Transcript Chapter 4

Chapter Four
Market Research
Marketing: Real People, Real Choices, 8e
Solomon, Marshall, and Stuart
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Chapter Objectives
• Explain the role of a marketing information
system and a marketing decision support
system in marketing decision making
• Understand the concept of customer insights
and the role it plays in making good marketing
decisions
• List and explain the steps and key elements of
the market research process
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Real People, Real Choices:
Decision Time at Discover Financial
• Which option should be pursued?
– Option 1: Don’t muddy the waters. Continue using
the same project prioritization process.
– Option 2: Modify the current process to include
existing consumer input that Discover can easily
access.
– Option 3: Engage an outside firm to assist Discover
in developing a new process.
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Knowledge is Power
• Successful market planning depends upon
informed decision-making
– Develop marketing objectives
– Selecting target markets
– Positioning products
– Developing 4 Ps strategies
• Information is the fuel that runs the marketing
engine.
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Marketing Research Ethics
• Marketing research ethics refers to taking an
aboveboard approach to conducting market
research does no harm to the participant
– Privacy issues
– Confidentiality issues
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Figure 4.1: The Marketing
Information System
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Internal Company Data
• Information generated from within the
company
– Used to produce reports on sales and marketing
activities
– Commonly accessed via secure intranets
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Marketing Intelligence
• Gathered via monitoring of everyday data
sources, observations, discussions with sales
representatives
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Market Research
• Refers to process of collecting, analyzing, and
interpreting data about customers, rivals, and
the business environment
– Syndicated research
– Custom research reports
Q-Scores
Nielsen Ratings
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Acquired Databases
• Externally sourced databases can be used to
collect a variety of information
– Non-competing businesses
– Government databases
• Misuse of databases can be problematic and
has led to “do-not-call” lists and antispamming laws
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Marketing Decision Support System
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Table 4.1: Examples of Questions
an MIS Answers
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Table 4.1: Examples of Questions
an MDSS Answers
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MIS, MSDS and Customer Insights
• To make good decisions, marketing managers
need timely access to quality information!
– A firm’s MIS stores and analyzes data from a
variety of sources
– A firm’s MSDS makes it easier to access the MIS
and find answers to specific “what-if” questions
Suppose your university hired you to lead its customer
insights team. What sorts of questions might your MIS
and MSDS systems answer?
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Role of Customer Insights Function
in a Marketing Organization
• Goal of the Marketing Insights function transform data into information
– Data are raw unorganized facts
– Information is interpreted data
• More complicated than it sounds
– Massive amounts of data
– Much data is unstructured
– Functional silos
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Figure 4.3: Steps in the Market
Research Process
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Step 1: Define the Research Problem
• Specify the research objectives
– What questions will the research attempt to answer?
• Identify the consumer population of interest
– What are the characteristics of the consumer group(s)
of interest
• Place the problem in an environmental context
– What factors in the firm’s internal and external
business environment might influence the situation?
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Step 2: Determine the Research Design
• Once the problem is isolated, the next step is
to determine a ‘plan of attack’
– A research design is a plan that specifies what
information marketers will collect and what type
of study they will do
• Research designs fall into two categories:
– Secondary data
– Primary data
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Figure 4.4: Market Research Designs
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Table 4.2: Helpful Sites for
Internet Research
www.opinionresearch.com
www.census.gov
www.marketingpower.com
www.lexisnexis.com
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Research with Primary Data
• Primary data refers to data collected by the
firm to address a specific question
– When a company needs to make a specific
decision, secondary data may not be enough!
– May include demographics, psychological info,
awareness, attitudes, and opinions
• Exploratory, descriptive, and causal research
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Exploratory Research
• Exploratory research is useful for:
– Gaining better understanding of problem
– Identifying new opportunities
• Often qualitative in nature
– Focus groups
– Case studies
– Ethnographies
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Descriptive Research
• Descriptive research
– Systematically investigate marketing problem
– Results expressed in quantitative terms
– Cross-sectional vs. longitudinal
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Causal Research
• Causal research
– Attempts to identify cause-and-effect
– Independent and dependent variables
Sales of beer and diapers
are correlated, but does
one cause the other?
