Transcript Chapter 4 slides

Managing Marketing
Information To Gain
Customer Insights
Chapter 4
Rest Stop: Previewing the Concepts
• Explain the importance of information in
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gaining insights about the marketplace and
customers
Define the marketing information system and
discuss its parts
Outline the steps in the marketing research
process
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Rest Stop: Previewing the Concepts
• Explain how companies analyze and use
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marketing information
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues
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First Stop: Domino’s Pizza
• Declining revenues prompt Domino’s to ask
customers for honest feedback
• Gains insights from social media and focus
groups
• Discovers that main problem is taste
• Reinvents its product, launches “Pizza
Turnaround” campaign
• Result – Increased sales and profits
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Marketing Information and
Customer Insights
• Consumer needs and motives for buying are
difficult to determine
• Online sources give marketers abundant data
about consumer behavior
• Challenge for companies is to make better
use of information to gain customer insights
• Firms use customer insights to develop a
competitive advantage
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Customer insights
• Fresh understandings of
customers and the marketplace
derived from marketing
information that becomes the
basis for creating customer value
and relationships
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Marketing information
system
• People and procedures dedicated
to assessing information needs,
developing the needed
information, and helping decision
makers to use the information to
generate and validate actionable
customer and market insights
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Figure 4.1 - The Marketing Information
System
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Assessing Information Needs
• A good MIS balances the information users
would like against what they really need
• Collecting and storing information using a
MIS is expensive
• Firms must decide whether the value of the
insights gained from more information is
worth the cost
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Internal databases
• Electronic collections of consumer and market
information obtained from data sources
within the company network
Internal Data
• Can be accessed
more quickly and
cheaply than other
information sources
• Ages rapidly and
may be incomplete
• Maintenance and
storage of data is
expensive
,
Financial services provider USAA uses its
extensive database to tailor its services
to the specific needs of individual
customers, creating incredible loyalty
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Competitive marketing
intelligence
• The systematic collection and analysis of
publicly available information about
consumers, competitors, and developments
in the marketing environment
Competitive Marketing Intelligence
• Techniques include:
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Observing consumers
Quizzing the company’s own employees
Benchmarking competitors’ products
Monitoring Internet buzz
Actively monitoring competitors’ activities
• Companies also take steps to protect their
own information
Marketing research
• The systematic design, collection,
analysis, and reporting of data
relevant to a specific marketing
situation facing an organization
,
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Figure 4.2 - The Marketing Research
Process
,
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Defining the Problem and Research
Objectives
Exploratory
research
• Gathering
preliminary
information
that will help
define the
problem and
suggest
hypotheses
Descriptive
research
• Generating
information to
better
describe
marketing
problems,
situations, or
markets
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Causal research
• Testing
hypotheses
about causeand-effect
relationships
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The Research Plan
• Should be presented as a written proposal
• Should cover:
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The management problems addressed
Research objectives
Information to be obtained
How results will help decision-making
Estimated research costs
Type of data required (Primary or secondary)
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Secondary data
• Information that already exists
somewhere, having been collected for
another purpose
,
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Secondary Data
• Common sources of secondary data:
• Internal company databases
• Commercial online databases
• Internet search engines
• Cheaper to obtain than primary data
• Can be collected faster than primary data
,
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Primary data
• Information collected for the
specific purpose at hand
Primary Data
• Designing a primary data collection plan
involves making decisions about:
• The research approach
• Observation, survey, or experiment
• Contact methods
• Mail, telephone, personal, or online
• The sampling plan
• Sampling unit, sample size, and sampling procedure
• Research instruments
,
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Observational research
• Gathering primary data by observing relevant
people, actions, and situations
Ethnographic research
• A form of observational research that involves
sending trained observers to watch and interact
with consumers in their natural environments
Observational Research
• Can obtain information that people are
unwilling or unable to provide
• Cannot be used to observe feelings, attitudes,
and motives, and long-term or infrequent
behaviors
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Ethnographic Research
Kraft Canada sent out high-level executives to observe actual family
life in diverse Canadian homes. Videos of their experiences helped
marketers and others across the company to understand the role
Kraft’s brands play in people’s lives
Marketing at Work
• By entering the
customer’s world,
ethnographers can
scrutinize how
customers think and
feel as it relates to
their products
To better understand the challenges
faced by elderly shoppers, this
Kimberly-Clark executive tries to
shop while wearing visionimpairment glasses and bulky gloves
that simulate arthritis
Survey research
• Gathering primary data by asking
people questions about their
knowledge, attitudes, preferences,
and buying behavior
Experimental research
• Gathering primary data by
selecting matched groups of
subjects, giving them different
treatments, controlling related
factors, and checking for
differences in group responses
