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Marketing research links the organization with its market environment. It involves the specification, gathering, analysis, and interpretation of information. It helps management understand the environment, identify problems and opportunities.
Marketing research links the organization with its market environment. It involves the specification, gathering, analysis, and interpretation of information. It helps management understand the environment, identify problems and opportunities.
Marketing research links the organization with its market environment. It involves the specification, gathering, analysis, and interpretation of information. It helps management understand the environment, identify problems and opportunities.
Gain Customer Insights 2014 Fall Consumer Markets and Consumer Buyer Behavior Assesslng MarkeLlng lnformaLlon needs ueveloplng MarkeLlng lnformaLlon MarkeLlng 8esearch Analyzlng MarkeLlng lnformaLlon ulsLrlbuLlng and uslng MarkeLlng lnformaLlon CLher MarkeLlng lnformaLlon ConslderaLlons 1op|c Cut||ne What is Marketing Research? Marketing research links the organization with its market environment. It involves the specification, gathering, analysis, and interpretation of information to help management understand the environment, identify problems and opportunities, and develop and evaluate courses of marketing actions. uaLa analysls -> Markeung sLraLegles What is Marketing Research? Example) Define research problems We need to improve sales of our cosmetic products Identify research question(s) Whom should we have in our advertisement? Measurement and data collection To what extent do you like XXX? Very little 1234567 very much Analysis and interpretation XXX was liked the better. Statistically significant results? uaLa analysls Speclal skllls ln analyslng Lhe daLa Successful Market Research uecllnlng revenues prompLed Dominos to ask cusLomers for honesL feedback Calned lnslghLs from soclal medla and focus groups ulscovered LhaL maln problem was LasLe 8elnvenLed lLs producL, launched Pizza Turnaround campaign 8esulL lncreased sales and proflLs hLLp://plzzaLurnaround.com/ ln 1983, markeLers LhoughL Lhey were llsLenlng Lo Lhelr LargeL markeL. 1hey noLlced LhaL Lhey were loslng markeL share Lo epsl and Lhey conducLed bllnd LasLe LesLs Lo develop Lhelr new formula. Cn Aprll 23, 1983, Coca-Cola sLopped produclng old Coke and creaLed a new Coke wlLh a sweeLer LasLe. Angry cusLomers panlcked, fllllng Lhelr basemenLs wlLh old Coke and LhreaLenlng lawsulLs. 3 monLhs laLer, Coca-Cola broughL back Lhe old formula calllng lL Coca-Cola Classlc. Failed Market Research Coca-Cola fouled up their research. Key issue: the research problem was too narrowly defined, and consumer feelings were ignored. They focused only on Taste. The company ignored consumers feeling about the old Coke.
Luckily, Coca-Cola had quick reaction time. Failed Market Research neglecLed brand equlLy (noL a developed ldea aL LhaL ume), brand nosLalgla
eople and procedures dedlcaLed Lo assesslng lnformaLlon needs, developlng Lhe needed lnformaLlon, and helplng declslon makers Lo use Lhe lnformaLlon Lo generaLe and valldaLe acLlonable cusLomer and markeL lnslghLs MarkeLlng lnformaLlon sysLem (MlS) Marketing Information System noL managemenL lnformauon sysLem Marketing Information System cusLomers 1echnology CulLure. Mlcro vs. Macro Marketing Information System http://www.youtube.com/watch?v=3KBiMQAuZ94 A marketing information system (MkIS) is a management information system (MIS) designed to support marketing decision making. "system in which marketing data is formally gathered, stored, analyzed and distributed to managers in accordance with their informational needs on a regular basis." Marketing Information System Many companies routinely monitor consumers online conversations with the help of monlLorlng servlces and plaLforms such as kad|an6. http://www.youtube.com/watch?v=8i6Exg3Urg0 http://www.youtube.com/watch?v=bTZYFwKFh6I Cnllne markeung research Word assoclauon Lask Assesslng MarkeLlng lnformaLlon needs 1he MlS musL balance needs agalnsL feaslblllLy: noL all lnformaLlon can be obLalned. CbLalnlng, processlng, sorLlng, and dellverlng lnformaLlon ls cosLly. llrms musL declde wheLher Lhe value of Lhe lnslghLs galned from more lnformaLlon ls worLh Lhe cosL Marketing Information System leaslblllLy vs. ueslrable eecLs Marketing Information System: Internal data Interna| Data: 8arneys ls an Amerlcan chaln of luxury deparLmenL sLores headquarLered ln new ?ork ClLy. lL has found a wealLh of acLlonable cusLomer lnslghLs by analyzing online customers browsing and buying behavior at its Web site. *** As of lebruary 2011, 8arneys wlll no longer sell rada wlLh Lhe excepLlon of shoes and menswear. rada wanLed Lo lease a space, buL conLrol lLs own lnvenLory and markdowns under a concesslon model. 