Download Online Marketing Research

Managing
Marketing
Information
to Gain
Customer
Insights
Chapter 4
Next Exit
Rest Stop: Previewing the Concepts
1. Explain the importance of information in
2.
3.
4.
5.
gaining insights about the marketplace and
customers.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research
process.
Explain how companies analyze and use
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues.
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Case Study
ZIBA – Getting to Know Customers
ZIBA – Background
ZIBA – In Action
Company: ZIBA is a newproduct design consultancy.
Mission: “Help companies
to create meaningful ideas,
designs, and experiences
that consumers crave.”
Strategy: Implements indepth study of consumers.
Research Process:
Consumer Insights and
Trends Group uses social
anthropologists, cultural
ethnographers, userexperience wizards, trend
trackers, brand translators
and cool hunters.
Client: Sirius Satellite Radio.
Project: Develop a hand-held
satellite radio receiver.
Research Process: Interviewed 44
Sirius subscribers on why music
mattered to them; viewed CD
collections, socialized at tailgates;
studied how car was accessorized.
Results of Research: Developed
profiles of Sirius user segments
and positioning statement,
“Discovery, portability,
personalization.” Tested/refined
prototypes. S50 was a holiday
season top seller and earned a
design award for ZIBA.
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Figure 4.1
The Marketing Information System
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The Importance of Marketing
Information and Customer Insights
 Companies need information about
their:
– Customers’ needs
– Marketing environment
– Competition
 Marketing managers do not need
more information, they need better
information that provides insights
which are useful for decision-making.
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Customer Insights
Fresh understandings of
customers and the marketplace
derived from marketing
information that become the basis
for creating customer value and
relationships.
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Customer Insights
 Firms use customer insights to
develop competitive advantage.
 Customer
insight teams
are replacing
traditional
market
research
departments.
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Marketing Information System
Consists of people and procedures
for assessing information needs,
developing the needed
information, and helping decision
makers to use the information to
generate and validate actionable
customer and market insights.
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Marketing Information System
 The MIS helps
managers to:
1. Assess
information needs
2. Develop needed
information
3. Analyze and use
information
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Assessing Information Needs
 A good MIS balances the information
users would like against what they
really need and what is feasible to
offer.
– Sometimes the company cannot provide the
needed information because it is not
available or due to MIS limitations.
– MIS efforts are costly. Firms must decide
whether the value of the insights gained
from more information is worth the cost.
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Developing Marketing Information
 Internal Databases:
– Electronic collections of
consumer and market
information obtained
from data sources within
the company network.
• E.g., Computerized
reservation and record
keeping systems allow
hotel chains to track
smoking and bed size
preferences of guests.
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Developing Marketing Information
 Marketing
Intelligence:
– Systematic
collection and
analysis of
publicly available
information about
consumers,
competitors, and
developments in
the marketing
environment.
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 Marketing
Research:
– Systematic
design, collection,
analysis, and
reporting of data
relevant to a
specific marketing
situation facing an
organization.
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Marketing in Action
Gathering Marketing Intelligence
“Dumpster diving”
is one way to gather
intelligence from
the competition.
Although dumpster
diving is legal, it is
often considered to
be unethical.
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Figure 4.2
The Marketing Research Process
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Fuel for Thought
Defining the marketing research
problem is often the most difficult step
in the research process. Brainstorming potential causes of the key
symptom is often helpful.
Suppose that sales of your brand
have been declining (this is a
symptom of the actual problem).
What marketing problems might have
caused sales to decline?
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Defining Problem and
Objectives
 Research objectives may include:
– Exploratory Research:
• Gathering preliminary information that will help
define the problem and suggest hypotheses.
– Descriptive Research:
• Generating information to better describe
marketing problems, situations, or markets.
– Causal Research:
• Testing hypotheses about cause-and-effect
relationships.
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Developing the Research Plan
 Requires:
– Determining the exact information needed.
– Developing a plan for gathering it efficiently.
– Presenting the written plan to management.
 The research plan outlines:
– Sources of existing data
– Specific research approaches
– Contact methods
– Sampling plans
– Instruments for data collection
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Secondary Data
Information that already
exists somewhere which
has been collected for
another purpose.
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Gathering Secondary Data
 Secondary data:
– Common sources of secondary data:
• Internal databases
• Commercial data services
• Government sources
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Marketing in Action
Commercial Database Services
Commercial database
services such as
Simmons offer an
incredible wealth of
information to firms.
Visit their Web site at
www.smrb.com to learn
more.
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Secondary Data
 Advantages:
– Available more
quickly and at a
lower cost than
primary data.
– Can sometimes
lead to
information that
an individual
firm could not
gather itself.
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 Disadvantages:
– Needed
information may
not exist as
secondary data.
– Secondary data
must be carefully
evaluated for
relevancy,
accuracy, currency,
and impartiality.
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Primary Data
Consists of information
collected for the specific
purpose at hand.
Primary data must be relevant, accurate,
current, and unbiased.
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Primary Data Collection
 Primary data collection decisions:
– Research approach:
• Observation, survey, or experiment
– Contact methods:
• Mail, telephone, personal, or online
– Sampling plan:
• Sampling unit, sample size, and sampling
procedure
– Research instruments:
• Questionnaire or mechanical instruments
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Observational Research
 The gathering of primary data by
observing relevant people,
actions, and situations.
– Can obtain information that people are
unwilling or unable to provide.
– Cannot be used to observe feelings,
attitudes, and motives, and long-term
or infrequent behaviors.
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Observational Research
 Ethnographic
research:
– Observation in the
“natural habitat.”
– Yields richer
understanding of
consumers.
