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1. 8-1McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 8-2
Identify the reason for conducting
marketing research.LO1
Describe the five-step marketing
research approach that leads to
marketing actions.
Explain how marketing uses secondary
and primary data.LO3
LO2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:

3. 8-3
Discuss the uses of observations,
questionnaires, panels, experiments,
and newer data collection methods.
Explain how information technology
and data mining lead to marketing
actions.
LO4
LO5
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:
Describe three approaches to
developing a company’s sales
forecast.
LO6

4. 8-4
 What’s in a
Movie Name?
 The Risks of Today’s
(and Tomorrow’s)
Blockbuster Movies
• Conduct Test
Screenings
• Use Tracking
Studies
HOW TEST SCREENINGS AND
TRACKING STUDIES REDUCE MOVIE RISKS

5. 8-5
FIGURE 8-AFIGURE 8-A Marketing research questions
asked in test screenings of movies that lead
to specific actions

6. 8-6
 Converting
Marketing Research
Results into Actions
HOW TEST SCREENINGS AND
TRACKING STUDIES REDUCE MOVIE RISKS

7. 8-7
 The Challenges in
Doing Good
Marketing Research
 Five-Step Marketing Research Approach
THE ROLE OF MARKETING RESEARCHLO1
 What is Marketing Research?
• Decision • Decision Making

8. 8-8
FIGURE 8-1FIGURE 8-1 Five-step marketing research
approach leading to marketing actions

9. 8-9
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES
LO2
 Be Specific, Measurable,
and Achievable
 Have a Clear
Research Purpose
 Must Lead to
Marketing Actions

10. 8-10
STEP 1: DEFINE THE PROBLEM
SET THE RESEARCH OBJECTIVES
LO2
 Exploratory Research
 Descriptive Research
 Causal Research

11. 8-11
STEP 1: DEFINE THE PROBLEM
IDENTIFY POSSIBLE MARKETING ACTIONS
LO2
 Measures of Success
Possible Marketing ActionsMeasure of Success: Playtime
• Children Spent More Time
Playing with Old Design
• Children Spent More Time
Playing with New Design
• Continue with Old Design;
Don’t Introduce New Design
• Introduce New Design;
Drop Old Design

12. 8-12
STEP 2: DEVELOP
THE RESEARCH PLAN
LO2
 Specify Constraints
 Identify Data Needed
for Marketing Actions

13. 8-13
STEP 2: DEVELOP THE RESEARCH PLAN
DETERMINE HOW TO COLLECT DATA
LO2
 Concepts
 Methods
• New-Product Concept
• Sampling
• Statistical Inference

14. 8-14
STEP 3: COLLECT RELEVANT
INFORMATION/DATA
LO3
 Data
 Secondary Data
 Primary Data

15. 8-15
FIGURE 8-2FIGURE 8-2 Types of marketing information

16. 8-16
STEP 3: COLLECT RELEVANT INFO/DATA
SECONDARY DATA
LO3
 Internal
• Marketing Input Data
• Marketing Outcome Data

17. 8-17
STEP 3: COLLECT RELEVANT INFO/DATA
SECONDARY DATA
LO3
 External
• Census Bureau
• Trade Associations
• Business Periodicals
 U. S.
2010
Census
 American
Community
Survey

18. 8-18
STEP 3: COLLECT RELEVANT INFO/DATA
SECONDARY DATA
LO3
 External
• Syndicated Panel Data
• Scanner Data

19. 8-19
 Statistical &
Financial Data
 Portals &
Search
Engines
Wall Street
Journal
CNBC
Investors
Business
Daily
Fox Business
News
GoogleUSA.gov
STAT-USA
Census
Bureau
MARKETING MATTERS
Online Databases and Internet Resources
Useful to Marketers
LO3

20. 8-20
STEP 3: COLLECT RELEVANT INFO/DATA
+/– OF SECONDARY DATA
LO3
 Advantages
• Time Savings
• Inexpensive
• Out of Date
• Definitions/Categories Not Right
 Disadvantages
• Not Specific Enough

21. 8-21
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—WATCHING PEOPLE
LO4
 Observational Data
• Nielsen’s People Meter
 Mechanical Methods
• Nielsen’s TV Ratings

22. 8-22
FIGURE 8-3FIGURE 8-3 Nielsen Television Index
Ranking Report for network primetime
households: Week of May 16-22, 2011

23. 8-23
FIGURE 8-BFIGURE 8-B Nielsen Online Ratings for the
top 10 Internet brands for August 2011

24. 8-24
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—WATCHING PEOPLE
LO4
 Personal Methods
• Mystery Shopper
• Videotaping
• Ethnographic Research

25. 8-25
MARKETING MATTERS
Buy•ology: How “Neuromarketing”
is Trying to Understand Consumers
LO4
 Neuromarketing
Methods
• What is it?
• Why is it
Important?

