Marketing Ch4

Customer insights

Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.

Online focus groups

Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insight about consumer attitudes and behavior.

Ethnographic research

A form of observational research that involves sending trained observers to watch and interact with consumers in their "natural habitat."

Primary data research approaches

1. Observation; 2. Panel and single source data systems; 3. Surveys; 4. Experiment;

Primary data research approaches: Observation

cheap, tells what but not always why people do something

Customer Relationship Management (CRM)

focus on customer

Descriptive research

Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

Exploratory research

Marketing research to gather preliminary information that will help define problems and suggest hypotheses.

Marketing research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Primary data research approaches: Experiment

a) Field: test markets, individual changes - then combined; b) Lab: fake grocery store;

Primary data sampling

1. probability: everyone has the same chance of being chosen; start with list, then randomly choose to limit bias; small sample size is cheaper; 2. nonprobability: ask people who walk by;

Sample

A segment of the population selected for marketing research to represent the population as a whole.

Marketing intelligence

The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

Online marketing research

Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers' online behavior.

Commercial online databases

Computerized collections of information

Primary data

Information collected for the specific purpose at hand.

Secondary data

Information that already exists somewhere, having been collected for another purpose.

Interpreting and Reporting the Findings

Make decision rules before getting results; independent firms would not be invested in results = impartial

Customer relationship management (CRM)

Managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty.

Define the Problem

Must define what questions the research is to answer; should be done before conducting research; are you asking the right questions?

Marketing information system (MIS)

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.

Focus group interviewing

Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk abou.t a product, service, or organization. The interviewer "focuses" the group discussion on important issues.

Developing the Research Plan

Questions, objectives, define results (what does a 70 mean? good or bad)

Ethics in Marketing Research

customer privacy: filter out personal data; leading questions: push polls - pretending to be researcher, then ask questions

International Marketing Research

difficult to conduct; secondary data may not be reliable

Primary data research approaches: Panel and single source data systems

group discussion over time; single source - data collected from a single person (Nielsen)

Marketing Research in small businesses

use inexpensive techniques; observation, focus groups, interviews

Primary data contact methods

1. Mail: anonymous; can use pictures, diagrams; 2. Telephone:quick; not good for personal issues; 3. Personal Interview: "mall intercept"; can use video; small sample but high cost; good for exploration; 4. Focus groups: 6-8 people, can be long-term; 5. Online (internet) marketing research: cheap; not representative;

Survey research

Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Observational research

Gathering primary data by observing relevant people, actions, and situations.

Experimental research

Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.

Causal research

Marketing research to test hypotheses about cause-and-effect relationships.

Primary data research instruments

1. questionnaire: surveys, registration cards ; 2. mechanical instruments: Nielsen box, track eye movement

Customer Needs Assessment

A. Focus Groups; B. In-depth interviews: expensive; C. Customer satisfaction surveys; D. Observation: watch someone use product; E. Customer advisory groups: important customers; F. Ghost (mystery) shopping: cheap

Secondary data

Data which was collected for another reason: Internal - previous research, customer data, etc; External - demographics, census, Nielsen data

Primary data

Data collected specifically for the research; Research approaches; Contact methods; Sampling; Research instruments;

Internal databases

Electronic collections of consumer and market information obtained from data sources within the company network.

When to do Marketing Research

Value versus cost: consider value of information versus the cost of conducting research; low value = tweaking an old product; high value =a new product with major investment; Uncertain about Results: research should provide insight, not be used to justify a decision already made.

Implementing the Research Plan

must be objective and well design; hire a professional

Primary data research approaches: Surveys

must be well designed; a) Traditional: online, comment cards, in person; b) Motivational research: ask "what someone else would do", write stories, take pictures, hypnosis;