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Marketing in Action
Ethnographic Research
After hanging out in hotel lobbies observing
business travelers, Marriott revamped its
hotel lobbies by creating a “social zone”
where travelers can work or unwind. The new
lobbies feature brighter lights, small tables,
and wireless access.
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Survey and Experimental
Research
 Survey Research:
– Most widely used method for primary
data collection.
– Approach best suited for gathering
descriptive information.
– Can gather information about people’s
knowledge, attitudes, preferences, or
buying behavior.
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Survey and Experimental
Research
 Experimental Research:
– Tries to explain cause-and-effect
relationships.
– Involves:
• Selecting matched groups of subjects
• Giving different treatments
• Controlling unrelated factors
• Checking differences in group
responses
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Contact Methods
 Mail surveys
 Telephone surveys
 Personal interviews:
– Individual interviewing
– Focus group interviewing
 Online marketing research:
– Internet surveys and online panels
– Experiments
– Online focus groups
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Contact Methods
 Mail Survey Pros:
– Can collect large amounts of information at
a relatively low cost per respondent
– Generates more truthful responses than
phone interviews
– Improved validity (no interviewer bias)
 Mail Survey Cons:
– Not flexible; study takes longer to finish
– Low response rate
– Little control over sample
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Contact Methods
 Telephone Surveying Pros:
– Gathers information fast
– Greater flexibility than mail surveys
– Interviewers can explain or skip questions
– Better response rates than mail surveys
– Strong sample control
 Telephone Surveying Cons:
– Higher costs than mail
– Interviewer may bias results
– Limited quantity of data can be collected
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Contact Methods
 Individual and Group Interviewing
Pros:
– Highly flexible method that can gather a great deal
of data from a respondent.
– Good control of sample, speed of data collection,
and response rate.
 Individual and Group Interviewing
Cons:
– High cost per respondent.
– Highly subject to interviewer bias and related
interviewer effects.
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Marketing in Action
Focus Groups
To create a more
congenial setting for
women to share their
personal shaving and
moisturizing stories,
Shick invited women
to participate in
“Slow Sip” focus
group sessions at
local cafes.
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Sampling Plan
 Online Marketing Research:
– Includes surveys, experiments, and focus
groups conducted over the Internet.
– The least expensive and quickest way to
gather information.
– Offers excellent control over sample.
– Good flexibility and response rates; able to
collect a fair amount of information.
– Some forms prone to interviewer effects.
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Marketing in Action
Online Marketing Research
Many online focus groups feature real-time
audio and video. Visit the Channel M2 Web
site to learn more.
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Sampling Plan
 Sample:
– Segment of the
population
selected to
represent the
population as a
whole.
If the individuals pictured at right are typical of a
given study’s sample, what characteristics seem to
most obviously describe the population as a whole?
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Sampling Plan
 Sampling requires three decisions:
– Who is to be surveyed?
• Selecting the sampling unit.
– How many people should be surveyed?
• Referred to as sample size.
– How should the people in the sample be
chosen?
• Describes the sampling procedure.
 Probability vs. nonprobability samples.
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Research Instruments
 Questionnaire decisions:
– What questions to ask?
– Form of each question?
• Closed-ended
• Open-ended
– Wording should be simple, direct, and
unbiased.
– Questions should be arranged in a
logical order.
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Research Instruments
 Mechanical
devices take many
forms:
– People meters,
checkout scanners,
eye tracking devices,
and even
neuromarketing.
Neuromarketing tracks
brain wave activity.
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Implementing the Research Plan
 Collecting the data:
– Most expensive phase
– Subject to error
 Processing the data:
– Check for accuracy
– Code for analysis
 Analyzing the data:
– Tabulate results
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Quick Flick
Burke
Research
Services
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video
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Interpreting and
Reporting Findings
 Interpret the findings
 Draw conclusions
 Report to management:
– Present findings and conclusions that
will be most helpful to decision
making.
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Analyzing and Using
Marketing Information
 Many companies utilize CRM.
– Captures customer information from all
sources.
– Analyzes it in-depth.
– Applies the results to build stronger
relationships.
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Marketing in Action
CRM Help From Salesforce.com
CRM services
such as those
offered by
salesforce.com
can provide a
360 degree of
the customer
relationship.
Visit the Web
site to learn
more.
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Analyzing and Using
Marketing Information
 Companies look for customer touch
points.
 CRM analysts develop data
warehouses and use data mining
techniques to find out information
about customers. Findings may lead
to new marketing opportunities.
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Customer Relationship
Management (CRM)
 Benefits of CRM:
– Ability to offer better customer service and
develop deeper customer relationships.
– Pinpoints and targets high-value customers
more effectively.
– Enhances the firm’s ability to cross-sell
products and develop offers tailored to
customers.
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Marketing in Action
CRM at Harrah’s
Harrah’s CRM system
helps the firm to
focus on its brand,
marketing, and
service development
strategies. Harrah’s
uses player card data
as one input, and
strives to develop
offerings that benefit
its most important
customers.
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Distributing and Using
Marketing Information
 MIS must make information readily
available for decision making:
– Routine information for decision making.
– Nonroutine information for special
situations.
 Intranets and extranets facilitate the
information sharing process.
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Other Marketing Information
Considerations
 Marketing research in small
businesses and nonprofit
organizations.
 International marketing research.
 Public policy and ethics in marketing
research:
– Intrusions on consumer privacy
– Misuse of research findings
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Rest Stop: Reviewing the Concepts
1. Explain the importance of information in
2.
3.
4.
5.
gaining insights about the marketplace and
customers.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research
process.
Explain how companies analyze and use
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues.
50
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permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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