MKTG 3110 Chapter 8

Traditional STRUCTURED DATA

such as the transaction data in financial systems and other business applications, conforms to a rigid format to ensure consistency in processing and analyzing it.

Telemetry

the wireless transmission and receipt of data gathered from remote sensors

Charts and graphs Strengths

allowing high and low points to be seen at a glance. A line or bar graph or a pie chart will be the best choice in different circumstances. If data points are too close together, more space can be assigned to sharpen the picture.

Tables Strengths

allowing quantities of data to be summarized succinctly, provided that good column heads and row stubs have been selected. Data can be presented in detail —e.g., to the nearest penny or percentage point.

Secondary Data Advantages

already exists & low cost

Table Weaknesses

are overwhelming the reader with large quantities of data, in which key points can be lost. Even an experienced interpreter may need time to tease out the critical information from a table of data.

surveys of buyers intentions forecast

asking prospective customers if they are likely to buy the product during some future time period

ethnographic research

trained observers endeavor to discover subtle behavioral and emotional reactions as consumers use products in their natural environments, like homes/cars. Personal observation is useful but expensive; being very specific is useful but limiting.

What is the best known statistical method of forecasting?

trend Extrapolation

Marketing research can help...

understand customer satisfaction & purchase behavior, assess market potential & market share, & measure the effectiveness of pricing, product, distribution and promotion activities.

linear trend extrapolation

when the pattern is described with a straight line

Step 1: Define the Problem

• Identify a problem that exists. • Determine the root cause. • Gather information. •Set research objectives •Identify possible marketing actions

How do you make a lost horse forecast?

begin with the last known value of the item being forecast, list the factors that could affect the forecast, assess whether they have a positive or negative impact, and then make the final forecast.

Big Data + Analytics=

businesses make smarter decisions + improve productivity + make better predictions

Disadvantages of secondary data relative to primary data

- The data may be out of date, especially for U.S. Census data - The definitions or categories might not be quite right for the project - Because the data were collected for another purpose, they may not be specific enough for the project.

Advantages of secondary data relative to primary data

- There is a tremendous timesaving if the data are already collected and published - The cost is typically low or even free - There may be a greater level of detail, especially for U.S. Census data.

Step 5: Take Marketing Actions

- make action recommendations - implement action recommendations - evaluate the results

Earned Social Media

-Conversations everywhere else -What people are saying ABOUT you -Engaged audiences

Owned Social Media

-Conversations on social media you control -What people are saying TO you -Fans/Critics

Unstructured Data (examples)

-Email -Text files and documents -Server, website and application logs -Sensor data -Images -Video Files -Audio files -Emails -Social Media data

Types of Secondary Data

-Internal Data -External Data

Develop Findings: Analyze the data

-Interpret results -Draw conclusions

Types of Questionnaire

-Interviews -Questionnaires -Open-ended questions -Closed questions -Dichotomous (binary) Questions -Likert Scale Questions

Develop findings: Present Findings

-Keep it simple(K.I.S.S.) -Keep it objective -Offer different interpretations where relevant

Common Problems with wording of questions

-Leading Question -Ambiguous question -Unanswerable question -Two questions in one -Nonmutually exclusive answers

Types of Primary Data

-Observational Data -Questionnaire Data -Other sources

Types of marketing information/Data

-Primary Data -Secondary Data

Issues in Social Media Mining

-Privacy Concerns -Anonymized data -Geo-location options -Customer Lifetime Value (CLV)

Future challenges associated with BIG DATA:

-Shortage of talent with analytical skills -Privacy, security, intellectual property, liability

Specify Constraints

-Time -Money

External Data outside the Organization

-US Census reports -trade association studies, magazines, web sites -Syndicated panel data -Scanner data

Step 4: Develop Findings

-analyze the data -present the findings

Internal Data inside the Organization

-financial statements -research reports -records -customer correspondence -sales call reports -customer records -customer inquiries/complaints

Step 3: Collect Relevant Information

-obtain secondary data -obtain primary data

Step 2: Develop the Research Plan

-specify constraints -identify data needed for marketing actions -determine how to collect data

surveys of knowledgeable groups

-survey of buyers intentions forecast -salesforce survey forecast

How Big Data creates value

1. BIG DATA can make information transparent & usable at much higher frequency. 2. As organizations create & store more data digitally, they can collect more accurate & detailed performance information, to boost performance. 3. BIG DATA enables finer segmentation of markets and better tailoring of products & services. 4. Sophisticated analytics can improve decision-making. 5. Development of next-generation products & services can be improved.

