CHAPTER 5
Marketing Research and Information Systems
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 85
Lecture Outline
IRM, p. 86
Discussion Starters
IRM, p. 95
Class Exercises
IRM, p. 96
Chapter Quiz
IRM, p. 99
Answers to Discussion and Review Questions
IRM, p. 100
Answers to Application Questions
IRM, p. 102
Answers to Internet Exercises
IRM, p. 104
Answers to Developing Your Marketing Plan
IRM, p. 105
Comments on the Cases
IRM, p. 106
Case 5.1
IRM, p. 106
Case 5.2
IRM, p. 107
Examination Questions: Essay
Testing CD
Examination Questions: Multiple-Choice
Testing CD
Examination Questions: True-False
Testing CD
PowerPoint Slides
PURPOSE AND PERSPECTIVE
This chapter focuses on the information-gathering methods needed to make sound marketing decisions.
First, we discuss the role of marketing research in decision making and problem solving. We identify a set
of basic steps to follow when conducting a marketing research project: 1) locating and defining problems
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LECTURE OUTLINE
I. The Importance of Marketing Research
A. Marketing research is the systematic design, collection, interpretation, and reporting of
information to help marketers solve specific marketing problems or take advantage of marketing
opportunities.
1. It is a process for gathering information not currently available to decision makers.
B. Marketing research can help a firm better understand market opportunities, ascertain the potential
for success for new products, and determine the feasibility of a particular marketing strategy.
E. The real value of marketing research is measured by improvements in a marketer’s ability to
make decisions.
1. Marketers should treat information in the same manner as other resources utilized by the
II. Types of Research
A. The nature and type of research varies based on the research design and the hypotheses under
investigation.
B. Marketing research involves two types of data.
1. Qualitative data yields descriptive non-numerical information.
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b. They can provide companies with ideas for new products or be used for initial testing of
different marketing strategies for existing products.
c. A current trend is online focus groups in which participants sign in to a website and type
their comments and responses.
D. Conclusive Research
1. Conclusive research verifies insights through an objective procedure to help marketers make
decisions; it is used when the marketer has in mind one or more alternatives and needs
assistance in the final stages of decision making.
2. If marketers need to understand the characteristics of certain phenomena to solve a particular
problem, descriptive research is a good aid.
3. Experimental research allows marketers to make causal deductions about relationships.
a. Experiments involve manipulating an independent variable and measuring the resulting
III. The Marketing Research Process
A. To maintain the control needed to obtain accurate information, marketers approach marketing
research as a process with logical steps. These steps should be viewed as an overall approach to
conducting research rather than as a rigid set of rules to be followed in each project.
B. Locating and Defining Problems or Research Issues
1. The first step in launching a research study is problem or issue definition, which focuses on
uncovering the nature and boundaries of a situation or question related to marketing strategy
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C. Designing the Research Project
1. Once the problem or issue has been defined, the next step is research design, an overall plan
for obtaining the information needed to address it. This step requires formulating a hypothesis
and determining what type of research is most appropriate for testing the hypothesis.
2. Developing an Hypothesis
a. An hypothesis is an informed guess or assumption about a certain problem or set of
3. Research Reliability and Validity
a. In designing research, marketing researchers must ensure that research techniques are
D. Collecting Data
1. The next step in the marketing research process is collecting data to help prove or disprove
the research hypothesis. The research design must specify the types of data to collect and how
the data is collected.
2. Types of Data
a. Primary data are observed and recorded or directly collected from respondents. This
3. Sources of Secondary Data
a. Marketers often begin the data collection phase of the marketing research process by
gathering secondary data.
4. Methods of Collecting Primary Data
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a. The collection of primary data is a more lengthy, expensive, and complex process than
the collection of secondary data.
b. Sampling
(1) Because the time and resources available for research are limited, it is almost
impossible to investigate all members of a target market or other population.
(3) With probability sampling, every element in the population being studied has a
known chance of being selected for study.
(a) When marketers employ random sampling, all the units in a population have an
equal chance of appearing in the sample.
c. Survey Methods
(1) Marketing researchers often employ sampling to collect primary data through mail,
telephone, online, or personal interview surveys.
(2) In a mail survey, questionnaires are sent to respondents, who are encouraged to
complete and return them.
(a) Mail surveys are used most often when the individuals in the sample are spread
over a wide area and funds for the survey are limited.
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(3) In a telephone survey, an interviewer records respondents’ answers to a
questionnaire. A telephone depth interview combines the traditional focus group’s
ability to probe with the confidentiality provided by a telephone survey.
(a) Telephone surveys and interviews have some advantages over mail surveys,
(4) In a personal interview survey, participants respond to questions face to face.
