School of International Business

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School of International Business BA (HONS)
Business Studies with Specialisms MKT301 LECTURER
Edel Griffin OFFICE International Business
Centre Tel [phone] Email
e.griffin_at_ulster.ac.uk
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School of International Business BA (HONS)
Business Studies with Specialisms MKT301 LECTURE
5 Marketing Research Information Systems
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• Lecture Outline
• Marketing Research Overview
• Marketing Information System
• Information Needs and Decision Making
• The Marketing Research Process
• Ethical Marketing Research

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Marketing research is the systematic process of
gathering, interpreting and reporting information
to help marketers solve specific marketing
problems or take advantage of marketing
opportunities. The thrust of a marketing
research effort is to gather information that is
not currently available to decision-makers. Market
ing research is conducted on a special project
basis. Research methods are adapted both to the
problems being studied and to changes in the
environment.
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European marketing research markets, 1990. The
total is approximately 2,474 million ECUs.
Source ESOMAR, the European Society for Opinion
and Marketing Research, J. J. Viottastraat 29,
10/1 JP Amsterdam, The Netherlands. Tel
31-20-664-2141 FAX [phone].
Source Dibb et al 2001
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In quantitative research, data that can be
statistically analysed and whose results can be
expressed numerically are collected. Qualitative
research deals with information too difficult or
expensive to quantify, such as subjective
opinions and value judgments.
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A marketing information system (MIS) is the
framework for the day-to-day management and
structuring of information gathered regularly
from sources both inside and outside an
organisation. (Dibb et al) A MIS is a
continuing and interactive structure of people.
Equipment and procedures to gather, sort,
analyse, evaluate and distribute needed, timely
and accurate information to marketing decision
makers. (Kotler) The MIS provides a continuous
flow of information about such factors as prices,
advertising expenditures, sales, competition and
distribution expenses.
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An organisations marketing information system
Source Dibb et al 2001
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• Marketing Information System (MIS) 3 Basic Steps
• Assessing Information Needs
• Developing Information
• Distributing Information

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The marketing databank is a file of data,
collected through both the MIS and marketing
research projects. The marketing databank allows
researchers to retrieve information that is
useful for addressing problems different from
those that prompted the original data
collection. Marketing intelligence is the
composite of all data and ideas available within
an organisation that assists in
decision-making. After a marketing system has
been established, information should be related
to marketing planning
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Combining marketing research and the marketing
information system
Source Dibb et al 2001
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Information Needs and Decision-Making The real
value of marketing research and marketing
information systems is measured by improvements
in a marketers ability to make decisions.
Marketing research and marketing information
systems provide the organisation with customer
feedback. As managers recognise its benefits,
they assign marketing research a much larger role
in decision-making. The increase in marketing
research activities represents a transition from
intuitive to scientific problem solving.
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Information Needs and Decision-Making In
relying on intuition, marketing managers base
decisions on personal knowledge and past
experience. In scientific decision-making,
managers take an orderly and logical approach to
gathering information. Successful decisions
blend both research and intuition.
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Marketing Research .is the systematic design,
collection, analysis and reporting of data and
findings relevant to a specific situation facing
the company.
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The Marketing Research Process To maintain the
control needed for obtaining accurate
information, marketers approach marketing
research in logical steps. The difference
between good and bad research depends on the
quality of the input, which includes effective
control over the entire marketing research
process. The five steps of the marketing
research process are (1) defining and locating
problems, (2) developing hypotheses,
(3) collecting data with which to test and modify
the hypotheses, (4) analysing and interpreting
research findings, and (5) reporting research
findings.
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The Marketing Research Process (5 steps)
Source Dibb et al 2001
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The Marketing Research Process Step 1 Defining
and Locating Problems Problem definition, the
first step towards finding a solution or
launching a research study, focuses on uncovering
the nature and boundaries of a negative or
positive situation or question. The first sign
of a problem is usually a departure from some
normal function, such as conflicts between or
failures in attaining objectives. To determine
the specific causes of the problem, marketers
must define the problem and its scope beyond the
surface symptoms.
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The Marketing Research Process Step 1 Defining
and Locating Problems The problem definition
stage should continue until the researchers and
decision-makers are clear about what they want
from the research and how they will use it.
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The Marketing Research Process Step 2 Developing
Hypotheses A hypothesis is an informed guess or
assumption about a certain problem or set of
circumstances As information is gathered, a
marketing researcher can test a hypothesis The
hypotheses that are accepted or rejected become
the studys chief conclusions
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The Marketing Research Process Step 3 Collecting
Data The kind of hypothesis being tested
determines which aapproach will be used for
gathering general data. Exploratory studies are
deliberately flexible data gathering used to
discover the general nature of a problem and the
factors that relate to it. Descriptive studies
are data collection that focuses on providing an
accurate description of the variables in a
situation. Hypotheses about causal relationships
require a more complex approach than descriptive
studies.
