Articles synopsis paper

profileelizabethchie
MKTG10_IE_Ch09_PPT.ppt

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MKTG10

Lamb, Hair, and McDaniel

Chapter 9

Marketing Research

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Chapter 9 Decision Support Systems and Marketing Research

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Define marketing research and explain its importance to marketing decision making

The Role of
Marketing Research

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The Role of
Marketing Research

Marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision.

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Notes:

  • Marketing research plays a key role in the marketing system. It provides data on the effectiveness of the marketing mix and insights for necessary changes.
  • Marketing research is a main data source for management information systems.

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The Role of
Marketing Research

1

Diagnostic

Predictive

Descriptive

Gathering and presenting factual statements

(What is the historic sales trend in the industry? What are consumers’

attitudes toward a product?)

Explaining data

(What was the impact on sales after a change in the package design?)

Addressing “what if” questions

(How can research be used to predict the results of a marketing decision?)

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Management Uses of Marketing Research

Marketing research can help managers in several ways:

  • It improves the quality of decision making
  • It helps managers trace problems
  • It can help managers understand detailed and complicated relationships
  • It helps managers serve customers accurately and efficiently

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Describe the

steps involved

in conducting

a marketing

research project

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Steps in a Marketing
Research Project

9-2

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1

2

3

4

5

6

7

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9.1

The Marketing Research Process

Collect

Data

Specify

Sampling

Procedure

Plan Design/

Primary Data

Define

Problem

Analyze

Data

Prepare/

Present

Report

Follow Up

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The Marketing Research Project

Marketing Research Problem

Marketing Research Objective

Management Decision Problem

Determining what information is needed and how that information can be obtained efficiently and effectively.

The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information.

A broad-based problem that uses marketing research in order for managers to take proper actions.

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Chapter 9 Decision Support Systems and Marketing Research

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Sources of
Secondary Data

Secondary data is data previously collected for any purpose other than the one at hand.

Government Agencies

Trade and Industry Associations

Business Periodicals

News Media

Internal Corporate Information

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Notes:

Secondary data is data previously collected for any purpose other than the one at hand.

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Advantages of
Secondary Data

Saves time and money if on target

Aids in determining direction for primary data collection

Pinpoints the kinds of people to approach

Serves as a basis of comparison for other data

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Disadvantages of
Secondary Data

May not give adequate detailed information

May not be on target with the research problem

Quality and accuracy of data may pose a problem

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The New Age of Secondary Information: The Internet

The rapid development of the Internet has eliminated much of the drudgery associated with the collection of secondary data.

2

Gathering secondary data has traditionally been a tedious boring job.

The researcher often had to write to government agencies, trade associations, or other secondary data providers and then wait days or weeks for a reply that might never come.

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Social Media and Big Data

Through social media monitoring, a researcher can learn what is being said about the brand and the competition.

Monitoring social media and tracking shopping behavior online are only two inputs into the new era of big data.

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Social Media and Big Data

  • Big data is the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data.
  • Today, more and more firms are using the latest technology to collect, analyze, and make strategic and tactical decisions.
  • Big data analytics focuses very much on what. That is, its primary purpose is to uncover what patterns and relationships exist in this database. Often, the insights gained from what are all a marketer needs to create a strategy.

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Planning the Research Design

Which research
questions
must be answered?

How and when
will data be
gathered?

How will
the data
be analyzed?

?

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Primary Data

Information collected for the first time. Used for solving the particular problem under investigation.

Advantages:

Answers a specific research question

Data are current

Source of data is known

Secrecy can be maintained

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Disadvantages of
Primary Data

Primary data can be very expensive. Anywhere from a few thousand to millions.

Disadvantages are usually offset by the advantages of primary data.

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Survey Research

The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.

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Forms of Survey Research

Focus Groups

Executive Interviews

Mail Surveys

Telephone Interviews

Mall Intercept Interviews

In-Home Interviews

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Notes:

  • In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
  • Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
  • Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
  • Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
  • Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
  • Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.

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Forms of Survey Research

2

In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.

Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.

Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.

Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.

Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.

Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.

  • In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
  • Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
  • Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.

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Forms of Survey Research

2

In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.

Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.

Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.

Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.

Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.

Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.

  • Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
  • Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
  • Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.

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Questionnaire Design

Open-Ended

Question

Closed-Ended

Question

Scaled-
Response

Question

An interview question that encourages an answer phrased in the respondent’s own words.

An interview question that asks

the respondent to make a selection from a limited list of responses.

A closed-ended question

designed to measure the intensity

of a respondent’s answer.

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Notes:

All forms of survey research require a questionnaire. Questionnaires contain three basic types of questions:

  • Open-ended questions
  • Closed-ended questions
  • Scaled-response questions

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Questionnaire Design

Clear and concise

No ambiguous language

Avoid two questions in one

Avoid leading questions

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Online

CreateSurvey.com

Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.

