LISTENING TO CUSTOMERS

(Overview)

Overview of the Marketing System

Product
Comp.
Sales

Company
Mktg. Strategy
Price
Macro
Environment

Buyer
Behavior
Competitor
Mktg. Startegy

Place

Industry
Sales

Comp.
Profits

Market
Share
Comp.
Costs

Promotion

BUILDING THE
MARKETING INFORMATION SYSTEM

Three Reasons

From Local to National to Global Marketing

From Buyer Needs to Buyer Wants
From Price to Non-price Competition

MIS Definition

Marketing Information System (MIS) consists of People,

Equipment and Procedures to Gather, Sort, Analyze, Evaluate and
Distribute Needed, Timely and Accurate Information to Marketing
Decision Makers

MIS System
Marketing
Managers

M AR K E T I N G

I N F O R M AT I O N

SYSTEM

Marketing
Environment

Developing Information

Analysis

Assessing
Information
Needs

Marketing
Intelligence

Target
Markets
Marketing
Channels

Planning
Implementation

Internal
Records

Distributing
Information

Marketing
Decision
Support
System

Marketing
Research

Competitors
Public

Control

Macro
Environment
Marketing Decisions and Communications

Internal Records (Results Data)

Order-Billing-Despatch System
Sales Force Automation System

Marketing Intelligence (Happenings Data)

General Exposure or Undirected Viewing
Directed Exposure or Conditioned Viewing
Informal Search or Unstructured Effort
Formal Search or Structured Effort

Marketing Decision Support System (Tools for Data Analysis)

Marketing Decision Support System

Marketing
Data

Statistical Bank

Model Bank

Regression Analysis
Correlation Analysis
Factor Analysis
Discriminant Analysis
Cluster Analysis
Conjoint Analysis

Product Design Model

Pricing Model
Media-Mix Model
Advtg. Budget Model

Marketing
Evaluations
and
Decisions

MARKETING RESEARCH PROCESS

Marketing Research
Defining the
Problem and
Research
Objectives

Developing the
Research
Plan/
Research
Methodology

Collecting
the Data/
Information

Analyzing
the/Data
Information

Presenting the
Findings/
Recommendations

Desk Research- Field SurveySecondary SourcePrimary Source

Take
Decision

Marketing Research
Defining the
Problem and
Research
Objectives

What to research?
Why do the research?

Study co. product advertizing effectiveness

Evaluate competitor advertizing
Pricing studies
Packaging studies
Product acceptance and potential study
Distribution channel studies
Impact of bonus offers/coupons/sampling

Marketing Research
Developing the
Research
Plan/
Research
Methodology

How to gather the needed information?

Data Source
Primary data
Secondary Data

Sampling Plan
Whom - Unit
How many - Size
How to choose the sample Procedure

Research Approach
Observation
Exploratory
Focus group
Survey
Descriptive
Experiment
Cause-Effect

Probability Sampling: Simple random, Stratified random

and Cluster random
Non- Probability Sampling: Convenience, Judgment
and Quota

Research Instruments
Questionnaire
Qualitative Measures

Contact Methods
Mail
Personally
Telephone
Internet/Online

(Word association, Personification,

Laddering etc.)

Marketing Research
Secondary data
Desk Research: Secondary Source/Data

Company records
Data released by the Government
Independent research organisation
Business Journals
Published data
Libraries/Internet
Professional & Trade Associations

Example;
Environment details
Market trends
Market behaviour
Consumer panel Reports

Marketing Research
Primary data
Field Survey: Primary Source/Data

Customers / Users
Consultants / Experts / Specialists
Retailers
Wholesalers

Qualitative Research
Quantitative Research

Marketing Research
Collecting
the Data/
Information

Avoid Errors
Costly
Time consuming
Implementation issues
Manipulation

Marketing Research
Analyzing
the/Data
Information

Tabulate
Interpret
Test
Conclude

Marketing Research
Presenting the
Findings/
Recommendations

Findings should be relevant and help to take decisions

Should provide insights in to the problem or opportunity
Make recommendations to solve the problem or encash the opportunity

Marketing Research

Take
Decision

Use the findings

Discard the findings
Refine the research

Marketing Research
Observation Research
Is the systematic process of observing and recording the behavioral patterns of
people without questioning or communicating with them.
It is the gathering of primary data by observing relevant people, their actions in a
given situation. Observational research can be used to obtain information that
people are unwilling or unable to provide.
Covert, Overt

eg. - Observing shoppers in a supermarket

- How is a particular category/product chosen in a retail setting
- Airline researchers hang around airports, Airline offices, Tour & Travel agents
and can also fly to hear customer reactions
- Determining socio-economic status of people visiting a store
- Determining time spent on looking at a product or packaging

Marketing Research
Experimental Research
An experimental design consists of two groups of subjects: an experimental
group and a control group. The experimental group undergoes the treatment.
Researchers then measure the differences between the two groups on a
particular outcome.
eg. To study the impact of Advertising on consumer buying between two groups
of shoppers. One group would be exposed to the Advertising.
The researchers can measure consumer buying by the two groups to see if the
two differ significantly, analyzing the results to determine the extent to which the
advertising caused consumers in the experimental group to boost their buying.
The groups have to be random, matched on all parameters and characteristics
eg. Airline want to introduce in-flight phone service and want to study the
relationship between number of calls made and price charged.
eg. Cadbury want to study placement position of their products in supermarket
and its impact on product sales.

