Chapter 4: Managing Marketing Information to Gain Customer Insights - Jaden B

How does one Develop a Research Plan?

Once the researchers have defined the problem and outlined their objectives, they must determine what information is needed. 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.

What is the difference between Market managers and Market researches?

The market manager best understands the decision for which information is needed. The market researcher best understands marketing research and how to obtain the information.

From the Domino's Story, what must good marketers use?

They must gather information as a marketer in order to gain powerful customer and marketing insights.

How are Marketers generating so much marketing information in great quantities?

Through e-mail, text messaging, Facebook, and Twitter.

How does USAA use Internal Databases?

- They market via telephone, the Internet, and mobile channels to U.S. military personnel as an insurance company. - They collect purchasing history, customer surveys, transaction data, browsing history on its own websites, customers looking toward retirement

What is the objective of Casual Research? (1st Step of Marketing Research Process)

Casual Research is to test hypotheses about cause-and-effect relationships. Ex. Would a 10% decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition.

What is Competitive Marketing Intelligence?

Competitive Marketing Intelligence: The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. Goal/Objective: Improve strategic decision making; assessing and tracking competitor action's; providing early warnings of opportunities and threats. Chief Listening Officers: Sift through online conversations to find key insights to marketing decision makers. Ex: Dell's Listening Czar.

What are Customer Insights?

Customer Insights are fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.

What does a good MIS System look like?

It balances the information marketing mangers/others would like to have against what they really need and what is feasible to offer.-- Too much information can be as harmful as too little. Thus, managers must know about surges in consumer discussions.-- The problem: The problem isn't finding information, but finding the right information to turn it into customer insights. Ex. Walmart's Retail Link provides suppliers information on everything from customer's buying patterns and store inventory levels.

How do Researches start by gathering Secondary Data?

The company's internal database provides a good starting point. Or, go to outside suppliers such as Nielsen which sells shopper insight data from a consumer panel of more than 250k households. Or, go to commercial online databases, marketing researchers can conduct their own searches of secondary data sources. Or, go to Internet search engines which can locate relevant secondary information sources.

How did Domino's turn around their business?

They did marketing research to understand what customers thought and wanted. They used social media channels as insight as to what Domino could do better. Domino's launched a $75 million "Pizza Turnaround" promotion campaign to showcase how they used research itself to reformulate their product. They took a risk by showcasing disgusting ads for their pizza, but proved their were listening to their complaints and were ready for change.

What is the Marketing Information System?

1. Marketing Managers/Information USers - Obtain customer and market insights from info 2. MIS: Assesses and Uses the Information - Connects it to Internal Databases; Marketing Intelligence; Marketing Research 3. Marketing Environment - Takes the info from the MIS and shows how it relates to Target Markets, Marketing Channels, Competitors, Publics, and Macroenvironment Forces

What is the objective of Descriptive Research? (1st Step of Marketing Research Process)

Descriptive Research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.

What is the first step to gain Marketing Information and Customer Insights?

Find deep insights into what customers need and want. Ex. Apple didn't first develop the music player, but competition over mp3 players revealed what customers needed and wanted.

What is the Marketing Research Process like?

1. Defining the problem and research objective 2. Develop plan for collecting information 3. Implementing the research plan which then collects and analyzes the data 4. Interpret and report the findings.

Sampling Plan for gathering Primary Data involve:

A sample is a segment of the population selected for marketing research to represent the population as a whole. - 3x Requirements: Sampling Unit (Who) How Many (Sample Size) Sampling Procedure (How Chosen).

A research plan should be presented in a ______________?

A written proposal which is important when the research project is complex. - Covers the management problems, the research objectives, the information to be obtained, how the results will help management's decision making. This could call for Primary or Secondary data.

