Essentials of Marketing Research

Kumar, Aaker, Day Instructors Presentation Slides

Essentials of Marketing Research Kumar, Aaker, Day

Chapter Six
Standardized Sources of Marketing Data
Essentials of Marketing Research Kumar, Aaker, Day

Standardized Sources
Syndicated sources of marketing data:
Store

audits
withdrawal services panels

warehouse consumer scanner

based systems and single source

data
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Motivation for using standardized data

Pipeline

Effect in distribution channels Unknown competitor actions Store behavior unknown (i.e. promotion execution)

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Example for packaged goods sales: margarine brand

4500 4000 3500 3000 Margarine Sales in units for 28 w eeks Actual Sales

Sales

2500 2000 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

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Motivation for using standardized data

450 400 350 300 250 200 150 100 50 0
Factory Sales Peak

Retail Sales Peak

Production Factory Sales Retail Sales

Unit sales

Week Week Week Week Week Week 1 2 Essentials4 3 5 6 of

Marketing Research

Growth of Standardized Sources

Factors
Multitude

of information users having common information needs

cost of satisfying individual user's need is prohibitive increasing use of scanner systems at the check out points
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When

The

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
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Retail Store Audits

Beginning Inventory + Deliveries - Ending Inventory = Sales for Period

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Nielsen Retail Index

Biggest Their

research company in the world

products

auditing services cover four groups

Grocery Drugs Mass

merchandisers beverages

Alcoholic

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Audits and Surveys: National Market Audit

Bimonthly

audit focussed on products irrespective of the outlet carrying the product

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Consumer Purchase Panels

Audits and scanner data do not cover:
Who

buys (consumer demographics) of purchases behavior between brands and

Frequency Switching

stores
Level

of deal sensitivity
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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 ACNielsens Consumer Panel: Homescan Consists of 40,000 demographically balanced U.S. households that use hand-held scanners to record every bar-coded item purchased.

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Consumer Purchase Panels

To 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

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Advantages of Panels
Can Provide Information On
Aggregate Brand Shifts

Sales Activity

Shares in Buyer Characteristics

Shifts

in Retail Outlets

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Limitations of Consumer Panels

Possibility of
Selection Mortality

Bias
Effect

e.g. move, illness, refusal

Testing

Effects

first month records are discarded

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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

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Single-source Systems
Combine

scanner data, panels, and TVmeasurement

set up in self-contained communities with their own newspapers and cable TV and are roughly representative of the demographics of the country test panel of community households is recruited and monitored
Essentials of BehaviorScan by IRI Marketing Research

Usually

Example:

Single-source Systems
Experiment Control

like setting

of

advertising exposure in TV, newspapers, couponing buying behavior

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Advantages of Single Source Systems

Availability Immediate Ability

of exclusive pre-test records

availability of test results

to compare households prior to and after exposure to the message to control settings

Ability

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Media Related Standardized Sources

Nielsen
A

Media Research (previously Nielsen Television Index)

system for estimating national TV audiences

Arbitron
Both

Diary Panel
regional and national radio and TV panels

Starch

Scores
media

Print

Multi

Media Essentials of Services and Web

Marketing Research

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 than 100 advertising agencies and 45 advertisers.
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Essentials of Marketing Research

Source: New York Times 1997

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 Essentials of Standard demographic breakdowns

Marketing Research

Expert Systems Based on Singlesource 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
of Expert Systems Are
Space Management Software Story Stimulator
Apollo Cover Sales

Examples

Partner
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Promotion Spotlight

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

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

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Applications of Standardized Sources of Data

Measuring promotion effectiveness: scanner data, panels Estimation and evaluation of models scanner data, starch scores, panels, internal records

Essentials of Marketing Research