5 steps of marketing research process

1. Define the problem 2. Develop the research plan 3. Collect relevant information 4. Develop findings 5. Take marketing actions

What are the 3 sales forecasting techniques?

1. Judgments of the decision maker who acts on the result of a sales forecast; 2. Surveys of knowledgeable groups, those who are likely to know something about future sales; 3. statistical methods such as trend extrapolation, which involves extending a pattern observed in past data into the future

How is Social Media used in Market Research?

1. Track trends with social media for real-time insights. 2. Improve marketing communication by learning the language used by customers. 3. Use real-time advantages of social media research to short-cut feedback about marketing effectiveness. 4. Social media can broaden the scope of market research. 5. Discover unnoticed trends & insights by engaging rather than than leading. 6. Improve cost efficiency

The 3 Main forecasting techniques used

1. judgement of the decision maker 2. Surveys of knowledgeable groups 3. statistical methods

Importance of Earned Social

70% of brand conversation takes place on earned channels Earned audiences more fully reflect the Voice of the Customer Earned social is 40% more likely to spur consumers to action than owned (Twitter)

Big Data

Collection of huge, complex data sets

BIG DATA=

Competitive Advantage

Questionnaire Data

Data from people's responses about attitudes, awareness, intentions, behaviors

Structured Data

Data is highly organized, mechanized, manageable information

The format in which information is presented is often vital. If you were a marketing manager and queried your information system, would you rather see the results in tables or charts and graphs?

Delivering the results in "pictures" (charts and graphs) and in a single page if possible helps the marketing manager to see results more quickly.

Descriptive Research

Describe market potential or demographics of consumers

Analytics

Discovery and interpretation of meaningful patterns in data

Two Questions in One (Example)

Do you eat Wendy's hamburgers and chili? []Yes []No Problem with question: How do you answer if you eat Wendy's hamburgers but not chili?

Ambiguous Question (Example)

Do you eat fast-food restaurants regularly []Yes []No Problem with question: What is meant by word regularly- once a day, once a month, or what?

Take Marketing Actions

Effective marketing research will be translated into marketing actions, which in turn will be implemented, and finally evaluated -analytical models for sensitivity analysis(what ifs) -evaluate decision -evaluate decision process

Primary Data Disadvantage

Expensive & time consuming

Likert Scale Questions

Extent Agree/Disagree

Social Media: Privacy Concerns (example)

Facebook etc. make most money from selling advertisements

Primary Data

Facts and figures collected specifically for this project

Secondary Data

Facts and figures that have been collected and recorded before the current project, and usually by other parties -Can be internal or external

Closed Questions

Fixed choices

Dichotomous Questions (Example)

Have you eaten at a fast-food restaurant in the past month? []Yes []No

Attitudinal Question (Example)

How important is it to you that a fast food restaurant satisfies you on the following characteristics? (check the box that describes your feelings) Taste of Food: []Very Important []Somewhat Important []Important []Unimportant []Somewhat Unimportant []Very Unimportant

Closed Question (example)

If you answered yes to question 2, how often do you eat fast food []2-3 times a week []Once a week []2-3 times a month []Once a month or less

What are constraints, as they apply to developing a research plan?

In a decision are the restrictions placed on potential solutions to a problem, such as time and money. These set the parameters for the research plan---due dates, budget, etc.

Interviews

Individual; in depth; focus group

Identify DATA needed (example)

It might be nice to know children's favorite colors, if they prefer wood or plastic material, but rather focus on main problem, i.e. which DESIGN?

Which of the following variables would linear trend extrapolation be more accurate for? (a) Annual population of the United States or (b) annual sales of cars produced in the United States by Ford. Why?

Linear trend extrapolation would be more useful for projecting annual population of the U.S. rather than annual sales of cars produced by Ford because past population trends are more likely to continue into the future than are new car sales.

Analytics helps organizations do what?

Make better decisions using insights from volume & variety of BIG DATA

mechanical methods of primary data/ watching people

Nielsen people meter, Nielsen tv ratings

In evaluating marketing actions, what are the two dimensions on which they should be evaluated?

