Marketing Information Management

Data obtained from negative outcomes can help marketers to

Avoid making the same mistakes in the future. Even negative outcomes can be helpful for marketers. By using what they've learned, they can avoid making the same mistakes in the future. The data from negative outcomes won't necessarily help marketers to increase profits, create SMART goals, or analyze sales reports effectively.

One basic requirement of a marketing-information management system is that it should be able to

Collect, process, and store data. Data must be gathered, processed, and updated continuously to provide accurate information. These data and information must be stored efficiently and be readily available on an ongoing basis. Not all personnel should have access to the marketing-information management system.

Which of the following is a way that researchers help managers clarify decision problems: Select one: a. Determining unit of analysis b. Drafting research objectives c. Deciding on relevant variables d. Conducting a situation analysis

Conducting a situation analysis. Researchers can help managers clarify decision problems through questioning and through conducting a situation analysis—exploratory research into the problem and the business environment. Determining the unit of analysis, deciding on relevant variables, and drafting research objectives are all activities that take place after the decision problem has been clarified.

Which of the following activities helps managers to make smart decisions regarding the problems and opportunities facing their businesses: Select one: a. Conducting marketing research b. Hiring new employees c. Advertising d. Providing customer service

Conducting marketing research. Conducting marketing research helps managers to make smart decisions and plan appropriate strategies regarding the problems and opportunities facing their businesses. Advertising, hiring new employees, and providing customer service are all important business activities, but they do not provide the information that managers need for decision making.

Which characteristic of useful marketing information is represented by the statement "The benefits of using the information should be greater than the expense of gathering the data used to generate this information"?

Cost-effectiveness. Marketing information must provide greater benefits to the user than the expense of gathering the data used to generate this information. If the marketing information cannot provide greater benefits to the user, then the corresponding data are not worth gathering or processing. Timely data and information are up-to-date, so the data must be gathered at a time when they will be of the most value to the business. Accessible information is readily available so that it can be used without major effort or excessive cost. Marketing information should be relevant—closely related to the situation at hand.

A piece of easily observable data about a competitor is its

Current promotional campaign. A competitor's current promotional campaign is shown to the public and is, therefore, easy to observe. However, the products a competitor has in development, along with its sales reports and future plans may not be public information. This makes them difficult for marketers from competing businesses to learn about.

Which function of a marketing-information management system involves collecting facts and figures from internal and external sources on an ongoing basis?

Data gathering. The basic function of a marketing-information management system is to gather data important to the business. These data should be gathered from both internal and external sources on an ongoing basis. Data processing involves examining the collected data and putting them into formats that are useful to the business. Information reporting involves distributing information to those who need it. Marketing research is one form of data gathering. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern. Since marketing research focuses on one specific problem or project, it has a definite beginning and end. It generally does not occur on an ongoing basis.

Which function of a marketing-information management system involves changing the format of facts and figures to make them more useful?

Data processing. Data are often not useful in their raw form. Their format must be changed to be more effective. Information reporting is concerned with the movement of information to the appropriate parties. Data gathering deals with the collection of data, and marketing research deals with gathering data to solve a specific problem.

Which of the following is a requirement for good decision making: Select one: a. Data b. A college degree c. At least three options d. Money

Data. Good decision making requires data. One cannot make a wise choice without having input that gives some insight into the potential outcomes. Good decision making does not necessarily require a college degree or money. Sometimes, there are only two options from which to choose—but it is still possible to make a good decision.

Erika, a manager, is wondering why sales are lower in a particular market segment. This is her

Decision problem. Erika wants to know why sales are lower in a particular market segment—this is her decision problem (the problem from the manager's perspective). Research objectives are formal statements about what the marketing-research study will achieve—they are formulated later in the process than the decision problem. A situation analysis is exploratory research that uncovers more information about the problem and the business environment. Research problems are the problem from the researchers' perspective.

The success of any marketing-research study hinges on

Defining the problem correctly. The success of any marketing-research study hinges on defining the problem correctly. This step lays the foundation for the entire research process; if businesses pursue the wrong problem, they will waste valuable resources. Conducting marketing research does cost money, but it is not the most important ingredient for success. Finding the best customers and hiring the right researchers are also not as important as defining the problem correctly.

Which of the following marketing-research designs is often referred to as statistical research: Select one: a. Exploratory research b. Numerical research c. Descriptive research d. Causal research

Descriptive research. Descriptive research is often referred to as statistical research since it deals with quantitative results. Although these results are often represented numerically, descriptive research is not called numerical research. Exploratory research deals with qualitative results, which are based on thoughts, feelings, opinions, etc. Causal research tests hypotheses and focuses on cause and effect; it is often referred to conclusive research.