Contact Methods for gathering Primary Data involve:

Contact Methods - Information can be collected by mail, telephone, personal interview, or online. Maile, Telephone, and Personal Interviewing: Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Telephone Interviewing: One of the best methods for gathering information quickly, and it provides greater flexibility than mail questionnaires. Personal Interviewing: Individual interviewing and group interviewing. It involves talking with people in their homes or offices, on the street, or in shopping malls. It's flexible. Group Interviewing: Consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization. Participants normally are paid a small sum for attending. Ex: Focus Group Interviewing: Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewing "focuses" the group discussion on important issues. Immersion Groups: Small groups of consumers who interact directly and informally with product designers without a focus group moderator present. Online Marketing Research - Internet surveys, online panels, experiments, and online focus groups and brand communities. -- Quantitative Research: Conducting marketing surveys and collecting data. -- Qualitative Research: Internet-based research using online focus groups, blogs, and social networks. A primary qualitative Internet-based research. ---- Focus Vision's InterVu service lets focus group participants at remote locations see each other in real-time. Drawbacks: Controlling who's in the online sample (knowing who they really are).

What are the groups that collect Customer Insights called?

Customer Insight Teams. - Coca-Cola's marketing research group - Unilever, marketing research is done by the Consumer and Market Insight division -- They collecti from traditional marketing studies and online consumer conversations.

What are customer and market insights hard to obtian?

Customer needs and buying motives are not always crystal clear, but rather a complex collection of reasons.

What is the rule of thumb Researchers that gather Secondary Data must do?

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

How does PepsiCo and Samsung use Competitive Marketing Intelligence?

Ex: PepsiCo's Gatorade brand created a control center to monitor real-time brand-related social media activity. Ex. Samsung used intelligence from real-time monitoring of social media activity to introduce its Galaxy S smartphone in order to compete with Apple's new iPhone 5.

What is Exploratory Research? (1st Step of Marketing Research Process)

Exploratory Research is to gather preliminary information that will help define the problem and suggest hypotheses.

What are Internal Databases?

Internal Databases: They are electronic collections of consumer and market information obtained from data sources within the company's network. -- Based upon customer characteristics, sales transactions, and Web site visits. Customer Service Department provides: Customer satisfaction/service problem data Accounting Department provides: records of sales, costs, cash flow Operation Reports: Production, Shipments, and Inventory Sales Force Reports: Reseller reactions and competitor activities, and marketing channel data on point-of-sale transactions. Pros: Accessed quickly and cheaply to see info.Cons: It may be incomplete; in the wrong form; outdated; it requires lots of equipment and techniques.

What is Marketing Research?

Marketing Research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

What is a marketing information system (MIS)?

Marketing information system consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. - MIS interacts with information users to collect information and develops needed information through internal databases and finally analyzes the data and uses it to develop customer insights.

Why don't marketers need more information?

Pepsi, as an example, receives 6 million public conversations a day but there's no way they can assess and digest all of that information. Thus, they need need better information, not more information. And they need to make better use of the information they already have.

What is Primary Data?

Primary Data consist of information collected for the specific purpose at hand.

Primary data collection calls for: ______?

Research Approaches, Contact Methods, and Sampling Plan, and Research Instruments.

Research approaches for gathering primary data involves:

Research Approaches: - Observations, Surveys, and Experiments Observational Research: Gathering primary data by observing relevant people, actions, and situations. Ex. Trader Joe's evaluates new possible store locations by checking traffic patterns, neighborhood conditions, and locations of competing stores. Ex: Ethnographic Research involves sending observers to watch and interact with consumers in their "natural environments." Ex. Netnography research observing consumers in a natural context on the Internet. Survey Research - The most widely used method for primary data collection, is the approach best suited for gathering descriptive information. Ex. A company that wants to know about people's knowledge, attitudes, preferences, or buying behavior can often find out by asking them directly. Ex. Although it is flexible, people are unable to answer survey questions because they cannot remember or have never thought about what they do and why they do it. Experimental Research - Experimental research is best suited for gathering casual information. Experiments involve selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for differences in group responses. Ex. McDonald's might use experiments to test the effects on sales of two different prices it might charge.

What is Secondary Data?

Secondary Data consist of information that already exists somewhere, having been collected for another purpose.