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Marketing Research and Information Systems | Chapter 4 109
2. Differentiate between the two major types for study. Nonprobability sampling is more subjective than
of marketing research—exploratory and probability sampling because there is no way to calcu-
conclusive research. late the likelihood that a specific element of the popula-
tion being studied will be chosen. Marketing researchers
Marketers conduct exploratory research when they need employ sampling to collect primary data through mail, tele-
more information about a problem or want to make a ten- phone, online, or personal interview surveys. A carefully-
tative hypothesis more specific. It can help marketers better constructed questionnaire is essential to the success of any
understand how consumers view a topic or a product, which survey. In using observation methods, researchers record
can help a firm develop better products and more targeted respondents’ overt behavior and take note of physical con-
marketing mixes. The main purpose of exploratory research ditions and events. In an experiment, marketing researchers
is to better understand a problem or situation and/or to help attempt to maintain certain variables while measuring the
identify additional data needs or decision alternatives. effects of experimental variables.
Conclusive research, on the other hand, is used to verify To apply research data to decision making, marketers
insights through an objective procedure. It is used in the final must interpret and report their findings—the final two steps
stages of decision making, when the marketer has narrowed in the marketing research process. Statistical interpretation
his or her decision down to a few alternatives. focuses on what is typical or what deviates from the average.
After interpreting the research findings, the researchers must
3. Describe the basic steps in conducting prepare a report on the findings that the decision makers can
marketing research. understand and use. Researchers must also take care to avoid
The first step in launching a research study, problem or issue bias and distortion.
definition, focuses on uncovering the nature and boundaries of 4. Understand how technology is used to
a situation or question related to marketing strategy or imple- facilitate information gathering and analysis.
mentation. When a firm discovers a market opportunity, it
may need to conduct research to understand the situation more Technology is essential to effective information gathering
precisely so it can craft an appropriate marketing strategy. and analysis. Firms that do not utilize up-to-date techno-
In the second step, marketing researchers design a logical tools are at a disadvantage. Many firms use tech-
research project to obtain the information needed to address nology to create a marketing information system (MIS),
it. This step requires formulating a hypothesis and determin- a framework for managing and structuring information
ing what type of research to employ to test the hypothesis so gathered regularly from sources both inside and outside
the results are reliable and valid. A hypothesis is an informed the organization. A database is a collection of informa-
guess or assumption about a problem or set of circumstances. tion arranged for easy access and retrieval. A marketing
Research is considered reliable if it produces almost identical decision support system (MDSS) is customized computer
results in repeated trials. It is valid if it measures what it is software that aids marketing managers in decision making
supposed to measure. by helping them anticipate the effects of certain decisions.
For the third step of the research process, collecting Online information services and the Internet also enable
data, two types of data are available. Primary data are marketers to communicate with customers and obtain
observed and recorded or collected directly from respon- information.
dents. Secondary data are compiled inside or outside the 5. Identify key ethical and international
organization for some purpose other than the current inves-
tigation. Sources of secondary data include an organiza- considerations in marketing research.
tion’s own database and other internal sources, periodicals, Eliminating unethical marketing research practices and
government publications, unpublished sources, and online establishing generally acceptable procedures for conduct-
databases. Methods of collecting primary data include sam- ing research are important goals of marketing research. Both
pling, surveys, observation, and experimentation. Sampling domestic and international marketing use the same market-
involves selecting representative units from a total popula- ing research process, but international marketing may require
tion. In probability sampling, every element in the popula- modifying data-gathering methods to address regional
tion being studied has a known chance of being selected differences.
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