Market Intelligence Lecture

BM2502
Market Intelligence
Nanyang Business School

Prof. SHI Hongyan

Week 1
Brief Introduc@on
PHD in Business Administra@on,

University of Illinois at Urbana-Champaign
May 2011
2
Brief Introduc@on
My contact informa@on:
Oce: S3-B1A-32
Email: hyshi@ntu.edu.sg
Phone: 6790-4718
My Approachability
Consulta@on Hours:
Mondays/Tuesdays 2:30pm-5:30pm
In-class project @me

AYer-class
Extra @me before nal exam
S@ll extra @me needed: appointment via email
Agenda
Syllabus
Group Forma@on
Introduc@on to Marke@ng Research (Chapter
1)
Course Descrip@on
WHY?
WHO?
WHEN?
HOW?
WHAT?
conduc@ng
evalua@ng
Marke@ng Research
Projects
Course Objec@ves
Iden@fy problems
Research ques@ons
Research design
Collect data
Analyze data
Oer informa@on
HOW?
WHAT?
Marke@ng Research
Projects
Required Course Material

Basic Marke+ng Research:
Interna+onal Edi+on, 4/e
Author : Malhotra, Naresh
Publisher: Pearson
ISBN : 9780132570183
Course Assessment
Components
Marks
Individual/Group
In-Press Articles
Individual
In-Class Quizzes
Individual
Participation
10
Individual
Group Project Part I
15
Group
Group Project Part II
15
Group
MCQ Test
20
Individual
Final Exam
30
Individual
Total
100
In-Press Ar@cles (5 marks)

2 out of 3 opportuni@es
Ar@cle published in popular/business press or online
Related to contents covered in previous weeks
One page, double-spaced
Summary of the ar@cle plus demonstra@on on relevance
Hard-copy submission at the beginning of the class
10
In-Class Quizzes (5 marks)

Short quiz on the material from previous class
Good prac@ce for the exams
11
Class Par@cipa@on (10 marks)

Key
insights
Disagreeing
with
Your
Engagement
Asking
ques@ons
Following
up
Sharing your in-
press ar@cle
Group
projects
12
Project Part I (15 marks)
13
14
Project Part II (15 marks)
15
16
Project Parts I & II
More detailed instruc@ons will be provided along the semester.
17
MCQ Test (20) and Final Exam (30)

One MCQ Test:
Closed-book
Week 7 Wednesday
Contents from textbook, lectures, and class discussions
Chapters 1 to 8 (Tenta@ve)

Final Exam
Closed-book
Exam week
Chapters 9 onwards (Tenta@ve)
Details about format will be given later.
18
Course Roadmap
19
Expecta@ons and Policies

1) Communica@on:
Important announcements in class/via email
Check emails regularly
Access NTULearn regularly
2) Alendance:
3) Grade Queries:
4) Technology:

20

5) Academic Integrity
Not knowing what is involved in maintaining academic integrity does not
excuse academic dishonesty.
Plagiarism will be heavily penalized; if proven guilty, students will be
assigned a zero mark for the piece of assessment in ques@on and/or a fail
grade for the subject.

h8p://academicintegrity.ntu.edu.sg/

21

6) Group Work
Grades adjusted based on peer evalua@on
No free-ride
Report problem

22
General Teaching Method

* Specic examples -> abstract concepts -> specic applica@ons
* Blocks of slides, within each block, dierent perspec@ves
* What will I do?

* Class @me alloca@on
* Approachable
* AYer-class summary
Ecient and
Eec@ve
* What will you do?

* Class par@cipa@on (your engagement)
* Group projects
When work can be done in class,
why should we waste extra @me aYer class?
23
Group Forma@on
Project I: 4-5 members in each team

Project II: 2-3 members in each team
24
What is Marke@ng?
25
What is Marke@ng Intelligence?

Business Intelligence
Financial Intelligence
Marke@ng Research
Marke@ng Intelligence
Customer Rela@onship
Marke@ng/Database
Marke@ng
( acquire new customers, and sa@sfy and retain
exis@ng customers in a protable manner)
26
Need for Marke@ng Intelligence

Apple Inc.
27
Chapter 1: Introduc@on to
Marke@ng Research
How Men and Women Fly Dierently
29
How Men and Women Fly Dierently
Why would one care?

hlp://live.wsj.com/video/how-men-and-women-y-dierently/Who would care?
2CE3449C-161F-4440-91DB-DE567DE3686A.html
window seat
aisle
shade pulled down/up
Checks or carries on a bag

She curls up in a ball to avoid contact; he sits
with his elbows and legs splayed out
30
He Carries On, She Likes to Check

by: Sco8 McCartney
Nov 29, 2012 Wall Street Journal
QUESTIONS:
1. (Introductory) From an airline perspec@ve, list and describe at least three dierences
between men and women.