8arneys decllned. The Marketing Research Process RESEARCH DATA SECONDARY DATA PRIMARY DATA QUALITATIVE DATA EXPLORATION QUANTITATIVE DATA DESCRIPTION CAUSE AND EFFECT Summary CollecLed Lhe daLa by yourself used daLa collecLed by someone else CuanuLauve: numbers CuallLauve: words and lmages Lxplorauon uescrlpuon Cause and eecL 8esearch meLhod Defining the Problem and Research Objectives LxploraLory research CaLherlng prellmlnary lnformaLlon LhaL wlll help deflne Lhe problem and suggesL hypoLheses uescrlpLlve research CeneraLlng lnformaLlon Lo beLLer descrlbe markeLlng problems, slLuaLlons, or markeLs Causal research 1esLlng hypoLheses abouL cause- and-effecL relaLlonshlps Marketers often start w|th exp|oratory research and |ater fo||ow w|th descr|pt|ve or causa| research. uescrlpuve research - Ceneraung lnfo Lo beuer descrlbe markeung problems, slLuauons, or markeLs - llnd some more deLalls Causal research - 1esung hypoLheses abouL cause-and-eecL relauonshlps - Show and explaln Lhe relauonshlp - need conLrolled semngs Lo LesL ouL Lhe relauon, may be crluclsed as aruclal semng - May noL puL Lhe cusLomers lnLo Lhe real conLexL hLLp://www.youLube.com/waLch?v=lo_a2cf8uCc Exploratory Research: Eye Tracking Tools need Lo know how Lo classlfy Lhe meLhod Exploratory Research: Eye Tracking Tools Mechanical measures of physiological processes include eye movement, pulse rate, eye dilation, and as shown below, changes in facial expressions.
Marketers can adjust offers accordingly. 8eads muscle movemenL on Lhe face Campbells Soup: Research Driven Re-design A 2005 Campbell analysis revealed that, overall, ads deemed more effective in surveys had little relation to changes in Campbell sales
Campbell needed approaches that would help it understand the neurological and bodily responses to an ad rather than how people thought they'd reacted.
For two years, Campbell researchers studied microscopic changes in skin moisture, heart rate and other biometrics to see how consumers react to everything from pictures of bowls of soup to logo design. Campbell's Taps 'Neuromarketing' Techniques to Find Why Shelf Displays Left Some Customers Cold WSJ 2010 Less focused Social Media Exploratory Research: Word Association kesearcher art|c|pant Exploratory Research: Laddering Laddering is a qualitative marketing research technique, which seeks to understand why people buy and use products and services.
Three levels 1) Attributes: which feature is important to you? 2) Consequences: what does ____ do for you? 3) Values: What does ____ do for you? why is ____important? http://www.youtube.com/watch?v=RA-imyU9je0 Research Design Descriptive Research When the research objectives and research questions are clearly formulated. When descriptive quantitative measures are needed to address the research questions.
Clear ob[ecuves and quesuons are formulaLed carefully Descriptive Research: Survey
CaLherlng prlmary daLa by asklng people quesLlons abouL Lhelr knowledge, aLLlLudes, preferences, and buylng behavlor Survey research Descriptive Research: Survey Descriptive Research: Scanner Data 8eLall purchase lnformaLlon (such as prlce, brand, producL slze, amounL purchased) gaLhered aL Lhe polnL of purchase by an elecLronlc devlce LhaL reads a coded LlckeL on Lhe producL Lhrough Lhe use of an elecLronlc reader over whlch Lhe producL passes. Consumers themse|ves can use scanner data for themse|ves. hLLp://www.youLube.com/waLch?v=xuuPekLrq_k 1hls lnformaLlon can be used for a varleLy of markeLlng declslons such as allocaLlon of adverLlslng dollars, placemenL of adverLlslng, lnvenLory conLrol, amounL of shelf space, prlclng, placemenL of orders, and Llmellness of producL dellvery.
