Marketing chapter 8a marketing research

THE ROLE OF MARKETING RESEARCHSlide 8-8 – The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions – The

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Identify the reason for conducting marketing research.

LO1

Describe the five-step marketing research approach that leads to marketing actions.

Explain how secondary and primary data are used in marketing.

Discuss the uses of observations, questionnaires, panels, and

TEST SCREENINGS: LISTENING TO

CONSUMERS TO REDUCE MOVIE RISKS

8-4

TEST SCREENINGS: LISTENING TO

CONSUMERS TO REDUCE MOVIE RISKS

FIGURE 8-1 Marketing research questions

asked in test screenings of movies that lead

to specific actions

8-6

 Why is Good Marketing

Research Difficult,

Especially with Kids?

 Five-Step Marketing Research

Approach to Making Better

THE ROLE OF MARKETING RESEARCH

Slide 8-8

– The process of defining a marketing

problem and opportunity, systematically

collecting and analyzing information, and

recommending actions

– The goal of marketing research is identify

and define both marketing problems and

opportunities and to generate and improve

marketing actions

THE ROLE OF MARKETING RESEARCH

Slide 8-8

Difficult

– Marketing researchers face difficulties in asking

consumers questions about new, unknown, or

personal-type products

• Do consumers really know whether they are likely to buy a product that they probably have never thought of before?

• Even if consumers know the answer, will they reveal it?

• Will consumers’ actual purchase behavior be the same as their stated interest or intentions?

THE ROLE OF MARKETING RESEARCH

Slide 8-8

Difficult (cont.)

these difficulties and to obtain the

information needed to make reasonable

estimates about what consumers will or will

not buy

THE ROLE OF MARKETING RESEARCH

Slide 8-8

Approach to Make Better Decisions

– A decision is a conscious choice from among two

or more alternatives

– Marketers try to improve outcomes of decisions by

using more formal, structured approaches to

decision making – the act of consciously choosing

from alternatives

THE ROLE OF MARKETING RESEARCH

Slide 8-8

Approach to Make Better Decisions

1 Define the problem carefully

2 Develop a research plan to collect the most

appropriate information to solve the problem

3 Collect relevant data

4 Develop a report to management that converts

the data into findings and recommendations

5 Take marketing actions

FIGURE 8-2 Five-step marketing research

approach leading to marketing actions with

lessons learned from past research

8-13

STEP 1: DEFINE THE PROBLEM

STEP 1: DEFINE THE PROBLEM

 Causal Research

 Tries to determine the extent to which the change in one factor changes another one

Slide 8-9

Fisher-Price

How do you do marketing research with kids?

Slide 8-15

Fisher-Price

How do you discover “hot toys” and

why are good forecasts important?

STEP 1: DEFINE THE PROBLEM

Slide 8-13

Measures of Success

STEP 1: DEFINE THE PROBLEMIDENTIFY POSSIBLE MARKETING ACTIONS

• Continue with Old Design;

Don’t Introduce New Design

• Introduce New Design;

Drop Old Design

8-21

STEP 2: DEVELOP THE RESEARCH PLAN

STEP 2: DEVELOP THE RESEARCH PLAN

DETERMINE HOW TO COLLECT DATA

●The process of selecting survey

respondents or research participants

●If study uses sample different from target market, results will be misleading

●The total group of people that researcher wants to study is called the universe or

population

Sampling

Sampling Techniques

●Probability Sample is one that gives every

member of the population a chance of being

selected Types of probability samples include

simple random samples, stratified samples, and cluster samples

●Non-probability Sample is an arbitrary grouping that does not permit the use of standard statistical tests Types of non-probability samples are

convenience samples and quota samples

STEP 3: COLLECT RELEVANT

FIGURE 8-3 Types of marketing information

8-28

STEP 3: COLLECT RELEVANT INFO/DATA

STEP 3: COLLECT RELEVANT INFO/DATA

Slide 8-22

– No need to re-invent the wheel

– Greater level of detail – Census data

– Categories may not be quite right

STEP 3: COLLECT RELEVANT INFO/DATA

+/– OF SECONDARY DATA

STEP 3: COLLECT RELEVANT INFORMATION

Slide 8-26

 Observational Data – observing people

 Questionnaire – asking them questions

Primary Data

STEP 3: COLLECT RELEVANT INFORMATION

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—OBSERVING BEHAVIOR

LO4

Mechanical Observation

• Observational Data

8-38

Slide 8-27

Nielsen Media Research “People Meter”

What kind of primary data is collected?

FIGURE 8-4 Nielsen Television Index

Ranking Report for network primetime

households: Week of September 24-30, 2007

8-41

FIGURE 8-5 Nielsen Online Ratings for the

top 10 Internet brands for September 2007

8-42

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—OBSERVING BEHAVIOR

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—QUESTIONING CONSUMERS

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—QUESTIONING CONSUMERS

LO4

• Focus Groups

 Idea Generation Methods

• “Fuzzy Front End”

8-45

Slide 8-32

TRU “Me” Exercise snapshot: Sarah

Why collect primary data this way?