2. (Advanced) Besides the marke@ng research methods that are men@oned in the ar@cle,
describe an addi@onal marke@ng research study that you would recommend for iden@fying
the dis@nc@ve preferences of men vs. women, either in the airline or housework product
categories.

3. (Advanced) Iden@fy an industry or product category other than air travel that could benet
from similar research insights about dierences between men and women. Explain.
31
Deni+on of Marke+ng Research ( Fig 1.2)
A Classica+on of Marke+ng Research (Fig1.3)
Marke+ng Research Process (Fig 1.4)
The Role of Marke+ng Research in Decision Making (Fig 1.5)

Marke+ng Research and Compe++ve Intelligence
Be an MR!
Be a DM!
The Decision to Conduct Marke+ng Research (Fig 1.6)

Marke+ng Research Industry (Fig. 1.7)
Table 1.1

Careers in Marke+ng Research
Selec+ng a Research Supplier
What Would You Do?
Experiential Learning
Opening Vignette
The Role of Marke+ng Research in MIS and DSS (Fig 1.8 & Fig 1.9)
Application to Contemporary Issues (Fig 1.10)

International
Social Media
Ethics (Fig 1.11)

32
Opening example
Details of the example will be used
throughout the learning of dierent concepts
in this chapter
33
How Reebok Fits Shoes
Analysis of
Secondary data
Increase
Of Health club memberships
Focus groups
Step aerobics is a new popular tness

ac@vity
Survey
Health club members spending less @me in

the clubs
34
How Reebok Fits Shoes
35
Who did the marke@ng research?
In-house marke@ng
research specialists
External suppliers
36
What is Marke@ng Research? (LO1)

Marke@ng research is the systema@c and objec@ve

iden@ca@on, (REEBOK: iden@fy ways to increase market share)
collec@on, (REEBOK: secondary data, focus groups, survey)
analysis,
dissemina@on, and
use of informa@on (REEBOK: redesign its product line)

for the purpose of improving decision making related to the

iden@ca@on and
solu@on of problems and opportuni@es in marke@ng.
37
Classica@on of Marke@ng Research (LO2)

Problem Identification Research
Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
are likely to arise in the future. Examples: market
potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.
Problem Solving Research
Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.
38
Figure 1.3 A Classica@on of Marke@ng Research

Marketing
Research
ProblemIdentification
Research
Market Potential Research

Market Share Research
Image Research
Market Characteristics
Research
Forecasting Research
Business Trends Research
ProblemSolving
Research
Segmenta@on Research
Product Research
Pricing Research
Promo@on Research
Distribu@on Research
39
Problem-Solving Research
SEGMENTATION RESEARCH
PRODUCT RESEARCH
Determine the basis of

segmentation
Establish market potential and
responsiveness for various
segments
Select target markets
Create lifestyle profiles:
demography, media, and
product image characteristics
Test concept
Determine optimal product
design
Package tests
Product modification
Brand positioning and
repositioning
Test marketing
Control score tests
40
Problem-Solving Research (Cont.)

PRICING RESEARCH
PROMOTIONAL RESEARCH
Pricing policies
Importance of price in brand
selection
Product line pricing
Price elasticity of demand
Initiating and responding to
price change
Optimal promotional budget

Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising
effectiveness
Claim substantiation
0.00% APR
41
Problem-Solving Research (Cont.)