CaLherlng prlmary daLa by selecLlng maLched groups of sub[ecLs, glvlng Lhem dlfferenL LreaLmenLs, conLrolllng relaLed facLors, and checklng for dlfferences ln group responses LxperlmenLal research nA1lCnAL CLCC8APlC !"#"$%"$& ()*+),-" .$%"#"$%"$& ()*+),-" /&0"* ()*+),-" /&0"* ()*+),-" 1arget effect Causal Research: Experiments Research question: Will reading a textbook increase the midterm score? X O Independent variable Dependent variable contro|||ng re|ated factors Before-after with control group
EG: (R) O 1 X O 2
CG: (R) O 3 O 4
O2-O1 > O4-O3? Causal Research: Experiments hLLp://www.youLube.com/waLch?v=!8pLp CuLnl Speaking of Experiments Mo|ecu|ar Gastronomy: Molecular gasLronomy ls a modern sLyle of cooklng, whlch ls pracLlced by boLh sclenLlsLs and food professlonals ln many professlonal klLchens and labs and Lakes advanLage of many Lechnlcal lnnovaLlons from Lhe sclenLlflc dlsclpllnes hLLp://www.youLube.com/waLch?v=cC MCmbLq2qs&n8=1
lnformaLlon LhaL already exlsLs somewhere, havlng been collecLed for anoLher purpose Secondary daLa Marketing Information System
lnformaLlon collecLed for Lhe speclflc purpose aL hand rlmary daLa Secondary Data Common sources of secondary daLa: lnLernal company daLabases Commerclal onllne daLabases lnLerneL search englnes Cheaper Lo obLaln Lhan prlmary daLa Can be collecLed fasLer Lhan prlmary daLa r|mary Data ueslgnlng a prlmary daLa collecLlon plan lnvolves maklng declslons abouL: 1he research approach CbservaLlon, survey, or experlmenL ConLacL meLhods Mall, Lelephone, personal, or onllne 1he sampllng plan Sampllng unlL, sample slze, and sampllng procedure Marketing Information System
CaLherlng prlmary daLa by observlng relevanL people, acLlons, and slLuaLlons CbservaLlonal research Marketing Information System
A form of observaLlonal research LhaL lnvolves sendlng Lralned observers Lo waLch and lnLeracL wlLh consumers ln Lhelr naLural envlronmenLs LLhnographlc research !ournals and dlarles Observe customers in their native surroundings to understand unarticulated needs. (Ethnographic) Works best when developers are proposing solutions for an identified potential user population, whose needs are poorly understood. Marketing Information System kraft Canada senL ouL hlgh-level execuLlves Lo observe acLual famlly llfe ln dlverse Canadlan homes. vldeos of Lhelr experlences helped markeLers and oLhers across the company to understand the role Krafts brands play in peoples llves. Observational Research: Ethnographic Research Observational Research: Ethnographic Research 1o beLLer undersLand Lhe challenges faced by elderly shoppers, Lhls k|mber|y- C|ark execuLlve Lrles Lo shop whlle wearlng vlslon-lmpalrmenL glasses and bulky gloves LhaL slmulaLe arLhrlLls Exploratory Research: Observation/Empathic Design http://www.youtube.com/watch?v=bXfFyGRx59o Contact Methods Mail Questionnaires ros Large amounLs of lnformaLlon aL a relaLlvely low cosL per respondenL Lnables more honesL responses Lhan lnLervlews Absence of lnLervlewer blas Cons lnflexlble, low response raLe 8esearcher has llLLle conLrol over sample Contact Methods Telephone Interviewing ros CaLhers lnformaLlon fasL, hlgh response raLe Allows greaLer flexlblllLy Lhan mall surveys SLrong sample conLrol Cons Plgher cosLs Lhan mall quesLlonnalres lnLervlewer may blas resulLs LlmlLed quanLlLy of daLa can be collecLed Contact Methods Personal Interviewing ros Plghly flexlble meLhod LhaL can gaLher a greaL deal of daLa from a respondenL Cood conLrol of sample, speed of daLa collecLlon, and response raLe Cons Plgh cosL per respondenL Sub[ecL Lo lnLervlewer blas llexlblllLy vs. lnLervlewer blas lnvolve lnvlLlng slx Lo Len people Lo gaLher for a few hours wlLh a Lralned lnLervlewer Lo Lalk abouL a producL, servlce, or organlzaLlon Lexus general manager Mark 1emplln hosts An Evening with Lexus dinners wlLh luxury car buyers Lo flgure ouL why they did or didnt become Lexus owners Focus Group http://www.youtube.com/watch?v=POF3m6ZNoiY CuallLauve daLa http://www.youtube.com/watch?v=qC_4uF2bHJA Exploratory Research: Focus Groups http://www.youtube.com/watch?v=j_cUnlQl29Q Contact Methods Online Marketing Research
