Consumers Rule

1
Marketing Research Gathering, Analyzing, and
Using Information
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Chapter Objectives

• marketing information system
• MIS
• marketing decision support system
• MDSS
• 7 steps in the marketing research process

3
Chapter Objectives

• research types
• exploratory, descriptive, and casual
• data-collection methods and
• research samples
• online research

4
Knowledge is Power

• Accurate, up to date, relevant information
• the fuel that runs the marketing engine

5
The Marketing Information System

• Determines what information marketing managers
  need, then gathers, sorts, analyzes, stores, and
  distributes information to system users

Figure 4.2
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Internal Company Data

• Information from within the company
• to produce reports on the results of sales and
  marketing activities
• Intranet
• internal corporate communications network
• links company departments, employees, and
  databases.

7
Marketing Intelligence

• Monitoring everyday sources
• using mystery shoppers
• Futurists specialize in predicting consumer trends

8
Marketing Research

• Collecting, analyzing, and interpreting data
  about customers, competitors, and the business
  environment to improve marketing effectiveness
• Syndicated research
• Research that can be purchased
• Custom research
• Conducted specifically for one purpose one
  company

9
Acquired Databases

• From other companies
• Annual reports
• Government databases
• U.S. Census data
• Misuse of databases
• do-not-call lists
• antispam laws

10
Marketing Decision Support Systems

• MDSS data plus analysis and interactive software
  allow marketing managers to access MIS data and
  conduct analyses

Figure 4.3
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Searching for Gold Data Mining

• After the fact, post-hoc analysis
• sift through data
• to identify unique patterns of behavior
• among different customer groups

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Value Uses of Data Mining

• Customer acquisition
• Customer retention and loyalty
• Customer abandonment
• Market basket analysis

13
Steps in Marketing Research Process

• Step 1 - Define research problem
• Step 2 - Determine research design
• Step 3 Methodology
• Step 4 Sampling
• Step 5 Collecting data
• Step 6 Analysis Interpretation of data
• Step 7 Write research report

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Steps in the Marketing Research Process

• Step 1 Define the research problem
• Specifying research objectives
• Identifying consumer population of interest
• Placing the problem in an environmental context

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Steps in the Marketing Research Process

• Step 2
• Determine the Research Design
• Specifying what information
• marketers will collect and
• what type of study they will do

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Figure 4.5Marketing Research Design
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Secondary vs. Primary Research

• Secondary data
• collected for some purposes
• other than the problem at hand
• Primary data
• collected directly from respondents
• to specifically address the question at hand

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Secondary Research Web Sites
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Exploratory (Qualitative) Research

• generate insights for future, more rigorous
  studies
• one-on-one discussions
• with consumers
• Focus group
• a product-oriented discussion
• among a small group of consumers

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Exploratory (Qualitative) Research

• Projective techniques
• participants respond to some object
• Case study
• comprehensive examination of a particular firm
• Ethnography (phenomenology)
• Marketers visit homes or participate in consumer
  activities to learn how products are used

Wild Planet Video
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Descriptive (Quantitative) Research

• systematic Probes into problem
• Bases conclusions
• on large numbers of observations
• Results typically expressed in quantitative terms
  
• (averages, percentages, other stats)
• Cross-sectional design
• Longitudinal design

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Causal Research

• Cause-and-effect relationships
• a change in one thing
• causes a change in something else

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Causal Research

• Independent (cause) vs. dependent (change in
  outcome) variables
• Experiments
• test to predict relationships among variables
• in a controlled environment

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Step3 in Marketing Research Process

• Choose Method for Collecting
• Primary Data
• Survey Methods
• interview respondents
• Questionnaires
• loosely, moderately, or completely structured

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Questionnaires

• Mail questionnaires
• Telephone interviews
• Face-to-face interviews
• Online questionnaires

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Observational Methods

• Observation
• data collection where researcher
• records consumers behaviors,
• often without their knowledge
• Personal observation
• Mechanical observation
• Unobtrusive measures

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Data QualityGarbage In, Garbage Out so what?

• How much faith should marketing managers place in
  research?
• Validity
• Reliability
• Representativeness

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STOP HERE

• Finish up chapter 4 on Tuesday
• Cookie Research on Tuesday
• Start on Chapter 5 on Tuesday, too
• Consumer behavior (which will tie into chapter 4)

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Online Research

• Information gathered via consumer surfing and Web
  site/email/chat room questionnaires/focus groups
• Cookies allow a Web sponsor to track a surfers
  moves

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Online Research Applications

• New product development
• Estimating market response
• Exploratory research (online focus groups)
• IM (Instant Messaging)

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Advantages of Online Data Collection

• The same amount of data in a fraction of the time
• Convenience of survey completion
• Elimination of interviewer bias and data entry
  errors

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Disadvantages of Online Data Collection