"What are some unfulfilled needs in our target market?" is an example of a(n)

Discovery-oriented decision problem. "What are some unfulfilled needs in our target market?" is an example of a discovery-oriented decision problem. These problems ask "what?" or "why?" Strategy-oriented decision problems ask "how?" or "which?" A unit of analysis is the entity or element that is being studied in market research (e.g., individual, household, etc.). Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.).

Which of the following is a true statement about marketing-research studies: Select one: a. Marketing-research studies are difficult to conduct. b. Each marketing-research study is unique. c. Marketing-research studies should be conducted once per year. d. Lower level employees should not be involved in marketing-research studies.

Each marketing-research study is unique. Each business and marketing-research study is unique, but there are a few common ways that managers and researchers work together to define the problem clearly and correctly. Marketing-research studies can be conducted more or less than once per year. Lower level employees may be very helpful with marketing-research studies. Marketing-research studies need not be difficult to conduct, especially with experienced researchers on hand.

Quinn is getting ready to start college. Though she knows that the figure could change over time, she guesses that her four years in school will cost her around $65,000. This is an example of a(n)

Estimate. Quinn's educated guess at the total cost of her education is an estimate, or an approximation of data. It isn't a fact because it can't be verified. It isn't a quote because she is figuring it on her own, not getting a "bid" from someone else. It has nothing to do with sales or sales reports.

A company wants to know why sales of a certain product are not growing. Its purpose in conducting marketing research is to

Explain. The company that wants to know why sales of a certain product are not growing will conduct marketing research to explain the problem. Monitoring refers to keeping track of statistics, such as a certain salesperson's performance. Testing hypotheses means experimenting to see if an "educated guess" is correct. Predicting refers to using marketing research to gain insight into something that will happen in the future.

A company's marketers want to begin marketing research, but they are unfamiliar with the nature of the problem. The most appropriate research design for them would be

Exploratory research. Exploratory research is the most appropriate research design when marketers are unfamiliar with a problem or don't have much to go on. Descriptive research is used only after marketers have a good understanding of the situation. Causal research is used when marketers are highly familiar with a subject and want to test a specific hypothesis. Discovery research is not a common type of marketing-research design.

An example of an internal source of marketing-research data is

Financial statements. Internal sources of data are those located inside the business. Financial statements are internal documents that provide data about the financial condition of the business. Industry sales, census figures, and unemployment statistics are external sources of data.

Predictive research is used by businesses when they need to

Forecast future business developments. Businesses use predictive research to help them forecast future business developments, such as estimating future sales, predicting the growth or decline of a market, or projecting consumer tastes. Exploratory research collects data to help the business define its situation, problem, or concern and to decide which direction to take to address it. Causal research focuses on cause and effect and tests "what if" theories. Research that gathers specific data related to the business's identified situation, problem, or concern is called descriptive research.

Which of the following is a "place" strategy that marketers devise using available data: Select one: a. What market segment to target b. How much of the product to create c. What level of customer service to provide d. When to change the product's price

How much of the product to create

A company's marketers guess that if they invest in sales force training, sales will increase by 15 percent. This guess is called a(n)

Hypothesis. The marketers' "educated guess" about how sales force training will affect sales is called a hypothesis. The marketers can conduct further marketing research to test this hypothesis and see if it is correct. A simulation is an imitation or enactment that could be used to test a hypothesis. An independent variable is a factor whose value is not affected by other factors. A pilot study is small-scale research study used to test the feasibility of a project or an idea.

A marketing-information management system should meet the requirements of the

Individual business. A marketing-information management system is valuable if it can meet the needs of the individual business by providing information so that appropriate decisions can be made. The marketing researcher, salesperson, and computer operator are individuals who may be employed by the individual business and can be internal sources of information for the system.

Which of the following is the most significant reason why marketing research is important to businesses: Select one: a. It helps the business to base decisions on opinions. b. It contributes to business success. c. It makes competitors take notice of the business. d. It improves financial management.

It contributes to business success. Marketing research has a significant impact on business success. Businesses that obtain reliable marketing-research data are better able to make good decisions because their decisions are based on fact, not opinion. Whether marketing research improves a business's financial management would depend upon the kind of problem the business is trying to solve and the data gathered. Competitors are often unaware of a business's marketing-research efforts.

Which of the following is a true statement about the wise use of available data: Select one: a. It increases market share. b. It creates more satisfied customers. c. It doubles a business's profits. d. It increases employee satisfaction.

It creates more satisfied customers. Using data wisely helps marketers to create more competitive and successful products for their companies. To do so, they pay close attention to data that show how to best meet customer needs and wants. This creates satisfied customers who will make purchases from the business again and again. Although it might help, using data wisely will not necessarily increase market share (it would depend on the industry), double a business's profits, or increase employee satisfaction.

Which of the following is a true statement about marketing-research designs: Select one: a. Only exploratory and descriptive research should be combined. b. Only descriptive and causal research should be combined. c. Designs should not be combined. d. It is acceptable to use a combination of all three designs.