CollecLlng prlmary daLa onllne Lhrough lnLerneL surveys, onllne focus groups, Web-based experlmenLs, or Lracklng consumers online behavior Cnllne markeLlng research Contact Methods Online Marketing Research ros Speed and low cosLs LowesL cosL per respondenL of all conLacL meLhods Cood flexlblllLy and response raLe due Lo lnLeracLlvlLy Cons ulfflculLy ln conLrolllng sample CuallLy of daLa CuallLy conLrol - Lo lnclude some ller quesuons Lo screen ouL unrellable daLa Contact Methods Online Marketing Research 1hanks Lo survey servlces such as 2oomerang, almosL any buslness, large or small, can creaLe, publlsh, and dlsLrlbuLe lLs own cusLom surveys ln mlnuLes Contact Methods Online Focus Group CaLherlng a small group of people onllne wlLh a Lralned moderaLor Lo chaL abouL a producL, servlce, or organlzaLlon and galn quallLaLlve lnslghLs abouL consumer aLLlLudes and behavlor Channe| M2 puts the human touch back into online research by assembling focus group parLlclpanLs ln people-frlendly virtual interview rooms Implementation of Marketing Research A segmenL of Lhe populaLlon selecLed for markeLlng research Lo represenL Lhe populaLlon as a whole Sample Sampling Plan 8epresenLauveness Sampling Plan Lach populaLlon member has a known chance of belng lncluded ln Lhe sample robablllLy sample Slmple random sample SLraLlfled random sample ClusLer (area) sample Sampllng error cannoL be measured nonprobablllLy sample Convenlence sample !udgmenL sample CuoLa sample Probability Sampling (1) Random Sampling Each element of the population has the same known nonzero probability of inclusion Example: Random selection from voter database Mechanics - Table of random numbers - Computer generated random numbers - Random digit dialing Probability Sampling (3) Stratified Sampling Divide members of the population into homogeneous subgroups before sampling Then simple random sampling or systematic sampling is applied within each subgroup (strata) This method often improves the representativeness of the sample by reducing sampling error Strata 1 Strata 2 Strata 3 Assume knowledge of Lhe populauon's characLerlsucs Probability Sampling (3) Cluster Sampling Divide members of the population into heterogeneous subgroups before sampling Then simple random sampling or systematic sampling is applied to select either one subgroup (cluster) or a simple random sample within the subgroup This method can reduce the average cost per interview Cluster 1 2 3 Sample Non-Probability Sampling (1) Convenience sampling Subjects are selected because of their convenient accessibility and proximity to the researcher
(2) Quota sampling Subjects are chosen out of a specific subgroup. Example) a researcher might ask for a sample of 100 individuals between the ages of 20-30
(3) Snowball sampling Subjects are asked to nominate another person with the same trait as your next subject AL Lhe expense of represenLauveness Cheap and easy When a parucular Lype of people ls rare Non-Probability Sampling: Snowball sampling hLLp://www.youLube.com/waLch?v=1C?mhc8xk8g Research Instruments CuesLlonnalres Closed-end quesLlons lnclude all Lhe posslble answers, and sub[ecLs make cholces among Lhem Cpen-end quesLlons allow respondenLs Lo answer ln Lhelr own words Mechanlcal devlces eople meLers, checkouL scanners, neuromarkeLlng
Research Instruments: Other Mechanical instruments 1o flnd ouL whaL ads work and why, ulsney researchers use an array of devlces Lo Lrack eye movemenL, monlLor hearL raLes, and measure oLher physlcal responses CollecLlng Lhe daLa MosL expenslve phase Sub[ecL Lo error rocesslng Lhe daLa Check for accuracy Code for analysls Analyzlng Lhe daLa 1abulaLe resulLs CompuLe sLaLlsLlcal measures Implementing the Research Plan Interpreting and Reporting Findings lnLerpreL Lhe flndlngs uraw concluslons 8eporL Lo managemenL resenL flndlngs and concluslons LhaL wlll be mosL helpful Lo declslon maklng
