The Marketing Research Process

(1)

Capturing Marketing

Insights

(2)

What is Marketing

Research?

Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation

(3)

The Marketing Research

Process

4-3

Defne the problem

Develop research plan

Collect information

Analyze information

Present fndings

(4)

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 1}st class passengers are likely to use internet?)

(5)

Step 2

4-5

5) Data Sources

4) Contact Methods 2) Research Instruments

3) Sampling Plan

(6)

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}

(7)

Research Instruments

 _{Questionnaires}

 _{Qualitative Measures}

 _{Technological Devices}

(8)

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}

 _{Avoid negatives}

 _{Avoid hypothetical's}

 _{Avoid words that could} be misheard

 _{Use mutually exclusive} categories

 _{Allow for “other” in fixed} response questions

(9)

Question Types –

Thematic Apperception Test

4-9

(10)

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

(11)

Qualitative Measures

4-11

Shadowing—observing people 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

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

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

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

Storytelling—prompting people to tell personal stories about their

consumer experiences

Unfocused groups—interview a diverse group of people to

explore ideas

Unfocused groups—interview a diverse group of people to

(12)

Technological Devices

4-12

Galvanometers (measure interest or emotions aroused by Exposure to a specifc ad or picture)

Tachistoscope (fashes 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

(13)

Sampling Plan

 _{Sampling unit}_{: Who is to be surveyed?}

 _{Sample size}_{: How many people should be surveyed?}  Sampling procedure: How should the respondents be

(14)

Types of Samples

Probability

 Simple random

 _{Every member of population}

has an equal chance of selection

 _{Stratified random}

 _{Population is divided into}

mutually exclusive groups (age groups) and random samples are drawn from each group

 _{Cluster area}

 _{Population is divided into}

mutually exclusive groups (city blocks) and a sample is taken from each group

Non-probability

 _Convenience

 _{Selects the most}

accessible population members

 _Judgment

 _{Selects population}

members who are good prospects for accurate information

 _Quota

 _{Selects and interviews a}

prescribed number of people in each of several categories

(15)

Contact Methods

4-15

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

(16)

Pros and Cons of Online Research

Advantages

 Inexpensive

 Fast

 Accuracy of data, even for sensitive questions

 Versatility

Disadvantages

 Small samples

 Skewed samples

 Technological problems

(17)

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}

(18)

What are Marketing

Metrics?

Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret

marketing performance.

(19)

Marketing Metrics

External

 Awareness

 Market share

 Relative price

 Number of complaints

 Customer satisfaction

 Distribution

 Total number of customers

 Loyalty

Internal

 _{Awareness of goals}

 Commitment to goals

 Active support

 Resource adequacy

 _{Staffing levels}

 Desire to learn

 Willingness to change

 Freedom to fail

 Autonomy

(20)

Sales Analysis

4-20

Micro-Sales Analysis

(views specifc products, territories that fail to produce expected sales)

Sales-Variance

Analysis

(Relative contribution of diferent factors to a gap in

(21)

The Measures of Market

Demand

 _{Potential market}_—interest

 _{Available market}_{—interest, income, access}  _{Target market}_{—qualified available, company}

pursues

 Penetrated market—buying product

(22)

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}

(23)

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

(24)

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

.

(25)

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.

(26)

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}

(27)

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}

(28)

Major Forces in the

Environment

(29)

Population and

Demographics



_{Population growth}



_{Population age mix}



_{Ethnic markets}



_{Educational groups}



_{Household patterns}

(30)

Forecasting and

Demand Measurement

 _{How can we measure market demand?}

 Potential market  _{Available market}  _{Target market}

(31)

A Vocabulary for

Demand Measurement

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

(32)

(33)

Estimating Current

Demand:

Total Market Potential

 Calculations

 _{Multiple potential number of}

buyers by average quantity each purchases times price

(34)

Estimating Current

Demand:

Area Market Potential

(35)

Estimating Current

Demand:

Area Market Potential

(36)

Estimating Future Demand

 _{Survey of Buyers’ Intentions}

 _{Composite of Sales Force Opinions}

 _{Expert Opinion}

 _{Past-Sales Analysis}