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—QUESTIONING CONSUMERS

LO4

• Personal

Interview Surveys

• Mail/Fax

Surveys

• Telephone Surveys

 Idea Evaluation Methods

• E-Mail/

Internet Surveys

• Mall Intercept Interview Surveys 8-48

FIGURE 8-A Comparison of types of

questionnaires

8-49

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—QUESTION FORMATS

 Semantic Differential Questions

 Likert Scale Questions

8-50

FIGURE 8-6A Different types of questions

featured in a sample Wendy’s survey (Q1-Q5)

8-51

FIGURE 8-6A (Q1) Sample Wendy’s survey:

Open-ended question

8-52

FIGURE 8-6A (Q2) Sample Wendy’s survey:

Dichotomous question

8-53

FIGURE 8-6A (Q3) Sample Wendy’s survey:

Multiple choice question

8-54

FIGURE 8-6A (Q4) Sample Wendy’s survey:

Attitudinal question

8-55

FIGURE 8-6A (Q5) Sample Wendy’s survey:

Semantic differential scale question

8-56

FIGURE 8-6B Different types of questions

featured in a sample Wendy’s survey

8-57

FIGURE 8-6B (Q6) Sample Wendy’s survey:

Likert scale question

8-58

FIGURE 8-6B (Q7) Sample Wendy’s survey:

Media behavior question

8-59

FIGURE 8-6B (Q8) Sample Wendy’s survey:

Usage behavior question

8-60

FIGURE 8-6B (Q9) Sample Wendy’s survey:

Demographic questions

8-61

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—PANELS & EXPERIMENTS

STEP 3: COLLECT RELEVANT INFO/DATA

STEP 3: COLLECT RELEVANT INFO/DATA

USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS

LO5

of Sales Drivers

• Controllable Marketing Mix Factors

• Uncontrollable Environmental Forces

8-68

FIGURE 8-7 Sales drivers: factors that

influence product or brand sales and are

essential for effective marketing programs

8-69

STEP 3: COLLECT RELEVANT INFO/DATA

USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS

LO5

• Information (Interpreted Data that Leads to Marketing Actions)

8-70

• Data (Facts & Figures)

STEP 3: COLLECT RELEVANT INFORMATION

Slide 8-46

 Key Elements of an Information System

• Data Warehouse – core databases

Trigger Marketing Actions

• Sensitivity Analysis – query database with “what if”

FIGURE 8-8 How marketing researchers and

managers use information technology to

turn information into action

8-73

STEP 3: COLLECT RELEVANT INFO/DATA

USING INFO TECHNOLOGY TO TRIGGER MARKETING ACTIONS

LO5

• Data Mining

• RFID Technology

Searching the Data Ocean

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STEP 3: COLLECT RELEVANT INFORMATION

Slide 8-44

Trigger Marketing Actions

Searching the Data Ocean

 Extraction of hidden predictive information from large databases to find statistical links that suggest marketing actions

STEP 4: DEVELOP FINDINGS

LO5

 Present the Findings

 Analyze the Data

• How are Sales?

• What Factors Contribute to Sales Trends?

8-76

STEP 5: TAKE MARKETING ACTIONS

LO5

 Evaluate the Results

 Make Action

Recommendations

• Evaluate the Decision Itself

 Implement the Action

Recommendations

• Evaluate the Decision Process Used

8-82

STEP 5: TAKE MARKETING ACTIONS

Slide 8-44

Evaluate the Results

1 Evaluating the Decision Itself

• Involves monitoring the marketplace

to determine if action is necessary in the future

STEP 5: TAKE MARKETING ACTIONS

Slide 8-44

Evaluate the Results, cont.

Used

1 Was the marketing research and

analysis used to develop the recommendation effective?

2 Was it flawed? If so, could it be

improved for similar situations in the future?

Marketing Research

Marketing research is the

process of defining a marketing

problem and opportunity,

systematically collecting and

analyzing information, and

recommending actions.

8-85

A decision is a conscious choice

from among two or more

alternatives.

8-86

Measures of Success

Measures of success are criteria

or standards used in evaluating

proposed solutions to a problem.

8-87

Constraints are, in a decision,

the restrictions placed on

potential solutions to a problem.

8-88

Sampling involves selecting

representative elements from

a population.

8-89

Probability Sampling

Probability sampling involves

using precise rules to select the

sample such that each element

of the population has a specific

known chance of being selected.

8-90

Nonprobability Sampling

Nonprobability sampling

involves using arbitrary judgments

to select the sample so that the

chance of selecting a particular

element may be unknown or zero.

8-91

Statistical Inference

Statistical inference involves

drawing conclusions about a

population from a sample taken

from that population.

8-92

Data are the facts and figures

related to the problem, divided

into two main parts: secondary

data and primary data.

8-93

Secondary Data

Secondary data are the facts

and figures that have already been recorded before the project at

hand.

8-94

Primary Data

Primary data are the facts

and figures that are newly

collected for the project.

8-95

Observational Data

Observational data are the facts

and figures obtained by watching,

either mechanically or in person,

how people actually behave.

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Questionnaire Data

Questionnaire data are the

facts and figures obtained by

asking people about their

attitudes, awareness, intentions,

and behaviors.

8-97

Information Technology

Information technology involves

operating computer networks that

collect, store, and process data.

8-98

Data Mining

Data mining is the extraction of

hidden predictive information from large databases.

8-99