It is acceptable to use a combination of all three designs. In marketing research, it is acceptable—and even helpful—to use a combination of exploratory, descriptive, and causal research within a single research project. Conducting research this way can often help marketers to achieve the most thorough results.

Managers should avoid marketing-research projects that

Make little financial sense. Managers should avoid marketing-research projects that make little financial sense—in other words, the costs of conducting the research shouldn't outweigh the potential benefits. Even if a marketing-research project gives unfavorable results, managers can still use the information to make the best decisions and strategies for the company. It shouldn't make a difference if a marketing-research study takes a long time to complete or involves new products—it can still be useful.

When all of the data in a marketing-research project have been collected and analyzed, the next step for the researcher is to Select one: a. make recommendations based on the findings. b. decide whether the project should be continued. c. develop a testable hypothesis. d. develop a research design for the project.

Make recommendations based on the findings. When the research efforts are complete, researchers are expected to prepare a report of their findings and make recommendations to the business based on those findings. It is then up to the business to decide whether more research needs to be done and exactly what it should do. Developing a hypothesis and research design occur early in the research process, not at the end.

Jerry, a computer salesperson, asks each interested customer to tell him what her/his experiences have been at competing computer stores. Jerry is gathering __________ about the competition from his customers.

Marketing intelligence

Which of the following statements regarding marketing research is true: Select one: a. Marketing-information management is a component of marketing research. b. Marketing research is a component of marketing-information management. c. Marketing research occurs on an ongoing basis and never ends. d. Marketing research and marketing intelligence are the same thing.

Marketing research is a component of marketing-information management.

An organization is gathering, recording, and analyzing data about its target market. This activity is known as

Marketing research. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern. It's a very important activity for marketers because the results of marketing research support every decision they make. Test marketing is the process of introducing a new product to a limited market to determine what its acceptance will be. Performing a case study means conducting an intense analysis of a person, group, or event. Conducting experiments refers to a marketing-research method that tests cause and effect by test marketing new products or comparing test groups with control groups.

Is marketing research used just by large businesses?

No, it is used by businesses and organizations of all sizes. Businesses and organizations of all sizes, as well as individuals, use marketing research. Anyone who needs information that will help to solve problems or make decisions can use and benefit from marketing research.

Descriptive research is a type of marketing research that is used by businesses when they need to

Obtain specific data related to the business's situation. This data might include specific characteristics of a market, economic data that directly affect the business, or data about the business's nearest competitors. Predictive research is used to estimate the business's future sales or other future developments. Exploratory research collects data to help the business define its situation, problem, or concern and to decide which direction to take to address it. Causal research focuses on cause and effect and tests "what if" theories.

Which of the following is an example of exploratory research: Select one: a. Survey b. Test marketing c. Case study d. Pilot study

Pilot study. A pilot study is an example of exploratory research. It is a small-scale research study used to test the feasibility of an idea or project. Surveys and case studies are examples of descriptive research. Test marketing is an example of causal research.

A company wants to know how its target market will react to expected changes in the economy. Its purpose in conducting marketing research is to

Predict. The company that wants to know how its target market will react to expected changes in the economy will conduct marketing research to predict this reaction. Monitoring refers to keeping track of statistics, such as a certain salesperson's performance. Testing hypotheses means experimenting to see if an "educated guess" is correct. Explaining refers to using marketing research to understand something that is already happening.

Researchers are conducting focus groups as part of their current marketing-research project. The results of these focus groups are examples of

Primary data. The focus group results are examples of primary data, or facts, figures, and statistics that have been collected specifically for the marketing-research project being conducted. Secondary data are facts, figures, or statistics that already exist for other purposes. Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.). Units of analysis are the entities or elements that are being studied in market research (e.g., individual, household, etc.).

The Thirst Quenchers beverage company is surveying prospective customers to determine demand for its newest soft drink. Thirst Quenchers is collecting __________ data.

Primary. Primary data are facts and figures collected specifically for the problem or project at hand. In this case, the project at hand is to determine the demand for a new soft drink. Surveying current and/or prospective customers is one way to collect primary data. Secondary data are facts and figures that have been collected for purposes other than the project at hand. There is no indication that Thirst Quencher's data are irrelevant. Economic data are facts collected regarding the economy as a whole.

When a marketing-information management system compares financial information from one time period with the financial data from another time period, it provides a picture of the business's

Profitability. A marketing-information management system can be used to determine the profitability of a business and its products by comparing financial data from one time period with the financial data from another time period. A sales forecast is a prediction of what future sales are likely to be. A situation analysis is a determination of a firm's current situation and the direction in which the business is headed. Competition is the rivalry between two or more businesses to attract scarce customer dollars.

