MK323 Chapter 10 Notes PDF

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MK323 Chapter 10 Notes...

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CHAPTER 10 10.1 Step 1: Defining the Objectives and Research Needs (Marketing Research Process) ● Research is expensive and time-consuming so its important to establish in advance exactly what problem needs to be solved ● Researchers assess the value of a project through a careful comparison of benefits of answering some of their questions and the costs associated with conducting the research 10.2 Step 2: Designing the Research (Marketing Research Process) ● Researchers identify the type of data needed and determine the research necessary to collect them 10.3 Step 3: Collecting the Data (Marketing Research Process) ● Secondary data = pieces of information that have been collected prior to the start of the focal research project ○ Includes external as well as internal data sources ● Primary data = data collected to address specific research needs ○ Focus groups, in-depth interviews, and surveys 10.4 Step 4: Analyzing the Data and Developing Insights (Marketing Research Process) ● Data = raw numbers and other factual information that have limited value to marketers ● Information = results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers 10.5 Step 5: Developing and Implementing an Action Plan (Marketing Research Process) ● Analyst prepares results and presents them to the appropriate decision makers who undertake appropriate marketing strategies ● Marketing presentation includes executive summary, body of report, conclusion, limitations, and appropriate supplemental tables, figures, etc 10.6 Inexpensive External Secondary Data (Secondary Data) ● Some secondary data can be accessed quickly and at low cost ○ Census provides data at low costs ● Inexpensive data sources arent adequate to meet researchers’ needs 10.7 Syndicated External Secondary Data (Secondary Data) ● Syndicated data = purchased external secondary data which are available for a fee from commercial research firms like IRI ○ CPG firms that sell to wholesalers lack the means to gather pertinent data so that makes syndicated data a valuable resource for them ● Scanner data = used in quantitative research obtained from scanner readings of UPC labels at checkout counters ● Panel data = information collected from a group of consumers organized into panels over time

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Data collected from panels often include their records of what they have purchased (i.e, secondary data) as well as their responses to survey questions that the client gives to the panel firm to ask the panelists (primary data) Both panel and scanner data provide firms with comprehensive pictures of what consumers are buying or not buying

10.8 Internal Secondary Data (Secondary Data) ● Firms find it necessary to use data mining techniques to extract valuable information from their databases ○ Data mining = uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables ● By mining customer data and information, companies reduce their churn levels ○ Churn = is the number of participants who discontinue use of a service, divided by the average number of total participants ● Big Data ○ Big data = explosion of data that firms have access to but cannot handle using conventional data management and data mining software ○ Firms such as SAP, Splunk, etc offer host of software solutions to help firms better integrate their data, visualize them, and then move from data to real-time insights Primary Data Collection Techniques ● Qualitative research = uses broad, open-ended questions to understand the phenomenon of interest ○ Provides initial information that helps the research more clearly formulate the research objectives ● Quantitative research = structured responses that can be statistically tested 10.9 Observation (Primary Data Collection Techniques) ● Observation entails examining purchase and consumption behaviors through personal or video camera scrutiny, or by tracking customers’ movements electronically as they move through a store ● Observation may be the best method to determine how customers might use a product and its useful for designing and marketing products 10.10 Social Media (Primary Data Collection Techniques) ● Companies monitor their social media sites to see what customers are complaining about, likes, and preferences ● Virtual community = online network of people who communicate about specific topics ● Sentiment mining = firms collect consumer comments about companies and their products on social media sites like Facebook ○ The data is analyzed to distill customer attitudes toward and preferences for products and advertising campaigns 10.11 In-Depth Interviews (Primary Data Collection Techniques)

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In-depth interviews, trained researchers ask questions and listen to and record the answers and then pose additional questions to clarify and expand on particular issues ○ Provides insight that help managers better understand the nature of their industry and important trends, customer preferences, to create surveys, and developing marketing strategies Interviews are relatively expensive and time-consuming ○ Interview cost depends on the length of the interaction and the characteristics of the people involved in the sample

10.12 Focus Group Interviews (Primary Data Collection Techniques) ● Focus group interviews, small group of people come together for an intensive discussion about a particular topic ○ Unstructured method of inquiry with a trained moderator guiding the conversation according to predetermined outline of topics of interest ● Focus groups gather qualitative data about initial reactions to new or existing products, etc 10.13 Survey Research (Primary Data Collection Techniques) ● Most popular type of quantitative primary collection method ● Unstructured questions are open ended and allow respondents to answer in their own words ● Structured questions are close-ended questions for which a discrete set of response alternatives or specific answers is provided for respondents to evaluate ● Questions must address one issue at a time and the vocabulary must be familiar and comfortable to those being surveyed ● Online surveys are the most fruitful (30-35% response rate) 10.14 Panel and Scanner-Based Research (Primary Data Collection Techniques) ● Panel and scanner research can be primary or secondary data ○ Ex: use of panel to collect primary data ■ Walmart’s subsidiary Asda which uses a 18,000 customer panel to help determine which products to carry 10.15 Experimental Research (Primary Data Collection Techniques) ● Experimental research = type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on the other variables ○ Ex: McDonalds creating new menu item and seeing how cost affects quantities sold

10.16 Advantages and Disadvantages of Primary and Secondary Research (Primary Data Collection Techniques)

Type

Example

Pros

Cons

Secondary Research

-Census Data -Books -Journal articles -Syndicated Data

-saves time in collecting data because they are readily available -free or inexpensive

-not precisely relevant to info needed -not timely -data source biased

Primary Research

-Observed consumer behavior -focus groups -surveys -experiments

-specific to immediate topic -offers behavioral insight generally not available from secondary

-costly -time consuming -requires more training and experience

10.17 Ethics of Using Consumer Information ● Guidelines in conducting marketing research 1) Prohibits selling or fundraising under guise of conducting research 2) Supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data 3) Encourages fair treatment of clients and suppliers...