perreault, McCarthy, Meredith, Ricker, published by McGraw-Hill

• marketing information systems
• the scientific approach to marketing research
• defining and solving marketing problems
• primary and secondary information
• observing, questioning, experimental methods in marketing research

"The possession of information is often considered a critical part of corporate competitiveness. Information itself is not so valuable - what is valuable is the tools to aggregate the information, manipulate it, synthesize it so you can draw conclusions which can assist in decisions" WTGR

Prof. Richardson created this quote many years ago while observing companies spend a lot of time acquiring information, or storing existing customer information, without seriously thinking about how they could have this information in a form that can be searchable, and useable such that it can contribute to making decisions.

WTGR

in the text Basic Marketing 12th ed. by Perreault, McCarthy, Meredith and Ricker

"an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make decisions"

broken down

.... an organized way
- meaning a way of getting the information on a regular basis so that you are actually doing something useful and relevant

example: car dealerships:  have an employee check the weekly newspaper ads of the competition to see what promotion offers are being advertised

example: the company scans the bar code of products as they are sold and the information is processed by software at head office, allowing you to know how many people are using the 10% discount coupon you had printed in the newspaper ad the following week

example: the company scans the bar code of products as they are sold ....
- which goes towards making fast decisions about the advertising effectiveness of certain promotion strategies and tactics

example: car dealerships:  have an employee check the weekly newspaper ads of the competition to see what promotion offers are being advertised - then think about how you can create a competitively attractive promotion offer to counter the competition - communicate this information to the car sales personnel so they will be able to have this info in answering questions from potential customers

example: car dealerships:  the competition is going to start giving away free bluetooth cell phone headsets with every test drive - that information is useful in the context of the law now requiring drivers to use hands free devices - knowing this information can allow a dealership to offer something competitively similar so they will not lose out on attracting customers who may be interested in this gimmick to get them in to test drive a car

WTGR asks "How has web-based information contributed to marketing research?"
 

• speed
• quantity
• diversity
• cost
• relevancy
• creation
• eliminate errors
• accuracy..
• customer opinions

• speed - information can be obtained faster, therefore saving time, and saving time sometimes saves money
• you can look up questions in search engines
•  witiger.com/ecommerce/searchengineissues.htm 
• quantity - larger amounts of information can be obtained
• massive databases of government and corporate information are available online
• example: postal codes, telephone reverse look-up, demographic statistics
• Canadian population by province  www40.statcan.gc.ca/l01/cst01/demo02a-eng.htm 
• diversity - more complex information can be obtained
• example: business locations, combined with aerial photos
• Prof. Jim Davidson says you can set up a focus group with remote web cams to have multiple participants contributing to a discussion which results in a more informed exchange of ideas compared to a smaller number of people in one location
• cost - some information is cheaper to obtain online
• example: you don't have to buy the government directory of overseas embassies and consulates, you can look up the information on the website for free
• relevancy - some types of web-based information allow business people to make decisions that are more up-to-date because they can access information faster and information that is more current
• example: using images from web cams to see real-time situations instead of static images
•  witiger.com/ecommerce/webcams.htm 
• creating data
• marketing research companies are using the web in innovative ways to create data
• example using people's responses to posting information on social networking sites, questionnaires, Facebook groups
• crowd sourcing answers
• eliminate errors
• Dick McCullough writes that "Web-based surveys eliminate interviewer bias, too. If the interviewer is in a bad mood or doesn't like certain types of people or dislikes the subject matter being discussed, etc., the data can be affected. In Web-based surveys, every respondent has exactly the same interviewer; an interviewer that is never tired, moody, prejudiced, impatient or opinionated. "
• Google is using  www.google.ca/mapmaker   to "crowd source highly detailed maps and identify features on maps
• accuracy
• web-based surveys of customers can be more accurate since it is possible, with websites, to display more information - respondents can look at pics and videos, rather than be confined to making their choices from words on a paper questionnaire
• example: google streetscape will allow people to view features of your house instead of relying on words in a real estate ad
• customer opinions
• discussion boards, forums and social networking sites reveal people expressing opinions on products and services - depending on how the forum is structured, many times opinions expressed are without bias