DISTRIBUTION RESEARCH
Determines
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
42
The Marke@ng Research Process (LO3)
Step 1: Dening the Problem

Step 2: Developing an Approach to the Problem
Step 3: Formula+ng a Research Design
Step 4: Doing Field Work or Collec+ng Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presen+ng the Report
43
The Marke@ng Research Process (Figure 1.4 )
Step 1: Dening the Problem (Chapter 2)

Step 2: Developing an Approach to the Problem (Chapter 2)
Step 3: Formula+ng a Research Design (Chapters 3 to 13)
Step 4: Doing Field Work or Collec+ng Data (Chapter 14)
Step 5: Preparing and Analyzing Data (Chapters 15 to 18)
Step 6: Preparing and Presen+ng the Report (Chapter 19)
44
Deni@on and Process

Iden@ca@on of informa@on
needed
Collec@on of data

Analysis of data
Dissemina@on of results
Use of informa@on
Step 1: dene the

problem
Step 2: develop an
approach to the problem
Step 3: formulate a
research design
Step 4: eldwork or
collect data
Step 5: prepare and
analyze data
Step 6: Prepare and
present the report 45
The Role of Marke@ng Research in Marke@ng Decision Making

Uncontrollable
Environmental
Factors
Economy
Technology
Competition
Laws and
Regulation
Social and
Cultural Factors
Political Factors
Assessing
Information
Needs
Customer Groups
Consumers
Employees
Channel Members
Suppliers
Marketing
Research
Marketing
Decision Making
Controllable
Marketing
Variables
Product
Pricing
Promotion
Distribution
Providing
Information
Marke+ng Managers
Market Segmenta@on Marke@ng Programs
Target Market Selec@on Performance and Control

46
Timothy Prestero: Design for people, not awards
hlp://www.youtube.com/watch?v=WpldYJ3sSIo
Figure 1.6 The Decision to Conduct Marke@ng Research

Does the management have a
positive attitude towards
research?
No
Yes
Are enough resources available to

collect additional information and
implement the findings?
No
Yes
Is additional information needed

to make the decision?
No
Yes
Is the decision of strategic or tactical

importance?
Do Not
Conduct
Marketing
Research
No
Yes
Does the value of additional information

exceed the cost of research?
No
Yes
Conduct Marketing Research
48
Marke@ng Research Suppliers & Services (LO4)

Internal suppliers
External suppliers
Full-service suppliers
Syndicated services
Standardized services
Customized services
Internet services
Limited-service suppliers
Field services
Focus groups and Qualita@ve services
Technical and Analy@cal services
Other services
49
Figure 1.7
Marke@ng Research Industry: Suppliers and Services
Research
Suppliers
External
Internal
Full Service
Limited Service
Syndicated
Services
Customized
Services
Field Services
Internet/
Social Media
Services
Qualitative Services
Other Services
Analytical Services
50
Table 1.1 TOP 10 GLOBAL RESEARCH ORGANIZATIONS

Rank
2009 2008
Organization
Headquarters
Parent
country
Web site
(www.)
No. of
Countries
with
Subsidiaries/
Branch
Offices
Global
Revenue
(USD
millions)
Percent of
global
revenue
from
outside
home
country
(%)
The Nielsen Co.
New York
U.S.
Nielsen.com
100
4,628.0
50.3
Kantar
London & Fairfield,

Conn.
U.K.
Kantar.com
80
2,823.2
75.0
IMS Health Inc.
Norwalk, Conn.
U.S.
Imshealth.com
75
2,189.7
63.4
GfK SE
Nuremberg
Germany
Gfk.com
59
1,622.8
74.1
Ipsos Group SA
Paris
France
Ipsos.com
64
1,315.0
89.8
Synovate
London
U.K.
Synovate.com
62
816.4
85.0
SymphonyIRI
Chicago
U.S.
Symphonyiri.com
706.3
37.5
Westat Inc,
Rockville, Md.
U.S.
Westat.com
502.4
Arbitron Inc.
Columbia, Md.
U.S.
Arbitron.com
385.0
1.5
10
10
INTAGE Inc.
Tokyo
Japan
Intage.co.jp
368.6
1.7
Chapter 1 - 51
Criteria for Selec@ng a Research Supplier
What is the reputation of the supplier?

