Marketing Research and Information 2005–2006 Marketing Research and Information 2005–2006 Matthew Housden AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO ElsevierButterworth-Heinemann LinacreHouse,JordanHill,OxfordOX28DP 30CorporateDrive,Burlington,MA01803 Firstpublished2005 Copyrightª2005,MatthewHousden.Allrightsreserved TherightofMatthewHousdentobeidentifiedasthe authorofthisworkhasbeenassertedinaccordancewiththe Copyright,DesignsandPatentsAct1988 Nopartofthispublicationmaybereproducedinanymaterialform(including photocopyingorstoringinanymediumbyelectronicmeansandwhether ornottransientlyorincidentallytosomeotheruseofthispublication)without thewrittenpermissionofthecopyrightholderexceptinaccordancewiththe provisionsoftheCopyright,DesignsandPatentsAct1988orunderthetermsof alicenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad, London,EnglandW1T4LP.Applicationsforthecopyrightholder’swritten permissiontoreproduceanypartofthispublicationshouldbeaddressed tothepublisher PermissionsmaybesoughtdirectlyfromElsevier’sScienceandTechnologyRights DepartmentinOxford,UK:phone:(+44)(0)1865843830;fax:(+44)(0)1865853333; e-mail:[email protected] on-lineviatheElsevierhomepage(http://www.elsevier.com),byselecting ‘CustomerSupport’andthen‘ObtainingPermissions’ BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN0750666501 ForinformationonallElsevierButterworth-Heinemannpublications visitourwebsiteathttp://books.elsevier.com TypesetbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India www.integra-india.com PrintedandboundinItaly Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface Welcome to the CIM coursebooks vii Unit 1 Introduction 1 Introduction 2 Information and research for decision-making 2 Customer databases 3 Marketing research in context 4 Research methodologies 5 Presenting and evaluating information to develop business advantage 5 Understanding aims and objectives of marketing research and information, and achieving your learning outcomes 5 Professional marketing standards professional diploma in marketing 6 Key skills for marketers 10 Unit 2 Information in the knowledge economy 13 Introduction 15 One more time, what is marketing? 15 What is marketing research? 22 The database 23 The marketing research and database industry 25 Ethics, regulation and codes of practice in market research 29 Data protection 30 Codes of practice 32 The DMA code of practice 35 The preference services 36 Unit 3 The marketing database 40 Customer relationship management (CRM) 41 The marketing database 44 Unit 4 The marketing research process 68 Introduction 70 The marketing research plan 70 Evaluating existing research 84 Unit 5 Using secondary research 89 Introduction 90 What is secondary or desk research? 90 Unit 6 Observation research 106 Introduction 107 Definitions of observation research 107 Other observation techniques 113 v Contents Unit 7 Qualitative research 119 Introduction 120 Qualitative research defined 120 What are the essential characteristics of qualitative research? 121 Data collection techniques in qualitative research 121 Focus groups have a number of advantages 125 Depth interviews 125 Analysis of qualitative data 132 Unit 8 Quantitative data 138 Introduction 139 What is quantitative data? 139 Survey methods 140 Unit 9 Questionnaire design 155 Introduction 156 The questionnaire design process 156 Developing question topics 157 Question and response formats 157 What type of questions can be asked? 158 Unit 10 Sampling 179 Introduction 181 What is a sample? 181 Unit 11 Quantitative data analysis 196 Introduction 198 Editing and coding 198 Unit 12 Presenting marketing research 213 Introduction 214 The written report 214 Appendices 1 Guidance on examination preparation 226 2 Assignment-based assessment 238 3 Answers and debriefings 248 4 Sample exam questions and answers 278 5 Past examination paper and examiners’ report 308 6 Curriculum information and reading list 316 Index 324 vi Preface welcome to the CIM coursebooks An introduction from the academic development advisor In the last 2 years we have seen some significant changes to CIM Marketing qualifications. The changes have been introduced on a year-on-year basis, with Certificate changes imple- mented in 2002, and the Professional Diploma in Marketing being launched in 2003. The ProfessionalPostgraduateDiplomainMarketingwaslaunchedin2004.Thenewqualifications are based on the CIM Professional Marketing Standards, developed through research with employers. As a result the authoring team, Elsevier Butterworth-Heinemann, and I have all aimed to rigorously revise and update the coursebook series to make sure that every title is the best possible study aid and accurately reflects the latest CIM syllabus. This has been further enhanced through independent reviews carried out by CIM. We have aimed to develop the assessment support to include some additional support for the assignment route as well as the examination, so we hope you will find this helpful. ThereareanumberofnewauthorsandindeedSeniorExaminersintheserieswhohavebeen commissioned for their CIM course teaching and examining experience, as well as their research into specific curriculum-related areas and their wide general knowledge of the latest thinking in marketing. Wearecertainthatyouwillfindthesecoursebookshighlybeneficialintermsofthecontentand assessmentopportunitiesandastudytoolthatwillprepareyouforbothCIMexaminationsand continuous/integrativeassessmentopportunities.Theywillguideyouinalogicalandstructured waythroughthedetailofthesyllabus,providingyouwiththerequiredunderpinningknowledge, understanding and application of theory. The editorial team and authors wish