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The Marketing Research Process Exploratory
Studies Exploratory studies are used when more
information about the problem is needed and the
tentative hypothesis must be made more
specific. A review of the information in the
organisations databank, a review of publicly
available data, and the questioning of
knowledgeable people inside and outside the
organisation may be helpful. The exploratory
approach permits marketers to conduct
mini-studies with a very restricted database.
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The Marketing Research Process Descriptive
Studies Descriptive studies are undertaken when
marketers need to understand the characteristics
of certain phenomena to solve a particular
problem. Such studies may range from general
surveys of consumer characteristics, such as
education, occupation or age, to more specific
details about consumer purchases. Some
descriptive studies require statistical analysis
and predictive tools. Descriptive studies
generally require much prior knowledge and assume
that the problem is clearly defined.
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The Marketing Research Process Causal Studies To
test hypothesis about cause and effect
relationships. In causal studies, it is assumed
that a particular variable X causes a variable Y.
Marketers must plan the research so that the
data collected will prove or disprove that X
causes Y. Marketers must try to hold constant
all variables except X and Y.
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The Marketing Research Process Marketing
researchers have two types of data at their
disposal primary and secondary. Primary data
are observed and recorded or collected directly
from respondents. Secondary data are compiled
inside or outside the organisation for some
purpose other than the current investigation.
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The Marketing Research Process Secondary Data
Collection Secondary data collection involves
using available reports and other information
from both internal and external sources to study
a marketing problem. Information about past
marketing activities, such as sales records and
research reports, can be used to test hypotheses
and pinpoint problems. Secondary data are also
found in periodicals, census reports, government
publications, the world wide web and unpublished
sources.
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The Marketing Research Process Secondary Data
Collection Syndicated data services are
organisations that collect general information
and sell it to clients. Another type of
secondary data, which is available for a fee, is
demographic analysis. Such information may be
valuable in tracking demographic changes that
have implications for consumer behaviour and the
targeting of products.
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The Marketing Research Process Primary Data
Collection The collection of primary data, a more
lengthy, costly and complex process than the
collection of secondary data, often requires an
experimental approach to determine which variable
or variables caused an event to occur.
Experimentation involves keeping certain
variables constant so that the effects of the
experimental variables can be measured.
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The Marketing Research Process Experimentation Mar
keting experimentation is a set of rules and
procedures by which data gathering is organised
to expedite analysis and interpretation.
Independent variables are usually manipulated
in the experimental approach to measure
relationships or changes in a dependent
variable. In designing experiments, marketing
researchers must ensure that their research
techniques have both reliability and validity.
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Relationship between independent and dependent
variables
Source Dibb et al 2001
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The Marketing Research Process Reliability and
Validity A reliable research technique produces
almost identical results in successive repeated
trials. To be valid, the method must provide
data that can be used to test the hypothesis
being investigated it must measure what it is
supposed to measure, not something else. In a
laboratory setting, it is possible to control
independent variables that might influence the
outcome of an experiment, though such isolation
from the real world does not permit duplicating
all the conditions that affect choices in the
marketplace. A field setting allows
experimentation to take place in a real world
environment however, field experiments can be
influenced or biased by unexpected events.
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The Marketing Research Process Sampling By
systematically choosing a limited number of
units, or sample, to represent the
characteristics of a total population, marketers
can project the reactions of a total market or
market segment. The objective of sampling in
marketing research is to select representative
units from a total population. In simple random
sampling, all the units in a population have an
equal chance of appearing in the sample. Random
sampling is basic probability sampling
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The Marketing Research Process Sampling In
stratified sampling, the population of interest
is divided into groups according to a common
characteristic or attribute, and a probability
sampling is then conducted within each
group. Usually, samples are stratified when
researchers believe that there may be variations
among different types of respondents, depending
on factors such as sex, race and age.
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The Marketing Research Process Sampling Area
sampling involves two stages first, selecting a
probability sample of geographic areas and,
second, selecting units or individuals within the
selected geographic areas for the sample. This
approach is a variation of stratified sampling,
with the geographic areas serving as the
segments, or primary units, used in sampling.
Area sampling may be used when a complete list
of the population is not available.
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The Marketing Research Process Sampling Quota
sampling differs from other forms of sampling in
that it is judgmental the final choice of
respondents is left to the interviewers Quota
samples are used most often in exploratory
studies, in which hypotheses are being
developed. This kind of sampling is useful when
questioning people with some unusual
characteristics, and when focusing on a specific
core target market segment.
