Chapter 7: Improving Decisions with Marketing Information

customer journey map

a story and graphic diagram of a customer's experience in the buying process from need awareness through the purchase process and post-purchase relationship

knowledge

information becomes this when it helps marketing managers answer "how" and "why" questions.

primary data

information specifically collected to solve a current problem. ▪ Often times researchers rush to primary when plenty of secondary is available - Observing and Questioning - ex: videos of customer shopping, consumer clicks on website, loyalty card data

secondary data

information that has been collected or published already - inside: company sales and cost data by product, channel, or region. Previously published marketing research studies - outside: internet, library, gov databases.

focus group interview

involves simultaneously interviewing 6 to 10 people in an informal group setting.

research proposal

a plan that specifies what information will be obtained and how-to be sur no misunderstanding occure later ▪ Information on costs, what data, how collected, who will analyze and how, and how long the process will take.

marketing model

a statement of relationships among marketing variables. ▪ Enables manager to look at the sales (and costs) expected with different types of promotion and select the marketing mix that is best for a particular target market. ▪ Forecast customer behavior - Purpose of collecting, storing, and analyzing data is to guide the strategic planning process.

big data

data sets too large and complex to work with typical database management tools. - Typically collected and stored with the idea of learning more about customers and better serving up ads, offers, or products that capture their interest.

marketing dashboard

displays up to the minute marketing information in an easy to read format

hypotheses

educated guess about the relationships between things or about what will happen in the future.

scientific method

- A decision making approach that focuses on being objective and orderly in testing ideas before accepting them.

observation technique

- the method of viewing and recording the actions and behaviors of participants turnstiles, worn step, structured viewing in store, data analytics

research conditions

- time available - cost of research - risk of wrong information - response rate - target - problem --> risk, budget, time

marketing research process

1. Defining the problem 2. analyzing the situation 3. getting problem-specific data 4. interpreting the data 5. solving the problem - all steps involve feedback to previous steps or can provide early identification o the solution

challenges of big data

1. Volume: quantity of data generated and stored 2. Variety 3. Velocity: the speed at which data are generated and can be processed. ▪ Important for predictive analytics 4. Veracity: quality of the data ▪ Can you trust data to make a decision with it?

Defend why it is important to follow a research process(scientific method). What is the most important step in that process? Give an example of a problem vs. a symptom. (other than what was given in lecture). Why is the distinction between a problem and a symptom important?

Companies should follow the scientific method because it is a decision making approach that shows you what marketing strategies should be used through intuition and observation. Defining the problem is the most important step in the process because if you don't get the "right" problem then you have wasted valuable resources and time. A symptom can be the same for multiple problems, and the researcher's job is to find the "right" problem.

consumer panels

a group of consumers who provide information on a continuing basis.

Explain the research types, terms and tradeoffs. For example when should you use quantitative vs. qualitative research vs. when not to do research at all.

Primary data should be used when you do not have enough information and need to conduct your own research. Secondary data should be used when you can get sufficient information from existing data. Qualitative data is used when seeking in depth, open ended responses that create ideas. A strength is that ideas are produced but there is not representation of a population. Quantitative data is strictly data that can be represented in numbers and a strength is that is can represent a population or a sample. Common methodologies of qualitative is observation or questioning, and quantitative is questioning with numbers or yes/no questions.

Describe the pitfalls to data interpretation. Defend the importance of understanding confidence intervals, sampling and non-sampling error when interpreting polling results. What should you know about interpreting opinion polls?

You should know that the opinion poll might have a margin of error that could affect the given results. A confidence interval conducted can see the margin of error, so the results you see in front of you may not be the real results.

decision support system (DSS)

a computer program that makes it easy for a marketing manager to obtain and use information. ▪ Helps convert data into information and knowledge that allow them to make informed choices about marketing strategy.

wisdom

an ability to accurately predict the future

margin of error

an amount (usually small) that is allowed for in case of miscalculation or change of circumstances. - ex: polls and confidence intervals

sentiment analysis

an automated process of analyzing and categorizing social media to determine the amount of positive, negative, and neutral online comments a brand receives.

in depth interview

an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue

push poll

an individual or organization attempts to manipulate or alter prospective voters' views/beliefs under the guise of conducting an opinion poll.

situation analysis

an informal study of what information is already available in the problem area. Help define the problem and specify what additional information is needed.

marketing information system

an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions. - IT and marketing cooperate to create an MIS, and the extent of involvements depends on the size of the firm. - Marketing managers with ready access to appropriate and timely information make better marketing strategy decisions - MIS should also collect external data about competitors. - Past studies should be on file so that a manger can find out if there is information to help make a decision.

