Marketing Research Gathering Analyzing and Using Information Chapter

Marketing Research: Gathering, Analyzing, and Using Information

Chapter Objectives • marketing information system ØMIS • marketing decision support system ØMDSS • 7 steps in the marketing research process 2

Chapter Objectives • research types: Øexploratory, descriptive, and casual • data-collection methods and • research samples • online research 3

Knowledge is Power • Accurate, up to date, relevant information • the fuel that runs the marketing engine 4

The Marketing Information System • Determines what information marketing managers need, then gathers, sorts, analyzes, stores, and distributes information to system users Figure 4. 2 5

Internal Company Data • Information from within the company Ø to produce reports on the results of sales and marketing activities • Intranet: Ø internal corporate communications network Ø links company departments, employees, and databases. 6

Marketing Intelligence • Monitoring everyday sources • using “mystery shoppers” • Futurists specialize in predicting consumer trends HSX. COM 7

Marketing Research • Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness Gf. K ARBOR LLC Ø Syndicated research • Research that can be purchased Ø Custom research • Conducted specifically for one purpose & one company MEDIAMARK RESEARCH 8

Acquired Databases • From other companies Ø Annual reports • Government databases Ø U. S. Census data • Misuse of databases Ø do-not-call lists Ø antispam laws 9

Marketing Decision Support Systems • MDSS: data plus analysis and interactive software allow marketing managers to access MIS data and conduct analyses Figure 4. 3 10

Searching for Gold: Data Mining • After the fact, … post-hoc analysis • sift through data • to identify unique patterns of behavior Ø among different customer groups 11

Value & Uses of Data Mining • • Customer acquisition Customer retention and loyalty Customer abandonment Market basket analysis 12

Steps in Marketing Research Process • • Step 1 : - Define research problem Step 2: - Determine research design Step 3: Methodology Step 4: Sampling Step 5: Collecting data Step 6: Analysis & Interpretation of data Step 7: Write research report 13

Steps in the Marketing Research Process • Step 1: Define the research problem ØSpecifying research objectives ØIdentifying consumer population of interest ØPlacing the problem in an environmental context 14

Steps in the Marketing Research Process • Step 2: • Determine the Research Design ØSpecifying what information Ømarketers will collect and Øwhat type of study they will do 15

Figure 4. 5: Marketing Research Design 16

Secondary vs. Primary Research • Secondary data Ø collected for some purposes Ø other than the problem at hand • Primary data Ø collected directly from respondents Ø to specifically address the question at hand 17

Secondary Research Web Sites CENSUS. GOV MARKETINGTOOLS. COM DIALOG. COM LEXIS-NEXIS 18

Exploratory (Qualitative) Research • generate insights for future, more rigorous studies • one-on-one discussions Øwith consumers • Focus group: Øa product-oriented discussion Øamong a small group of consumers LOOK-LOOK. COM 19

Exploratory (Qualitative) Research • Projective techniques: Ø participants respond to some object • Case study: Ø comprehensive examination of a particular firm • Ethnography: (phenomenology) Ø Marketers visit homes or participate in consumer activities to learn how products are used Wild Planet Video 20

Descriptive (Quantitative) Research • systematic Probes into problem • Bases conclusions Ø on large numbers of observations • Results typically expressed in quantitative terms Ø (averages, percentages, other stats) Ø Cross-sectional design Ø Longitudinal design 21

Causal Research • Cause-and-effect relationships: • a change in one thing • causes a change in something else 22

Causal Research • Independent (cause) vs. dependent (change in outcome) variables • Experiments: • test to predict relationships among variables • in a controlled environment 23

Step 3 in Marketing Research Process Choose Method for Collecting Primary Data • Survey Methods: Øinterview respondents • Questionnaires: Øloosely, moderately, or completely structured 24

Questionnaires • • Mail questionnaires Telephone interviews Face-to-face interviews Online questionnaires 25

Observational Methods • Observation: • data collection where researcher • records consumers’ behaviors, Ø often without their knowledge ØPersonal observation ØMechanical observation ØUnobtrusive measures 26

Data Quality: Garbage In, Garbage Out – so what? • How much faith should marketing managers place in research? ØValidity ØReliability ØRepresentativeness 27

STOP HERE • Finish up chapter 4 on Tuesday • Cookie Research on Tuesday • Start on Chapter 5 on Tuesday, too Ø Consumer behavior (which will tie into chapter 4) 28

Online Research • Information gathered via consumer surfing and Web site/email/chat room questionnaires/focus groups • Cookies allow a Web sponsor to track a surfer’s moves 29

Online Research Applications • • New product development Estimating market response Exploratory research (online focus groups) IM (Instant Messaging) THERE. COM ITRACKS. COM 30