Marketers at GG Unlimited are using the company's marketing-information management system (MkIS) to learn more about the effectiveness of the company's latest advertising campaign. This is an example of how the MkIS can be used to evaluate

Promotional strategies. An important use of a marketing-information management system (MkIS) is in evaluating the effectiveness of promotional strategies, including advertising. If the strategies used have not been satisfactory, gathering and analyzing marketing data may indicate what changes need to be made. In this instance, the MkIS is not being used to learn about competitors' products, gather marketing intelligence, or identify marketing intelligence, although an MkIS can be used to do all three.

Which of the following is a way that marketers can use data to "follow up" on any problems or issues with a product: Select one: a. Determining what new products to offer b. Deciding what wholesalers to use for distribution c. Budgeting for product development d. Providing salespeople with additional training

Providing salespeople with additional training

What is the relationship between research purpose and research design?

Purpose dictates design. Research purpose and design have a very important relationship. Purpose dictates design. If the design is not appropriate to the purpose, a company can waste a lot of time and money. Both are very necessary ingredients of a research project; one is not more important than the other.

The results of exploratory research are often

Qualitative. The results of exploratory research are often qualitative, or based on thoughts, opinions, or feelings. They are not necessarily specific. They are usually not quantitative, or measurable. They are usable for generating hypotheses or familiarizing marketers with the problem at hand.

The results of descriptive research are often

Quantitative. The results of descriptive research are often quantitative, or measurable. They are not qualitative as exploratory research results are (that is, based on thoughts, feelings, or opinions). Since they are measurable, these results are not vague. If the research is conducted correctly, the results should be reliable.

Having appropriate data helps marketers to set goals that are

Realistic. Having appropriate data helps marketers to set realistic goals. Looking at the available data helps marketers to create SMART goals—specific (rather than general), measurable, achievable, realistic, and time-bounded (rather than open-ended). Having appropriate data does not necessarily mean that marketers will set difficult goals.

Brandi is reviewing marketing information about the possible demand for a new product. In this instance, Brandi's marketing-information management system is most likely to be helping her to

Reduce the risk of product failure. Marketers can reduce the risk of new-product failure by using a marketing-information management system (MkIS) to obtain as much advance information as possible about possible demand for the new product, the target market, the competition, or anything else that could affect the success of the product. While Brandi is using an MkIS to reduce risk, an MkIS can also be used to evaluate current promotional strategies, determine the competition's market share, or develop a sales forecast for the company.

What characteristic of useful marketing information requires the information to be closely related to the situation in order to be of the most use?

Relevancy. Marketing information must be closely related to the situation at hand to be of the most use. Timely data and information are up-to-date, so the data must be gathered at a time when they will be of the most value to the business. Accessible information is readily available so that it can be used without major effort or excessive cost. Information should also be cost-effective. This means that the benefits of using the information should be greater than the costs of gathering the data that are used to generate this information.

Managers and researchers have decided to focus on customer-satisfaction levels in their marketing-research study. They have determined the

Relevant variable. Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.). Units of analysis are the entities or elements that are being studied in market research (e.g., individual, household, etc.). A situation analysis is exploratory research, conducted to find out more about the problem and the business environment. Primary data are facts, figures, and statistics uncovered for the specific marketing-research study being conducted.

Managers and researchers have formalized their decisions into a statement of what the marketing-research study will achieve—this is known as a

Research objective. Research objectives are formal statements of what a marketing-research study will achieve. Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.). A decision problem is the issue from the managers' perspective. A research problem is the issue from the researchers' perspective.

The problem from the researchers' perspective is known as the

Research problem. The problem from the researchers' perspective is known as the research problem. Researchers translate managers' decision problems into one or more research problems—questions asking what information is needed to solve the decision problem. Research or investigation objectives are formal statements of what a research study will achieve.

A decision problem may be translated into several

Research problems. A decision problem may be translated into several research problems, questions that ask what information is needed to solve the decision problem. Decision problems cannot be translated into secondary data, other decision problems, or situation analyses.Research problems. A decision problem may be translated into several research problems, questions that ask what information is needed to solve the decision problem. Decision problems cannot be translated into secondary data, other decision problems, or situation analyses.

Which of the following is an example of a prediction: Select one: a. Sales were up four percent last quarter. b. Sales will be up four percent next quarter. c. The business owes $200,000 in taxes. d. About half of the business's customers are female.

Sales will be up four percent next quarter. This is an example of a sales forecast, or a prediction. A prediction is a statement made about the future. About half the business's customers are female—this is an estimate, or an approximation of data. The business's owing $200,000 in taxes and a report on sales from last quarter are facts, or true and verifiable statements.

Researchers are studying a company's past sales invoices as part of their current marketing-research project. The sales invoices are examples of

Secondary data. The sales invoices are examples of secondary data, or facts, figures, and statistics that already exist and have been used for purposes other than the marketing-research study. Primary data are new facts, figures, or statistics gathered for the specific marketing-research project being conducted. Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.). Units of analysis are the entities or elements that are being studied in market research (e.g., individual, household, etc.).