(exception - hotel rating opinion forums and social networking sites)

IDC Canada  www.idc.ca/canada (U.S. parent  www.idc.com ) 
Pollara  www.pollara.ca 
..

also
The Marketing Research and Intelligence Association (MRIA) www.mria-arim.ca 
is a Canadian not-for-profit association created in 2004 that merged the
                       o Canadian Association of Market Research Organizations (CAMRO)
                       o Canadian Survey Research Council (CSRC) 
                       o Professional Marketing Research Society (PMRS).

an industry specific market research association
Travel & Tourism Research Association www.ttracanada.ca

in the text Basic Marketing 12th ed. by Perreault, McCarthy, Meredith and Ricker

PIPEDA   www.priv.gc.ca/resource/io_pr_1_e.cfm 
is a Canadian federal law that requires companies to handle privacy issues according to stringent regulations.

Some of the basics described at www.priv.gc.ca/information/pub/guide_sb_e.cfm#contenttop  

Collect and keep information with care

"When you collect information from your customers, you must ensure that you explain your purpose and get their consent in advance. Sometimes express consent is required, while other times implied consent may be sufficient."

"You can collect only information that is needed for your business purposes"

"You must indicate in your policy if you intend to disclose customer information to an affiliate or partner organization, or any other third party."

"The use of a third-party information processor, such as a company that provides payroll services, increases the likelihood that information under your control will be stored outside Canada. You must be open with your customers about this possibility."

When organizations in the United States collect personal profile information it is the property of the organization that collects it, and they sometimes buy and sell segments of your profile data to other enterprises who are seeking to compile detailed customer profile information which can be sold to vendors seeking  to achieve a higher sophistication in "target market segmentation"

In Canada, we have rules and regulations about the collection of personal profile information and organizations that collect your personal data DO NOT have permission to disclose this to anybody else without your express consent.
 

see  witiger.com/ecommerce/privacyissues.htm

in the text Basic Marketing 12th ed. by Perreault, McCarthy, Meredith and Ricker

The Perreault text uses 5 steps, some others use 6 steps

Perreault's 5 steps are

1. define the problem
2. analyze the situation
3. get problem specific data
4. interpret the data
5. develop conclusions
 

U.S. based Polaris Marketing Research is an example of a company that uses the 6 step approach ( www.polarismr.com/education/steps_index.html )

1. Identifying and defining your problem
2. Developing your approach
3. Research design - a step added in referring to the way you go about getting the info
4. Collecting the data
5. Performing data analysis
6. Reporting and presentation
 

WTGR Jan 20th, 2010          3 min 44 secs

1. define the problem

•  Identify
•  Defining
•  Setting research objectives

• The target market might be student, adults and old people
• Their interest
• Understanding
• What can be provided
• solutions

• Changes in the marketing mix
• Response
• Outline

Setting research objectives

• Goals
• Areas to focus
• Specific information

2. analyze the situation 

Life Style Analysis
 

• Activities
• Interests
• Opinions
• Demographics

Physical Needs

• Safety
• Social
• Personal

Buying Process

• New Task Buying
• Straight re-buy
• Modified re-buy

In a large and complicated process of Marketing research, you could also consider gathering information according to the 6 influencing Environments
 o Competitive Environment
 o Economic / Financial
 o Physical / Geographic
 o Political / Legal / Regulatory
 o Sociocultural / Ethnic / Linguistic
 o Technological

Points above contributed by Sky, Vicky, Sophia, Kayla in MRK200 Oct 2009

3. get problem specific data

Marketing research data collection (often called survey fielding) is the point at which the finalized questionnaire (survey instrument) is used in gathering information among the chosen sample segments

