Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

8. Improving Decisions
   with Marketing
   Information

Text © The McGraw−Hill

Companies, 2002

Improving Decisions with Marketing Information 229

Most trade associations compile data from and for their members. Some also

publish magazines that focus on important topics in the industry. Chain Store Age,

for example, has much information on retailing (www.chainstoreage.com).

Standard & Poor’s Industry Surveysis another source of information on whole

industries. And the local telephone company or your library usually has copies of

the Yellow Pages for many cities; Yellow Page listings are also available on the Inter-

net. Similarly, a number of firms sell computer CD-ROMs that include all of the

businesses in the country. Resources such as these may be a big help in estimating

the amount of competition in certain lines of business and where it is located.^10

The virtue of a good situation analysis is that it can be very informative but takes

little time. And it’s inexpensive compared with more formal research efforts—like

a large-scale survey. Situation analysis can help focus further research or even elim-

inate the need for it entirely. The situation analyst is really trying to determine the

exact nature of the situation and the problem.

At the end of the situation analysis, you can see which research questions—from

the list developed during the problem definition step—remain unanswered. Then

you have to decide exactly what information you need to answer those questions

and how to get it.

This may require discussion between technical experts and the marketing man-

ager. Often companies use a written research proposal—a plan that specifies what

information will be obtained and how—to be sure no misunderstandings occur later.

The research plan may include information about costs, what data will be collected,

how it will be collected, who will analyze it and how, and how long the process will

take. Then the marketing manager must decide if the time and costs involved are

worthwhile. It’s foolish to pay $100,000 for information to solve a $50,000 problem!

Much of the information that a

marketing manager needs to

solve a problem may already be

available, if the manager knows

where to look. Specialized

research firms, like Intelligence

Data, can help in that search.

Situation analysis

yields a lot+for

very little

Determine what else

is needed

Getting Problem-Specific Data—Step 3

The next step is to plan a formal research project to gather primary data. There

are different methods for collecting primary data. Which approach to use depends

on the nature of the problem and how much time and money are available.

In most primary data collection, the researcher tries to learn what customers

think about some topic or how they behave under some conditions. There are two

basic methods for obtaining information about customers: questioningand observing.

Questioning can range from qualitative to quantitative research. And many kinds

of observing are possible.

Gathering primary data