Download Chapter 8 - Personal homepages

CHAPTER
MARKETING
RESEARCH:
FROM
INFORMATION
TO ACTION
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-1
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Identify the reason for doing marketing
research.
2. Describe the four-step marketing
research approach leading to marketing
actions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-2
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
3. Describe how secondary and primary
data are used in marketing, including
the uses of questionnaires, observations,
experiments, and panels.
4. Describe three approaches to
developing a sales forecast for a
company.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-3
TEST SCREENINGS: LISTENING TO
CONSUMERS TO REDUCE MOVIE RISKS
• What’s in a
Movie Name?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-4
TEST SCREENINGS: LISTENING TO
CONSUMERS TO REDUCE MOVIE RISKS
• The Risks in
Today’s
Blockbuster
Movies
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-5
THE ROLE OF
MARKETING RESEARCH
• What is Marketing Research?
• Why Good Marketing Research is
Difficult
• Four-Step Marketing Research Approach
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-6
Fisher-Price
How do you do marketing research with kids?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-7
FIGURE 8-1 Four-step marketing research
approach leading to better marketing
actions
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-8
Concept Check
1. What is marketing research?
A: Marketing research is the process of
defining a marketing problem and
opportunity, systematically collecting
and analyzing information, and
recommending actions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-9
Concept Check
2. What are the four steps marketing
researchers use to help develop
marketing actions?
A: The 4 steps are: (1) define the
problem; (2) develop the research
plan; (3) collect relevant data; and
(4) develop a report to management
that converts the data into findings
and recommendations.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-10
STEP 1: DEFINE THE PROBLEM
• Set the Research Objectives
• Identify Possible Marketing Actions
 Measures of Success
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-11
Toys of the Year
How do you discover “hot toys” and
why are good forecasts important?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-12
Fisher-Price
How do you identify data needed
for marketing actions?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-13
STEP 2: DEVELOP THE
RESEARCH PLAN
• Identify Data Needed for Marketing Actions
 Concepts
• New-Product Concept
 Methods
• Sampling
• Statistical Inference
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-14
Concept Check
1. How do measures of success relate to
marketing actions?
A: Measures of success are criteria or
standards used in evaluating
proposed solutions to the problem.
Different research outcomes—based
on the measures of success—lead to
different marketing actions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-15
Concept Check
2. What is the difference between
concepts and methods?
A: Concepts are ideas about products
or services, whereas methods are the
approaches that can be used to
collect data.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-16
STEP 3: COLLECT
RELEVANT INFORMATION
• Data
• Secondary Data
• Primary Data
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-17
FIGURE 8-2 Types of marketing information
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-18
STEP 3: COLLECT
RELEVANT INFORMATION
• Secondary Data: Internal
 Product Sales
 Salesperson Reports
• Secondary Data: External
 Census Bureau
 Business Periodicals
 Trade Associations
 Online/Internet
• Advantages and Disadvantages of
Secondary Data
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-19
Concept Check
1. What is the difference between
secondary and primary data?
A: Secondary data are facts and figures
that have already been recorded
before the project at hand, whereas
primary data are facts and figures
that are newly collected for the
project.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-20
Concept Check
2. What are some advantages and
disadvantages of secondary data?
A: Advantages include time savings,
low cost, and a greater level of detail.