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Observation Research

2

Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them.

A market researcher using the observation technique witnesses and records information as events occur or compiles evidence from records of past events.

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9.5

Observational Situations

Situation Example
People watching people Observers stationed in supermarkets watch consumers select frozen Mexican dinners; the purpose is to see how much comparison shopping people do at the point of purchase.
People watching an activity Observer stationed at an intersection counts traffic moving in various directions.
Machines watching people Movie or videotape cameras record behavior as in the people-watching-people example above.
Machines watching an activity Traffic counting machines monitor traffic flow.

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Observation Research

Mystery Shoppers

Behavioral Targeting (BT)

Researchers posing as customers who gather observational data about a store.

A form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses.

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Notes:

  • Two common forms of people-watching-people research are one-way mirror observations and mystery shoppers.
  • Behavioral Targeting (BT) began by placing cookies on users’ browsers to track which Web sites they visited and ultimately match the user with ads they would most likely investigate. Now, BT combines a consumer’s online activity with psychographic and demographic profiles.

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Social Media and Big Data

Through social media monitoring, a researcher can learn what is being said about the brand and the competition.

Monitoring social media and tracking shopping behavior online are only two inputs into the new era of big data.

2

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Ethnographic Research

The study of human behavior in its natural context; involves observation of behavior and
physical setting.

2

Ethnographic research comes from the field of anthropology, and is becoming popular in commercial marketing research. Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people.

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Virtual Shopping

Advantages of virtual shopping:

  • Creates an environment with a realistic level of complexity and variety.
  • Allows quick set up and altering of tests.
  • Low production costs.
  • High flexibility.

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Experiments

Experiments are used by researchers to gather primary data.

Experiment Variables

Price

Package design

Shelf space

Advertising theme

Advertising expenditures

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Mobile Research

Mobile devices and laptops are being used for all kinds of marketing research. A few techniques that are now employed using mobile devices are:

  • Location-based surveys
  • Product scanning during the shopping process
  • Using cameras on mobile devices to upload digital images and videos

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Sampling Procedure

The population or universe must first be defined. Then it is determined if the sample must be representative of the population

Universe

Sample

Probability Samples

Nonprobability Samples

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Notes:

  • Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample or a subset of the larger population.
  • The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed.

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Types of Samples

Simple Random Sample

Stratified
Sample

Cluster
Sample

Systematic
Sample

Probability Samples

Non-Probability Samples

Convenience
Sample

Judgment
Sample

Quota
Sample

Snowball
Sample

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Probability Samples

Probability

Sample

A sample in which every element in the population has a known statistical likelihood of being selected.

Random

Sample

A sample arranged so that every element of the population has an equal chance of being selected.

2

The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population.

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Nonprobability Samples

Nonprobability

Sample

Convenience

Sample

Any sample in which little or

no attempt is made to get a representative cross-section of the population.

A form of nonprobability sample

using respondents who are

convenient or readily

accessible to the researcher.

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Types of Errors

Sampling

Error

Error when a sample somehow does not represent the target population.

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Notes:

  • Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error.
  • Frame error arises if the sample drawn from a population differs from the target population.
  • Random error occurs when the selected sample is an imperfect representation of the overall population.

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Collecting the Data

Focus group facilities

Mall intercept locations

Test product storage

Kitchen facilities

Field service firms provide:

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Notes:

  • Most primary data is collected by marketing research field service firms.
  • Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products.

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Analyzing the Data

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Notes:

  • After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.
  • Data is organized by one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.
  • One-way frequency tables record the responses to a question. They provide a general picture of the study’s results.
  • A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.

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Analyzing the Data

2

In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.

Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.

Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.

Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.

Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.

Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.

After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.

Data is organized by one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.

One-way frequency tables record the responses to a question. They provide a general picture of the study’s results.

A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.

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Preparing and
Presenting the Report

Concise statement of the research objectives

Explanation of research design

Summary of major findings

Conclusion with recommendations

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Following Up

  • Were the recommendations followed?
  • Was sufficient decision-making information included in the report?
  • What could have been done to make the report more useful to management?

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Discuss the profound impact of the Internet on marketing research

The Profound Impact of the

Internet On Marketing Research

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Impact of the Internet

More than 90 percent of America’s marketing research companies conduct some form of online research.

Online survey research has replaced computer-assisted telephone interviewing as the most popular mode of data collection.

Internet data collection is rated as having the greatest potential for further growth.