Marketers often conduct causal research through experiments and

Simulations. Marketers often conduct causal research through experiments or simulations (imitations or enactments). Informal interviews and literature reviews are methods for exploratory research. Questionnaires are often used in descriptive research.

How research will be conducted depends on a business's

Size and resources. How marketing research is conducted depends on a business's size and resources. Mid-sized and big companies are more likely to be able to afford to hire an outside marketing-research firm to complete the job. Smaller businesses often complete the research themselves. A business's industry, products, and employees don't necessarily determine how it will conduct market research.

Why is it important for marketing research to be objective?

So that the data gathered are not influenced by researchers' opinions. Researchers must be very careful not to express their own opinions or try to sway consumers' responses. Revealing their biases could influence what respondents say, reducing the objectivity of the data collected. Objective data give the business valid information to use in decision-making. Data that are not objective can be analyzed using statistical software, but the data would not benefit the business.

Which of the following is an example of descriptive research: Select one: a. Clinical trial b. Interview c. Focus group d. Survey

Survey. A survey is an example of descriptive research. Descriptive research seeks to gain the quantitative data that marketers can gather from conducting in-depth surveys. Interviews and focus groups are examples of exploratory research; they gather qualitative data. A clinical trial is an example of causal research; it tests a specific hypothesis.

Which of the following is the most popular data-collection method: Select one: a. Observation b. Experiment c. Situation analysis d. Survey

Survey. The most popular data-collection method is survey. To conduct a survey, researchers develop and administer a questionnaire via telephone, mail, electronic, or personal interviews. Experiment tests cause and effect by test marketing new products or comparing test groups with control groups. Observation gathers data by watching customers. Situation analysis is not a data-collection method. It is a determination of a firm's current business situation and the direction in which the business is headed.

Which of the following is an example of an experimental study: Select one: a. Computer cookies b. Test marketing c. Customer diaries d. A focus group

Test marketing. Test marketing, which is the process of introducing a new product to a limited market to determine what its acceptance will be, is an example of an experimental study. Experiment is a research method that tests cause and effect relationships. Researchers use customer diaries and computer cookies to track customers' actions. Therefore, they are forms of observation. A focus group is a special kind of face-to-face interview that involves a group of individuals who are brought together to discuss a specific topic. Because they are face-to-face interviews, they fall into the survey method of data collection.

Before beginning a marketing-research study, managers and researchers must agree that

The benefits outweigh the costs. Before beginning a marketing-research study, managers and researchers must agree that the benefits the study will bring outweigh the costs it will require (time, money, and effort). If they agree, the study can proceed. Many marketing-research studies will take much longer than two weeks to complete. The results of the study should stand alone and not be dependent on the opinions of either managers or researchers. The two parties may or may not agree on 30 days as the timeframe in which the bill must be paid.

A business with its own marketing-research department is most likely to use outside marketing research when

The business needs more research than the department can handle. Businesses may need data at a time when the marketing-research department is handling as much research as it can. When that happens, the business may hire outside researchers to obtain the information it needs in a timely fashion. Internal information would be found within the business and would not require the business to hire outside researchers to obtain it. While a business may conduct marketing research when it wants to prevent unnecessary financial losses, it is an unlikely reason for hiring an outside marketing-research firm. A business large enough to have a marketing-research department would have ample access to computers without hiring an outside firm.

Determine which of the following is a true statement about the steps in the marketing-research process: Select one: a. The steps in marketing research must follow a certain order, and none can be eliminated. b. The business can leave out some of the steps in marketing research in certain situations. c. The order of the steps in marketing research can be changed to suit the business. d. The amount of data being gathered affects the steps in the marketing-research process.

The steps in marketing research must follow a certain order, and none can be eliminated. This is a primary characteristic of marketing research. The business must follow a systematic, step-by-step research process that includes gathering, recording, and analyzing data, in that order. This is true no matter how much or how little data are being gathered.

Which of the following is the most important reason for creating a written plan for a marketing-research project: Select one: a. To make it easy to analyze the data collected b. To implement the marketing concept c. To keep the project from going over budget d. To keep the project on track

To keep the project on track. Creating a written plan for the research helps to keep the project on track as to types and amounts of data to be collected. A written plan also ensures that both the business and the research have the same information. The amount budgeted for research should be stated in the written plan, but that is not the most important reason for putting the plan in writing. A written plan does not affect data analysis or help the business to implement the marketing concept—a philosophy of doing business that is based on satisfying customer wants and needs while achieving company goals.

Managers and researchers have decided to conduct their marketing-research study by looking at individual customers rather than at households. They have determined the

Unit of analysis. Individual customers are the unit of analysis the managers and researchers are using in the marketing-research study. Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.). A decision problem is the issue from the managers' perspective. A research problem is the issue from the researchers' perspective.