Do they complete projects on schedule?
Are they known for maintaining ethical standards?
Are they flexible?
Are their research projects of high quality?
What kind and how much experience does the supplier have? Has
the firm had experience with projects similar to this one?
Do the supplier's personnel have both technical and non-technical
expertise?
Can they communicate well with the client?
Competitive bids should be obtained and compared on the basis of
quality as well as price.
52
Careers in Marke@ng research

www.marketresearchcareers.com
Job details/responsibili@es
Job-oriented
What should you learn from this course?
Importance of analy@cal skills
53
Careers in Marke@ng Research

Career opportunities are available with marketing research firms
(e.g., Nielsen, Burke, Inc., M/A/R/C)
Careers in business and non-business firms and agencies with inhouse marketing research departments (e.g., Procter & Gamble,
Coca-Cola)
Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J.
Walter Thompson, Young & Rubicam)
Positions: vice president of marketing research, research director,
assistant director of research, project manager, field work director,
statistician/data processing specialist, senior analyst, analyst, junior
analyst, and operational supervisor
54
Selected Marke@ng Research Career Descrip@ons
Vice President of Marke+ng Research

Part of companys top management team
Directs companys en@re market research opera@on
Sets the goals & objec@ves of the marke@ng research department
Research Director
Also part of senior management
Heads the development and execu@on of all research projects
Assistant Director of Research
Administra@ve assistant to director
Supervises research sta members
Senior Project Manager
Responsible for design, implementa@on, & research projects
55
Selected Marke@ng Research Career Descrip@ons (Cont.)
Senior Analyst
Par@cipates in the development of projects

Carries out execu@on of assigned projects
Coordinates the eorts of analyst, junior analyst, & other personnel in the
development of research design and data collec@on
Prepares nal report
Analyst
Sta+s+cian/Data Processing
Handles details in execu@on of project

Designs & pretests ques@onnaires
Conducts preliminary analysis of data
Serves as expert on theory and applica@on on

sta@s@cal techniques
Oversees experimental design, data processing, and
analysis
Junior Analyst
Secondary data analysis
Edits and codes ques@onnaires
Conducts preliminary analysis of data
Fieldwork Director
Handles selec@on, training, supervision, and
evalua@on of interviewers and eld workers
56
Prepara@on for a Career in Marke@ng Research
Take all the marke@ng courses you can.

Take courses in sta@s@cs and quan@ta@ve methods.
Acquire Internet and computer skills. Knowledge of
programming languages is an added asset.
Take courses in psychology and consumer behavior.
Acquire eec@ve wrilen and verbal communica@on
skills.
Think crea@vely. Crea@vity and common sense
command a premium in marke@ng research.
57

Be an MR!
Be a DM!

Table 1.1

What Would You Do?
Opening Vignette

International
Social Media
Ethics (Fig 1.11)

58

Be an MR!
Be a DM!

Table 1.1

What Would You Do?
Opening Vignette

International
Social Media
Ethics (Fig 1.11)

60
Interna@onal Marke@ng Research

International marketing research should be sensitive to
differences in customs, communication, and culture.
The environment in the countries or international markets
that are being researched influences the way the six
steps of the marketing research process should be
performed.
These environmental factors include marketing,
government, legal, economic, structural, informational,
technological, and sociocultural factors.
61

Be an MR!
Be a DM!

Table 1.1

What Would You Do?
Opening Vignette

International
Social Media
Ethics (Fig 1.11)

62
Marke@ng research and Social Media

Starbucks: the star of social media
My Starbucks Idea (MSI)
(mystarbucksidea.force.com)
Get ideas and feedback (request for free wireless)
On average, one in three sugges@ons are
implemented
Facebook page, Twiler, YouTube, Flickr
63
Marke@ng Research & Social Media

All social media share certain common characteristics
that make them very relevant as a domain for
conducting marketing research.
Social communities open up new avenues for

understanding, explaining, influencing and
predicting the behaviors of consumers in the
marketplace.
64

(Cont.)
Limita+ons of Social Media
While the standard for objec@vity is high for journalists,
expecta@ons about objec+vity among bloggers and other
social media users are lower.
Social media users may not be representa+ve of the target
popula@on in many marke@ng research applica@ons.
Social media as a source of samples suers from at least two
biases: from self-selec+on and from advocacy.
Yet, as long as these limita@ons are understood, insights
from social media analysis can uncover useful informa+on
that can inform marke@ng decisions.
65

(Cont.)
Social Media Summary

We advocate the use of social media as an addi+onal domain in
which to conduct marke@ng research to supplement and
complement, but not to replace, the tradi@onal ways in which
research is conducted.

66

Be an MR!
Be a DM!