26. 8-26
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—ASKING PEOPLE
LO4
 Questionnaire Data
• Individual Interviews
 Idea Generation Methods
• Depth Interviews

27. 8-27
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—ASKING PEOPLE
LO4
• Focus Groups
 Idea Generation Methods
• “Fuzzy Front End” Ex: Trend Hunting

28. 8-28
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—ASKING PEOPLE
LO4
• Personal
Interview
Surveys
• Mail/Fax
Surveys
• Telephone
Surveys
 Idea Evaluation Methods
• Online
(E-Mail/
Internet)
Surveys
• Mall Intercept Interview Surveys

29. 8-29
FIGURE 8-CFIGURE 8-C Comparison of types of
surveys

30. 8-30
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—QUESTION FORMATS
LO4
 Open-Ended Questions
 Closed-End or Fixed
Alternative Questions
 Dichotomous Questions
 Semantic Differential Questions
 Likert Scale Questions

31. 8-31
FIGURE 8-4AFIGURE 8-4A Different types of questions in a
sample Wendy’s survey (Q1-Q5)

32. 8-32
FIGURE 8-4A (Q1)FIGURE 8-4A (Q1) Sample Wendy’s survey:
Open-ended question

33. 8-33
FIGURE 8-4A (Q2)FIGURE 8-4A (Q2) Sample Wendy’s survey:
Dichotomous question

34. 8-34
FIGURE 8-4A (Q3)FIGURE 8-4A (Q3) Sample Wendy’s survey:
Multiple choice question

35. 8-35
FIGURE 8-4A (Q4)FIGURE 8-4A (Q4) Sample Wendy’s survey:
Attitudinal question

36. 8-36
FIGURE 8-4A (Q5)FIGURE 8-4A (Q5) Sample Wendy’s survey:
Semantic differential scale question

37. 8-37
FIGURE 8-4BFIGURE 8-4B Different types of questions in
a sample Wendy’s survey (Q6-Q9)

38. 8-38
FIGURE 8-4B (Q6)FIGURE 8-4B (Q6) Sample Wendy’s survey:
Likert scale question

39. 8-39
FIGURE 8-4B (Q7)FIGURE 8-4B (Q7) Sample Wendy’s survey:
Media behavior question

40. 8-40
FIGURE 8-4B (Q8)FIGURE 8-4B (Q8) Sample Wendy’s survey:
Usage behavior question

41. 8-41
FIGURE 8-4B (Q9)FIGURE 8-4B (Q9) Sample Wendy’s survey:
Demographic questions

42. 8-42
FIGURE 8-DFIGURE 8-D Typical problems when
wording questions

43. 8-43
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—OTHER SOURCES
LO4
 Social Media

44. 8-44
USING MARKETING DASHBOARDS
Are Carmex Social Media Programs Working Well?
Conversation Velocity, Share of Voice, and Sentiment
LO4

45. 8-45
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—OTHER SOURCES
LO4
 Experiments
• Independent Variable:
The Cause (Drivers)
• Dependent Variable:
The Result
• Test Markets
 Panels

46. 8-46
FIGURE 8-EFIGURE 8-E Sales drivers: factors that
influence product or brand sales and are
essential for effective marketing programs

47. 8-47
STEP 3: COLLECT RELEVANT INFO/DATA
PRIMARY DATA—OTHER SOURCES
LO4
 Information Technology
• Sensitivity Analysis
• Data Warehouse
 Data Mining
• RFID Technology

48. 8-48
FIGURE 8-5FIGURE 8-5 How marketing researchers and
managers use information technology to
turn information into action

49. 8-49
MAKING RESPONSIBLE DECISIONS
No More Personal Secrets:
The Downside of Data Mining
LO4
Ghostery.com

50. 8-50
STEP 3: COLLECT RELEVANT INFO/DATA
+/– OF PRIMARY DATA
LO4
 Advantage
• Expensive
• Time Consuming to Collect
 Disadvantages
• More Specific to the Problem

51. 8-51
STEP 4: DEVELOP FINDINGSLO5
 Present the Findings
 Analyze the Data
• How are Sales?
• What Factors
Contribute to
Sales Trends?