Marketers may want to use research to study the economy, a factor that is subject to change. In this context, the economy can be described as a(n)

Variable. A variable is any factor that is subject to change. Sometimes, the economy is the variable that marketers want to study through research. A case study is an in-depth analysis of a person, group, or event. An experiment is a marketing-research method that tests cause and effect by test marketing new products or comparing test groups with control groups. A hypothesis is a proposed explanation for something.

The observation method of collecting marketing-research data involves

Watching what customers do. Observation is a marketing-research method that gathers data by watching customers. This can be carried out by using cameras, by assigning people to watch customers' actions, or by using scanners that record what customers buy. Test marketing new products is part of the experiment method of collecting data. Calling customers on the telephone and surveying them by mail are part of the survey method of collecting data.

Which of the following questions would be answered through a situation analysis: Select one: a. Which new product has more potential? b. Why is our business's market share dropping? c. What do we already know about this problem or opportunity? d. How can we reach our target market more effectively?

What do we already know about this problem or opportunity? This is a question that would be answered through a situation analysis, exploratory research into the problem at hand as well as the total business environment. The other questions are specific decision problems that a situation analysis would be conducted to address more thoroughly.

Which of the following is an important question for marketers to ask before creating a research design: Select one: a. Who is our target market? b. What is our budget? c. What new products do we like? d. What do we want the results to be?

What is our budget? Before creating a research design, marketers should consider the project's budget, since it will have an effect on what the design looks like. Marketers should already know who their target market is before beginning a research project. A research design doesn't require marketers to know what products they like, as many research projects focus on what customers like, not marketers. Marketers should not base a research design on what they want the results to be, or the research may be inaccurate.

Which of the following is a product strategy that marketers devise using available data: a. How much to charge b. What level of customer service to provide c. Where to sell the product d. What advertisements to run

What level of customer service to provide

Which of the following is essential to all marketing research: Select one: a. Frequency b. Secondary data c. Primary data d. Accuracy

Accuracy. Accuracy is absolutely essential in gathering, recording, and analyzing marketing-research data if the data are to be of value to the business. Inaccurate data can cause the business to make incorrect or unwise decisions. The frequency with which research is conducted would depend upon the needs of the business. Primary data are facts collected specifically for the problem or project at hand. Secondary data are facts that have been collected for purposes other than the project at hand. A marketing-research project may require either or both kinds of data.

Which of the following is an example of a trade journal: Select one: a. USA Today b. Autoparts Report c. Newsweek d. People

Autoparts Report. This is a trade journal because it publishes information specific to a certain industry—in this case, the auto parts industry. Newsweek and USA Today are general-interest news publications. People is a general-interest entertainment publication.

What is the relationship between data and information?

Data are used to create information. Data are simply facts and figures. To become information, data must be processed, organized, and presented in an understandable, meaningful manner.

A company's marketers hold a meeting to lay out the master plan for conducting a marketing-research project. This plan is known as the research

Design. The master plan for conducting marketing research is known as the research design. It lays out the types of data needed, how much data to collect, what collection methods to use, and how data will be analyzed. A questionnaire is a set of written questions designed to gather information. A variable is a factor that is subject to change. The plan for the marketing-research project does not determine its purpose—researchers should already know the purpose before developing a plan.

Which of the following is a good source of internal data: Select one: a. Enterprise resource planning systems b. Government planning agencies c. Commercial Internet databases d. Professional marketing research firms

Enterprise resource planning systems. A good source of internal data is an enterprise resource planning (ERP) system. An ERP system consists of a common database that holds all of the facts and figures created or received during normal business operations. These data may come from any of an organization's business functions. The data in an ERP system can be accessed by a marketing-information management system. Commercial Internet databases, professional marketing research firms, and government planning agencies are good sources of external data.

Marketing research may not be appropriate for researchers when managers

Have preset ideas about results. Marketing research may not be appropriate for researchers when managers have preset ideas about what the results should be. The purpose of marketing research is to discover useful information for the business—not necessarily to support decisions or strategies that are already in place or to reinforce managers' current opinions. The results of this skewed type of marketing research will not be valid. Risk taking and organization skills do not necessarily affect marketing-research studies. Having too much money to spend is rarely a problem.

Which of the following is not a common type of data

Quote. The three main types of data are facts (true statements), estimates (approximations), and predictions (forecasts). Although someone's quote may be a type of data, it is not a common type of data used by marketers.

Which of the following is an example of causal research: Select one: a. Case study b. Survey c. Test marketing d. Pilot study

Test marketing. Test marketing is a method used in causal research. It involves introducing a new product to a limited market to determine what its acceptance will be. Case studies and pilot studies are methods used in exploratory research. Surveys are used in descriptive research.

