Lecture Marketing: The core (5/e): Chapter 7 – Kerin, Hartley, Rudelius

Chapter 7 - Marketing research: From customer insights to actions. In this chapter, you learned to: Identify the reason for conducting marketing research, describe the five-step marketing research approach that leads to marketing actions, explain how marketing uses secondary and primary data,...

Identify the reason for conducting marketing research.

LO1

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

Explain how marketing uses secondary and primary data.

LO3

LO2

LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:

Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.

Explain how information technology and data mining lead to marketing actions.

LO6

 What’s in a Movie Name?

 The Risks of Today’s (and Tomorrow’s)

Blockbuster Movies

• Conduct Test Screenings

• Use Tracking Studies

HOW TEST SCREENINGS AND TRACKING STUDIES REDUCE MOVIE RISKS

 Converting Marketing Research Results into Actions

FIGURE 7-A Marketing research questions

asked in test screenings of movies that lead

to specific actions

 The Challenges in

Doing Good

Marketing Research

 Five-Step Marketing Research Approach

THE ROLE OF MARKETING RESEARCH

LO1

 What is Marketing Research ?

• Decision • Decision Making

FIGURE 7-1 Five-step marketing research

approach leading to marketing actions

STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVES

STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVES

LO2

 Exploratory Research

 Descriptive Research

 Causal Research

STEP 1: DEFINE THE PROBLEMIDENTIFY POSSIBLE MARKETING ACTIONS

• Continue with Old Design;

Don’t Introduce New Design

• Introduce New Design;

Drop Old Design

STEP 2: DEVELOP THE RESEARCH PLAN

LO2

 Specify Constraints

 Identify Data Needed

for Marketing Actions

STEP 3: COLLECT RELEVANT

FIGURE 7-2 Types of marketing information

STEP 3: COLLECT RELEVANT INFO/DATA

SECONDARY DATA

LO3

 Internal

• Marketing Input Data

• Marketing Outcome Data

STEP 3: COLLECT RELEVANT INFO/DATA

 American Community Survey

STEP 3: COLLECT RELEVANT INFO/DATA

Fox Business News

Google USA.gov

MARKETING MATTERSOnline Databases and Internet Resources

Useful to Marketers

LO3

STEP 3: COLLECT RELEVANT INFO/DATA

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—WATCHING PEOPLE

FIGURE 7-3 Nielsen Television Index

Ranking Report for network primetime

households: Week ending May 20, 2012

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—WATCHING PEOPLE

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—ASKING PEOPLE

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—ASKING PEOPLE

LO4

• Focus Groups

 Idea Generation Methods

• “Fuzzy Front End” Ex: Trend Hunting

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—ASKING PEOPLE

LO4

• Personal Interview Surveys

• Mail/Fax

Surveys

• Telephone Surveys

 Idea Evaluation Methods

• Online (E-Mail/

Internet) Surveys

• Mall Intercept Interview Surveys

FIGURE 7-B Comparison of types of

surveys

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—QUESTION FORMATS

 Semantic Differential Questions

 Likert Scale Questions

FIGURE 7-4A Different types of questions in a sample Wendy’s survey (Q1-Q5)

FIGURE 7-4A (Q1) Sample Wendy’s survey:

Open-ended question

FIGURE 7-4A (Q2) Sample Wendy’s survey:

Dichotomous question

FIGURE 7-4A (Q3) Sample Wendy’s survey:

Multiple choice question

FIGURE 7-4A (Q4) Sample Wendy’s survey:

Attitudinal question

FIGURE 7-4A (Q5) Sample Wendy’s survey:

Semantic differential scale question

FIGURE 7-4B Different types of questions in

a sample Wendy’s survey (Q6-Q9)

FIGURE 7-4B (Q6) Sample Wendy’s survey:

Likert scale question

FIGURE 7-4B (Q7) Sample Wendy’s survey:

Media behavior question

FIGURE 7-4B (Q8) Sample Wendy’s survey:

Usage behavior question

FIGURE 7-4B (Q9) Sample Wendy’s survey:

Demographic questions

FIGURE 7-C Typical problems when

wording questions

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—OTHER SOURCES

LO4

 Social Media

USING MARKETING DASHBOARDS

Are Carmex Social Media Programs Working Well?

Conversation Velocity, Share of Voice, and Sentiment

LO4

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—OTHER SOURCES

FIGURE 7-D Sales drivers: factors that

influence product or brand sales and are

essential for effective marketing programs

STEP 3: COLLECT RELEVANT INFO/DATA

PRIMARY DATA—OTHER SOURCES

FIGURE 7-5 How marketing researchers and

managers use information technology to

turn information into action

STEP 3: COLLECT RELEVANT INFO/DATA

STEP 4: DEVELOP FINDINGS

LO5

 Present the Findings

 Analyze the Data

• How are Sales?

• What Factors Contribute to Sales Trends?

FIGURE 7-6 Marketing dashboards that

present findings to Tony’s marketing

manager that lead to recommendations

and actions

FIGURE 7-6A Findings presented to Tony’s

marketing manager

FIGURE 7-6B Findings presented to Tony’s

marketing manager

FIGURE 7-6C Findings presented to Tony’s

marketing manager

FIGURE 7-6D Findings presented to Tony’s

marketing manager

STEP 5: TAKE MARKETING ACTIONS

• The Decision Process Used

• The Decision Itself

SALES FORECASTING TECHNIQUES

LO6

 Judgments of the Decision Maker

 Surveys of Knowledgeable Groups

• Direct Forecast

• Lost-Horse Forecast

• Salesforce Survey Forecast

• Survey of Buyers’ Intentions Forecast

SALES FORECASTING TECHNIQUES

FIGURE 7-7 Linear trend extrapolation of

sales revenues at Xerox (made at the start

of 2000)

FIGURE 7-E Top-down forecast: Survey of

Buying Power

FIGURE 7-F Build-up forecast: Apple’s four

major product lines