Lecture Marketing management: Chapter 3 – Nguyễn Thị Trang Nhung

Lecture Marketing management - Chapter 3: Conducting marketing research presentation of content: What is marketing research, types of marketing research firms, types of research, research approaches, qualitative techniques,... And other contents.

3 Conducting Marketing Research

1

Chapter Questions

 What constitutes good marketing research?

 What are the best metrics for measuring

marketing productivity?

 How can marketers assess their return on

investment of marketing expenditures?

 The marketing environment is changing:

 From local to national to global marketing

 From price to nonprice competition

 From buyer needs to buyer wants

greater than at any time in the past

Venus Razor

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

Types of Marketing Research Firms

Nielsen Media research

These firms are hired to carry

out specific project

They design research and

report finding Providing specialized research

services

The Marketing Research Process

Define the research problem and

Step 1: Define the Problem

 Define the problem: What is research problem and Why they conduct the research? Defining research problem should not be broadly or narrowly

A case study:

American Airlines is constantly looking for new ways to serve its passengers One manager came up with the idea of offering phone service The other manager got excited about this idea The marketing manager volunteered to do some preliminary research He conducted a major telecommunications company to find out the cost of providing this services on B 747 coast to coast flights The telecommunications company said that the equipment would cost the airline about $1000 a flight The airline could break even if it charged $25 a phone call and at least 40 passengers made calls during the flight The marketing manager then asked the company’s marketing research manager to

Step 1: Define the Problem

 “Find out everything about air traveler’s needs”.

 “Find out if enough passengers aboard a B747 flying between the East Coast and West Coast would be

willing to pay 25 USD to make a phone call so that AA would break even on the cost of offering this service

 “Will offering an in-flight phone service create

incremental preference and profit for AA to justify its cost again other possible investments American might make?”

Step 1: Define the Problem

 Research objective statement:

1 What are the main reasons that airline passengers place phone

calls while flying?

2 What kinds of passengers would be the most likely to make calls?

3 How many passengers are likely to make calls given different piece

levels?

4 How many extra passengers might choose American because of

new service?

5 How much long-term good will this service add to AA image?

6 How important is phone service relative to improving other factor

such as flight schedules, food quality and baggage handdling?

Types of Research

Exploratory

Descriptive

Causal

-To shed light on real natural of the problem

- Suggesting possible solutions or new idea

-Using descriptive data analysis

-Causal and effect relationship

Step 2: Develop the Research Plan

Data sources

Research approach

 Observational research

 Observing the relevant actors and settings

 For example: Observing the different carriers

of AA at airport, airline office, in competitor’s

 Focus group

 Inviting 6-10 people working in few hours

with a skilled moderator

 Discuss about products, service,

organization and other marketing entity

 This group is facilitated by a skilled

moderator

Research approach

 Focus group – remember

 Objective

 Knowledgeable

 skilled in group dynamic

 Recorded by possible equipment

 Oriented on consumer belief, attitude, behavior

Focus Groups

Research approach

 Survey research

 It’s the best suited for descriptive research

 Behavioral data:

 Customer’s behavior traces recorded by

store scanning data, catalog purchase record and customer databases

 Focus on the brand they use, price they

don’t buy…

Research Instruments

 Questionnaires

 Qualitative Measures

 Technological Devices

Qualitative Techniques

Word Associations

VisualizationProjective Techniques

Laddering

Questionnaire Do’s and Don’ts

 Ensure questions are

free of bias

 Make questions simple

 Make questions specific

 Use response bands

 Use mutually exclusive categories

 Allow for “other” in fixed response questions

Question Types - Dichotomous

In arranging this trip, did you contact

American Airlines?

 Yes  No

Question Types – Multiple Choice

With whom are you traveling on this trip?

Question Types – Likert Scale

Indicate your level of agreement with the

following statement: Small airlines generally give better service than large ones

Question Types –

Semantic Differential

American AirlinesLarge ……… …….SmallExperienced……….….InexperiencedModern……….… Old-fashioned

 Not very important

 Not at all important

Question Types – Rating Scale

American Airlines’ food service is _

Question Types –

Intention to Buy Scale

How likely are you to purchase tickets on

American Airlines if in-flight Internet access

were available?

 Definitely buy

 Probably buy

 Not sure

 Probably not buy

 Definitely not buy

Question Types –

Intention to Buy Scale

How likely are you to purchase tickets on

American Airlines if in-flight Internet access

were available?

 Definitely buy

 Probably buy

 Not sure

 Probably not buy

 Definitely not buy

Question Types –

Completely Unstructured

What is your opinion of American Airlines?

Question Types –

Story Completion

“I flew American a few days ago I noticed

that the exterior and interior of the plane had very bright colors This aroused in me the

following thoughts and feelings.” Now

complete the story

_

Technological Devices

 Eye cameras

 Audiometers

 GPS

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?

Contact Methods

Mail questionnaires Personal

interviewing

Online marketing interview

Pros and Cons of

 Inconsistencies (mâu thuẫn)

What is a

Marketing Decision Support

System (MDSS)?

 A marketing decision support system is a

coordinated collection of data, systems,

tools, and techniques with supporting

hardware and software by which an

organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action

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

Market Research Can Fail

Table 4.3 Characteristics of

Good Marketing Research

 Scientific method: Effective marketing research

uses the principles of the scientific method:careful

observation,formulation ofhypotheses,prediction,and testing

Table 4.3 Characteristics of

Good Marketing Research

 Value and cost of information: Marketing

researchers show concern for estimating the value of information against its cost Costs are typically easy to determine, but the value of research is harder to

quantify It depends on the reliability and validity of the findings and management’s willingness to accept and act on those findings.

 Healthy skepticism

 Ethical marketing

What are Marketing Metrics?

Marketing metrics are the set of measures

that helps marketers quantify, compare, and

interpret marketing performance

Table 4.4 Marketing Metrics

What is Marketing-Mix Modeling?

of sources, such as retailer scanner data, company

shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.

 Marketing-mix modeling focuses on incremental growth instead of baseline sales or long-term effects.

 The integration of important metrics such as customer satisfaction, awareness, and brand equity into

marketing-mix modeling is limited.

 Marketing-mix modeling generally fails to incorporate metrics related to competitors, the trade, or the sales

force

Figure 4.2 Marketing

Measurement Pathway

Marketing Measurement Pathway

•The customer metrics pathway looks at how prospects

become customers from awareness to preference to trial to repeat purchase, or some less linear model This area also examines how the customer experience contributes to the perception of value and competitive advantage.

• The unit metrics pathway reflects what marketers know

about sales of product/service units—how much is sold by product line and/or by geography; the marketing cost per unit sold as an efficiency yardstick; and where and how

margin is optimized in terms of characteristics of the

product line or distribution channel.

Marketing Measurement Pathway

•The cash-flow metrics pathway focuses on how well

marketing expenditures are achieving short-term returns, Program and campaign ROI models measure the

immediate impact or net present value of profits expected from a given investment.

• The brand metrics pathway tracks the development of the longer-term impact of marketing through brand equity

measures that assess both the perceptual health of the

brand from customer and prospective customer

perspectives as well as the overall financial health of the brand

Figure 4.3 Marketing Dashboard

Table 4.4 Sample Customer-Performance Scorecard Measures

 % of new customers to average #

 % of lost customers to average #

 % of win-back customers to average #

 % of customers in various levels of satisfaction

 % of customers who would repurchase

 % of target market members with brand recall

 % of customers who say brand is most preferred

For Review

 What constitutes good marketing research?

 What are the best metrics for measuring

marketing productivity?

 How can marketers assess their return on

investment of marketing expenditures?

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