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Essentials of Marketing Research Kumar, Aaker, Day
Essentials of Marketing Research
Kumar, Aaker, DayKumar, Aaker, Day
Instructor’s Presentation SlidesInstructor’s Presentation Slides
Essentials of Marketing Research Kumar, Aaker, Day
Chapter Six
Standardized Sources of Standardized Sources of Marketing DataMarketing Data
Essentials of Marketing Research Kumar, Aaker, Day
Standardized Sources
Syndicated sources of marketing data:
Store audits
warehouse withdrawal services
consumer panels
scanner based systems and single source data
Essentials of Marketing Research Kumar, Aaker, Day
Motivation for using standardized data
“Pipeline Effect” in distribution channels Unknown competitor actions Store behavior unknown (i.e. promotion
execution)
Essentials of Marketing Research Kumar, Aaker, Day
Example for packaged goods sales: margarine brand
Margarine Sales in units for 28 w eeks
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Actual Sales
Essentials of Marketing Research Kumar, Aaker, Day
Motivation for using standardized data
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Production
FactorySalesRetail Sales
Factory Sales Peak Retail Sales Peak
Essentials of Marketing Research Kumar, Aaker, Day
Growth of Standardized Sources
Factors
Multitude of information users having common information needs
When cost of satisfying individual user's need is prohibitive
The increasing use of scanner systems at the check out points
Essentials of Marketing Research Kumar, Aaker, Day
Retail Store Audits
Personally record store inventories and movements for any brand and size
Basic measurement tool in lieu of scanning data
Common categories: Health and Beauty, Durable, Confectionery, Liquor,
Example: Nielsen Retail Index
Essentials of Marketing Research Kumar, Aaker, Day
Retail Store Audits
Beginning Inventory
+ Deliveries
- Ending Inventory
= Sales for Period
Essentials of Marketing Research Kumar, Aaker, Day
Nielsen Retail Index
Biggest research company in the world
Their auditing services cover four groups Grocery products
Drugs
Mass merchandisers
Alcoholic beverages
Essentials of Marketing Research Kumar, Aaker, Day
Audits and Surveys: National Market Audit
Bimonthly audit focussed on products irrespective of the outlet carrying the product
Essentials of Marketing Research Kumar, Aaker, Day
Consumer Purchase Panels
Audits and scanner data do not cover:
Who buys (consumer demographics)
Frequency of purchases
Switching behavior between brands and stores
Level of deal sensitivity
Essentials of Marketing Research Kumar, Aaker, Day
What is a “Panel”? Representative sample
of households Records all purchases
made over time (cross-section/time-series) Records all coupons used Receive incentive for co-operation ACNielsen’s Consumer Panel: “Homescan”
Consists of 40,000 demographically balanced U.S. households that use hand-held scanners to record every bar-coded item purchased.
Essentials of Marketing Research Kumar, Aaker, Day
Consumer Purchase PanelsTo Cover the Gap Between Warehouse Withdrawal Audits and Actual Purchases Following Methods Can Be Used
Home Audit Approach Panel member agrees to permit an auditor to check the
household stocks of certain product categories at regular intervals
Mail Diary Method Panel member records the details of each purchase and
returns the diary by mail at regular intervals
Essentials of Marketing Research Kumar, Aaker, Day
Advantages of Panels
Can Provide Information On Aggregate Sales Activity
Brand Shares
Shifts in Buyer Characteristics
Shifts in Retail Outlets
Essentials of Marketing Research Kumar, Aaker, Day
Limitations of Consumer Panels
Possibility of
Selection Bias
Mortality Effect
– e.g. move, illness, refusal
Testing Effects
– first month records are discarded
Essentials of Marketing Research Kumar, Aaker, Day
Scanner Data
Have revolutionized grocery (and retail ) industry Generates huge amounts of data Main suppliers: IRI, Nielsen Kraft Food spends more than $30 million per year
on scanner data In comparison to survey
research: scanner data reveal actual consumer behavior
Essentials of Marketing Research Kumar, Aaker, Day
Single-source Systems
Combine scanner data, panels, and TV-measurement
Usually set up in self-contained communities with their own newspapers and cable TV and are roughly representative of the demographics of the country
A test panel of community households is recruited and monitored
Example: BehaviorScan by IRI
Essentials of Marketing Research Kumar, Aaker, Day
Single-source Systems
Experiment like setting Control of
– advertising exposure in TV, newspapers, …– couponing– buying behavior
Essentials of Marketing Research Kumar, Aaker, Day
Advantages of Single Source Systems
Availability of exclusive pre-test records
Immediate availability of test results
Ability to compare households prior to and after exposure to the message
Ability to control settings
Essentials of Marketing Research Kumar, Aaker, Day
Media Related Standardized Sources
Nielsen Media Research (previously Nielsen Television Index)
A system for estimating national TV audiences
Arbitron Diary Panel Both regional and national radio and TV panels
Starch Scores Print media
Multi Media and Web Services
Essentials of Marketing Research Kumar, Aaker, Day
Nielsen Media Research(http://www.nielsenmedia.com)
Nielsen Media Research (New York)– National People Meter Service: audience
estimates for all national programming sources, including six broadcast networks, 41 cable networks.
– Used by more than100 advertising agencies and 45 advertisers.
Essentials of Marketing Research Kumar, Aaker, Day
Source:New York Times1997
Essentials of Marketing Research Kumar, Aaker, Day
Roper Starch (http://www.roper.com)
Starch Ad Readership Reports measure ad readership within specific publications
Covers over 500 magazine issues and about 25,000 ads each year.
Raw readership scores (the percent of readers who saw the ad and read the copy)
Ad is ranked against other ads in the issue. Ad is ranked against other ads in its product
category over the past two years. Interviews are conducted in person Standard demographic breakdowns
Essentials of Marketing Research Kumar, Aaker, Day
Expert Systems Based on Single-source Services
Since users of scanner data are flooded with massive amounts of data, expert systems are used to help the users understand the data quickly
Examples of Expert Systems Are Apollo Space Management Software Cover Story Sales Partner Promotion Stimulator Spotlight
Essentials of Marketing Research Kumar, Aaker, Day
Marketing Decision Support Systems
A typical marketing manager receives some or all of following data
Factory shipments or order Syndicated aggregate (industry) data services Sales reports from sales personnel Consumer panel data Scanner data Demographic data Internal cost and budget data
Purpose of MDSS is to combine marketing data from diverse sources into single database
Essentials of Marketing Research Kumar, Aaker, Day
Applications of Standardized Sources of Data
Measuring product sales and market share:
– Panels, audits, scanner data, internal records
Measuring advertisement exposure and effectiveness:
– Starch Scores, Nielsen Media Research, Arbitron
Essentials of Marketing Research Kumar, Aaker, Day
Applications of Standardized Sources of Data
Measuring promotion effectiveness:
scanner data, panels
Estimation and evaluation of models
scanner data, starch scores, panels, internal records