Principles of Marketing Ch.4 Book/Vocab Notes

what are the three Research Approaches for gathering primary data?

1. Observational Research 2. Survey Research 3. Experimental Research

True or False: Mail questionnaires can be used to collect large amounts of information at a low cost per respondent.

True

True or False: Marketing intelligence techniques range from observing consumers firsthand to quizzing the company's own employees, benchmarking competitors' products, researching the internet, and monitoring internet buzz.

True

Define Behavioral Targeting

Uses online consumer tracking data to target advertisements and marketing offers to specific consumers

True or False: A good MIS balances the information users would like to have against what they really need and what is feasible to offer.

True

True or False: CRM analysts develop data warehouses and use sophisticated data mining techniques to unearth the riches hidden in customer data.

True

True or False: Customer insight teams are headed by a vice president of customer insights and composed of representatives from all of the firm's functional areas

True

True or False: Using Commercial Online Databases, marketing researchers can conduct their own searches of secondary data sources.

True

Define Neuromarketing

Brain activity to learn how consumers feel and respond.

What does a Resource Plan do?

Outlines sources of existing data

What are Mechanical Instruments used for?

Used to monitor consumer behavior.

What are some sources of Secondary Data?

-Company's internal database -Purchased from outside suppliers -Commercial online databases -Internet search engines

What is included in Nonprobability samples?

-Convenience sample -Judgment sample -Quota sample

What are some of the problems International Marketing Research faces?

-Dealing with diverse markets -Finding good secondary data in foreign markets -Developing good samples -Reaching respondents -Handling differences in culture, language, and attitudes toward marketing research Also, The cost of research is high, but the cost of not doing it is higher. Once recognized, many of the problems associated with international marketing research can be overcome or avoided.

What are some solutions to prevent Misuse of Research Findings?

-Development of codes of research ethics and standards of conduct -Companies must accept responsibility to protect consumers' best interests and their own.

Information needed can be obtained from what three sources?

-Internal databases -Competitive marketing intelligence -Marketing research

What are the problems with Internal Databases?

-It may be incomplete or in the wrong form to make a marketing decision. -Data ages quickly; keeping the database current requires a major effort -Managing large amounts of data requires highly sophisticated equipment and techniques

What are the advantages of Secondary Data?

-Low cost -Obtained quickly -Cannot collect otherwise

Who are information users?

-Marketing managers -Internal and external partners -Others who need marketing information

What are all the techniques for Competitive Marketing Intelligence?

-Observing consumers firsthand -Quizzing the company's own employees -Benchmarking competitors' products -Conducting online research -Monitoring social media buzz

What are the disadvantages of Secondary Data?

-Potentially Irrelevant -Inaccurate -Dated -Biased

Failure to address privacy issues results in...

Angry, less cooperative consumers Increased government intervention

Best approaches for researchers to avoid Intrusions on Consumer Privacy:

Asking only for the information needed Using the information responsibly to provide customer value Avoiding sharing the information without the customer's permission

Define Secondary Data

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

Define Descriptive Research

Marketing research used to better describe marketing problems, situations, or markets.

Define Explorator Research

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

Define Causal Research

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

Probability samples and Nonprobability samples are on page 112

Page 112

Define Marketing Analytics

consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

What is the goal of competitve marketing intelligence?

is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats.

Define Observational Research

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

Define Online Listening

Provides valuable insights into what consumers are saying or feeling about a brand

What is by far the most common research instrument?

Questionnaires

True or False: Firms use competitive marketing intelligence to keep track of competitors moves and strategies.

True

What are the topics covered in a Research plan?

-Problems and research objectives -Information to be obtained -How results will help decision making -Estimated research costs -Type of data required

What are some decisions required for sampling design?

-Sampling unit - People to be studied -Sample size - Number of people to be studied -Sampling procedure - Method of choosing the people to be studied

What is included in Probability Samples?

-Simple random sample -Stratified random sample -Cluster (area) sample

What does the Research Plan spell out?

-Specific research approaches -Contact methods -Sampling plans -Instruments that researchers will use to gather new data

What are some responsibilities of managers?

-Think carefully about the research objectives -Formulate questions in advance -Recognize the biases introduced by smaller samples and less skilled researchers -Conduct the research systematically

What are the steps of the Marketing Information System?

1. It interacts with these information users to access information needs. (Assess information needs) 2. It interacts with the marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research. (Develop needed information) 3. The MIS then helps users to analyze and use the information to develop customer insights, make marketing decisions and manager customer relationships.(Analyze and use)

MIS must make information readily ____1_____ for decision making. -------------------------------------------- -Routine information for decision making -Non-routine information for special situations Also, Many firms use company intranets and extranets to facilitate this process.