Marketing Research
Experimental Research
Designing an Experimental Research
(1) pre-post test design, (2) a treatment group and a control
group, and (3) random assignment of study participants.

Marketing Research
Qualitative Research
Depth Interviews: one-on-one
Focus Group: 8-10 participants
Preparing a Discussion Guide is essential for the above.

Examples of different probing options for DI & FG;

Request for elaboration: Tell me more about that, Give me an example
Request for definition: What do you mean by___?, What does the term____ mean for you?
Request for word association: What other word(s) do you link with ____?
Request for clarification: How does that differ from ____?
Request for comparison: How is ____ similar to _____?, Which cost more X or Y?
Request for classification: Where does ____ fit?

Marketing Research
Qualitative Research
Projective Techniques (disguised test to uncover suppression of thoughts)
To study the unconscious associations of consumers
Examples;
Word association
Sentence completion
Photo/Visual for story telling:
Metaphor Analysis (Zaltman Metaphor Elicitation Technique-ZMET)
Examples;
Describe the product advertisement with pictures you feel will convey
your thoughts/feelings/emotions

Marketing Research
Quantitative Research
Types of Survey
Observational
Experimental

Survey Research: Personal interviews, Telephone interviews, Mail surveys

Data collecting instruments

Questionnaires: must be objective, interesting, unambiguous, easy to

complete, simple worded (must capture purpose of study and demographics)

Avoid leading questions, Avoid two questions in one, Questions must be

clear, Use common words to frame questions, Respondents must be able to
answer the questions

Sequencing of questions
Open-end questions. and
Close- end questions

Marketing Research
Quantitative Research
Attitude Scales
1. Likert Scale:
Next to each of the following statements, please record the number that best
describes the extent to which you agree or disagree with each statement.
1.
2.
3.
4.
5.

Strongly Agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Strongly disagree

______ Its fun to shop on-line.

______ I am afraid to give my credit card number on-line
(also; for satisfaction and importance)

Marketing Research
Quantitative Research
2. Semantic Differential Scale :
For each of the following features, please check one alternative that best
expresses your impression of how that feature applies to on-line banking.
Competitive rates _____________________ Non-competitive rates
Reliable _____________________ Unreliable

Marketing Research
Quantitative Research
3. Behaviour Intention Scale:
How likely are you to continue using Bank Xs online banking for the next
6 months? ______
1.
2.
3.
4.
5.

Definitely will continue

Probably will continue
Might or might not continue
Probably will not continue
Definitely will not continue

Marketing Research
Quantitative Research
4. Rank Order Scale:
We would like to find out about your preferences regarding banking methods.
Please rank the following banking methods by placing 1 in front of the method
that you prefer the most. A 2 next to your second preference, and continuing
until you have ranked all of the methods.
_____
_____
_____
_____
_____

Inside the bank

Online banking
ATM
Banking by telephone
Banking by mail

Marketing Research
Quantitative Research
Sampling
Sample design addresses three questions;
1. Whom to be surveyed? (Sampling Unit)
2. How many to survey? (Sampling Size)
3. How should the respondents be chosen (Sampling Procedure)
Deciding on Sample Unit: Define the target population that would be sampled
Deciding on Sample Size: Depends on the budget and confidence in research findings
Deciding on the Sample Procedure;
If you want to project the findings to the total population:- probability sampling should
be selected
If you want the findings to be representative of the total population:- non-probability
sampling should be chosen

Marketing Research
Quantitative Research
Sampling

Probability Sample
Simple Random
Sample

Every member of the population has a known and equal

chance of being selected

Systematic Random
Sample

A member of the population is selected at random and then

every nth person is selected

Stratified Random
Sample

The population is divided into mutually exclusive groups (such

as age groups), and random samples are drawn from each
group

Cluster (area)
Sample

The population is divided into mutually exclusive groups (such

as blocks), and draws a sample of the groups

Non-Probability Sample
Convenience Sample Selects the most accessible population members to interview
Judgment Sample

Selects population members who are experts or good sources

for accurate information

Quota Sample

Selects a prescribed number of people in each of several

categories

Merci