Advantages of Online Data Collection • The same amount of data in a fraction of the time • Convenience of survey completion • Elimination of interviewer bias and data entry errors 31

Disadvantages of Online Data Collection • Non-representativeness of respondents • Limited computer access for poor and elderly • Self-selection bias (people who like to take part in online studies) • Hackers and competitors influencing/intercepting results 32

Step 4: Design the Sample • Probability sample • Each member of the population has some known chance of being included • Sample is representative of population, and inferences about population are justified Ø - Simple random sampling Ø - Systematic sampling Ø - Stratified sampling 33

Step 4: Design the Sample (cont’d) • Nonprobability sample • Personal judgment used in selecting respondents • Some members of population have no chance of being included • No way to ensure that sample is representative of population • *Christine: next two should be lower-level (black)* • Convenience sampling • Quota sampling 34

Step 5: Collect the Data • Challenges to gathering data in foreign countries Ø Differences in sophistication of research operations Ø Infrastructure/transportation challenges Ø Lack of phones Ø Low literacy rates Ø Local customs and cultural differences Ø Language translation difficulties 35

Step 6: Analyze and Interpret the Data • Data need analysis for them to have meaning • Tabulation: arranging data in a table or other summary form to get a broad picture of overall responses • Cross-tabulation: examining the data by subgroups to see how results vary between categories 36

Table 4. 4: Data Tabulation and Cross. Tabulation Tables 37

Step 7: Prepare the Research Report • Executive summary • Description of research methodology • Discussion of results including tabulations, cross-tabulations • Limitations of study • Conclusions and recommendations 38

THE END 39

Discussion • What is your overall attitude toward marketing research? • Do you think it is a beneficial activity from a consumer’s perspective? • Or do you think it merely gives marketers new insights on how to convince consumers to buy something they really don’t want or need? 40

Real People, Real Choices • Plan-it Marketing (Cindy Turgate) • Cindy chose option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study Ø Priceline. com was launched nationally in April 1998, and it continues to flourish 41

Marketing Plan Exercise • Select a company that makes a product you use. For the firm you selected: Ø Define one specific problem it could address through marketing research Ø What type of research design do you recommend for addressing that problem, and why? Ø What is the most appropriate way to collect the data? Justify your choice Ø How will you ensure high validity, reliability, and representativeness of the data? Ø Design an appropriate sampling plan 42

Keeping it Real: Fast Forward to Next Class Decision Time at Wild Planet • Meet Danny Grossman, CEO and founder of Wild Planet Toys. • Room Gear: a product line that lets kids decorate their rooms met with sharply different gender appeals • The decision: the future direction of the Room Gear line 43

Real People, Real Choices • Meet Cindy Turgate at Plan-it Marketing, a marketing research firm • Priceline needed help in planning its business. Would its name-your-own-price strategy fly? • The decision: What marketing research strategy would maximize results within a reasonable budget? Ø Option 1: conduct exploratory qualitative study Ø Option 2: conduct quantitative survey of 700+ leisure and business travelers Ø Option 3: conduct viability study with both qualitative exploratory study and confirmatory quantitative study 44

Group Activity • Break into small groups and pick a product category of interest Ø Assume a company wants to create a new or modified product to compete for market share in that category • Create a couple of questions for a focus group moderator to guide discussion Ø Each group sits with another group and takes turns conducting an informal focus group 45

Discussion • Are you willing to divulge personal information to marketing researchers? • How much are you willing to tell? • Where would you draw the line? 46

Group Activity • In small groups, choose a topic below and analyze the advantages and disadvantages of mail questionnaires, telephone interviews, faceto-face interviews, and online questionnaires: Ø Ø The amount of sports nutrition drinks consumed in a city Why a local bank has been losing customers What local doctors would like to see changed in hospitals Consumers’ attitudes toward several sports celebrities 47

Discussion • Do you think marketers should have to right to go through a competitor’s garbage? Is it ethical? 48

Discussion • Do you think marketers should be allowed to conduct market research with young children? Why or why not? 49

Reality TV: Group Activity • Each group comes up with a new “Reality TV” show… Ø Design a short survey to get information to help you develop the best show Ø Hand it out to your classmates to complete Ø Use the information to create your show • Describe your thoughts, feelings, and behaviors during this activity 50

Marketing in Action Case: You Make the Call • What is the decision facing Acxiom? • What factors are important in understanding this decision situation? • What are the alternatives? • What decision(s) do you recommend? • What are some ways to implement your recommendation? 51

Discussion • Why wouldn’t you select all the individuals or elements of a population to be in your study? 52

Group Activity • Break into small groups and choose one of the following countries. Generate a list of difficulties a firm would expect to encounter when developing plans for marketing research: Ø Ø Ø Ø South Africa Spain China Saudi Arabia Canada Argentina Australia Germany 53