• Objective: to learn the thoughts and behavior of consumers
• Depends on the money and time available
• Data collection process often takes from 25 percent to 50 percent of the total time needed to complete a research project
• What to ask and how to ask during research depends on how the information will be attained

Four main methods used: 1) surveying 2) focus groups 3) observation 4) experimental

from Joanna, Chelsea, Shannon, Wesley, Kushal. MRK 213 MQ Janurary 18, 2010

3. get problem specific data

Questioning (Survey and Focus Groups)
Finds out customers’ unmet need and how to met them; new product ideas; divided into qualitative and quantitative
 
 

Focus group- an informal interview of 6 to 10 people whose discussion is guided by a group leader (or trained moderator); the discussion focuses on the topic of the hypothesis or research problem, stimulates thinking and obtains immediate reactions
Cons: can be unrepresentative of entire target market; bias;

Qualitative research- seeks in-depth, open-ended responses, not ‘yes’ or ‘no’ answers
Pros: consumers can be very expressive and detailed
Cons: difficulty lies in summarizing data; subjective results

For example, showing a customer a slide and asking them to comment on it, leaving their minds open and not guiding them towards any one particular answer or judgment.
The most common qualitative research is done through the use of Focus Groups where anywhere from 5 people upwards are invited to an informal panel or discussion around a particular topic. Information obtained might be BIASED, people like to please other people and may feed wrong or inaccurate answers
 

Quantitative research- seeks structured responses that can be summarized by numbers (ex. statistics, percentages etc.)
Pros: samples are larger and more representative; absolute conclusions; speeds answering and analysis; consumers’ attitudes and opinions can be found through questionnaire which ask for a response to a statement in the form of agree/disagree and excellent/poor
Cons: response rate

The most widely used form of quantitative research is in SURVEYS, which can provide immediate, structured feedback from broad target markets, and can be turned into problem specific data quickly by computer applications.

Survey- most common method of collecting primary data, asks questions to evaluate the customers' buying habits, compare products to competitors, test a new ad campaign, etc.
Cons:  sometimes implemented with insufficient skill or care, making it difficult or unreasonable for the respondent to give useful answers

TYPES OF SURVEYS
MAIL AND ONLINE SURVEYS- a questionnaire is distributed by email or regular mail. Respondents can complete the questionnaire in their own time, or not at all.
TELEPHONE SURVEYS- are fast and effective because the respondent can provide simple straight forward answers to a series of questions which can be directly fed into your problem specific data.
PERSONAL INTERVIEWS- can be more in depth and can obtain more flexible, wider ranging answers to questions. It is easier to get and maintain attention when the interviewer is actually present, no ignoring survey mail or hanging up on surveyors. Much more expensive than phone or mail surveys, but can provide more detail.
 

Response rate- the percent of people contacted in a research sample who complete the questionnaire; results may be misleading if the respondents are not well-representative

from Joanna, Chelsea, Shannon, Wesley, Kushal. MRK 213 MQ January 18, 2010
also James C., Bogdan B.,  Christopher C. and Muhummad W. MRK 213 Jan 20, 2010

3. get problem specific data

Market research data collection methods:

• Computer Assisted Telephone Interviewing (CATI)
• Internet survey
• Interactive Voice Response (IVR)
• Mail survey
• Mall intercepts
• Traditional telephone interviewing
• Internet panel
• Mail panel
• In-home panel
• Personal interviews
• Focus groups

3. get problem specific data

Observations (Observation and Experimental)
Observation method

Focuses on well-defined problems
Researchers try to see or record what the subject does naturally – they don’t want to influence the subject’s behavior.
A major breakthrough in helping researchers collect very specific, useful information is the use of computerized scanners.
Some research firm’s use consumer panels – a group of consumers who provide information on a continual basis. i.e. An ID card is given to the clerk to scan whenever a panel member shops for groceries. The scanner then records every purchase, which provides information such as brands, sizes, prices, and coupons that he or she used. The scanner data can also be combined with other information specific to that person to create a complete consumer profile.

