Marketing Research and Information Systems

Describe the development and current status of the marketing research function. 

      Marketing research started when Charles C. Parlin, an advertising space sales representative for the Saturday Evening Post, counted empty soup cans in Philadelphia's trash in an effort to convince Campbell Soup Company to advertise in the magazine. Today the most common marketing research activities are (1 ) determining market potential, market share, and market characteristics and (2) conducting sales analyses and competitive product studies. Most large companies now have internal marketing research departments However, outside suppliers still remain vital to the research function. Some of these outside suppliers perform the complete research task, while others specialize in a limited area or provide other data services.

      The American Marketing Association has defined marketing research as follows:

      Marketing research is the function which links the consumer, customer, and public to the marketer through information &- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research determines the information needed for these purposes, specifies and implements the data collection process, and interprets and communicates the results.

List the steps in the marketing research process.

      The marketing research process can be divided into six specific steps: (1) defining the problem (2) conducting exploratory research, (3) formulating hypotheses, (4) creating a research design, (5) collecting data, and (6) interpreting and presenting the research information. A clearly defined problem allows the researcher to obtain the relevant decision&-oriented information. Exploratory research refers to information gained both outside and inside the firm. Hypotheses &- tentative explanations of some specific event&- allow the researcher to set out a specific research design, which is the series of decisions that taken together comprise a master plan or model for the conduct of the investigation. The data&-collection phase of the marketing research process can involve either or both primary data (original data) and secondary data (previously published data). After the data are collected, researchers must interpret and present them in a way that will be meaningful to management.

Differentiate the types and sources of primary and secondary data.

      Primary data can be collected by the firm's own researchers or by independent marketing research companies. Three alternative methods of primary data collection can be used: observation, survey, or experimental. Secondary data can be classified as either internal or external. Internal sources include sales records, product evaluations, salesforce reports, and records of marketing costs. External sources include the government and private sources such as business magazines and consulting services. Both external and internal data can also be obtained from computerized databases.

Identify the methods of collecting survey data.

      Survey data can be collected through telephone interviews, mail surveys, or personal interviews. Telephone interviews provide over half of all primary marketing research. It is a fast and inexpensive way to get small amounts of information but not detailed or personal information. Mail surveys allow market researchers to conduct national studies at a reasonable cost; their disadvantage is a potentially inadequate response. Personal interviews are costly but allow researchers to get detailed information from respondents.

Explain the various sampling techniques.

      Samples can be categorized as either probability samples or nonprobability samples. A probability sample is a sample in which every member of the population has an equal chance of being selected. Probability samples include simple random samples, in which every item in the relevant universe has an equal opportunity to be selected; stratified samples, which are constructed such that randomly selected subsamples of different groups are represented in the total sample; and cluster samples, in which areas are selected from which respondents are drawn. A nonprobability sample is arbitrary and does not allow application of standard statistical tests. Nonprobability samples include convenience samples, in which readily available respondents are picked, and quota samples, which are divided so that different segments or groups are represented in the total sample.

Describe a marketing information system and distinguish it from marketing research.

      A marketing information system (MIS) is a planned, computer&-based system designed to provide managers with a continuous flow of information relevant to their specific decision areas. While marketing research concentrates on a specific problem or project, a marketing information system is wider in scope, involving the ongoing collection and analysis of marketing information.

Explain the contributions of marketing decision support systems (MDSS).

      MDSS is the abbreviation for marketing decision support system. It is an interactive communication network that links a decision maker with marketing information databases. The MDSS depends on special software to gather, store, retrieve, and process the information relevant to a specific decision.