Marketing Research

1
Marketing Research

• Aaker, Kumar, Day
• Seventh Edition
• Instructors Presentation Slides

2
Chapter Twenty-Six

• Emerging Applications of Marketing Research
  Database Marketing and Relationship Marketing

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Database Marketing

• Database
• Definition
• A customer list to which has been added
  information about the characteristics and the
  transactions of these customers. Businesses use
  it to cultivate customers and develop statistical
  profiles of prospects most like their present
  customers

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Database Marketing (Cont.)

• Need
• Define your target group
• Go into your database
• Create a matched set
• Expose the test variable
• Minimize other marketing efforts while the test
  is going on
• Allow test program enough time to work
• Measure results by comparing the two groups
  sales
• Take action. If test results warrant going
  ahead, then
• Implement it

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Database Marketing (Cont.)

• Elements
• A unique identifier such as an ID or match code
• Name and title of individual and/or organization
• Mailing address, including ZIP Code
• Telephone number
• Source of order, inquiry, or referral
• Date and Purchase details of first transaction
• Recency/frequency/monetary transaction history
• Credit history and rating
• Relevant demographic data for consumer buyers
• Relevant organizational data for industrial buyers

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Database Marketing (Cont.)

• Benefits
• Customers are easier to retain than acquire
• Determine their lifetime value
• Developing relationships with customers

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Ways to Gather Consumer Data

• Rebate Cards
• Suggestion Cards
• Warranty Registration Cards
• Free Subscription Offer Cards
• Directly Ask Consumers

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Ways to Gather Consumer Data (Cont.)

• Guerilla Tactics
• Get the product right
• Use low-tech targeting and creative thinking
• Use other peoples data (OPD) first
• Buy new media

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Types of Databases

• Active
• Inactive
• Inquiries
• Value Added Databases
• Overlay of multiple databases

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Identifying Most Profitable Customers

• Recency of Purchase
• Frequency of Purchase
• Monetary Value of Purchase
• Validating Prospect Profiles
• Benefits of Database Marketing

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E-Commerce

• Fundamentals
• E-commerce influence
• The impact of the net on purchases made entirely
  off-line
• E-commerce ordering
• Captures the orders that are placed on-line but
  paid for later via telephone or in-store
• E-commerce buying
• Combines ordering and paying on-line

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E-Commerce (Cont.)

• Real-time marketing
• The marketing process of personally customizing
  goods or services that continuously update
  themselves to track changing customer needs,
  without intervention by corporate personnel, and
  often without conscious or overt input from the
  customer

13
Relationship Marketing

• Relationship Marketing Incorporates Three
  Elements
• Identifying and building a database of current
  and potential consumers which records and
  cross-references a wide range of demographic and
  purchase information
• Delivering differential messages to these people
  through established and new media channels based
  on consumers' characteristics and preferences
• Tracking each relationship to monitor the cost of
  acquiring the consumer and the lifetime value of
  his/her purchases

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Integrated Marketing Communications

• The process of developing and implementing
  various forms of persuasive communications
  programs with customers and prospects over time
• The goal of the IMC is to influence or directly
  affect the behavior of the selected
  communications audience

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Forecasting

• Qualitative Methods
• Jury of Executive Opinion
• Sales Force Estimates
• Surveys of Customer Intentions
• Delphi Approach

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Forecasting (Contd.)

• Quantitative Methods
• Time-series Extrapolation
• Trend projection
• Causal Models
• Leading indicators
• Regression models