Marketing Exam 2 10 15 2013 Chapter 2 Marketing Research Process and Systems for Decision Making Role of Marketing Research Marketing research the process by which information about the environment is generated analyzed and interpreted for use in marketing decision making o An AID to decision making and not a substitute the results of market research is not necessarily the answer o Marketing managers need to realize research Might have errors Does not forecast the future They need to make decisions based on their own knowledge and experience as well Can reduce the risk associated with managing marketing strategies Vital for investigating the effects of various marketing strategies Marketing researchers work hand in hand with marketing managers throughout the research process and have the responsibility for making strategic recommendations based on the research Marketing Research Process Marketing research the systematic processes for obtaining information to aid in decision making o Purpose of the Research Determine explicitly why the research is needed and what is accomplishes The current situation involving the research problem The nature of the problem The specific question or questions the research is designed to investigate o Plan of the Research Research plan spells out the nature of the research and includes an explanation of the sample design measures and analysis techniques 3 Critical issues that influence research plan Primary vs Secondary Data Primary data data collected specifically for the research problem o Expensive Secondary data data that has been previously collected o Cheaper option o Government sources trade groups Qualitative vs Quantitative Research Qualitative face to face interviews with respondents used in the early stages of investigating a topic o Focus groups discussions among small groups o Long interviews single respondent for several hours Quantitative systematic procedures to obtain and analyze numerical data used to investigate the degree to which the insights hold across a larger sample or population o Observational watching people o Survey via phone mail online in person o Experiments manipulating variables in test stores or labs o Mathematical modeling development of equations to model relationships among variables Company or Contract Company using the internal marketing research department Contract hiring a marketing research specialist o Performance of Research Preparing for data collection and actually collecting Secondary data must be located prepared for analysis and possibly paid for Primary data measures must be designed pretested and validated samples must be drawn Obtain and record the maximum amount of data o Processing of Research Data The preparation of data for analysis and the actual analysis Editing and structuring data and coding them for analysis Interpret and asses the research results Researchers should always double check their analysis and avoid overstating the strength of their findings o Preparation of Research Report Complete statement of everything done in a research project and includes a write up of each of the previous stages as well as the strategic recommendation Researchers should work closely with managers to ensure that the study and its limitations are fully understood o Limitations of the Research Process Many problems and difficulties must be overcome if a research study is to provide valuable information Marketing Information Systems Computer based systems to help gather sort store and distribute information for marketing decisions Popular form of marketing information systems s the marketing decision support system o Coordinated collection of data tools and techniques involving both computer hardware and software o Marketers gather and interpret relevant information for decision making o 3 types of software Database management software sorting and retrieving data from internal and external sources Model base management software manipulating data in ways that are useful for marketing decision making Dialog system permits marketers to explore databases and use models to product information to address their decision making needs Marketing Exam 2 10 15 2013 Chapter 3 Consumer Behavior Social Influences Culture social class and reference groups directly and indirectly influence purchase and consumption decisions o Directly direct communication between the individual and other members of society concerning a particular decision o Indirect the influence of society on an individual s basic values and attitudes as well as the important role that groups play in structuring an individual s personality Culture and Subculture All facets of life are carried out against the background of the society in which an individuals lives Culture is a determinant of certain aspects of consumer behavior Cultural values are transmitted through 3 basic organizations Family Religious organizations Educational institutions Markets should adapt the marketing mix to cultural values and constantly monitor value changes and differences in both domestic and global markets Subcultures in American culture where people have more frequent interactions than with the whole population Think and act alike Based on geographic areas religions nationalities ethnic groups and age Decreasing because of mass communication mass transit and a decline in the influence of religious values Social Class Develop on the basis of wealth skill and power Single best indicator of social class is occupation Different social classes tend to have different attitudes and values that influence individual behavior 4 different social classes Upper Americans o 14 of population o High incomes o Quality merchandise is most prized and prestige brands are commonly sought Middle Class o 34 of population o Do the right thing and buy what is popular o Concerned with fashion and buying what experts in the media recommend o Spending has increased on experiences for children vacation education better brands of clothes o Emulates upper Americans Working Class o 38 of population o Family folk rely heavily on relatives o Much more limited and different socially psychologically and geographically compared to middle class Lower Americans o 16 of population o Diverse in values and consumption o Most work part time or fulltime low paying jobs some are unemployed and homeless o Most receive government aid o Primary demands are food clothing and other staples o Have little education or