52. 8-52
FIGURE 8-6FIGURE 8-6 Marketing dashboards that
present findings to Tony’s marketing
manager that lead to recommendations
and actions

53. 8-53
FIGURE 8-6AFIGURE 8-6A Findings presented to Tony’s
marketing manager

54. 8-54
FIGURE 8-6BFIGURE 8-6B Findings presented to Tony’s
marketing manager

55. 8-55
FIGURE 8-6CFIGURE 8-6C Findings presented to Tony’s
marketing manager

56. 8-56
FIGURE 8-6DFIGURE 8-6D Findings presented to Tony’s
marketing manager

57. 8-57
STEP 5: TAKE MARKETING ACTIONSLO5
 Evaluate the Results
 Make Action
Recommendations
 Implement the Action
Recommendations
• The Decision Process Used
• The Decision Itself

58. 8-58
SALES FORECASTING TECHNIQUESLO6
 Sales Forecast
 Judgments of the Decision Maker
 Surveys of Knowledgeable Groups
• Direct Forecast
• Lost-Horse Forecast
• Salesforce Survey Forecast
• Survey of Buyers’ Intentions Forecast

59. 8-59
SALES FORECASTING TECHNIQUESLO6
 Statistical Methods
• Trend Extrapolation
• Linear Trend Extrapolation

60. 8-60
FIGURE 8-7FIGURE 8-7 Linear trend extrapolation of
sales revenues at Xerox (made at the start
of 2000)

61. 8-61
FIGURE 8-FFIGURE 8-F Top-down forecast: Survey of
Buying Power

62. 8-62
FIGURE 8-GFIGURE 8-G Build-up forecast: Apple’s four
major product lines

63. 8-63
CARMEX: LEVERAGING FACEBOOK
FOR MARKETING RESEARCH
VIDEO CASE 8

64. 8-64
VIDEO CASE 8
CARMEX
1. What are the advantages and
disadvantages for the Carmex
marketing team in collecting data to
narrow the flavor choices from three
to two using (a) an online survey of a
cross-section of Internet households
or (b) an online survey of Carmex
Facebook likers?

65. 8-65
VIDEO CASE 8
CARMEX
2. (a) On a Facebook brand page,
what are “engagement” and
“likes” really measuring? (b) For
Carmex, which is more important
and why?

66. 8-66
VIDEO CASE 8
CARMEX
3. (a) What evokes consumers
“engagement” on a brand page
on Facebook? (b) What attracts
consumers to “like” a brand page
on Facebook?

67. 8-67
VIDEO CASE 8
CARMEX
4. (a) What are the advantages and
disadvantages of using a fixed-
alternative poll question on
Facebook? (b) When do you
think it would be better to use an
open-ended question?

68. 8-68
VIDEO CASE 8
CARMEX
Figure 1
Figure 2

69. 8-69
VIDEO CASE 8
CARMEX
5. (a) If you had a limited budget and two
weeks to decide which two flavors to
put into quantitative testing, would you
choose a “poll only” or a “contest
only” strategy? Why? (b) If you had a
sizeable budget and two months to
make the same decision, which
scenario would you choose? Why?

70. 8-70
VIDEO CASE 8
CARMEX
Figure 3

71. 8-71
Marketing Research
Marketing research is the
process of defining a marketing
problem and opportunity,
systematically collecting and
analyzing information, and
recommending actions.

72. 8-72
Measures of Success
Measures of success are criteria
or standards used in evaluating
proposed solutions to the problem.

73. 8-73
Constraints
Constraints are, in a decision,
the restrictions placed on
potential solutions to a problem.

74. 8-74
Data
Data are the facts and figures
related to the problem that are
divided into two main parts:
secondary data and primary data.

75. 8-75
Secondary Data
Secondary data are the facts
and figures that have already
been recorded before the project
at hand.

76. 8-76
Primary Data
Primary data are the facts
and figures that are newly
collected for the project.

77. 8-77
Observational Data
Observational data are the facts
and figures obtained by watching,
either mechanically or in person,
how people actually behave.

78. 8-78
Questionnaire Data
Questionnaire data are the
facts and figures obtained by
asking people about their
attitudes, awareness, intentions,
and behaviors.

79. 8-79
Information Technology
Information technology involves
operating computer networks that
can store and process data.

80. 8-80
Data Mining
Data mining is the extraction of
hidden predictive information from
large databases to find statistical
links between consumer
purchasing patterns and
marketing actions.

81. 8-81
Sales Forecast
A sales forecast consists of the
total sales of a product that a firm
expects to sell during a specified
time period under specified
environmental conditions and its
own marketing efforts.