Chapter 2: Marketing Research: Process and Systems for Decision MakingRole of Marketing ResearchMarketing research: the process by which information about the environment is generated, analyzed and interpreted for use in marketing decision makingAn AID to decision making and not a substitute- the results of market research is not necessarily the answerMarketing managers need to realize research…Might have errorsDoes not forecast the futureThey need to make decisions based on their own knowledge and experience as wellCan reduce the risk associated with managing marketing strategiesVital for investigating the effects of various marketing strategiesMarketing researchers work hand-in-hand with marketing managers throughout the research process and have the responsibility for making strategic recommendations based on the researchMarketing Research ProcessMarketing research: the systematic processes for obtaining information to aid in decision makingPurpose of the ResearchDetermine explicitly why the research is needed and what is accomplishesThe current situation involving the research problemThe nature of the problemThe specific question or questions the research is designed to investigatePlan of the ResearchResearch plan: spells out the nature of the research and includes an explanation of the sample design, measures, and analysis techniques3 Critical issues that influence research planPrimary vs. Secondary DataPrimary data- data collected specifically for the research problemExpensiveSecondary data- data that has been previously collectedCheaper optionGovernment sources, trade groupsQualitative vs. Quantitative ResearchQualitative- face-to-face interviews with respondents; used in the early stages of investigating a topicFocus groups: discussions among small groupsLong interviews: single respondent for several hoursQuantitative- systematic procedures to obtain and analyze numerical data; used to investigate the degree to which the insights hold across a larger sample or populationObservational: watching peopleSurvey: via phone, mail, online, in personExperiments: manipulating variables in test stores or labsMathematical modeling: development of equations to model relationships among variablesCompany or ContractCompany- using the internal marketing research departmentContract- hiring a marketing research specialistPerformance of ResearchPreparing for data collection and actually collectingSecondary data- must be located, prepared for analysis and possibly paid forPrimary data- measures must be designed, pretested and validated, samples must be drawnObtain and record the maximum amount of dataProcessing of Research DataThe preparation of data for analysis and the actual analysisEditing and structuring data and coding them for analysisInterpret and asses the research resultsResearchers should always double-check their analysis and avoid overstating the strength of their findingsPreparation of Research ReportComplete statement of everything done in a research project and includes a write-up of each of the previous stages as well as the strategic recommendationResearchers should work closely with managers to ensure that the study and its limitations are fully understoodLimitations of the Research ProcessMany problems and difficulties must be overcome if a research study is to provide valuable informationMarketing Information SystemsComputer based systems to help gather, sort, store, and distribute information for marketing decisionsPopular form of marketing information systems s the marketing decision support systemCoordinated collection of data, tools, and techniques involving both computer hardware and softwareMarketers gather and interpret relevant information for decision making3 types of softwareDatabase management software- sorting and retrieving data from internal and external sourcesModel base management software- manipulating data in ways that are useful for marketing decision makingDialog system- permits marketers to explore databases and use models to product information to address their decision making needsChapter 3: Consumer BehaviorSocial InfluencesCulture, social class, and reference groups directly and indirectly influence purchase and consumption decisionsDirectly: direct communication between the individual and other members of society concerning a particular decisionIndirect: 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 personalityCulture and SubcultureAll facets of life are carried out against the background of the society in which an individuals livesCulture is a determinant of certain aspects of consumer behaviorCultural values are transmitted through 3 basic organizationsFamilyReligious organizationsEducational institutionsMarkets should adapt the marketing mix to cultural values and constantly monitor value changes and differences in both domestic and global marketsSubcultures in American culture where people have more frequent interactions than with the whole populationThink and act alikeBased on geographic areas, religions, nationalities, ethnic groups and ageDecreasing because of mass communication, mass transit and a decline in the influence of religious valuesSocial ClassDevelop on the basis of wealth, skill, and powerSingle best indicator of social class is occupationDifferent social classes tend to have different attitudes and values that influence individual behavior4 different social classesUpper Americans14% of populationHigh incomesQuality merchandise is most prized and prestige brands are commonly soughtMiddle Class34% of populationDo the right thing and buy what is popularConcerned with fashion and buying what experts in the media recommendSpending has increased on experiences for children (vacation, education, better brands of clothes)Emulates upper AmericansWorking Class38% of populationFamily folk- rely heavily on relativesMuch more limited and different socially, psychologically, and geographically compared to middle classLower Americans16% of populationDiverse in values and consumptionMost work part-time or fulltime low paying jobs- some are unemployed and homelessMost receive government aidPrimary demands are food, clothing, and other staplesHave little education or resources- unethical to market alcohol and tobacco products toSocial class offers some insights into consumer behavior and is a potential for market segmentationReference