Transcript Marketing Management

Marketing Management
Market Research and
Market Intelligence
Paul Dishman, Ph.D.
Department of Business Management
Marriott School of Management
Brigham Young University
Lecture 6
Marketing Management
Two Types
 Market Research
 Charles Parlin’s Garbage
 Market Information System
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Marketing Management
Market Research in the News
…The work is painstaking, even for someone like Mr. Thoma, who makes
espresso at his desk rather than drink the cafeteria brew. The 54-yearold acoustics engineer is still smoldering with frustration about turn
signals. Like a lot of drivers, he found that tick-tick-tick of his car's turn
signal a bit annoying, especially when sitting at a long stop light. A
passionate piano player, he figured a few bars from a Brahms
symphony would sound nice.
Trouble was, a test group of potential customers at a private
country club in Duesseldorf got sick of the music. Undaunted, Mr.
Thoma asked what they thought of notes going up and down the scale.
No, thank you. How about the thunk-thunk of an English grandfather
clock? Not bad, all agreed, but when sped up to match the legally
mandated pace of the blinking turn signals, it sounded like a cheap
wristwatch.
Source: Wall Street Journal 1/24/02
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Marketing Management
More Market Research in the News
“P&G Keeps Focus Groupies of Cincinnati Busy as Guinea Pigs in
Product Studies”
…Ms. Geil is one of 105 subjects in a test to see how sensitive skin reacts to a
product ingredient whose identity she doesn't know. She will be paid $55 for
wearing patches, replaced every other day, for seven days. In the past week,
she has also given her opinion of a facial moisturizer in a questionnaire, while
her sons, Joseph, 17, and Andrew, 15, tested Old Spice gel in the shower each
morning, and ate granola bars in a taste test one day after school.
Ms. Geil figures that for the past 17 years she has participated in about one
study a month, ranging from focus groups to taste tests to swabs on her face,
hands, legs and back. "It's almost part of our daily routine, doing some kind of
market research," says the 46-year-old Cincinnati native. She remembers her
mother testing detergent for cloth diapers when her younger sister was born in
1960.
Source: Wall Street journal 1/24/02
Paul Dishman, Ph.D.
Marketing Management
Steps in the MR Process
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Problem Identification
Data Decision(s)
Budget
Data Collection Methodology
Analysis
Reporting
Action
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Marketing Management
Problem Identification
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What is the Management Decision?
Problems vs. Symptoms
(What are political ramifications?)
Research Objective?
?
– Exploratory
• problem definition, suggest hypothesis, “What is problem
environment”
– Descriptive
• describe market potential, customer demographics, customer
attitude, etc
– Causal/Experimental
• Test hypothesis about cause/effect relationship
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Marketing Management
Research Objective?
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You’ve just launched a successful new piece of exercise
equipment that has been selling extremely well on QVC. You are
ready to approach either K-Mart or SportMart about distributing
your product, but you feel that you must first gain an
understanding of your who it is that has been buying your
product.
• You work for a large snack-foods company. Your key sugar
supplier’s sugar crop was devastated by a hurricane. He has been
forced to drastically raise his prices. You must decide whether to
pass the price increase on to your customers. You realize that you
need data on the impact of price increases on sales volume.
•Research scientists at the chemical company you work for have
discovered a new paint that changes color depending on the angle
from which it is viewed. As CEO, you would like to grow your
business by capitalizing on this invention, but you have no idea as to
who your competitors are or what might be appropriate applications
for the new paint.
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Marketing Management
Data Decisions
• What type of data do you need to
collect?
– Secondary vs. Primary
– Qualitative
• Focus Groups, Personal Interviews
– Quantitative
• Instruments (questionnaire) – close v. open
• Mechanical Instruments (Smith’s)
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Marketing Management
Discussion
• Name the type of research that would be
appropriate in the following situations and
explain why:
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Kellog wants to investigate the impact of young children
on their parents’ decision to buy breakfast food
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The BYU Bookstore wants to know how students would
feels about adding a new “Computer Corner” in the
bookstore, staffed by Dell Computer personnel
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McDonalds is considering where to locate a new outlet in
a fast-growing suburb.
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Gillette wants to determine whether a new line of
deodorant for teenagers will be profitable
- BYU is thinking about developing a new study abroad
program and wants to gauge student interest in and
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willingness to pay for the program
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Sampling Issues
• Census vs. Sampling
• Sampling size - the larger the better
• Probability
– random, cluster, stratified
• Nonprobability
– quota, judgment, convenience
• Sample error
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Marketing Management
Types of Quantitative Data
• Data Types
– Nominal – Frequencies, Cross tabs
– Ordinal – Ranking
– Interval – Multivariate Analysis
– Ratio – Absolute zero
non-parametric
statistical
tests
parametric
statistical
tests
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Marketing Management
Data Strength
• Validity
– Collect the right type of information from the
respondent
• Reliability
– Collect the information with high degree of
accuracy, free of bias
• Representativeness
– Collect the information from a representative
sample of the population
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Marketing Management
Budgeting
• Cost/Benefit Ratio
• Decisions:
– Methodology
– Design
– In-house vs. subcontract
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Marketing Management
Data Collection Methodology
• Instrumentation Decisions
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Telephone
Mail
Personal Interview
Internet
Focus Group
Electronic Instrumentation
Test Marketing
• Instrumentation Issues
– Question design, non-responsiveness,
acquiescence, response error
Paul Dishman, Ph.D.
Marketing Management
The Six Thinking Hats
Edward De Bono
How do you get customers to be creative, and stop being persistently negative or positive? The six thinking
hats is a questioning approach to get customers to be creative in seeing the total picture (positive, negative,
opportunities, and potential problems) when developing and discussing new products or ideas.
1. White Hat the information gathering hat. The focus is on what we know about a given
product, service or idea.
2. Yellow Hat is the cheerful hat. The yellow hat focuses on what works now--the benefits,
feasibility and value of present ideas.
3. Black Hat is for critical judgment. The black hat focuses on why things simply don’t work.
4. Green Hat is for creative thinking and new ideas. The green hat focuses on how things
can be done better and emphasizes additional alternatives and suggestions--could we do
things in a different way?
5. Red Hat is the emotional hat. It focuses on feelings, intuitions, and emotions.
6. Blue Hat is for process control. The blue hat asks for summaries, conclusions, and decisions.
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Marketing Management
Analysis
• Qualitative
– Contextual
• Quantitative
– Statistical
• Parametric
• Nonparametric
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Marketing Management
Reporting
• Recommendation must match
management decision
• How does audience want to receive
information? (Report format)
• Archiving
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Marketing Management
Action
• MR should be involved in
management decision to the extent
possible
Paul Dishman, Ph.D.
Marketing Management
Marketing Information Systems
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Good liaison with developers
Timeliness of data
Format of data
How can better
information/intelligence make us
more profitable/competitive?
Paul Dishman, Ph.D.
Marketing Management
Competitive Intelligence
• How to keep an eye on
environmental changes and make
you more competitive…
Paul Dishman, Ph.D.