Business Managment

Chapter 5: Gathering Information and Measuring Market Demand
Because of the shift from (1) local or domestic marketing to global marketing (2) buyer
needs to buyer wants and (3) price to non-price competition, marketing has become more
dependent upon information than on sales power. To be successful, every firm must
have an adequate flow of real-time information to its marketing managers. This is
accomplished via the Marketing Information System (MIS). The MIS is:
1) An interactive structure of people, equipment and procedures
2) To gather, sort, analyze, evaluate and distribute
3) Pertinent, timely, and accurate information for use by marketing decision
makers
4) To improve their marketing planning, implementation and control decisions.
Marketers use THREE MAJOR SUBSYSTEMS:
#1. Internal Accounting System provides results data.

i) The heart of the internal records system is the order-to-payment cycle
ii) The key is timely and comprehensive sales information reporting systems
iii) The system should be user oriented and provide what users need to
know
#2. Marketing Intelligence System supplies data about what is currently taking place
i) set of procedures and sources that provide everyday information about the
marketing environment
ii) This is done by way of undirected viewing, conditioned viewing, informal
search, formal search and information centers.
#3. Marketing Research System formal information gathering and analyzing process
Marketing Research is the systematic design of data collection, analysis, and
reporting of data and findings relevant to a specific marketing situation facing the
company.
Many firms do not do all of their marketing research. They may hire the services
of marketing researchers or research firms (custom marketing research firms -- hired to
carry out a specific research project; specialty research firms field service firms that sell
services to other firms) or conduct research using secondary sources (rivals, the internet,
syndicated services such as Nielson).
The Marketing Research Process

There are five steps in the marketing research process:
1) Define the Problem and research objectives. This is the most critical part of
the process an ill-defined problem is of no help to the marketer. Not all
problems are specific.
Some research is exploratory goal of finding out the real problem
and suggesting possible solutions or new ideas
Descriptive Research seeks to determine size related information
e.g., how many customers are there.
Causal Research purpose is to test a cause-and-effect
relationship.
2) Develop the Research Plan the second stage of the research process. This
involves considering costs while making decision on the most efficient means
of gathering the data (primary versus secondary data sources), determining
research approaches (observation, focus groups, surveys, behavioral data,
experiment), research instruments to be used (questionnaire, mechanical
instruments), sampling plan (unit of analysis, sample size, procedure),
contact method (mail, telephone, fax, internet or on-line, personal interviews
one-on-one versus focus groups, intercept interviews).
3) Collect the Information: This is usually the most expensive and time-
consuming phase of the research process. It is also quite prone to error. There
are four major problems that affect the quality of the data gathered
respondents not at home and must be re-contacted, refusals, biased or
dishonest answers, biased or dishonest interviewers.
4) Analyze the Information this allows the researcher to extract meaning from
the data collected. Data should be tabulated and frequency distribution
(descriptive statistics) developed mean, and measures of dispersion. More
advanced statistical techniques can also be used T-Test, Analysis of Variance
(ANOVA), Factor Analysis, Regression Analysis, Cross-Tabulation,
Multivariate Analysis of Variance (MANOVA), Discriminant Analysis,
Cluster Analysis.
5) Present the Findings Presentation of findings relevant to the major marketing

decisions. Research is aimed at reducing management uncertainty concerning the
right move to make.
Characteristics of Good Marketing Research

Research may have to overcome many problems chief of which are:
1. Narrow Conception of Marketing Research some managers view research as
act finding rather than information gathering. In many cases managers do not
have a clearly defined problems or do not provide the researcher with alternatives
2. Uneven Caliber of Researchers marketing research is not a clerical activity.
Using unskilled researchers can lead to unimpressive results.
3. Late and Erroneous Results managers need timely results that are accurate.
Good research takes time and money.
4. Intellectual Differences difference in style between managers and
researchers can get in the way. Managers may want concreteness, simplicity
and certainty out of the research. Such results that may not be available
researchers may deliver results that are abstract, complicated, and tentative.
To overcome these problems rely on:

1) The scientific method. This helps to ensure researcher objectivity
2) Research Creativity this increases as the quality of the researcher
increases
3) Use of multiple methods helps to ensure the reliability of findings
4) Interdependence of explicit model and data select the data gathering
and research model best suited to analyzing the problem.
5) Consider the cost versus the information when marking marketing
research decisions. This is really a trade off.

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Chapter 5: Gathering Information and Measuring Market Demand

Marketers use THREE MAJOR SUBSYSTEMS:

#1. Internal Accounting System provides results data.

The Marketing Research Process

5) Present the Findings Presentation of findings relevant to the major marketing

Characteristics of Good Marketing Research

To overcome these problems rely on:

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