(a) One such research technique is the in-home (door-to-door) interview, which
takes place in the respondent’s home.
d. Online and Social Media Surveys
(1) In an online survey, questionnaires can be transmitted to respondents either through
e-mail or through a website.
(2) Marketers can also use social networking sites and other digital media forums to
identify trends in interests and consumption patterns.
(a) Often consumers choose to go to a particular social media site or blog and then
take the survey, which eliminates randomness and makes it more difficult to
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(3) Crowdsourcing takes tasks usually performed by a marketer or researcher and
outsources them to a crowd, or potential market, through an open call. In the case of
e. Questionnaire Construction
(1) Questions must be clear, easy to understand, and directed toward a specific objective.
f. Observation Methods
(1) In using observation methods, researchers record individuals’ overt behaviors, taking
note of physical conditions and events. Direct contact with subjects is avoided.
(2) Observation may include the use of ethnographic techniques, such as watching
customers interact with a product in a real-world environment.
E. Interpreting Research Findings
1. After collecting data to test hypotheses, marketers need to interpret research findings.
2. The first step in drawing conclusions from most research is displaying the data in table
format.
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F. Reporting Research Findings
1. The final step in marketing research is to report the research findings. The marketer must take
a clear, objective look at the findings to see how well the gathered facts answer the research
IV. Using Technology to Improve Marketing Information Gathering and Analysis
A. Technology is making information for marketing decisions increasingly accessible.
B. Consumer feedback is an important aspect of marketing research, and new technology such as
digital media is enhancing this process.
1. In the case of negative feedback, marketers can communicate with consumers to address
C. Marketing Information Systems
1. A marketing information system (MIS) is a framework for the day-to–day management and
the structuring of information regularly gathered from sources inside and outside an
organization. It provides a continuous flow of information about prices, advertising,
D. Databases
1. A database is a collection of information arranged for easy access and retrieval.
2. Databases, usually accessed through a computer system, allow marketers to tap an abundance
3. Customer Relationship Management (CRM) employs database marketing techniques to
identify different types of customers and develop specific strategies for interacting with each
customer.
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4. Marketers must distinguish between active customers, those likely to continue buying from
the firm and inactive customers, those likely to defect.
5. Marketing researchers can also use commercial databases developed by information research
firms to obtain useful information for marketing decisions.
V. Issues in Marketing Research
A. The Importance of Ethical Marketing Research
1. It is essential that professional standards be established by which research may be judged
reliable because marketing managers and other professionals increasingly rely on marketing
research, marketing information systems, and new technologies to make decisions,.
2. Organizations like the Marketing Research Association have developed codes of conduct and
B. International Issues in Marketing Research
1. The marketing research process described in this chapter is used globally, but to ensure
2. Experts recommend a two-pronged approach to international marketing research.
a. The first phase involves a detailed search for and analysis of secondary data to gain
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(1) Specific differences among countries can have a profound influence on data
gathering.
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DISCUSSION STARTERS
Discussion Starter 1: Sources of Secondary Data
ASK: What is held every 10 years in the United States as required by the Constitution and yields crucial
data for marketers?
ASK: Why is it called the U.S. Census and not the U.S. Sample?
Every person in the U.S. must be counted. It is a full accounting of the population and yields a treasure
Discussion Starter 2: Marketing Analytics
ASK: What is the fastest growing area of marketing research?
The answer is marketing analytics. Many of the new analytic firms assist organizations in understanding
Discussion Starter 3: Market Research
In using observation methods, researchers record individuals’ overt behavior, taking note of physical
conditions and events. Direct contact with subjects is avoided. Observation may include the use of
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CLASS EXERCISES
Class Exercise 1: The Marketing Research Process
The objective of this class exercise is to apply the marketing research process to solving a marketing
problem.
Prompt for Students:
You are considering opening a new “Fluff-and–Fold” laundry pick-up, cleaning, and delivery service
1. Define the problem.
2. Design the research project.
3. After consulting any secondary data available, you decide to conduct an exploratory study with
students in your classes. Develop open-ended questions to ask other students that will provide
information regarding your hypotheses.
4. Having gained some insight into the problem, you are now ready to conduct a descriptive study.
You decide to conduct a survey to further test your refined hypotheses. However, you have
several decisions to make regarding this study.
a. What type of sampling approach (random, stratified, area, quota) will you use and why?
b. What survey method (mail, telephone, personal interview) will you use and why?
c. How will you construct the questionnaire? Develop open-ended, dichotomous, or
multiple-choice questions that will test your hypotheses. Remember to remain impartial and
inoffensive.
Answers:
1. The answers to this question will depend on how the students view the opportunity on your
campus. Typical problem statements might include “We don’t know if a sizable, profitable