Disadvantages are that the data may
be out of date, the definitions or
categories may not be right, and not
being specific enough for the project.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-21
STEP 3: COLLECT
RELEVANT INFORMATION
• Primary Data: Observing Behavior
 Mechanical, Electronic, and
Personal Observation
• Observational Data
• Nielsen Media Research: Meter/Diary
• Mystery Shopper
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-22
FIGURE 8-3 Nielsen ratings of the top
10 network primetime television series
for the 2004–2005 season through
September 18, 2005
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-23
Nielsen Media Research “People Meter”
What kind of primary data is collected?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-24
American Idol
What determines if a TV show stays on the air?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-25
FIGURE 8-4 Nielsen//NetRatings of the top
10 Internet websites for September 2005
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-26
Mystery Shopping
How is this marketing research?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-27
Oral-B, Scotch-Brite, and Skechers
How would you do marketing research
on these products.?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-28
STEP 3: COLLECT
RELEVANT INFORMATION
• Primary Data: Questioning Consumers
 Questionnaire Data
 Idea Generation Methods—Coming Up
with Ideas
• Individual Interviews
• TRU “Me” Exercises
• Depth Interviews
• “Cool Hunters”
• Focus Groups
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-29
Mforma
How does this firm generate design ideas?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-30
Focus Group and Facility
Why collect primary data this way?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-31
TRU “Me” Exercise snapshot: Mavin
Why collect primary data this way?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-32
STEP 3: COLLECT
RELEVANT INFORMATION
• Primary Data: Questioning Consumers
 Idea Evaluation—Testing an Idea
• Types of Surveys
 Personal Interview
 Mail
 Telephone
 E-mail/Fax/Internet
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-33
FIGURE 8-A Comparison of three kinds of
surveys
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-34
FIGURE 8-5 Typical problems in wording
questions
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-35
STEP 3: COLLECT
RELEVANT INFORMATION
• Primary Data: Panels and Experiments
 Panel
 Experiment
 Drivers
 Test Markets
• Advantages and Disadvantages of
Primary Data
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-36
Wal-Mart Supercenter
How might early marketing research
have been done?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-37
Concept Check
1. What is the difference between
observational and questionnaire data?
A: Observational data are facts and figures
obtained by watching, either mechanically
or in person, how people actually behave.
Questionnaire data are facts and figures
obtained by asking people about their
attitudes, awareness, intentions, and
behaviors.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-38
Concept Check
2. Which survey provides the greatest
flexibility for asking probing
questions: mail, telephone, or
personal interview?
A: personal interview survey
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-39
Concept Check
3. What is the difference between a
panel and an experiment?
A: A panel is a sample of consumers or
stores from which researchers take a
series of measurements over time.
An experiment involves changing a
variable in a customer purchase and
seeing what happens.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-40
STEP 3: COLLECT
RELEVANT INFORMATION
• Making the Most of Information
Technology
 Information Technology
 Data Mining
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-41
FIGURE 8-6 Today’s marketing managers
use information from many marketing
factors to increase the sales of their
products or brands
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-42
Consumer Purchasing Products
Why is data mining so important?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-43
STEP 4: DELIVER THE FINAL REPORT
• Analyzing the Data
• Presenting the Findings
• Making Recommendations
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-44
Tony’s Pizza
What findings can be developed from data mining?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-45
FIGURE 8-7 Presenting findings to Tony’s
marketing manager that lead to
recommendations and actions
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-46
FIGURE 8-7A Presenting findings to Tony’s
marketing manager
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-47
FIGURE 8-7B Presenting findings to Tony’s
marketing manager
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-48
FIGURE 8-7C Presenting findings to Tony’s
marketing manager
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-49
FIGURE 8-7D Presenting findings to Tony’s
marketing manager
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-50
Concept Check
1. What is data mining?
A: Data mining is the extraction of
hidden predictive information from
large databases to find statistical
links that suggest marketing actions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-51
Concept Check
2. In the marketing research for Tony’s
Pizza, what is an example of (a) a
finding and (b) a marketing action?
A: (a) Figure 8-7A shows a finding that
depicts annual sales from 2002 to 2005.
(b) Figure 8-7D shows a finding
(the decline in pizza sales) that leads to a
marketing action to develop an ad
targeting children 6 to 12 years old.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-52
SALES FORECASTING TECHNIQUES
• Sales Forecast
• Judgments of the Decision Maker
 Direct Forecast
 Lost-Horse Forecast
• Surveys of Knowledgeable Groups
 Survey of Buyers’ Intentions Forecast
 Salesforce Survey Forecast
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-53
Wilson Tennis Racket
How might marketers forecast sales through 2009?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-54
SALES FORECASTING TECHNIQUES
• Statistical Methods
 Trend Extrapolation
 Linear Trend Extrapolation
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-55
FIGURE 8-8 Linear trend extrapolation of
sales revenues of Xerox, made at the start of
2000
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-56
Concept Check
1. What are the three kinds of sales
forecasting techniques?
