Chapter 4

Collecting secondary data

- Marketers start by collecting secondary data - cheaper and readily available - Some information are freely available on the internet, while others need to be bought - using online commercial database like Lexis Nexis - Online search engines

Disadvantages of Secondary data

- May not be accurate - May be impartial - Incomplete - Irrelevant - may not be current (up-to-date)

Develop research plan

- after identifying the problems and research objectives, efficient methods of obtaining information must be planned - it should be presented as a written proposal containing the management problems and objectives to be met, methods for data to be collected and demonstrate how this data can help the managements decision-making. - the research plan can call for collection of either one of the following or both to meet the management's data needs Secondary data - information that already exists and had been collected for another purpose Primary data -information collected for a specific reason

Online marketing research

- collecting primary data through online surveys, online focus groups, experiments etc - cheaper - faster response rate - can reach those customers that cannot be easily reached by other means of research - for quantitative research- conducting market surveys and collecting data

Implementing research plan

- collection of data - processing data - Analyzing data

Interpreting and reporting findings

- interpret findings - draw conclusions - report to management

Focus group interviewing

- interviewing groups of 6 to 10 people by trained interviewers regarding product, services and organization. The interviewer focuses on the important issues - decision makers observe the session - cannot generalize from findings - interviewee answers are not genuine - groups are small to cut down costs

Probability sample

- those that are sure to be included in the sample

Behavioral targeting

- using online tracking data on consumer behavior and patterns to target advertisements to specific customers

Disadvantage of having excess or not enough data

1. Excessive information can be overwhelming and distracting 2. Omitting important information that is relevant and useful for decision makers 3. The process of obtaining, accessing and costs of the MIS can be expensive and time consuming

Pulic policy and market research ethics

1. Intrusions on customer privacy - Target with knowing customer was pregnant before dad 2. Misuse of data - falsification of data, misleading and stretching claims - POM juice false health claims

Research approach

1. Observational research - Observing relevant people, actions etc eg: fisherprice to observe kids reaction to new toys 2. Ethnographic research - research by sending trained observers to study and interact with customers in their natural environment Eg: Coors insight beer team visits bars and interacts with customers netnography- observing customers in their natural context on the internet 3. Survey research - Asking customers questions regarding their views, preferences and buying behavior - Advantage is its flexibility in asking any questions in any context - Disadvantage is not structural, answers may be rushed or answered to please interviewer or to seem smarter 4. Experimental research - Gathering data by collecting groups of subjects, giving them different treatments, controlling factors and observing the different group responses

Research equipment

1. Questionnaire 2. Mechanical instruments using neuromarketing research where MRI scans help companies see what attracts and doesn't appeal to customers about their product. But this is difficult to interpret and should be used in combination with other research methods

Primary data collection

1. Research approach 2. Contact method 3. sampling plan 4. research instruments

Define problems and research objectives

1. exploratory research - help define problem and suggest hypothesis 2. Descriptive research - better describe the market situation, markets and problems like the market potential for a product or demographics etc. 3. casual research - to test hypothesis in cause and effect relationship

Explain how companies analyze and use marketing information.

Information gathered in internal databases and through marketing intelligence and marketing research usually requires more analysis. To analyze individual customer data, many companies have now acquired or developed special software and analysis techniques— called customer relationship management (CRM)—that integrate, analyze, and apply the mountains of individual customer and marketplace data contained in their databases. Marketing information has no value until it is used to make better marketing decisions. Thus, the MIS must make the information available to managers and others who make marketing decisions or deal with customers. In some cases, this means providing regular reports and updates; in other cases, it means making non routine information available for special situations and on-the-spot decisions. Many firms use company intranets and extranets to facilitate this process. Thanks to modern technology, today's marketing managers can gain direct access to marketing information at any time and from virtually any location

Discuss the special issues some marketing researchers face, including public policy and ethics issues.

Some marketers face special marketing research situations, such as those conducting research in small business, not-for-profit, or international situations. Marketing research can be conducted effectively by small businesses and nonprofit organizations with limited budgets. International marketing researchers follow the same steps as domestic researchers but often face more and different problems. All organizations need to act responsibly concerning major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings.