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Advantages of
Internet Surveys

Contact with the

hard-to-reach

Improved respondent

participation

Personalized questions

and data

Reduced costs

Rapid development,

Real-time reporting

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Uses of the Internet by
Marketing Researchers

Other types of marketing research

Conduct focus groups

Administer surveys

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Methods of Conducting Online Surveys

  • Web Survey Systems
  • Google Consumer Surveys
  • Online Panel Providers

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Advantages of Online
Focus Groups

Ease of use

Better participation rates

Cost-effectiveness

Broad geographic scope

Accessibility

Honesty

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Notes:

  • Better participation rates: Conducted over the course of days, participants less likely to pull out.
  • Cost-effectiveness: Face-to-face groups incur costs for facility rental, airfare, hotel, food, etc.
  • Broad geographic scope: Time is flexible online, providing a world-wide respondent pool.
  • Accessibility: Give access to participants who might otherwise be difficult to recruit.

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Web Community Research

  • A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. Web communities:
  • Engage customers
  • Achieve customer-derived innovations
  • Establish brand advocates
  • Offer real-time results

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Role of Consumer-Generated Media in Marketing Research

CGM comes from various sources: blogs, message boards, review sites, podcasts, and more.

It is trusted more than traditional advertising.

It can be influenced but not controlled by marketers.

3

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Discuss the growing importance of

mobile research

The Growing Importance

of Mobile Research

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Mobile Research

Designed to fit into brief cracks of time, mobile surveys account for thirty percent of interview responses. As new and better apps make the survey experience easier and more intuitive, the use of mobile surveys will continue to rise.

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Notes:

  • Mobile research has expanded into both quantitative and qualitative research.
  • With today’s mobile qualitative research tools, ethnography shop-alongs can be completely self-guided.
  • As screen size decreases, so do survey completion rates. Seventy-six percent of surveys are completed on desktop; 70 percent on tablet; and 59 percent on mobile phone.

Discuss the growing importance of

scanner-based research

Scanner-Based Research

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Scanner-Based Research

A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

BehaviorScan

InfoScan

Research program that tracks the purchases of 3,000 households through store scanners in each research market

Sales-tracking service for the consumer packaged-goods industry

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Notes:

  • Scanner-based research is used for gathering information by monitoring the marketing mix and purchase behavior of a single group of respondents.
  • The two major scanner-based suppliers are SymphonyIRI and The Nielson Company. SymphonyIRI’s first product is called BehaviorScan, which uses assigned ID cards to track grocery and drugstore purchases of household panel participants.
  • InfoScan is SymphonyIRI’s tracking service for consumer goods. Data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers.

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Scanner-Based Research

BehaviorScan

With such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior.

InfoScan

Retail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products.

Data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers.

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Explain when marketing research should be conducted

When Should Marketing

Research Be Conducted?

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When Should Marketing
Research Be Conducted?

Depends on managers’ perceptions of its quality, price, and timing

When the expected value of research information exceeds the cost of generating the information

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Notes:

When managers have several possible solutions to a problem, they should not instinctively call for marketing research. In fact, the first decision to make is whether to conduct marketing research at all.

Identify customer relationships

Store and integrate
customer data using IT

Capture customer data
based on interactions

Identify best customers

Understand interactions
with current customer base

Leverage customer
information

9.8

A Simple Flow Model of the Customer Relationship Management System

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Chapter 21 Customer Relationship Management (CRM)

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Notes:

While CRM appears to be a simplistic customer service strategy, it is only a small part of an integrated, holistic approach to building customer relationships. CRM is described as a closed-looped system that builds relationships with customers. Exhibit 9.8 illustrates this closed-loop system, one that is continuous and circular with no defined starting or end point.

  • The CRM cycle is initiated by identifying customer relationships within the organization.
  • Next the company must understand the interaction each customer has with the company, building on the initial information collected and developing a useful database.
  • Based on knowledge of the customer and his/her interaction with the company, the company can then acquire and capture all relevant information about the customer.
  • Technology plays a critical part in a CRM system. Technology is used to store and integrate customer data.
  • Not all customers are equally important to a business. Consequently, the company must use data mining to determine its profitable and unprofitable customer segments.
  • Once the customer data are analyzed, they are leveraged. Data are transformed into information and disseminated throughout the organization—to the right person in the right place at the right time.

Explain the concept

of competitive intelligence

Competitive Intelligence

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Chapter 9 Decision Support Systems and Marketing Research

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Competitive Intelligence (CI)

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.

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Chapter 9 Decision Support Systems and Marketing Research

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Notes:

Specifically, competitive intelligence can help identify the advantage and play a major role in determining how it is achieved.

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Sources of
Competitive Intelligence

Internet

Company Salespeople

Industry Experts

CI Consultants

Government Agencies

UCC Filings

Suppliers

Periodicals

Yellow Pages

Trade Shows

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Chapter 9 Decision Support Systems and Marketing Research

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