LISTENING TO CUSTOMERS

(Introduction)
 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 Marketing
Managers MARKETING INFORMATION SYSTEM Environment
Developing Information

Assessing Target
Internal Marketing
Information Markets
Records Intelligence
Needs
Analysis
Marketing
Channels
Planning
Marketing
Decision Marketing
Distributing Support Competitors
Implementation Research
Information System
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

Formal Search or Structured Effort

Marketing Research (Focused Studies)

Defining the Developing

Collecting Analyzing Presenting
Problem and the
the the the
Research Research
Information Information Findings
Objectives Plan

Marketing Decision Support System (Tools for Data Analysis)

Marketing Decision Support System

Statistical Bank Model Bank

Regression Analysis Product Design Model

Correlation Analysis Pricing Model Marketing
Marketing Factor Analysis Media-Mix Model Evaluations
Data Discriminant Analysis Advtg. Budget Model and
Cluster Analysis Decisions
Conjoint Analysis
Why Listen to Customers?

Marketing is…

• Assessing the Need

• Choosing the Value
• Creating and Designing the Value
• Communicating the Value
• Delivering the Value
• Sustaining the Value
Why Listen to Customers?
Examples of Listening to Customers
Examples of Listening to Customers
LISTENING TO CUSTOMERS
(Marketing Research)
Listening to Customers

Defining the Developing the Collecting Analyzing Presenting the

Problem and Plan/ the Data/ the/Data Findings/
Objectives Methodology Information Information Recommendations

Desk Research- Field Survey-

Secondary Source Primary Source
Take
Decision
Listening to Customers

Defining the
Problem and What to research?
Objectives Why do the research?

Study co. product advertizing effectiveness

Evaluate competitor advertising
Study Competitor product
Introduce or test New product
Pricing studies
Packaging studies
Product acceptance and potential study
Distribution channel studies
Impact of bonus offers/coupons/sampling
Listening to Customers

Developing the
Plan/ How to gather the needed information?
Methodology

Data Source Sampling Plan

Whom - Unit
Primary data How many - Size
Secondary Data How to choose the sample – Procedure
Research Approach Probability Sampling: Simple random, Stratified random
Observation and Cluster random
Exploratory
Focus group Non- Probability Sampling: Convenience, Judgment
Survey Descriptive and Quota
Experiment Cause-Effect

Research Instruments Contact Methods

Questionnaire Mail
Qualitative Measures Personally
(Word association, Personification,
Laddering etc.)
Telephone
Internet/Online
Listening to Customers

Collecting
the Data/
Information

Avoid Errors
Costly
Time consuming
Implementation issues
Manipulation
Listening to Customers

Analyzing
the/Data
Information

Tabulate
Interpret
Test
Conclude
Listening to Customers

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
Listening to Customers

Take
Decision

Use the findings

Discard the findings
Refine the research
Listening to Customers
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
Listening to Customers
Ethnographic Research (Qualitative Study)

A qualitative research where researchers completely immerse themselves in the

lives (work place and home), culture, or situation they are studying to directly
observe people using products rather than relying on explanations of how they use
products... Looking for contradictions between “what people say they do” and “what
they actually do”

In other words, it is about identifying hidden needs – and this is where the real
breakthroughs in products or services can occur.

Witness pain points and the opportunities they provide.

eg. - Spin washing and Tumble washing cleaners

- Detergent powder for top loading and front loading washing machines
- 3M’s flagship product: Masking Tape (Paint workshops)
- Fitbits / Icon Health and Fitness Treadmill
- GoPro video cameras
- Selfie sticks
- Frost free refrigerators
- Front camera / Dual Sim card phones /
Listening to Customers
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.
Listening to Customers
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?”
Listening to Customers
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
Listening to Customers
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…. Dichotomous, MCQ, Likert Scale, Semantic Differential, Importance Scale,
Rating Scale
Close- end questions… Unstructured, Word Association, Sentence Completion, Story Completion
Listening to Customers
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. Strongly Agree
2. Somewhat agree
3. Neither agree nor disagree
4. Somewhat disagree
5. Strongly disagree

______ It’s fun to shop on-line.

______ I am afraid to give my credit card number on-line

(also; for satisfaction and importance)

Listening to Customers
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

Listening to Customers
Quantitative Research

3. Behaviour Intention Scale:

How likely are you to continue using Bank X’s online banking for the next
6 months? ______

1. Definitely will continue

2. Probably will continue
3. Might or might not continue
4. Probably will not continue
5. Definitely will not continue
Listening to Customers
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
Listening to Customers
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
Listening to Customers
Quantitative Research

Sampling
Probability Sample
Simple Random Every member of the population has a known and equal
Sample chance of being selected

Systematic Random A member of the population is selected at random and then

Sample every nth person is selected

Stratified Random The population is divided into mutually exclusive groups (such
Sample 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