Transcript Chapter 5: Marketing-Information-Management

Chapter 5: MarketingInformation-Management
5.1: The Need for Speedy Information
5.2: The Marketing Research Process
5.3: Managing the Process
5.1: The Need for Speedy
Information
Goals
Explain the purpose of MarketingInformation Management.
Describe careers in MarketingInformation-Management.
Reaching for Data
Consumers have many choices when
it comes to spending their
discretionary income.
Sports & Entertainment businesses
compete to gain a share of the total
potential market.
Reaching for Data (continued)
To gain market share, businesses
must obtain information in a timely
manner about their potential
customer’s wants and needs.
Marketing Research is conducted
to gather data and identify solutions
to marketing problems.
Who is Buying?
Developing a product or service can
be an expensive undertaking.
Smart investors want marketing
information about what consumers
want to view and the public’s
opinion.
Example: The Movie Industry (page
122)
Who is Buying? (continued)
Research conducted by an
independent company and then
offered for sale to everyone in an
industry is called syndicated.
Research data are collected and
managed electronically, allowing
current data to be viewed instantly
worldwide and used to make
decisions.
Engaging Customers
Polls are surveys of people’s
opinion.
Example: Gallup (page 123).
The information is used to help client
companies move customers beyond
just being satisfied with the product
or service to being totally engaged
with the company’s product or
service.
Engaging Customers
Engaged customers are repeat
customers who are completely loyal
to the company’s products and
services.
Gathering and managing marketing
information provides businesses a
deeper understanding of their
customers, which is essential to a
businesses growth and success.
Careers in Marketing Research
Marketing researchers acquire and
manage marketing information.
Media companies, including those of
television, motion pictures, radio, print,
and the internet hire marketing
researchers to collect data about their
audiences as well as their competition.
The information collected is used to
provide clients with recommendations
about promotion, distribution, design and
pricing.
Marketing Research Firms
According to U.S, Department of Labor, number
of careers in Marketing Research will increase by
18 to 26% through 2014- much faster than the
average growth expected for other occupations.
Most marketing researchers are employed in
large cities and generally need an advanced
college degree, such as a Master’s.
To gain experiences, researchers usually begin
their careers as entry-level associates who assist
with conducting surveys and compiling reports
based on collected data.
Marketing Research Firms
When staff researchers work with
essential research agencies, they are
referred to as client-side researchers.
Because they are employees if the client.
There are hundreds of companies that
specialize in marketing segments.
Some focus their research on specific
market segments.
Example: ACNielson (page 124) they
conduct the Neilson Ratings for television
shows.
On the Job
The Director of Marketing position requires
a Bachelor’s degree and experience in
marketing or marketing research.
A Master’s degree in BA (MBA) is a plus,
since the primary objective of the position
is to “drive profitable revenue” for the
assigned products. The director’s team
checks sales, analyzes advertising data,
helps plan media campaigns, and much
more.
On the Job (continued)
The director manages the team,
makes presentations, creates
schedules and action plans, develops
training materials, and is the main
contact for information.
5.2: The Marketing Research
Process
Goals
List and describe the steps involved
in Marketing Research.
Discuss the human factors in
Marketing Research.
Steps in Marketing Research
When information is gathered that is
specifically focused on a single target
market, it is referred to as market
research rather than the broader
topic- marketing research.
Marketing research may involve
market research but it is a process
that can be applied to a number of
problems.
How It’s Done
Marketing research is a problem-solving
tool that helps focus decision making.
The process, which must be ongoing,
repeated frequently, and revised often,
involves seven steps.
1.
2.
3.
4.
5.
6.
7.
Discover and define the problem.
Analyze current conditions.
Develop the process for data collection.
Collect the data.
Analyze and report the data.
Determine a solution to the problem.
Implement and evaluate the results.
1. Discover and Define the Problem
Marketing Research is planned
around the need to make a decision
that will solve a problem.
According to William G. Zikmund, in
his book Exploring Marketing
Research, there are three degrees of
research related to problem
definition.
1. Discover and Define the Problem
(continued)
– Exploratory research is conducted when a
business is unaware of the exact problem.
– Exploratory research can include desk
research, where reports of other completed
research are used to define the problem.
– Descriptive research is used when the
business is aware of the problem that needs to
be solved.
– Casual research is used to determine causeand-effect relationships when the problem is
already clearly defined.
2. Analyze Current Conditions
Analysis might include examining
sales volume and customer data to
understand current conditions.
If sales of merchandise related to
team uniforms and logos have
slowed while season ticket sales are
high, the team may need to take a
look at changing the uniform.
3. Develop the Process for Data
Collection
There are a number of ways to conduct
marketing research, including observation
and conducting a survey.
When trying to decide whether to switch
team uniforms, the marketers could have
the team wear each of the uniforms for
one-half of a game and observe the fans’
reaction.
Another method would be to develop a
written questionnaire or survey and ask
the fans to respond.
3. Develop the Process for Data
Collection (continued)
The most effective way to gather
information about current and
potential customer is through
personal interviews where fans can
actually look at samples of the
uniforms and merchandise, but it is
also a very expensive and slow
process.