1. Available

What are the steps in the Marketing Research Process?

1. Define problem 2. Set objectives 3. Develop and implement a research plan 4. Interpret and report findings

What are the four steps of The Marketing Research Process?

1. Defining the problem and research objectives 2. Developing the research plan for collection information. 3. Implementing the research plan--collecting and analyzing the data 4. Interpreting and reporting the findings.

What are the three objectives a marketing research project might have?

1. Exploratory Research 2. Descriptive Research 3. Causal Research

Exploratory research ___1____. Also, it is ____2____.

1. Helps to define problems and suggest hypotheses 2. Used to gather preliminary information

What are the two forms of personal interviewing?

1. Individual interviewing 2. Group interviewing

What are the three places Marketers can obtain the needed information?

1. Internal data 2. Marketing intelligence 3. Marketing research

What are the two major public policy and ethics issues in marketing research?

1. Intrusions on consumer privacy 2. Misuse of research findings

what are the Contact Methods for gathering primary data?

1. Mail, Telephone, and Personal Interviewing 2. Online Marketing Research

In collecting primary data, what are the two main research instruments?

1. Questionnaires 2. Mechanical Devices

What are the three factors that marketers have to make a decision on?

1. Research Approaches 2. Contact Methods 3. Research Instruments

What are the three decisions that are required for Designing a Sample?

1. Who is to be studied (what sampling unit)? 2. How many people should be included (what sample size)? 3. How should the people in the sample be chosen (what sampling procedure)?

Defien Sample

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

Define Ethnographic Research

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

True or False: Group Interviewing consists of inviting six to ten people to meet with a trained moderator to talk about a product, service, or organization.

True

Define Online Marketing Research

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

What are the benefits of Customer Relationship Management (CRM)?

Companies better understand customers, provide high levels of customer service, develop deeper customer relationships, pinpoint high-value customers, target customer more effectively, cross-sell the company's products, and create offers tailored to specific customer requirements.

Define Survey Research

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

What is the hardest step in the research process?

Defining the problem and research objectives

What is the definition and purpose of Secondary data?

Definition: Information that already exists Purpose: Collected for another purpose.

Define Internal databases

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

Define Simple Random Sample

Every member of the population has a known and equal chance of selection.

What is the major advantage of Survey Research?

Flexibility

Define Customer Insights

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

Define 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 insights about consumer attitudes and behavior.

Define 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.

Define Primary Data

Information collected for the specific purpose at hand.

True or False: Increasing consumer privacy concerns have become a major problem for marketing research industry.

True

What is a Data Warehouse

Its a company-wide electronic database of finely detailed customer information that needs to be sifted through for gems.

Define Customer Relationship Management (CRM)

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

Define Social targeting

Mines individual online social connections and conversations from social networking sites

Define Netnography Research

Observing customers in a natural context on the internet.

True or False: Individual interviewing involves talking with people in their homes or offices, on the street, or in shopping malls.

True

What is a well suited qualitative internet-based research approach?

Online focus groups

Define Marketing Information System (MIS)

People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.

Define Focus Group Interviewing

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

What is Big Data?

Refers to the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies.

Define Immersion Groups

Small groups of consumers who interact directly and informally with product designers without a focus group moderator.

LO 4-5 (Summary and Review) 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 to major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings.

True or False: International researchers follow the same steps as domestic researchers, from defining the research problem and developing a research plan to interpreting and reporting the results.

True

True or False: Internet Search Engines can also be a big help in locating relevant secondary information sources.

True

LO 4-2 (Summary and Review) 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 assess 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 needs to be adapted for marketing decisions. Marketing intelligence activities supply everyday information analysis. To analyze individual customer data, many companies have no acquired or developed special software and analysis techniques called Customer Relationship Management (CRM)--that integrate, analyze and apply the mountains of individual customer data contained in their databases. Marketing information has no value until it is used to make better marketing decisions. This, 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 nonroutine 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.

LO 4-1 (Summary and Review) 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 sound information to produce superior value and satisfaction 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 by also as an important strategic asset and marketing tool.

Define Stratified random sample

The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.

Define Cluster (area) sample

The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.

Define Quota Sample

The researcher finds and interviews a prescribed number of people in each of several categories.

Define Convenience sample

The researcher selects the easiest population members from which to obtain information.

Define Judgement Sample

The researcher uses his or her judgment to select population members who are good prospects for accurate information.

Define Competitive Marketing Intelligence

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

Define Marketing Research

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

What is the most common Customer Relationship Management Mistake (CRM)?

To view CRM as a technology and software solution only.