An advantage of using primary data in a marketing-research project is that they are

Usually more up-to-date than secondary data. Primary data are facts collected specifically for the problem or project at hand. For this reason, they are usually more up-to-date and relevant than secondary data. Secondary data are facts that have been collected for purposes other than the purpose at hand. Secondary data are quicker, easier, and less expensive to collect than primary data.

The best source for data about the goods and services a company needs to buy for its own operation is its

Vendors

Which of the following pieces of data give a wealth of information about a customer: Select one: a. A sales invoice b. A sales report c. An expense report d. A trade journal

A sales invoice. A single sales invoice (itemized statement of money owed for a good or service) can tell marketers who a customer is, what industry the customer is in, how much the customer has spent with the business this year, what method of payment the customer prefers, and much more. A trade journal gives general information about the industry. Expense reports and sales reports give data about the sales team—how much it is spending and how much it is selling.

The Phineas Corporation is using internal and external information from its marketing-information management system to determine the strength of the company's current business position. What is the company conducting?

A situation analysis. The marketing-information management system can provide internal and external information for a situation analysis. A situation analysis is a determination of a firm's current business situation and the direction in which the business is headed. A sales forecast is a prediction of future sales over a specific period of time. Enterprise resource planning consists of software applications using database technology that enable a business to manage its information about customers, products, employees, and finances. Risk management is a business activity that involves planning, controlling, preventing, and limiting business losses.

Marketers must use data to estimate costs for projects and allocate funds appropriately. This is known as

Budgeting. Estimating costs for projects and allocating funds appropriately is called budgeting, and it is an important use of data for marketers. Distributing means getting the product to customers. Promoting means sending customers a message about the product. Pricing means determining how much to charge for the product.

Marketers use data to determine pricing strategies such as

Budgeting. Estimating costs for projects and allocating funds appropriately is called budgeting, and it is an important use of data for marketers. Distributing means getting the product to customers. Promoting means sending customers a message about the product. Pricing means determining how much to charge for the product.

Marketers have developed a hypothesis, and they want to test it. Which of the following research designs is most appropriate in this situation:

Causal research. Causal research tests hypotheses and focuses on cause and effect. It would be the most appropriate design for the marketers in this scenario. Exploratory research gathers information and clarifies concepts; it does not test hypotheses. Descriptive research gathers statistical information but does not test hypotheses; it is often called statistical research.

Marketers need to know more about the demographics of their target market. The most appropriate research design for them would be

Descriptive research. The most appropriate research design for marketers wanting to know more about the demographics of their target market would be descriptive research, which takes a "snapshot" of some aspect of the market at any given time. Exploratory research is useful for learning more about a marketing problem or clarifying concepts. Causal research tests specific hypotheses and focuses on cause and effect; it is also referred to as conclusive research.

A marketing-information management system can help businesses to

Discover new markets. A marketing-information management system is designed to provide accurate and timely information about market trends, target markets, changes in the environment, etc. This information can help businesses to discover new or expanded markets that can be tapped. Employee motivation, employee potential, and business ethics are not directly impacted by a marketing-information management system.

A business owner marked down a line of products in order to sell them, but customers still didn't buy them. Marketing research might have been used in this situation to protect the business from

Financial loss. Having to mark down products and/or not being able to sell them creates a financial loss for the business. Businesses can use marketing research to protect themselves from this kind of financial loss because research can identify which products consumers are buying or want to buy. The situation does not indicate that competitors were part of the problem. It also does not mention any loss of clientele. The business is not likely to suffer embarrassment since this kind of situation occurs from time to time.

Which of the following is determined in a research project's master plan: Select one: a. The company's target market b. How much the marketers will be paid c. The purpose of the research d. How much data to collect

How much data to collect. A research project's master plan, known as the research design, determines the types of data needed, how much data to collect, what collection methods to use, and how the data will be analyzed. The company should already know its target market and the purpose of the research before creating a research design. The research design does not include information about how much marketers will be paid.

What function of a marketing-information management system involves the distribution of marketing information to those who make marketing decisions?

Information reporting. An important function of a marketing-information management system is handling the flow of information within the business. The system should make it easy for marketers to locate and retrieve information at any time. Data processing involves putting data into a useful format. Data gathering deals with the collection of data. Marketing research deals with gathering data for a specific problem.

One advantage of information generated by a marketing-information management system is that the information

Is presented in an organized fashion. When information is organized and stored, it becomes more accessible and can be used a number of times. Decision-making can be a difficult process and can require a great deal of time. If the information is disorganized and not understandable, it is much less likely to be helpful to marketers. If information is not retrievable, it may be unavailable when needed. Information in a marketing-information management system is intended for frequent use. The information in a marketing-information management system provides a broad perspective of the market.

