chapter 5

Question 1

often commission formal marketing studies of specific problems and opportunities, like a market survey, a product-preference test, a sales forecast by region, or an advertising
evaluation

Answer 1

Marketing managers

Question 2

produce insight to assist in the marketing manager’s decision making.

Answer 2

marketing researcher

Question 3

Marketing research is all about generating insights. Marketing insights provide diagnostic information about how and why we observe certain effects in the marketplace and what that means to marketers.

Question 4

provide diagnostic information about how and why we observe certain effects in the marketplace and what that means to marketers.

Answer 4

Marketing insights

Question 5

Marketers need timely, accurate, and actionable information about consumers, the competition and brands to make the best possible tactical decisions in the short run and the most effective strategic decisions in the long-run

Question 6

Gaining a marketing insight and understanding its implications can often lead to a successful product launch or spur the growth of a brand.

Question 7

The Marketing Research Process

Answer 7

1. Defining the Problem
2. Developing the Research Plan
3. Collecting the Information
4. Analyzing the Information
5. Making the Decision

Question 8

Marketing managers must be careful not to define the problem too broadly or too narrowly for the marketing researcher.
Questions focuses on the key issues that the manager must address and at the same time are specific enough to be actionable

Answer 8

DEFINING THE PROBLEM

Question 9

The second stage of marketing research consists of developing the most efficient plan for gathering the needed information and then discovering what that will cost.To design a research plan, we need to make decisions about the data sources, research approaches, research instruments, sampling plan, and contact methods.

Answer 9

DEVELOPING THE RESEARCH PLAN

Question 10

The researcher can gather secondary data, primary data, or both.

Answer 10

Data Sources

Question 11

are data that were collected for another purpose and already exist somewhere

Answer 11

Secondary data

Question 12

are data freshly gathered for a specific purpose or project.

Answer 12

Primary data

Question 13

Marketers collect primary data in five main ways: through observation,
focus groups, surveys, behavioral data, and experiments.

Answer 13

Research Approaches

Question 14

Marketing researchers have a choice of three main research instruments in collecting primary data: questionnaires, qualitative measures, and technological devices.

Answer 14

Research Instruments

Question 15

The data collection phase of marketing research is generally the most expensive and error prone.

Answer 15

COLLECTING THE INFORMATION

Question 16

After choosing the research approach and instruments, the marketing researcher
must put together a sampling plan designed to obtain high-quality responses while keeping costs in
line.

Answer 16

Sampling Plan

Question 17

Sampling Plan three decisions:

Answer 17

Sampling Unit
Sample Size
Sampling Procedure

Question 18

The marketing researcher must decide how to contact the subjects: online, in
person, by mail or e-mail, or by telephone.

Answer 18

Contact Methods

Question 19

marketing statisticians can extract, from the mass of data,
useful information about individuals, trends, and segments

Answer 19

Data Mining

Question 20

next-to-last step in the process is to extract findings by tabulating the data and developing summary measures. The researchers compute averages and measures of dispersion for the major variables and apply some advanced statistical techniques and decision models in the hope of discovering additional findings. They may test different hypotheses and theories, applying sensitivity analysis to test assumptions and the strength of the conclusions.

Answer 20

ANALYZING THE INFORMATION

Question 21

When analyzing the available information and making a decision, it is important to draw a line between market data and market insights. Information is not knowledge, noted Albert Einstein. Likewise, market data alone are typically is not very useful unless they offer insights that improve managers’
understanding of the problem and enhance the cost-effectiveness of their actions. Thus, interpreting the data and relating them to the problem at hand play a crucial role in managerial decision making.

Answer 21

MAKING THEDECISION

Question 22

Understanding the marketing environment and conducting marketing research can help to identify marketing opportunities. The company must then measure and forecast the size, growth, and profit potential of each new opportunity. Sales forecasts prepared by marketing are used by finance to raise
cash for investment and operations; by manufacturing to establish capacity and output; by purchasing to acquire the right amount of supplies; and by human resources to hire the needed workers

Answer 22

Measuring Market Demand

Question 23

The major concepts in demand measurement are market/company demand, market forecast, company sales forecast, market potential, and company sales potential.

Question 24

for an offering is the total volume that could be bought by a defined customer
group in a defined geographic area in a defined time period in a defined marketing environment under
a defined marketing program.

Answer 24

Market demand

Question 25

the company’s estimated share of market demand at alternative levels of com-
pany marketing effort in a given time period. It depends on how the company’s products, services, prices,
and communications are perceived relative to those of competitors.

Answer 25

Company demand

Question 26

The market demand corresponding to the actual level of industry marketing expenditure

Answer 26

market forecast.

Question 27

expected level of company sales based on a chosen marketing
plan and an assumed marketing environment.

Answer 27

company sales forecast

Question 28

consists of the maximum sales available to all firms in an industry dur-
ing a given period, under a given level of industry marketing effort, and under extant environmental
conditions

Answer 28

Total market potential

Question 29

the sales limit approached by company demand as company marketing
effort increases relative to that of competitors

Answer 29

Company sales potential