chap008 instructor

Identify the reason for conducting marketing research.LO1

Describe the five-step marketing research approach that leads to marketing actions.

Explain how marketing uses secondary and primary data.LO3

LO2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:

8-2

Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.

Explain how information technology and data mining lead to marketing actions.

LO4

LO5

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:

Describe three approaches to developing a company’s sales forecast.

LO6

8-3

The Challenges in Doing Good Marketing Research

Five-Step Marketing Research Approach

THE ROLE OF MARKETING RESEARCHLO1

What is Marketing Research?

• Decision • Decision Making

8-4

FIGURE 8-2FIGURE 8-2 Five-step marketing research approach leading to marketing actions

8-5

STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVES

LO2

Exploratory Research

Descriptive Research

Causal Research

8-6

STEP 1: DEFINE THE PROBLEMIDENTIFY POSSIBLE MARKETING ACTIONS

LO2

Measures of Success

Possible Marketing ActionsMeasure of Success: Playtime

• Children Spent More TimePlaying with Old Design

• Children Spent More TimePlaying with New Design

• Continue with Old Design;Don’t Introduce New Design

• Introduce New Design;Drop Old Design

8-7

STEP 2: DEVELOPTHE RESEARCH PLAN

LO2

Specify Constraints Identify Data Needed for Marketing

Actions

8-8

Determine How To Collect Data

Methods

• Sampling

• Statistical Inference

STEP 3: COLLECT RELEVANT INFORMATION/DATA

LO3

Data

Secondary Data

Primary Data

8-9

FIGURE 8-3FIGURE 8-3 Types of marketing information

8-10

STEP 3: COLLECT RELEVANT INFO/DATA+/– OF SECONDARY DATA

LO3

Advantages

• Time Savings

• Inexpensive

• Out of Date

• Definitions/Categories Not Right

Disadvantages

• Not Specific Enough8-11

STEP 3: COLLECT RELEVANT INFO/DATA+/– OF PRIMARY DATA

LO5

Advantage

• Expensive

• Time Consuming to Collect

Disadvantages

• More Specific to the Problem

8-12

STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—WATCHING PEOPLE

LO4

Mechanical Methods

• Observational Data

Nielsen’s A2/M2 Nielsen’s TV Ratings

8-16

STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—WATCHING PEOPLE

LO4

Personal Methods

• Mystery Shopper

• Videotaping

• Ethnographic Research

8-17

STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—ASKING PEOPLE

LO4

Questionnaire Data

• Individual Interviews

Idea Generation Methods

• Depth Interviews8-18


LO4

• Focus Groups

Idea Generation Methods

• “Fuzzy Front End”

8-19


LO4

• IndividualInterviewSurveys

• Mail/FaxSurveys

• TelephoneSurveys

Idea Evaluation Methods

• Online(E-Mail/Internet)Surveys

• Mall Intercept Interview Surveys8-20

FIGURE 8-BFIGURE 8-B Comparison of types of surveys

8-21

STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—QUESTION FORMATS

LO4

Open-Ended Questions

Closed-End or Fixed Alternative Questions

Dichotomous Questions

Semantic Differential Questions

Likert Scale Questions8-22

FIGURE 8-5AFIGURE 8-5A Different types of questions in a sample Wendy’s survey (Q1-Q5)

8-23

FIGURE 8-5A (Q5)FIGURE 8-5A (Q5) Sample Wendy’s survey: Semantic differential scale question

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FIGURE 8-5BFIGURE 8-5B Different types of questions in a sample Wendy’s survey (Q6-Q9)

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FIGURE 8-5B (Q7)FIGURE 8-5B (Q7) Sample Wendy’s survey: Media behavior question

8-31

FIGURE 8-5B (Q8)FIGURE 8-5B (Q8) Sample Wendy’s survey: Usage behavior question

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FIGURE 8-5B (Q9)FIGURE 8-5B (Q9) Sample Wendy’s survey: Demographic questions

8-33

FIGURE 8-6FIGURE 8-6 Typical problems when wording questions

8-34

STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—OTHER SOURCES

LO4

Social Networks

Panels

8-35


LO4

Experiments

• Independent Variable:The Cause

• Dependent Variable:The Result

• Test Markets

8-36


LO5

Information Technology

• Sensitivity Analysis

• Data Warehouse

Data Mining

• RFID Technology8-37

FIGURE 8-7FIGURE 8-7 How marketing researchers and managers use information technology to turn information into action

8-38

FIGURE 8-CFIGURE 8-C Sales drivers: factors that influence product or brand sales and are essential for effective marketing programs

8-39

STEP 4: DEVELOP FINDINGSLO5

Present the Findings

Analyze the Data

• How are Sales?

• What FactorsContribute toSales Trends?

8-40

FIGURE 8-8FIGURE 8-8 Marketing dashboards that present findings to Tony’s marketing manager that leads to recommendationsand actions

8-41

STEP 5: TAKE MARKETING ACTIONSLO5

Evaluate the Results

Make Action Recommendations

Implement the Action Recommendations

• The Decision Process Used

• The Decision Itself

8-46

SALES FORECASTING TECHNIQUESLO6

Sales Forecast

Judgments of the Decision Maker

Surveys of Knowledgeable Groups

• Direct Forecast

• Lost-Horse Forecast

• Salesforce Survey Forecast

• Survey of Buyers’ Intentions Forecast

8-47

SALES FORECASTING TECHNIQUESLO6

Statistical Methods

• Trend Extrapolation

• Linear Trend Extrapolation

8-48

FIGURE 8-9FIGURE 8-9 Linear trend extrapolation of sales revenues at Xerox (made at the startof 2000)

8-49

chap008 instructor

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