sampling error

concerns how the sample was drawn and the size of the sample. The number of responders and how non-responders were replaced also affect the sample accuracy. • Fast political polls take short-cuts that affect the veracity of the data. • Cell phone sampling is expensive- calls cannot be auto dialed. Result: under-sampling of young and mobile. • Land lines may be auto dialed, but with call screens require much more time to complete. Result: Sample skewed older, more stationery. • The more variable the population- the larger the sample required to maintain the level of accuracy. Larger sample= more $$, so often not adjusted.

validity

concerns the extent to which data measure what they are intended to measure. • Are you asking the right questions to measure what you want to measure? • Are you missing a critical question? • Are the questions worded properly? • Double barreled, loaded, leading or overstated • Is the question order appropriate? • Sensitive should be last - unbiased vs. agend

information

data becomes this when the provide answers to questions of "who, what, where, how much, and when"

non-sampling error

is everything else that can affect the results: • Example: How were the questions asked? • Valid? • Poorly worded? • Question order? • Hidden agendas? • Self reporting error

data analytics

is the science of drawing insights from raw information sources.

Explain why you either agree or disagree with the following statement: "With all of the purchasing data available to construct predictive purchasing models we no longer need to conduct consumers surveys."

marketing research along with intuitions provide the answer. Big data allows companies to track their customers quicker and in more complex ways. The statement is not true because the data available allows patterns to be recognized, but surveying customers could give insight on why these patterns are occurring.

sample

part of a relevant population ▪ How well a sample represents a total population affects the results.

Marketing research

procedures that develop and analyze new information about a market. - Internet searches, customer surveys, experiments, direct observation of customers

survey

research method used for collecting data from a pre-defined group of respondents to gain information and insights on various topics of interest.

experimental method

researchers compare the responses of two (or more) groups that are similar except on the characteristic being tested. ▪ A/B testing

qualitative research

seeks in depth, open-ended responses, not yes or no answers. The researcher wants to get people to share their thoughts on a topic, without giving them many directions or guidelines about what to say. • Great for generating ideas. • Great for finding out more about an issue. • NO Numbers- • Qualitative research is not projectable. • Interpretation is subjective ▪ Depth is advantage ▪ One drawback is measuring the results with objectivity. Can depend on views of researcher

quantitative research

seeks structured responses that can be summarized in numbers, such as percentages, averages, or other statistics. Faster response and analysis. - Mail and online surveys are common and convenient - Telephone surveys-fast buy maybe not trustworthy ▪ Decline now

response rate

the percentage of people contacted who complete the questionnaire.f

data mining

the process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems.

confidence interval

the range on either side of an estimate that is likely to contain the true value for the whole population.

population

the total group of interest

survey design

• Are you asking the right people? (sampling) • Are you asking the right number of people? (sampling) • How was the sample selected? Is it a truly representative sample? (sampling) • What was the response rate? How were the "non- participants" replaced? (sampling) • Are you asking the right questions, with the right wording, in the right order? Are the questions valid? (non- sampling) • Are you interpreting the results correctly? Are differences truly differences? What is the confidence interval (margin of error)? (non-sampling)

answer

• For projectable measurements select: Quantitative research involving the use of structured questions in which response options have been predetermined and a large number of respondents involved. If properly structured, results are projectable to the total population. • For "softer" opinions and ideas consider: Qualitative research involving collecting, analyzing, and interpreting data by observing what people do and say. Results are not projectable.

analyzing the situation

• Purpose: Educate the researcher. Determine what you already know and what you do not know. • Conduct a thorough analysis of secondary data to clarify objectives and determine what, if any, additional information is needed to solve the problem.

defining the problem

• Tackle the problem not the symptom. • The same symptoms can result from different problems. • It is the researcher's job to define the "right" problem. • Perfect research on the wrong problem won't provide a solution.

research questions

• The questions to ask? • Define the problem • Who to ask? • Target population • Sampling • How to ask? • Trade-offs between methodologies •Cost, time and risk of wrong information • Pitfalls of questionnaire design • How to avoid invalid or biased research? • Keep questions "neutral" , simple and straightforward.

role of researcher

• The role of the researcher is that of a consultant • They must partner with the requestor of the research • They must help to focus and define the problem • Problem vs. symptom • They must create a solution that is actionable, on time and on budget.

Purpose of market research

• To find opportunities via the (research) situation analysis* • To determine what is in your Target's head? • What are their needs? • How can you satisfy those needs? • To plan and to refine your marketing mix • See the whole board....