you every success as you embark upon your studies. Karen Beamish Academic Development Advisor How to use these coursebooks Everyone who has contributed to this series has been careful to structure the books with the examsinmind.Eachunit,therefore,coversanessentialpartofthesyllabus.Youneedtowork vii Preface through the complete coursebook systematically to ensure that you have covered everything you need to know. This coursebook is divided into units each containing a selection of the following standard elements: o Learning objectives – tell you what you will be expected to know, having read the unit. o Syllabus references – outline what part of the syllabus is covered in the module. o Study guides – tell you how long the unit is and how long its activities take to do. o Questions – are designed to give you practice – they will be similar to those you get in the exam. o Answers – (at the end of the book) give you a suggested format for answering exam questions.Remember thereisnosuchthingasamodelanswer–youshouldusethese examples only as guidelines. o Activities – give you a chance to put what you have learned into practice. o Debriefings – (at the end of the book) shed light on the methodologies involved in the activities. o Hintsandtips–aretipsfromtheseniorexaminer,examinerorauthorandaredesigned to help you avoid common mistakes made by previous candidates and give you guidance on improving your knowledge base. o Insights – encourage you to contextualize your academic knowledge by reference to real-life experience. o Key definitions – highlight and explain the key points relevant to that module. o Definitions – may be used for words you must know to pass the exam. o Summaries – cover what you should have picked up from reading the unit. o Furtherstudy–providesdetailsofrecommendedreadinginadditiontothecoursebook. Whileyouwillfindthateachsectionofthesyllabushasbeencoveredwithinthistext,youmight find that the order of some of the topics has been changed. This is because it sometimes makes more sense to put certain topics together when you are studying, even though they might appear in different sections of the syllabus itself. If you are following the reading and otheractivities,yourcoverageofthesyllabuswillbejustfine,butdonotforgettofollowupwith trade press reading! About MarketingOnline Elsevier Butterworth-Heinemann offers purchasers of the coursebooks free access to MarketingOnline (www.marketingonline.co.uk), our premier online support engine for the CIM marketing courses. On this site you can benefit from: o Fullycustomizableelectronicversionsofthecoursebooksenablingyoutoannotate,cut and paste sections of text to create your own tailored learning notes. o The capacity to search the coursebook online for instant access to definitions and key concepts. o Useful links to e-marketing articles, provided by Dave Chaffey, Director of Marketing Insights Ltd and a leading UK e-marketing consultant, trainer and author. o A glossary providing a comprehensive dictionary of marketing terms. o A Frequently Asked Questions (FAQs) section providing guidance and advice on common problems or queries. viii Preface Using MarketingOnline Logging on Before you can access MarketingOnline you will first need to get a password. Please go to www.marketingonline.co.uk and click on the registration button where you will then find registration instructions for coursebook purchasers. Once you have got your password, you will need to log on using the onscreen instructions. This will give you access to the various functions of the site. MarketingOnline provides a range of functions, as outlined in the previous section, that can easily be accessed from the site after you have logged on to the system. Please note the following guidelines detailing how to access the main features: 1. The coursebooks – buttons corresponding to the three levels of the CIM marketing qualificationaresituatedonthehomepage.Selectyourlevelandyouwillbepresented withthecoursebooktitleforeachmoduleofthatlevel.Clickonthedesiredcoursebook toaccessthefullonlinetext(dividedupbychapter).Oneachpageoftextyouhavethe option to add an electronic bookmark or annotation by following the onscreen instruc- tions.Youcanalsofreelycutandpastetextintoablankworddocumenttocreateyour own learning notes. 2. E-marketing articles – to access the links to relevant e-marketing articles simply click onthelinkunderthetext‘E-marketingEssentials:usefullinksfromMarketingInsights’. 3. Glossary – a link to the glossary is provided in the top right hand corner of each page enabling access to this resource at any time. If you have specific queries about using MarketingOnline then you should consult our fully searchableFAQssection,accessiblethroughtheappropriatelinkinthetoprighthandcornerof any page of the site. Please also note that a full user guide can be downloaded by clicking on the link on the opening page of the website. Using this text Theworkbookisdesignedtohelpyoustudyandyoushouldseeitasaguidebookratherthana textbook. It will shape your reading, guide you through the syllabus, give you exercises and casestudiestoanalyseandwilldirectyoutothebestsourcesoffurtherinformation.Todothis it draws on the same resources to which you have access. What it tries to do is to steer a way through the enormous amount of material that is available to give you a few short cuts. The workbook should be used in conjunction with the recommended texts for the module and you shouldreadwidelythroughthesetexts.Yourapproachshouldbetodipintothemtoextractthe key learning from them and then apply this to your own or other organizations. The layout of the text follows the curriculum to a large extent. ix