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Ethical/Sustainable Decisions
in the Real World
• Fine line between “cutting edge” and offensive
advertisements
– Hyundai UK ad in which a dejected man returns from
his garage following an unsuccessful suicide attempt
in his new Hyundai ix35 with 100% water emissions
– Mountain Dew ad in which an irate goat beats up a
waitress after she cuts him off from his soda
As a marketing director, would you sign off on an ad that
was so edgy it’s sure to gather attention, even if research
showed that some people might find offensive?
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Step 3: Choose the Method to
Collect Primary Data
• Primary data collection
falls into two broad
categories
– Survey
– Observation
• Use of new
technologies
– Neuromarketing
– Virtual stores
Sophisticated new technologies such as
virtual stores allow marketers to
recreate shopping experiences on
mobile devices.
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Survey Methods
• Survey methods are used to interview
respondents
– Mail questionnaires
– Telephone interviews
– Face-to-face interviews
– Online questionnaires
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Table 4.3: Advantages and Disadvantages
of Survey Data Collection Methods
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Table 4.3: Advantages and Disadvantages
of Survey Data Collection Methods
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Observational Methods
• Data collection approach in
which researcher records
consumer behaviors, often
without their knowledge
– Direct observation
– Unobtrusive measures
– Mechanical systems
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Online Research
• Two major types of online research
– Gathering info from online surfing (e.g., cookies)
– Gathering info via online sources (e.g., hashtag
searches)
• Predictive technology uses shopping patterns
of large numbers of people to determine
which products are likely to be purchased if
others are
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Bounce Rate
• Bounce rate is a measure of how many visitors
come to a page on a website and leave
without viewing any other pages.
• Marketers use bounce rates to determine
whether an entry page effectively generates
visitor interest.
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Data and Measurement Quality Issues
• Quality of market research insights based on
“garbage in, garbage out!”
• Three key considerations:
– Validity
– Reliability
– Representativeness
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Step 4: Design the Sample
• Probability vs. non-probability samples
– Is personal judgment used in selecting
respondents?
– Do members of target population have an equal
chance of being included in sample?
• Types of nonprobability sampling
– Convenience sampling
– Quota sampling
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Step 5: Collect the Data
• The quality of research
conclusions is only as good
as the data used to
generate them
• Challenges to gathering
data in foreign countries
– Cultural issues
– Language issues
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Table 4.3: Advantages/Disadvantages
of Online Surveys
•
•
•
•
Advantages
Respondents feel
anonymous
Low cost
Can use visuals and other
materials and no geographic
restrictions
No interviewer bias and
flexible questioning
•
•
•
•
Disadvantages
Unclear who is responding
or whether they are honest
Self-selected samples
Limited ability to ensure
respondent comprehension
of question
Limited questionnaire
length
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Table 4.3: Advantages/Disadvantages
of Survey Telephone Interviews
Advantages
• Fast, low cost approach
• Allows for limited
interviewer follow up
• High flexibility in
questioning
•
•
•
•
Disadvantages
Consumers screen calls
Cannot survey households
without a phone
Respondent can’t view
materials
High chance of respondent
misunderstanding
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Step 6: Analyze and Interpret the Data
• Data must be analyzed and interpreted to be
meaningful!
• Tabulation
– Arranging data in a table or other summary form
to get a broad picture of overall response
• Cross-tabulation
– Exploring data by sub-groups in order to see how
results vary across categories
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Table 4.4: Examples of Data Tabulation
and Cross-Tabulation Tables
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Step 7: Prepare the Research Report
• Research reports typically include the
following sections:
– Executive summary
– Description of research methods
– Discussion of study results
– Limitations of study
– Conclusions and recommendations
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Roadmap to Research Success
• The market research process follows a sevenstep process.
– Begins with defining the problem or information
needed
– Ends with the finished managerial report
What are the marketing implications of beginning a
market research project without a clearly defined
research objective?
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Real People, Real Choices:
Decision Made at Discover Financial
• Ryan chose option 3
– Implementation: Leadership at Discover decided it
was worth taking on additional costs and delays to
maximize the chances of new card success. Ryan’s
team eventually selected a research firm that had
extensive experience in financial services.
– Measuring Success: Research showed some cards
were less appealing than sponsors assumed and
others showed evidence of greater demand.
Potential products were moved ahead or
eliminated based on findings.
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All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America
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