Marketing managers do not need more information, they need better information.
Internal Databases: Electronic collections of information obtained from data sources within the company.
Information in a database can come from many sources. Operations tracks shipments and inventory, sales tracks competitor activities, marketing has customer demographics and buying behavior, customer service contains information on customer satisfaction.
Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.
Used to improve strategic decision making
Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Used to help understand customer purchase behavior
CRM analysts develop data warehouses (centralized database) and use data mining (algorithms designed to detect patterns in the data) techniques to find information out about customers.
Problem: Losing market share to Pepsi. We must research the taste preferences of consumers. We should collect taste preference information through blind taste tests. Conduct blind taste tests in various settings aimed at various consumers Data finds that consumers prefer the sweeter taste of Pepsi. Based on the findings, Coca-Cola decides to produce a sweeter New Coke, and remove the old Coke from its product line.
Research:
ings hings (e.g., market potential for a product, cs, and attitudes).
arch: earch:
heses about cause-and-effect s. Example: Would a 10% decrease in rivate college increase enrollment fset ffset the decrease in tuition?
Includes:
Determining the exact information needed Developing a plan for gathering it efficiently Presenting the written plan to management
Outlines:
Sources of existing data Specific research approaches Contact methods Sampling plans Instruments for data collection
Available more quickly and at a lower cost than primary data. Must be relevant, accurate, current, and impartial.
See page 116 for more external information sources.
Observational Research
The gathering of primary data by observing relevant people, actions, and situations. Ethnographic research:
Observation in natural environment
Mechanical observation:
People meters records tv shows watched Checkout scanners record shoppers purchases Galvanometer detects sweating Eye Cameras study respondents eye movements
Survey Research
Most widely used method for primary data collection. Approach best suited for gathering descriptive information. Can gather information about peoples knowledge, attitudes, preferences, or buying behavior.
Personal can mean individual interviewing or focus groups (6-10 people who talk about product)
Qty of data that can Good be collected Excellent Control of interviewer effects Control of sample Fair Speed of data collection Response Rate Cost
Poor
Fair
Poor
Fair
Excellent Excellent
Fair Good
Poor Excellent
Fair Good
Good Fair
Good Poor
Good Excellent
Types of Samples
Probability Sample Simple Random Sample Stratified Random Sample Cluster (area) Sample Nonprobability Sample Convenience Sample Judgment Sample Quota Sample
Researcher selects the easiest population members from which to obtain information. Researcher uses his or her judgment to select population members who are good prospects. Researcher finds a prescribed number of people in each of several categories. Every member of the population has a known and equal chance of selection. Population is divided into groups (ex age groups) and random samples are drawn from each group. Population is divided into groups based on location and samples are drawn from the groups.
Wording? Ordering?
Likert Scale
One of the most popular closed-ended formats, widely used in survey research, particularly in measuring attitudes, beliefs and opinions. The basic idea here is to: write the item as a declarative sentence and; then provide a number of response options, or choices, that would indicate varying degrees of agreement with, or endorsement of, that sentence. Example: 1 Strongly Disagree Three meals a day is essential to a healthy lifestyle. 4 5 6 Mildly Moderately Strongly Agree Agree Agree
Please note, in the above example, that the "item" to be evaluated consists of a declarative sentence. Thus, it already states a 'position' and 'direction' of attitude. The respondent is then asked to circle the direction and extent (intensity) of his/her agreement (or disagreement) with that "position" sentence.
Simple Tabulation
Answer Choice Question 1 Question 2 1 5 19 2 8 7 3 10 4 4 11 2 5 14 21 6 16 11 Total Respondants 64 64 PERCENTAGE OF TOTAL 8% 13% 16% 17% 22% 25% 30% 11% 6% 3% 33% 17%
Question 1
Question 1 Question 2
1 2 3 4 5 6
1 = Strongly Disagree, 2 = Moderately Disagree, 3 = Mildly Disagree, 4 = Mildly Agree, 5 = Moderately Agree, 6 = Strongly Agree
Cross Tabulation
QUESTION 1 Answer Choice 1 2 3 4 5 6 Men 4 7 8 6 7 1 PERCENTAGE OF TOTAL 12% 21% 24% 18% 21% 3% Women 1 1 2 5 7 15 PERCENTAGE OF TOTAL 3% 3% 6% 16% 23% 48% Total Respondants 33 31
Question 1 - MEN
Question 1 - WOMEN
1 2 3 4 5 6
1 2 3 4 5 6
1 = Strongly Disagree, 2 = Moderately Disagree, 3 = Mildly Disagree, 4 = Mildly Agree, 5 = Moderately Agree, 6 = Strongly Agree
Experimental Research
Tries to explain cause-and-effect relationships. Involves:
selecting matched groups of subjects, giving different treatments, controlling unrelated factors, and checking differences in group responses.
Example: before adding a new product, to its menu, Taco Bell might use experiments to test the effect of sales on two different prices it might charge.
Taco Supreme Meal Taco Supreme Meal Sales at Old Price Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 200 179 154 320 228 207 189 289 182 221 198 178 245 189 167 183 200 196 118 149
$4.98 $5.48 Sales at New Price 190 170 146 376 217 197 180 275 173 210 188 169 233 180 159 174 221 186 112 142
Regression Output
SUMMARY OUTPUT Regression Statistics Multiple R 0.967420566 R Square 0.935902551 Adjusted R Square 0.932341582 Standard Error 14.39127822 Observations 20 ANOVA df Regression Residual Total 1 18 19 SS 54432.857 3727.959999 58160.817 MS F Significance F 54432.857 262.8224086 3.4894E-12 207.1088888
Coefficients Standard Error t Stat P-value -38.22687925 14.72791383 -2.595539307 0.018269864 1.167319034 0.07200429 16.21179844 3.4894E-12
Lower 95% Upper 95% Lower 95.0% Upper 95.0% -69.16910196 -7.28465654 -69.16910196 -7.28465654 1.016043518 1.318594551 1.016043518 1.318594551
Interpretation: we are 98% confident (1-p value) that there is a relationship between old sales (x) and new sales (y) data. To estimate new sales, we would formulate the following equation: -38.23 + (1.17 * Sales at the Old Price) If sales at the old price averaged 200, we would estimate new sales by: -38.23 + (1.17 * 200) = 195.24
Video Case
Burke, Inc.
(9 minutes)
Applying Knowledge - Improving Decisions Burke is one of the premier international research and consulting firms in the world. For nearly seven decades, Burke has helped manufacturing and service companies understand and accurately predict marketplace behavior. Burke's employee owners add value to research and consulting assignments by applying superior thinking to help clients solve business problems. http://www.burke.com/about/
Thoughts
Can you name some new growing trends? What products or services might be in high demand to fit those trends? What jobs will grow to suit those trends?
Video Case
Intel
(15 minutes) http://www.capstonevideo.com/rpm_wvx/capstone_intel.wvx
Thoughts
Marketing Research was used at every stage in developing the Intel brand.
Deciding on an advertising theme and jingle Developing a product name Developing products geared toward the uses of customers all over the globe