4. Collect the Data
Using e-mail to contact season ticket
holders and obtain their opinion
about the uniforms could be an
effective method of collecting data.
A sample, or a small number
representative of the large group, is
contacted during the data-collection
phase.
5. Analyze and Report the Data
After the responses are electronically compiled,
the researchers will look for patterns in the data
and draw conclusions based on those patterns.
Price points are the range of prices charged for
a category of merchandise.
Noticing which price points sell the best will
provide insight on what customers want and the
limits on what they are willing to spend.
Spreadsheet and database software programs are
used to sort the data and place it into graphic
representations that busy executives can quickly
analyze.
6. Determine a Solution to the
Problem
Based on the conclusions from the
data, recommendations will be made
to change the current conditions,
such as style of uniforms, the price
of the merchandise, or the
distribution channels used for
merchandise sales.
7. Implement and Evaluate the
Results
The company must implement the
changes and then determine whether
they actually result in an effective
solution to the problem.
If concerns are uncovered,
marketers may need to revisit some
steps in the marketing research
process.
The Human Factor
In Exploring Marketing Research,
William G. Zikmund determined that,
people in research and sales may at
times conflict in how to solve a
problem and use research in a
business.
Research Sophistication
In some businesses, gut feeling and
intuition are used in decision making.
In others, research is valued and actively
used as a decision-making tool.
Marketing research can never completely
remove uncertainty about the success or
failure of a new product or service, but
decisions based on sound information can
greatly improve the odds of success.
Research Sophistication
(continued)
Marketing Managers need to develop a
high level of knowledge about what makes
good research and the harm that can
come from making decisions based on
poor research.
The level to which a company can
embrace the marketing concept are:
– Focusing on long-term customer relationships
rather than short-term results
– Its knowledge about research will determine
the place of marketing research in the
company.
Reducing Conflict
For marketing research to be effective, it must be
viewed as useful.
The potential exists for managers to want to
“shoot the messenger” if the marketing research
shows that customers are not happy with the
product or service.
To reduce the chances of conflict marketing
researchers must learn about all of the marketing
functions.
Reporting research results is an understandable
format for managers , and will help them avoid
conflicts due to poor communication.
Ethical Research
Marketing Researchers must maintain high
ethical standards and report information
accurately and objectively.
Conducting fake or biased research and
reporting only what the client wants to
hear is an example of unethical and
perhaps illegal activity.
Asking people to provide information for
research purposes comes with an
obligation to not reveal the specific
identities of the respondents.
Ethical Research (continued)
Confidentially means the researcher has an
obligation to not reveal the specific identities of
the respondents.
The Federal Trade Commission considers it illegal
for researchers to pretend they are conducting
research, when in fact they are actually
disguising a sales tactic to gain access to a
prospective customer.
The American Marketing Association has a code
of ethics that outlines the principles of ethical
practice of marketing research and the obligation
to protect the customer from “misrepresentation
and exploitation under the guise of research”.
What’s in It for Me?
While people are often reluctant to
answer personal questions, they
frequently supply the information in
return for something they want.
Worldwide Data
As the global market for sports,
entertainment, and recreation continues to
grow at a rapid pace, marketers must
extend their knowledge of the cultures of
potential new customers.
The U.S. continues to dominate the export
of sports and entertainment programming
while importing virtually nothing.
For a company to grow, marketing
information must be used to make
effective decisions to shape product and
service offerings for global customers.
5.3: Managing the Information
Goals
Explain the options for electronic
data collection.
Discuss the concept of data-driven
decisions.
Collection of Data
The information gathered through
marketing research can be very
valuable to businesses, but it must
be collected, stored, and analyzed
before it is of use.
The quality and validity of the data
collected are also critical to the
usefulness of the information.
Data Mining
The use of powerful computers to
“dig up” data needed to make
decisions- called data mining- is
part of marketing research.
Example: ACNielsen uses data
mining as a tool to help businesses
understand their customers.
Cookies Anyone?
Electronic marketers gather information
about visitors to their web sites through
the use of cookies.
A cookie is a small data file that is placed
on the hard drive of a web site visitor that
collects and reports data on the visitor.
Knowing customers’ interests and habits
allows companies to better focus on what
customers want.
Customer Privacy
Decisions based on data can help
customers make the right choices and
businesses become more successful, but
data must be collected and used with
care.
The protection of customers’ privacy and
their right to know how their personal
information is being used are key issues
being addressed by industry and federal
legislation.
Data-Driven Decisions
Customers and marketers use data
to make decisions.
Businesses need information about
customers to make sure they are
offering the right marketing mix.
Ranking the Ads
When companies choose to advertise on
an Internet search engine, they want their
ads to appear when a user conducts a
search that includes related keywords.
A click-through rate is determined by
dividing the number of times an ad is
clicked on by the number of times an ad is
shown.
The effectiveness of an advertisement is
immediately known, and the more
effective ads are moved up closer to the
top of the web page.