Transcript Capturing Marketing Insights

Capturing Marketing Insights
Dr. Ananda Sabil Hussein
What is Marketing
Research?
Marketing research is the systematic design,
collection, analysis, and reporting of data and
findings relevant to a specific marketing situation
facing the company.
The Marketing Research
Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
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Make
decision
Step 1

Define the problem (e.g., Will offering an in-flight Internet
service create enough incremental preference and profit
for American Airlines to justify its cost?)

Specify decision alternatives (e.g., Should American
offer an Internet connection?)

State research objectives (e.g., types of 1st class
passengers are likely to use internet?)
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Step 2
1) Research
Approach
2) Research
Instruments
3) Sampling
Plan
4) Contact
Methods
5) Data
Sources
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Research Approaches
 Observation—unobtrusive (LP)
 Ethnographic--link between culture & behavior
&/or how cultural processes develop over time
(participant observation)
 Focus group—discuss topics of interest (LS)
 Survey—knowledge, beliefs, preferences,
satisfaction
 Behavioral data--Data—purchasing data
 Experimentation—cause and effect
relationships
Research Instruments
 Questionnaires
 Qualitative Measures
 Technological Devices
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Inc. Publishing as Prentice Hall
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Questionnaire Do’s and
Don’ts
 Ensure questions are
free of bias
 Make questions simple
 Make questions specific
 Avoid jargon
 Avoid sophisticated
words
 Avoid ambiguous words
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Inc. Publishing as Prentice Hall
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 Avoid negatives
 Avoid hypothetical's
 Avoid words that could
be misheard
 Use mutually exclusive
categories
 Allow for “other” in
fixed response questions
Question Types –
Thematic Apperception Test
Make up a story that reflects what you think is happening in this picture.
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Qualitative Measures
 Word association—words are presented, one at a
time, and respondents mention the first word that
comes to mind.
 Projective techniques—give people an incomplete
stimulus and ask them to complete it.
 Empathy—the experiencing as one’s own of the
feelings or another.
 Visualization—requires people to create a collage
from magazine or drawing to depict their perceptions
 Brand personification—ask subjects what kind of
person they think of when the brand is mentioned.
Qualitative Measures
Shadowing—observing people
Behavior mapping—photographing
people with a space—2 or 3 days
Consumer journey—keeping track of
interactions a consumer has with a product, service,
or space
Camera journals—ask consumers to keep
visual diaries of activities and impression
related to a product
Extreme user interviews—talking to
people about a product and evaluating their
experience with it
Storytelling—prompting people to tell
personal stories about their consumer
experiences
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Unfocused groups—interview a
diverse group of people to explore ideas
Technological Devices
Galvanometers (measure
interest or emotions aroused by
Exposure to a specific ad or picture)
Tachistoscope (flashes an ad to a
Subject with an exposure interval and
respondent describes everything he/she recalls)
Eye cameras (study respondents’
eye movement to see where their eyes
land 1st and how long, etc.)
Audiometers (record when TV is on
and the channel)
GPS (global positioning system, can
Determine how many billboards a person
may walk or drive by during a day)
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Sampling Plan
 Sampling unit: Who is to be surveyed?
 Sample size: How many people should be surveyed?
 Sampling procedure: How should the respondents be
chosen?
Types of Samples
Non-probability
Probability
 Simple random
 Every member of population
has an equal chance of
selection
 Convenience
 Selects the most
accessible population
members
 Stratified random
 Population is divided into
mutually exclusive groups
(age groups) and random
samples are drawn from
each group
 Judgment
 Selects population
members who are good
prospects for accurate
information
 Cluster area
 Population is divided into
mutually exclusive groups
(city blocks) and a sample is
taken from each group
 Quota
 Selects and interviews a
prescribed number of
people in each of several
categories
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Contact Methods
Mail Questionnaire
(For people that would not give
personal interviews or whose responses
might be biased or distorted by interviewer)
Telephone Interview
(Gather information quickly, however
interview are short and non-personal)
Personal Interview
(Most versatile and expensive,
subject to interview bias or distortion)
Online Interview
(Inexpensive, faster, honest, versatile, samples small
and skewed, tech problems and inconsistencies)
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Pros and Cons of Online Research
Advantages
Disadvantages
 Inexpensive
 Small samples
 Fast
 Skewed samples