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Contact Methods – Mail Questionnaires
• Pros
• Large amounts of information at a relatively low
cost per respondent
• Enables more honest responses than interviews
• Absence of interviewer bias
• Cons
• Inflexible, low response rate
• Researcher has little control over sample
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Contact Methods - Telephone
Interviewing
• Pros
• Gathers information fast, high response rate
• Allows greater flexibility than mail surveys
• Strong sample control
• Cons
• Higher costs than mail questionnaires
• Interviewer may bias results
• Limited quantity of data can be collected
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Contact Methods – Personal
Interviewing
• Pros
• Highly flexible method that can gather a great
deal of data from a respondent
• Good control of sample, speed of data collection,
and response rate
• Cons
• High cost per respondent
• Subject to interviewer bias
,
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Focus Groups
• Involve inviting six to
ten people to gather
for a few hours with
a trained interviewer
to talk about a
product, service, or
organization
Lexus general manager Mark
Templin hosts “An Evening with
Lexus” dinners with luxury car
buyers to figure out why they did
or didn’t become Lexus owners
Online marketing research
• Collecting primary data online through
Internet surveys, online focus groups,
Web-based experiments, or tracking
consumers’ online behavior
Contact Methods – Online Marketing
Research
• Pros
• Speed and low costs
• Lowest cost per respondent of all contact
methods; offers excellent sample control
• Good flexibility and response rate due to
interactivity
• Cons
• Difficulty in controlling sample
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Contact Methods – Online Marketing
Research
• The Internet is well
suited to
quantitative
research
• Its low cost puts
online research well
within the reach of
almost any business,
large or small
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Thanks to survey services such as
Zoomerang, almost any business,
large or small, can create, publish,
and distribute its own custom
surveys in minutes
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Online Focus Groups
• Gathering a small group
of people online with a
trained moderator to
chat about a product,
service, or organization
and gain qualitative
insights about
consumer attitudes and
behavior
Channel M2 “puts the human
touch back into online research” by
assembling focus group
participants in people-friendly
“virtual interview rooms”
Marketing at Work
• Marketers watch
what consumers say
and do online, then
use the resulting
insights to
personalize online
shopping
experiences
Sample
• A segment of the population selected
for marketing research to represent the
population as a whole
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Sampling Plan
• Sampling requires three decisions:
• Who is to be studied (sampling unit)
• How many people should be included (sample
size)
• How should the people in the sample be chosen
(sampling procedure)
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Probability Each population member has a known chance
sample
of being included in the sample
• Simple random sample
• Stratified random sample
• Cluster (area) sample
Nonprobability
sample
Sampling error cannot be measured
• Convenience sample
• Judgment sample
• Quota sample
Research Instruments
• Questionnaires
• Closed-end questions include all the possible
answers, and subjects make choices among them
• Open-end questions allow respondents to
answer in their own words
• Mechanical devices
• People meters, checkout scanners,
neuromarketing
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Mechanical instruments
• To find out what ads
work and why,
Disney researchers
use an array of
devices to track eye
movement, monitor
heart rates, and
measure other
physical responses
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Implementing the Research Plan
• Collecting the data
• Most expensive phase
• Subject to error
• Processing the data
• Check for accuracy
• Code for analysis
• Analyzing the data
• Tabulate results
• Compute statistical
measures
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Interpreting and Reporting
Findings
• Interpret the findings
• Draw conclusions
• Report to management
• Present findings and conclusions that will be
most helpful to decision making
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Customer Relationship
Management (CRM)
• Managing detailed information about
individual customers and carefully managing
customer touch points to maximize customer
loyalty
• Helps firms offer better customer service
• Helps identify high-value customers
• Enhances the firm’s ability to cross-sell products
and develop offers tailored to customers
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Distributing and Using Marketing
Information
• Marketing information systems (MIS) must
make information readily available for
decision-making:
• Routine information for decision making
• Nonroutine information for special situations
• Intranets and extranets facilitate the
information sharing process
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Other Marketing Information
Considerations
• Small businesses
and nonprofit
organizations can
benefit from
marketing research
insights
• International
marketing research
is growing, but
presents unique
challenges
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Some of the largest research
services firms have large
international organizations.
ACNielsen, for example, has offices
in more than 100 countries
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Public Policy and Ethics in
Marketing Research
• Intrusions on consumer privacy
• The Marketing Research Association’s “Your
Opinion Counts” and “Respondent Bill of Rights”
initiatives
• Adopting standards that outline researchers’
responsibilities to respondents
• Misuse of research findings
• Development of codes of research ethics and
standards of conduct
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Rest Stop: Reviewing the Concepts
• Explain the importance of information in
•
•
gaining insights about the marketplace and
customers
Define the marketing information system and
discuss its parts
Outline the steps in the marketing research
process
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Rest Stop: Reviewing the Concepts
• Explain how companies analyze and use
•
marketing information
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues
4 - 49
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permission of the publisher. Printed in the United States of America.
Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall
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