True or False: When probability sampling costs too much or takes too much time, marketing researchers take nonprobability samples, even though their sampling error cannot be measured. The best method to use depends on the needs of the research project.

True

True or False: Along with observational research, Focus group interviewing has become one of the major qualitative marketing research tools for gaining fresh insights into consumer thoughts and feelings.

True

True or False: Although customer and market insights are important for building customer value and relationships, these insights can be very difficult to obtain.

True

True or False: CRM consists of sophisticated software and analytical tools from companies such as Oracle, Microsoft, Salesforce.com, and SAS that integrate customer information from all sources, analyze it in depth and apply the results to build stronger customer relationships.

True

True or False: CRM is just one part of an effective overall customer relationship management strategy.

True

True or False: Closed-ended questions provide answers that are easier to interpret and tabulate.

True

True or False: Customer insights groups collect customer and market information from a wide variety of sources, ranging from traditional marketing research studies to mingligh with and observing consumers to monitoring consumer online conversations about the company and its products.They use this information to develop important customer insights from which the company can create more value for its customers.

True

True or False: Managers and researchers must work together closely when interpreting research results, and both must share responsibility of the research process and resulting decisions.

True

True or False: Many companies have even appointed Chief Listening Officers, who are charged with sifting through online customer conversations and passing along key insights to marketing decision makers.

True

True or False: Marketers don't need more information; they need better information

True

True or False: Marketing information has no value until it is used to gain customer insights and make better marketing decisions.

True

True or False: Most companies are awash in information about their customers. In fact, smart companies capture information at ever possible customer touch point. These touch points include customer purchases, sales force contacts, service and support calls, web site visits, satisfaction surveys, credit and payment interactions, market research studies--every contact between a customer and a company.

True

True or False: Most marketing research benefits both the sponsoring company and its consumers.

True

True or False: Obtaining, analyzing, storing, and delivering information is costly. Firms must decide whether the value of the insight is worth the cost.

True

True or False: Once the data warehouse brings the data together, the company uses high-powered data mining techniques tro sift through the mounds of data and dig out interesting findings about customers. These findings often lead to marketing opportunities.

True

True or False: Open-end questions are especially useful in exploratory research, when the research is trying to find out what people think but is not measuring how many people think in a certain way.

True

True or False: Researchers should also use care in the wording and ordering of questions. They should use simple, direct, and unbiased wording.

True

True or False: Researchers should not overwhelm managers with numbers and fancy statistical techniques. Rather, the researcher should present important findings and insights that are useful in the major decisions faced by management.

True

True or False: Responsibilities of the market researcher: are to Interpret the findings,Draw conclusions, and Report findings to management. Also Responsibilities of managers and researchers are: -Work together closely when interpreting research results -Share responsibility for the research process and resulting decisions

True

True or False: Small businesses and not-for-profit organizations can obtain good marketing insights through observation or informal surveys using small convenience samples.

True

True or False: TO meet the manager's information needs, the research plan can call for gathering secondary data, primary data, or both.

True

True or False: Telephone interviewing is one of the best methods for gathering information quickly, and it provides greater flexibility than mail questionnaires.

True

True or False: The MIS must monitor the marketing environment to provide decision makers with information they should have to better understand customers and make key marketing decisions.

True

True or False: The marketing information system primarily serves the company's marketing and other managers. However, it may also provide information to external partners, such as suppliers, resellers, or marketing services agencies.

True

True or False: The proposal should cover the management problems addressed, the research objectives, the information to be obtained, how the results will help management's decision-making, and estimated research costs.

True

True or False: The research must evaluate secondary information carefully to make certain it is relevant (fits the project's needs), accurate (reliably collected and reported), current (up-to-date enough for current decisions), and impartial (objectively collected and reported.)

True

True or False: The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data.

True

True or False: The research plan should be presented in a written proposal.

True

True or False:Both quantitative and qualitative Internet-based research have some drawbacks. One major problem is controlling who's in the online sample. To overcome such sample and context problems, many online research firms use opt-in communities and respondent panels. Alternatively, many companies are now developing their own custom social networks and using them to gain customer inputs and insights.

True

True or False:Most market managers are overloaded with data and often overwhelmed by it.

True

True or False:The marketing information system must make the information readily available to managers and others who need it. In some cases, this means providing managers with regular performance reports, intelligence updates, and reports on the result of research studies.

True

True or False; Marketing Research gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or measure the effectiveness of pricing product distribution, and promotion activities

True

What does Descriptive Research do?

Used to better describe the market potential for a product or the demographics and attitudes of consumers

What does Causal Research do?

Used to test hypotheses about cause-and-effect relationships