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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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