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The Marketing Research Process Survey
Methods Interviews by mail, e-mail, or telephone
and personal interviews. Mail surveys are used
most often when respondents are spread over a
wide geographic area and when funds for the
survey are limited. Mail surveys, in which
questionnaires are sent by mail or e-mail, are
the least expensive method as long as the
response rate is high enough to produce reliable
results. The main disadvantage of mail surveys
is the possibility of a low response rate or of
misleading results, if the respondents are
significantly different from the population being
sampled.
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The Marketing Research Process Survey
Methods Telephone surveys, interviewers record
respondents answers to a questionnaire. The
response rate is higher than that for a mail
survey, and telephone interviews can be conducted
quickly. However, many households are excluded
from telephone directories by choice or because
the residents moved after the directory was
published. Computer assisted telephone
interviewing integrates questionnaire, data
collection and tabulations, and provides data to
aid decision-makers in the shortest time possible.
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The Marketing Research Process Survey
Methods Personal interview survey offers
interviewers a great deal of flexibility.
Rapport gained through direct interaction
usually permits more in-depth interviewing,
including probes, follow-up questions or
psychological tests. In addition, because
face-to-face interviews can be longer, they can
yield more information. Today, most personal
interviews are conducted in shopping centres or
malls, or on pavements.
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The Marketing Research Process Survey Methods The
focus group interview allows researchers to
observe group interaction when members are
exposed to an idea or concept consumer
attitudes, behaviours, lifestyles, needs and
desires can be explored in a flexible and
creative manner.
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The Marketing Research Process Questionnaire A
carefully constructed questionnaire is essential
to the success of any survey A questionnaire is
a base document for research purposes that
provides the questions and the structure for an
interview or self-completion and has provision
for respondents answers. Questions must be
designed to elicit information that meets the
studys data requirements. Questions must be
clear, easy to understand and directed towards a
specific objective.
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The Marketing Research Process Questionnaire Ques
tions are usually of four kinds open-ended,
dichotomous, multiple choice and Likert scale
most questionnaires include a mix of question
styles. Researchers must be careful about
questions that might be considered too personal
or might result in a respondents admitting to
activities that other people are likely to
condemn.
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The Marketing Research Process Observation
Methods When using observation methods,
researchers record respondents overt behaviour,
noting physical conditions and events.
Researchers avoid direct contact with
respondents instead, they examine and note
respondents actions systematically. If the
presence of a human observer is likely to bias
the outcome, or if human sensory abilities are
inadequate, mechanical means may be used to
record behaviour
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Survey Methods Strengths and Weaknesses
Mail Telephone Personal Flexibility
Poor Good Excel. Quantity
Good Fair Excel. Control (Interviewer Effects)
Excel. Fair Poor Control of Samples
Fair Excel. Fair Speed of Data Collection
Poor Excel. Good Response Rate
Poor Good Good Cost Good Fair Poor
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The Marketing Research Process Step 4 Analysing
Interpreting Research Findings The first step
in drawing conclusions from most research is
displaying the data in table format. After the
data are tabulated, they must be
analysed Statistical interpretation focuses on
what is typical or what deviates from the
average. Marketing managers must understand the
research results and relate the results to a
context that permits effective decision-making.
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The Marketing Research Process Step 5 Reporting
Research Findings The final step in the marketing
research process is reporting the research
findings The marketer must look objectively at
the findings to see how well the gathered facts
answer the research question or support or negate
the hypotheses posed in the beginning. Since it
is doubtful that the study can provide everything
needed, the researcher should point out the
deficiencies of the research in the report,
perhaps suggesting areas that require further
investigation.
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The Marketing Research Process Step 5 Reporting
Research Findings Because the report is a means
of communicating with the decision-makers who
will use the research findings, researchers need
to determine beforehand how much detail and
supporting data to include. Researchers must
recognise the needs and expectations of the
report user and adapt to them. Providing
adequate explanations in understandable language
makes it easier for decision-makers to apply the
findings and diminishes the likelihood that a
report will be misused or ignored.
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The Marketing Research Process Step 5 Reporting
Research Findings Communicating with potential
research users prior to writing the report can
help the researcher supply information that will
improve decision-making.
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Marketing Research Importance of Ethical
Marketing Research Marketing research and
information systems are vital to marketing
decision-making Because of this, it is essential
that ethical standards be established and
followed to stamp out unacceptable practices.
Marketing research ethical issues relate to
honesty, manipulation of research techniques and
data, invasion of privacy and failure to
disclose the purpose or sponsorship of a
study. Sugging (selling under the guise of
marketing research) is a major ethical issue
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Marketing Research Importance of Ethical
Marketing Research Ethical conflict typically
occurs because the parties involved in the
marketing research process have different
objectives. Without clear understanding and
agreement, including mutual adoption of
standards, ethical conflict will lead to mistrust
and questionable research results.
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• Lecture Outline
• Marketing Research Overview
• Marketing Information System
• Information Needs and Decision Making
• The Marketing Research Process
• Ethical Marketing Research