Other Marketing Information Considerations Small buslnesses and nonproflL organlzaLlons can beneflL from markeLlng research lnslghLs
lnLernaLlonal markeLlng research ls growlng, buL presenLs unlque challenges Some of Lhe largesL research servlces flrms have large lnLernaLlonal organlzaLlons. ACnlelsen, for example, has offlces ln more Lhan 100 counLrles Public Policy and Ethics in Marketing Research lnLruslons on consumer prlvacy The Marketing Research Associations Your Opinion Counts and Respondent Bill of Rights lnlLlaLlves AdopLlng sLandards LhaL outline researchers responslblllLles Lo respondenLs Mlsuse of research flndlngs uevelopmenL of codes of research eLhlcs and sLandards of conducL Public Policy and Ethics in Marketing Research
Mlsuse of research flndlngs: 1he lederal 1rade Commlsslon recenLly challenged research- based adverLlslng and packaging claims that Kelloggs lrosLed Mlnl-WheaLs were clically shown to improve kids attentiveness by nearly 20%. Public Policy and Ethics in Marketing Research Public Policy and Ethics in Marketing Research !"#$%&' )*#) )*& +,,'"&- #.& &/&+ %,.& *&#")*0 )*#+ +,.%#" *,%&%#'& '$-*&- 12#33&.#)&' %#.4&5+3 6+'$+3- Data Analysis = Reading Customers Mind? Data analysis can assist managers decision but unless you have a correct idea about customer need, data analysis itself will not guarantee the success.
Once you have an idea about customer need (hypotheses), you can test whether your idea is valid or not with marketing research tools.
If youre not considering an important point about customer need Example: Calyx and Corolla Example: Calyx and Corolla Calyx & Corolla was a new entrant into the $8 billion flower industry in the United States in 1991. Through the use of overnight air freight (Fed Ex), information technology, an 800 number, and a catalog, Calyx & Corolla was able to bypass three layers of distribution and provide fresh flowers directly from growers to consumers. As a result of their efficient distribution system, Calyx and Corolla changed the way flowers were distributed to consumers Example: Calyx and Corolla Example: Calyx and Corolla Calyx and Corolla filled a consumer need. Consumers wanted very fresh and long lasting flowers and the company delivered it.
Efficient distribution was the key to flower industry and the company was able to shorten delivery to customers by bypassing the middle distribution layers, and provide much faster deliveries than traditional FTD (Florists' Transworld Delivery) deliveries.
For example, Calyx and Corolla delivered roses from growers to consumers within 1-2 days of purchase order compared with one to two weeks for other FTD retailers and florists. You measured the importance of, - Fast delivery - Fresh and Long-lasting flowers - and many others
And conducted data analyses in order to compare relative importance of the attributes and concluded
The following attributes are the most important. - Fast delivery - Fresh and Long-lasing flowers
However, are they all that consumers might want when they receive flowers? Example: Calyx and Corolla Fast delivery using FedEx can mean You will get this! Not this! Example: Calyx and Corolla Fresh and Long-lasting flowers can mean Perception can be colored by our mind When you open the box You get this all buds Not this Example: Calyx and Corolla This is what customers usually want at the moment of delivery! Example: Calyx and Corolla Or this! Example: Calyx and Corolla At least not this Innovation hLLp://www.youLube.com/waLch?v=LSou4ml[MM&feaLure=plcp&conLexL=C33726d6u CLgs1ousk!vLk1gkP3u71?88-hnzamd