Which of the following is a benefit of having managers and researchers "on the same page" about the marketing-research problem: Select one: a. It ensures favorable results from the study. b. It allows the two parties to avoid establishing research objectives. c. It improves the business's market share. d. It keeps the business from wasting resources.

It keeps the business from wasting resources. When managers and researchers are "on the same page" about what the marketing-research problem is, it keeps the business from wasting the valuable resources of time, money, and effort on researching the wrong problem. Managers and researchers will still need to establish formal research objectives. Defining the problem clearly doesn't ensure that the results of the study will be favorable for the business. The results of the study may help managers plan strategies for improving the business's market share, but simply defining the problem won't accomplish that.

An advantage of using secondary data in a marketing-research project is that they are

Less expensive to collect than primary data. Secondary data are facts that have been collected for purposes other than the purpose at hand. They are quicker, easier, and less expensive to collect than primary data. Examples of secondary data include industry reports, government census figures, and trade association surveys. These data are readily available to competitors. A drawback of secondary data is that they are less likely to be up-to-date and relevant than primary data.

Which of the following is most likely to help a marketer in setting up the marketing budget: a. Current economic information b. Marketing intelligence c. Personal interviews with customers d. Next quarter's sales forecast

Next quarter's sales forecast. A prediction of next quarter's revenue could provide a marketer with information that s/he could use to set up a marketing budget, plan products, or determine the product mix. While current economic information, personal interviews with customers, and marketing intelligence are sometimes useful, they are not as beneficial to someone setting a marketing budget as a sales forecast would be.

Using data wisely can help a company save money by

Running more efficiently. In addition to making money, using data wisely can also save companies money and help them to run more efficiently. Looking at data can often help marketers to make more cost-effective decisions. Saving money on even one product can affect the entire company's bottom line and contribute to its overall profitability. Using data wisely should help a company spend less, not more. Using data wisely will not necessarily result in the hiring of fewer employees or the elimination of the competition.

"Which advertising campaign will be more effective?" is an example of a(n)

Strategy-oriented decision problem. "Which advertising campaign will be more effective?" is an example of a strategy-oriented decision problem. These problems ask "how?" or "which?" Discovery-oriented decision problems ask "what?" or "why?" A unit of analysis is the entity or element that is being studied in market research (e.g., individual, household, etc.). Relevant variables are the types of information studied in a marketing-research project (e.g., brand awareness, customer satisfaction, etc.).

Which of the following is most likely to affect the amount of data that will be collected in a marketing-research project:

The method of data analysis to be used. If the data will be analyzed by hand, the amount of data must be limited. If the data will be analyzed by computer, the business can collect much more data because computers can analyze large amounts of data very quickly. The level of industry competition has little or no influence on the amount of data to be collected. The reliability of the data is determined by whether they give the same results each time, and that cannot be determined until the data have been analyzed. The data should be collected objectively whatever the amount.

Why do businesses use exploratory research?

To define the reason for the research. Exploratory research is marketing research that collects data to help the business define the reason for its research and to decide which direction to take to address it. Predictive research is used to help the business forecast future business developments. Causal research focuses on cause and effect and tests "what if" theories. Research that gathers specific data related to the business's identified situation, problem, or concern is called descriptive research.

How could a business use marketing-research data it has gathered about the average age, income, educational levels, and spending patterns of area consumers?

To develop a profile of the typical customer. Demographic data are often gathered through marketing research. The business can use such data to develop a profile of the typical customer. The business cannot create a mailing list from these data since names and addresses are not included in the data. The data also would not help the business to identify internal problems or set up an operating budget.

External marketing data comes from sources outside the business such as

Trade journals. Trade journals are an external source of marketing data. Data provided in trade journals are usually about industries as a whole, not individual cases. Inventory records, customer complaints, and sales forecasts are internal sources of marketing data.

Which of the following is an example of a fact: Select one: a. Junior year will be harder than sophomore year. b. The economy should get better during the next decade. c. Valentine's Day is on February 14. d. It could cost up to 20 million dollars to launch a new product.

Valentine's Day is on February 14. This is a fact—looking at a calendar confirms it. The economy improving during the next decade and junior year being more difficult than sophomore year are both predictions or forecasts about the future. A product's costing up to 20 million dollars to launch is an estimate, or an approximation of data.

Marketers use data to determine that they want to create messages that appeal to a younger target market. This is part of an overall

When to offer a discount on the product.

Which of the following is an example of data that marketers could gather from the company's sales team: Select one: a. What products competitors are currently offering b. How actual sales compare to sales goals c. The prices of raw materials d. The latest market-research studies

ow actual sales compare to sales goals. The data in sales reports from a company's sales team can allow marketers to view how actual sales compare to sales goals. The latest market-research studies would not come from the sales team, but from trade journals or market-research firms. The prices of raw materials are data that come from a company's vendors. Data regarding competitors' products come from observing what competitors are doing.