Capturing Marketing Insights Dr Ananda Sabil Hussein What
Capturing Marketing Insights Dr. Ananda Sabil Hussein
What is Marketing Research? Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
The Marketing Research Process Define the problem Develop research plan Collect information Analyze information Present findings 4 -3 Make decision
Step 1 Define the problem (e. g. , Will offering an in-flight Internet service create enough incremental preference and profit for American Airlines to justify its cost? ) Specify decision alternatives (e. g. , Should American offer an Internet connection? ) State research objectives (e. g. , types of 1 st class passengers are likely to use internet? ) 4 -4
Step 2 1) Research Approach 2) Research Instruments 3) Sampling Plan 4) Contact Methods 5) Data Sources 4 -5
Research Approaches Observation—unobtrusive (LP) Ethnographic--link between culture & behavior &/or how cultural processes develop over time (participant observation) Focus group—discuss topics of interest (LS) Survey—knowledge, beliefs, preferences, satisfaction Behavioral data--Data—purchasing data Experimentation—cause and effect relationships
Research Instruments Questionnaires Qualitative Measures Technological Devices Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4 -7
Questionnaire Do’s and Don’ts Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4 -8 Avoid negatives Avoid hypothetical's Avoid words that could be misheard Use mutually exclusive categories Allow for “other” in fixed response questions
Question Types – Thematic Apperception Test Make up a story that reflects what you think is happening in this picture. 4 -9
Qualitative Measures Word association—words are presented, one at a time, and respondents mention the first word that comes to mind. Projective techniques—give people an incomplete stimulus and ask them to complete it. Empathy—the experiencing as one’s own of the feelings or another. Visualization—requires people to create a collage from magazine or drawing to depict their perceptions Brand personification—ask subjects what kind of person they think of when the brand is mentioned.
Qualitative Measures Shadowing—observing people Behavior mapping—photographing people with a space— 2 or 3 days Consumer journey—keeping track of interactions a consumer has with a product, service, or space Camera journals—ask consumers to keep visual diaries of activities and impression related to a product Extreme user interviews—talking to people about a product and evaluating their experience with it Storytelling—prompting people to tell personal stories about their consumer experiences 4 -11 Unfocused groups—interview a diverse group of people to explore ideas
Technological Devices Galvanometers (measure interest or emotions aroused by Exposure to a specific ad or picture) Tachistoscope (flashes an ad to a Subject with an exposure interval and respondent describes everything he/she recalls) Eye cameras (study respondents’ eye movement to see where their eyes land 1 st and how long, etc. ) Audiometers (record when TV is on and the channel) GPS (global positioning system, can Determine how many billboards a person may walk or drive by during a day) 4 -12
Sampling Plan Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?
Types of Samples Non-probability Probability Simple random Every member of population has an equal chance of selection Convenience Selects the most accessible population members Stratified random Population is divided into mutually exclusive groups (age groups) and random samples are drawn from each group Judgment Selects population members who are good prospects for accurate information Cluster area Population is divided into mutually exclusive groups (city blocks) and a sample is taken from each group Quota Selects and interviews a prescribed number of people in each of several categories 4 -14
Contact Methods Mail Questionnaire (For people that would not give personal interviews or whose responses might be biased or distorted by interviewer) Telephone Interview (Gather information quickly, however interview are short and non-personal) Personal Interview (Most versatile and expensive, subject to interview bias or distortion) Online Interview (Inexpensive, faster, honest, versatile, samples small and skewed, tech problems and inconsistencies) 4 -15
Pros and Cons of Online Research Advantages Disadvantages Inexpensive Small samples Fast Skewed samples Accuracy of data, even for sensitive questions Technological problems Versatility Inconsistencies
Barriers Limiting the Use of Marketing Research A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences
What are Marketing Metrics? Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4 -18
Marketing Metrics External Internal Awareness of goals Market share Commitment to goals Relative price Active support Number of complaints Resource adequacy Customer satisfaction Staffing levels Distribution Desire to learn Total number of customers Willingness to change Loyalty Freedom to fail Autonomy 4 -19
Sales Analysis Micro. Sales Analysis Sales. Variance Analysis (views specific products, territories that fail to produce expected sales) (Relative contribution of different factors to a gap in Sales performance) 4 -20
The Measures of Market Demand Potential market—interest Available market—interest, income, access Target market—qualified available, company pursues Penetrated market—buying product Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4 -21
Estimating Current Demand Total market potential Maximum amount of sales available to all the firms in an industry during: a given period under a given level of industry marketing effort, and environmental conditions. Area market potential Market buildup method Identifying all potential buyers in each market and estimating their potential purchases Multiple-factor index method Sales are directly related to a series of indices Brand development index Index of brand sales to category sales 4 -22
Estimating Future Demand Survey of Buyers’ Intentions—probability of purchase Composite of Sales Force Opinions—salespeople Expert Opinion—dealers, distributors, suppliers, marketing consultants, trade associations Past-Sales Analysis—trend, cycle, seasonal, erratic Market-Test Method—select some territories to sell the product 4 -23
What is a Marketing Information System? A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -24
What is a Marketing Intelligence System? A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -25
Steps to Quality Marketing Intelligence Train sales force to scan for new developments Motivate channel members to share intelligence Hire external experts to collect intelligence Network externally Utilize a customer advisory panel Utilize government data sources Purchase information Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -26
Sources of Competitive Information Independent customer goods and service review forums Distributor or sales agent feedback sites Combination sites offering customer reviews and expert opinions Customer complaint sites Public blogs Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -27
Major Forces in the Environment Demographic Political-legal Economic Technological Socio-cultural Natural Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -28
Population and Demographics Population growth Population age mix Ethnic markets Educational groups Household patterns Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 -29
Forecasting and Demand Measurement How can we measure market demand? Potential market Available market Target market Penetrated market
A Vocabulary for Demand Measurement Market Demand Market Forecast Market Potential Company Demand Company Sales Forecast Company Sales Potential
Market Demand Functions
Estimating Current Demand: Total Market Potential Calculations Multiple potential number of buyers by average quantity each purchases times price Chain-ratio method
Estimating Current Demand: Area Market Potential Market-Buildup
Estimating Current Demand: Area Market Potential Multiple-Factor Index
Estimating Future Demand Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion Past-Sales Analysis Market-Test Method
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