A: They are: (1) judgments of the
decision maker, (2) surveys of
knowledgeable groups, and
(3) statistical methods.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-57
Concept Check
2. How do you make a lost-horse
forecast?
A: (1) Start with the last known value of
the item being forecast, (2) list the
factors that could affect the forecast,
(3) assess whether they have a
positive or negative impact, and
(4) make the final forecast.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-58
Concept Check
3. What is linear trend extrapolation?
A: Linear trend extrapolation involves
extending a pattern observed in past
data into the future with a straight
line.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-59
GOING ONLINE
WHAT’S NEW IN
MARKETING RESEARCH?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-60
Going Online
1. Click on the “News” link on
WorldOpinion’s home page to read
about the current news and issues
facing the market research industry.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-61
Going Online
2. Click on the “The Frame” link, a set
of online articles published by Survey
Sampling, International.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-62
VIDEO CASE 8
FORD CONSULTING GROUP:
FROM DATA TO ACTIONS
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-63
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-64
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-65
VIDEO CASE 8
Ford Consulting Group
1. Study Table 1. (a) How does the
situation in the Northeast compare
with the other regions in the United
States? (b) What appears to be the
reason(s) that sales are soft?
(c) Write a 150-word e-mail with
attachments to Mark Rehborg, your
boss, giving your answers to (b).
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-66
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-67
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-68
VIDEO CASE 8
Ford Consulting Group
2. Study Table 2. (a) What do you conclude
from this information? (b) Summarize
your conclusions in a 150-word e-mail
with attachments to Mark, who needs
them for a meeting tomorrow with
Margaret, the Northeast region sales
manager. (c) What marketing actions
might your memo suggest?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-69
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-70
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-71
VIDEO CASE 8
Ford Consulting Group
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-72
SUPPLEMENTAL
LECTURE NOTE 8-1
WHAT IS “TRUTH”
IN REPORTING
SURVEY RESULTS?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-73
FIGURE 8-B How ethical is this claim in an
advertisement that is based on a survey of
doctors?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-74
SUPPLEMENTAL
LECTURE NOTE 8-2
TWO BASIC APPROACHES
TO FORECASTING
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-75
FIGURE 8-C Top-down forecast: Survey of
Buying Power
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-76
FIGURE 8-D Build-up forecast: Apple
Computer’s product lines
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-77
IN-CLASS ACTIVITY 8-1
WEBSITES OF INTEREST TO
MARKETING STUDENTS
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-78
Websites of Interest to Marketing Students
American
Marketing
Association
Career
Builder
Business
Week
American
Advertising
Federation
iVillage
Wall Street
Journal
AdForum
Pollstar
Yahoo!
eBay
Drudge
Report
Google
Marketing: The Core,
2nd Edition
Amazon
FirstGov
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-79
IN-CLASS ACTIVITY 8-2
PEPSI VS. COKE TASTE TEST
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-80
New Pepsi Challenge TV Ad
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-81
Pepsi vs. Coke Taste Test Challenge
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-82
Marketing Research
Marketing research is the process of
defining a marketing problem and
opportunity, systematically collecting and
analyzing information, and
recommending actions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-83
Measures of Success
Measures of success are criteria or
standards used in evaluating proposed
solutions to a problem.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-84
Data
Data are the facts and figures related
to the problem, and are divided into two
main parts: secondary data and primary
data.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-85
Secondary Data
Secondary data are facts and figures that
have already been recorded before the
project at hand.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-86
Primary Data
Primary data are facts and figures that
are newly collected for the project.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-87
Observational Data
Observational data are the facts and
figures obtained by watching, either
mechanically or in person, how people
actually behave.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-88
Questionnaire Data
Questionnaire data are the facts and
figures obtained by asking people about
their attitudes, awareness, intentions, and
behaviors.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-89
Sales Forecast
A sales forecast refers to the total sales of
a product that a firm expects to sell during
a specified time period under specified
environmental conditions and its own
marketing efforts.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 8-90