Assessing information needs

The MIS provides information to the marketing and other managers and external partners such as suppliers, resellers etc The information should have a good balance between what customer wants against what customers need and which is feasible to offer

Customer Relationship Management CRM

The careful management of customer information and findings and managing customer touch points to maximize customer loyalty

Internal database

The collection of data and market information obtained from data sources within the company

Competitive marketing Intelligence

The collection, storing and analysis of publicly available information about customer, competitors and developments in the marketing environment - they observe customers, quiz their employees, study their competitors, research on the internet, and keep track of social media buzz - Samsung used CMI against IPhone during their launch of IPhone 5. They observed the launch and within a week created a marketing response mocking the drawbacks of the phone based on tweets online and launched Samsung galaxy S phones - Information can be obtained from employees, suppliers, distributors etc. - Some companies like Apple make efforts to protect their information, secrecy - Some methods of obtaining information may be unethical

Outline the steps in the marketing research process.

The first step in the marketing research process involves defining the problem and setting the research objectives, which may be exploratory, descriptive, or causal research. The second step consists of developing a research plan for collecting data from primary and secondary sources. The third step calls for implementing the marketing research plan by gathering, processing, and analyzing the information. The fourth step consists of interpreting and reporting the findings. Additional information analysis helps marketing managers apply the information and provides them with sophisticated statistical procedures and models from which to develop more rigorous findings. Both internal and external secondary data sources often provide information more quickly and at a lower cost than primary data sources, and they can sometimes yield information that a company cannot collect by itself. However, needed information might not exist in secondary sources. Researchers must also evaluate secondary information to ensure that it is relevant, accurate, current, and impartial. Primary research must also be evaluated for these features. Each primary data collection method—observational, survey, and experimental—has its own advantages and disadvantages. Similarly, each of the various research contact methods—mail, telephone, personal interview, and online—has its own advantages and drawbacks.

Marketing information system (MIS)

The groups and procedures dedicated to accessing required information, developing the information and helping the decision makers use this information in order to validate the customer insights

Define the marketing information system and discuss its parts

The marketing information system (MIS) consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. A well-designed information system begins and ends with users. The MIS first assesses information needs. The MIS primarily serves the company's marketing and other managers, but it may also provide information to external partners. Then the MIS develops information from internal databases, marketing intelligence activities, and marketing research. Internal databases provide information on the company's own operations and departments. Such data can be obtained quickly and cheaply but often need to be adapted for marketing decisions. Marketing intelligence activities supply everyday information about developments in the external marketing environment, including listening and responding to the vast and complex digital environment. Market research consists of collecting information relevant to a specific marketing problem faced by the company. Last, the MIS helps users analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships.

Explain the importance of information in gaining insights about the marketplace and customers.

The marketing process starts with a complete understanding of the marketplace and consumer needs and wants. Thus, the company needs to turn sound consumer information into meaningful customer insights by which it can produce superior value for its customers. The company also requires information on competitors, resellers, and other actors and forces in the marketplace. Increasingly, marketers are viewing information not only as an input for making better decisions but also as an important strategic asset and marketing tool.

Market research

The systematic search, collection and reporting of data for specific marketing situations the market research process 1.Define problem and research objectives 2. Develop research plan 3. Implement research plan 4. Analyze and report findings

Customer touch points

customer purchases sales force contact customer service and call centers website and social media site visits credit and payment interactions satisfaction survey market research

Mining Big data

data warehouse to have a centralized organization of data Company uses data mining and analytic techniques to find relevant information to create greater customer value, find opportunities, combat threats and build profitable customer relationship The weather channel TWC uses big data to generate weather forecasts and advertising on the site. Companies use forecast data and accordingly promote ads. Hot humid day, company promotes shampoo to tame frizzy hair etc

customer insights

fresh marketing information-based findings of customers and the marketplace which then becomes the basis for creating value and building strong customer relationships customer insight groups collect info from traditional marketing research and new ways through social media, internet, voluntary information

online focus group

groups of users on the internet with a trained moderator to discuss product, services and organization and gain qualitative insights on customer attitude and behavior Lexus advisory board - an extensive research community with invitation only lexus owners

Contact methods

mail - slower, less response but more genuine answers telephone - faster response but sometimes response is brief and not useful. More expensive than mailing personal interviewing individual interviewing group interviewing

Nielsen company

marketing research company

Sampling method

the use of a segment of population for marketing research which represents the population as a whole three main questions for creating sample group 1. Who should be included 2. How many should be included 3. Selection procedures

social targeting

using behavior and patterns of a buyers friend in order to increase the chances of the product appeal to the buyer online listening, behavioral targeting and social targeting can help companies harness vast amounts of useful information from the internet

non probability sample

when the process costs too much or takes too much time, then the companies use non- probability samples