Table 1.1

What Would You Do?
Opening Vignette

International
Social Media
Ethics (Fig 1.11)

67
Ethics in Marke@ng Research
68
Figure 1.11 Stakeholders in Marke@ng Research:

An Ethical Perspec@ve
Client
Marke+ng
Researcher
Public
Respondents
69
Overview of Ethical Issues in Marke@ng Research
I. Problem deni@on
Using surveys as a guise for selling or fundraising
Personal agendas of the researcher or client
Conduc@ng unnecessary research

II. Developing an approach
Using ndings and models developed for specic clients or
projects for other projects
Solici@ng proposals to gain research exper@se without pay
Inaccurate repor@ng
70
Overview of Ethical Issues in Marke@ng Research (Cont.)
III. Research Design

Formula@ng a research design more suited to the researcher's
rather than the client's needs
Using secondary data that are not applicable or have been
gathered through ques@onable means
Disguising the purpose of the research
Solici@ng unfair concessions from the researcher
Not maintaining anonymity of respondents
Disrespec@ng privacy of respondents
Misleading respondents
Disguising observa@on of respondents
71
III. Research Design (Cont.)

Embarrassing or puxng stress on respondents
Using measurement scales of ques@onable reliability & validity
Designing overly long ques@onnaires, overly sensi@ve
ques@ons, piggybacking
Using inappropriate sampling procedures and sample size
72
IV. Field Work

Increasing discomfort level of respondents
Following unacceptable eld work procedures
V. Data Prepara@on and Analysis
Iden@fying and discarding unsa@sfactory respondents
Using sta@s@cal techniques when the underlying assump@ons
are violated
Interpre@ng the results and making incorrect conclusions and
recommenda@ons
73
VI. Report Prepara@on and Presenta@on

Incomplete repor@ng
Biased repor@ng
Inaccurate repor@ng
74

Be an MR!
Be a DM!

Table 1.1

What Would You Do?
Opening Vignette

International
Social Media
Ethics (Fig 1.11)

75
Main Managerial Take-aways

Classica@on of marke@ng research:
Marke@ng research with Social Media:
Marketing research alone does not
guarantee success, the intelligent use of
marketing research is the key to business
achievement.
76
Next class
First opportunity to submit in-press
ar@cle
Class @me
77

Market Intelligence Lecture

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BM2502

Nanyang Business School

PHD in Business Administra@on,

In-class project @me

Required Course Material

Group Project Part I

Group Project Part II

In-Press Ar@cles (5 marks)

In-Class Quizzes (5 marks)

Class Par@cipa@on (10 marks)

Project Part I (15 marks)

Project Part II (15 marks)

Project Parts I & II

More detailed instruc@ons will be provided along the semester.

MCQ Test (20) and Final Exam (30)

Expecta@ons and Policies

Expecta@ons and Policies

Expecta@ons and Policies

General Teaching Method

* What will I do?

* What will you do?

Project I: 4-5 members in each team

What is Marke@ng Intelligence?

Need for Marke@ng Intelligence

How Men and Women Fly Dierently

How Men and Women Fly Dierently

Why would one care?

shade pulled down/up

Checks or carries on a bag

He Carries On, She Likes to Check

Deni+on of Marke+ng Research ( Fig 1.2)

A Classica+on of Marke+ng Research (Fig1.3)

Marke+ng Research Process (Fig 1.4)

The Role of Marke+ng Research in Decision Making (Fig 1.5)

The Decision to Conduct Marke+ng Research (Fig 1.6)

What Would You Do?

Application to Contemporary Issues (Fig 1.10)

Ethics (Fig 1.11)

How Reebok Fits Shoes

Step aerobics is a new popular tness

Health club members spending less @me in

How Reebok Fits Shoes

Who did the marke@ng research?

What is Marke@ng Research? (LO1)

Classica@on of Marke@ng Research (LO2)

Figure 1.3 A Classica@on of Marke@ng Research

Market Potential Research

Determine the basis of

Problem-Solving Research (Cont.)

Optimal promotional budget

Problem-Solving Research (Cont.)

The Marke@ng Research Process (LO3)

Step 1: Dening the Problem

The Marke@ng Research Process (Figure 1.4 )

Step 1: Dening the Problem (Chapter 2)

Deni@on and Process

Step 1: dene the

The Role of Marke@ng Research in Marke@ng Decision Making

Market Segmenta@on Marke@ng Programs

Target Market Selec@on Performance and Control

Timothy Prestero: Design for people, not awards

Figure 1.6 The Decision to Conduct Marke@ng Research

Are enough resources available to