• Non-representativeness of respondents
• Limited computer access for poor and elderly
• Self-selection bias (people who like to take part
  in online studies)
• Hackers and competitors influencing/intercepting
  results

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Step 4 Design the Sample

• Probability sample
• Each member of the population has some known
  chance of being included
• Sample is representative of population, and
  inferences about population are justified
• - Simple random sampling
• - Systematic sampling
• - Stratified sampling

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Step 4 Design the Sample (contd)

• Nonprobability sample
• Personal judgment used in selecting respondents
• Some members of population have no chance of
  being included
• No way to ensure that sample is representative of
  population
• Christine next two should be lower-level
  (black)
• Convenience sampling
• Quota sampling

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Step 5 Collect the Data

• Challenges to gathering data in foreign
  countries
• Differences in sophistication of research
  operations
• Infrastructure/transportation challenges
• Lack of phones
• Low literacy rates
• Local customs and cultural differences
• Language translation difficulties

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Step 6 Analyze andInterpret the Data

• Data need analysis for them to have meaning
• Tabulation arranging data in a table or other
  summary form to get a broad picture of overall
  responses
• Cross-tabulation examining the data by subgroups
  to see how results vary between categories

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Table 4.4 Data Tabulation and Cross-Tabulation
Tables
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Step 7 Prepare the Research Report

• Executive summary
• Description of research methodology
• Discussion of results including tabulations,
  cross-tabulations
• Limitations of study
• Conclusions and recommendations

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THE END
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Discussion

• What is your overall attitude toward marketing
  research?
• Do you think it is a beneficial activity from a
  consumers perspective?
• Or do you think it merely gives marketers new
  insights on how to convince consumers to buy
  something they really dont want or need?

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Real People, Real Choices

• Plan-it Marketing (Cindy Turgate)
• Cindy chose option 3 conduct viability study
  with both qualitative exploratory study and
  confirmatory quantitative study
• Priceline.com was launched nationally in April
  1998, and it continues to flourish

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Marketing Plan Exercise

• Select a company that makes a product you use.
  For the firm you selected
• Define one specific problem it could address
  through marketing research
• What type of research design do you recommend for
  addressing that problem, and why?
• What is the most appropriate way to collect the
  data? Justify your choice
• How will you ensure high validity, reliability,
  and representativeness of the data?
• Design an appropriate sampling plan

43
Keeping it Real Fast Forward to Next Class
Decision Time at Wild Planet

• Meet Danny Grossman, CEO and founder of Wild
  Planet Toys.
• Room Gear a product line that lets kids decorate
  their rooms met with sharply different gender
  appeals
• The decision the future direction of the Room
  Gear line

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Real People, Real Choices

• Meet Cindy Turgate at Plan-it Marketing, a
  marketing research firm
• Priceline needed help in planning its business.
  Would its name-your-own-price strategy fly?
• The decision What marketing research strategy
  would maximize results within a reasonable
  budget?
• Option 1 conduct exploratory qualitative study
• Option 2 conduct quantitative survey of 700
  leisure and business travelers
• Option 3 conduct viability study with both
  qualitative exploratory study and confirmatory
  quantitative study

45
Group Activity

• Break into small groups and pick a product
  category of interest
• Assume a company wants to create a new or
  modified product to compete for market share in
  that category
• Create a couple of questions for a focus group
  moderator to guide discussion
• Each group sits with another group and takes
  turns conducting an informal focus group

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Discussion

• Are you willing to divulge personal information
  to marketing researchers?
• How much are you willing to tell?
• Where would you draw the line?

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Group Activity

• In small groups, choose a topic below and analyze
  the advantages and disadvantages of mail
  questionnaires, telephone interviews,
  face-to-face interviews, and online
  questionnaires
• The amount of sports nutrition drinks consumed in
  a city
• Why a local bank has been losing customers
• What local doctors would like to see changed in
  hospitals
• Consumers attitudes toward several sports
  celebrities

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Discussion

• Do you think marketers should have to right to go
  through a competitors garbage? Is it ethical?

49
Discussion

• Do you think marketers should be allowed to
  conduct market research with young children? Why
  or why not?

50
Reality TV Group Activity

• Each group comes up with a new Reality TV show
• Design a short survey to get information to help
  you develop the best show
• Hand it out to your classmates to complete
• Use the information to create your show
• Describe your thoughts, feelings, and behaviors
  during this activity

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Marketing in Action CaseYou Make the Call

• What is the decision facing Acxiom?
• What factors are important in understanding this
  decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
  recommendation?

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Discussion

• Why wouldnt you select all the individuals or
  elements of a population to be in your study?

53
Group Activity

• Break into small groups and choose one of the
  following countries. Generate a list of
  difficulties a firm would expect to encounter
  when developing plans for marketing research
• South Africa
• Spain
• China
• Saudi Arabia
• Canada
• Argentina
• Australia
• Germany