 Accuracy of data, even for
sensitive questions
 Technological problems
 Versatility
 Inconsistencies
Barriers Limiting the Use of
Marketing Research
 A narrow conception of the research
 Uneven caliber of researchers
 Poor framing of the problem
 Late and occasionally erroneous findings
 Personality and presentational differences
What are Marketing
Metrics?
Marketing metrics are the set of measures that
helps marketers quantify, compare, and interpret
marketing performance.
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Inc. Publishing as Prentice Hall
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Marketing Metrics
External
Internal
 Awareness
 Awareness of goals
 Market share
 Commitment to goals
 Relative price
 Active support
 Number of complaints
 Resource adequacy
 Customer satisfaction
 Staffing levels
 Distribution
 Desire to learn
 Total number of customers
 Willingness to change
 Loyalty
 Freedom to fail
 Autonomy
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Sales Analysis
MicroSales
Analysis
SalesVariance
Analysis
(views specific products,
territories that fail to
produce expected sales)
(Relative contribution of
different factors to a gap in
Sales performance)
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The Measures of Market
Demand
 Potential market—interest
 Available market—interest, income, access
 Target market—qualified available, company
pursues
 Penetrated market—buying product
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Inc. Publishing as Prentice Hall
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Estimating Current
Demand
 Total market potential
 Maximum amount of sales available to all the firms in
an industry during:
 a given period
 under a given level of industry marketing effort, and
 environmental conditions.
 Area market potential
 Market buildup method
 Identifying all potential buyers in each market and
estimating their potential purchases
 Multiple-factor index method
 Sales are directly related to a series of indices
 Brand development index
 Index of brand sales to category sales
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Estimating Future Demand
 Survey of Buyers’ Intentions—probability of
purchase
 Composite of Sales Force Opinions—salespeople
 Expert Opinion—dealers, distributors, suppliers,
marketing consultants, trade associations
 Past-Sales Analysis—trend, cycle, seasonal, erratic
 Market-Test Method—select some territories to sell
the product
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What is a
Marketing Information
System?
A marketing information system
consists of people, equipment, and
procedures to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to
marketing decision makers.
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Inc. Publishing as Prentice Hall
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What is a
Marketing Intelligence
System?
A marketing intelligence system is
a set of procedures and sources that
managers use to obtain everyday
information about developments in
the marketing environment.
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Inc. Publishing as Prentice Hall
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Steps to Quality Marketing Intelligence
 Train sales force to scan for new developments
 Motivate channel members to share intelligence
 Hire external experts to collect intelligence
 Network externally
 Utilize a customer advisory panel
 Utilize government data sources
 Purchase information
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Inc. Publishing as Prentice Hall
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Sources of Competitive Information
 Independent customer goods and service review
forums
 Distributor or sales agent feedback sites
 Combination sites offering customer reviews and
expert opinions
 Customer complaint sites
 Public blogs
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Inc. Publishing as Prentice Hall
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Major Forces in the
Environment
Demographic
Political-legal
Economic
Technological
Socio-cultural
Natural
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Inc. Publishing as Prentice Hall
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Population and
Demographics
 Population growth
 Population age mix
 Ethnic markets
 Educational groups
 Household patterns
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Inc. Publishing as Prentice Hall
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Forecasting and
Demand Measurement
 How can we measure market demand?
 Potential market
 Available market
 Target market
 Penetrated market
A Vocabulary for
Demand Measurement
Market Demand
Market Forecast
Market Potential
Company Demand
Company Sales Forecast
Company Sales Potential
Market Demand Functions

Estimating Current
Demand:
Total Market Potential
Calculations
 Multiple potential number of
buyers by average quantity
each purchases times price
 Chain-ratio method
Estimating Current
Demand:
Area Market
Potential
Market-Buildup
Estimating Current
Demand:
Area Market Potential
Multiple-Factor Index
Estimating Future Demand
 Survey of Buyers’ Intentions
 Composite of Sales Force Opinions
 Expert Opinion
 Past-Sales Analysis
 Market-Test Method