Experimental method

There are two types of experimental methods, questioning or observing.

With the experimental method, researchers compare two groups that are quite similar, except in the matter or subject being researched. If for some reason these two groups differ in small details, this is valuable information to obtain and can be very problem specific. This can be as simple as changing the price of a product in one target market and leaving it the same in another, then tracking how that affected regional sales and customer buying practices.

Researchers compare the responses of two or more groups that are similar except on the characteristic being tested. From this, researchers can learn whether the specific characteristic cause differences in some response among the groups.

Researchers don’t use the experimental method as often as surveys and focus groups because most managers don’t understand the valuable information they can get from this method and some don’t like the idea of a researcher experimenting with their business.

Another common way of collecting problem specific data is by using small private firms that specialize in collecting information and selling it to managers that subscribe for regular updates

Syndicated Research
Syndicated Research is research that is usually done by a marketing research firm and sold to customers on a large scale. Businesses for example might subscribe to a research companies services and be updated monthly, daily or even in realtime about the shifts in their target market that the information obtained shows. This way they can react to small shifts while maintaining their budgets and not directly running a research department within their own business.

from Joanna, Chelsea, Shannon, Wesley, Kushal. MRK 213 MQ Janurary 18, 2010
Work Cited
Perreault, William D., et al. Basic Marketing. Toronto: McGraw Hill Ryerson Limited, 2007. Print.
“Step 3: Obtaining problem-specific data”. Marcbowles. The Institute for Working Futures, 2007. Web.

4. interpret the data

This is the process of analyzing all the collected data to decide what it all means. Interpreting data is done through several approaches which includes:

Statistical Packages which are easy to use computer applications to interpret data.
Cross Tabulation is a simple and commonly used method. It shows the relationship between answers to different questions.
Sampling may be used to represent a whole segment to be analyzed and interpreted.  
Random sampling may best represent the whole segment to be analyzed and interpreted and confidence Intervals shows the range on either sides of an estimated data that is likely to contain the real value for the whole segment.

Interrupting the data is the process of gathering and analyzing the data to determine its meaning and thus to make decisions and solve problems that will benefit the company.

By: Vilye S., Peter V., Carmela T., Christina T.   MRK 213 January 18th, 2010
also David O. and Richard P. MRK 213 Jan 20th

4. interpret the data

Interrupting the data is the process of gathering and analyzing the data to determine its meaning and thus to make decisions and solve problems that will benefit the company.

In quantitative research this step usually involves statistics which provides the manager with concrete decisions. The actual collection of data varies. From a population we extract sample data in which we can draw conclusions about the population.  We can take a random sample of the population, meaning that each piece of data as an equal chance of being selected.  Another way to interpret the data is by using confidence intervals.  In this instance, the correct value is found within a specific range of values.   The larger the sample size the more accurate the data is. 

Research results are not always exact as Validity and Poor interpretation can destroy the research.

Validity problems occur when the data may not be entirely accurate due to peoples’ misunderstanding the questions asked.  Therefore, it is up the market researcher to ensure the questions asked are clear and easily understood.  If the data is misinterpreted than the research may very well be obsolete.  

Lastly, there has to be a joint effort between the marketing manager and the researcher in order to solve the problems efficiently and effectively.

By: Vilye S., Peter V., Carmela T., Christina T.   MRK 213 January 18th, 2010
also David O. and Richard P. MRK 213 Jan 20th

5. develop conclusions

4C's
Customer solution
Customer cost
Convenience
Communication

5C's of Marketing Strategy
COMPANY
CONTEXT
CUSTOMERS
COMPETITION
COLLABORATORS
from Jaap H.M. de Jonge at www.12manage.com  http://www.12manage.com/description_5_cs_marketing_strategy.html 

contributed by Sky