There are two aspects marketers use to evaluate the results of marketing actions 1. Evaluate the decision itself, which involves monitoring the marketplace to determine if action is necessary in the future, and 2. Evaluate the decision process used to determine a. whether the marketing research and analysis used to develop the recommendations were effective or flawed in some way and b. whether the process could be improved for similar situations in the future

semantic differential scale

a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings

cross-tabulation

a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions

Secondary Data Facts and Figures

data already recorded inside or outside the company

Primary Data Advantages

data can be customized

Big Data is

difficult to capture, archive, manage & process using traditional tools & methods of analysis

Types of Research

exploratory descriptive causal

Trend Extrapolation

extending a pattern observed in past data into the future

Exploratory Research

helps define problem and suggest hypothesis

Casual Research

how change in one factor causes change in another factor

Unstructured Data

information, in many different forms, that doesn't conform to conventional data models and thus typically isn't a good fit for a mainstream relational database. Social media is a common and rich source of unstructured data.

salesforce survey forecast

involves asking the firm's salespeople to estimate sales during a forthcoming period

direct forecast

involves estimating the value to be forecast without any intervening steps

lost-horse forecast

involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast

Charts and graphs weaknesses

lack of precision and backup detail

Marketing Research

process of defining a marketing problem and opportunity, then systematically collecting and analyzing information, and recommending actions.

Open-Ended Questions

questions that allow respondents to answer however they want -Collect ideas -Opinions

Sales Forecasting

refers to the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts

What are some advantages and disadvantages of secondary data

Advantages of secondary data are the time saving, the low cost, and the greater level of detail that may be available Disadvantages of secondary data are the the data may be out of date, unspecified, or have definitions, categories, or age groupings that are wrong for the project

Hotel Chain Uses Big Data to Increase Bookings

Bad weather reduces travel, which then reduces overnight lodging. That's not good news if you're in the hotel business. However, Red Roof Inn turned this trend on its head. The hotel chain recognized that cancelled flights leave travelers in a bind and in need of a place to sleep overnight. The company sourced freely available weather and flight cancellation information, organized by combinations of hotel and airport locations, and built an algorithm which factored weather severity, travel conditions, time of the day and cancellation rates by airport and airline among other variables. With its big data insights, and recognition that travelers will be using mobile devices for this use case, the company used Search, PPC and SoLoMo mobile campaigns to deliver targeted mobile ads to stranded travelers and make it easy for them to book a nearby hotel. This big data payback is compelling. Flight cancellations average 1-3% daily, which translates into 150 to 500 cancelled flights or around 25,000 to 90,000 stranded passengers each day. With its big data and geo-based mobile marketing campaigns Red Roof Inn achieved a 10% business increase from 2013 to 2014.

Does Big Data use structured and/or unstructured data

Both structured and unstructured data

How to overcome the weaknesses and benefit from the strengths of each format.

By combining tables, charts, and graphs

Nielsen Total Audience Report contrasts radio and TV for news consumption

Nielsen's Total Audience Report for Q4 2016 (4th quarter of 2016) placed a focus on news. The results showed how much of a role radio plays in news consumption for U.S. adults. The weekly gross amount news consumption on radio in PPM markets rose from 10.5 billion minutes in 2015 to 11.5 billion minutes in 2016. Radio trailed behind all three television outlets, with national cable TV news leading at 27.1 billion minutes in 2016. Local broadcast TV news in LPM markets secured 15.1 billion minutes while national broadcast TV news had 14.3 billion minutes.

Secondary Data Disadvantages

Out of date; categories can be 'off' for project

What does a Marketing Information System consist of?

People, equipment and procedures to gather, sort, analyze, evaluate and distribute useful and accurate information to marketing decision makers in a timely manner

What types of servery provides the greatest flexibility for asking problem questions: mail, telephone, or personal interview?

Personal Interview

Measure of Success (Example) Children spent more time playing with the old design

Possible Marketing Actions: Continue old design; don't introduce new design

Measure of Success (Example) Children spent more time playing with new design

Possible Marketing Actions: Introduce new design; drop old design

Social Media: Customer Lifetime Value (CLV)

Relationship Management example: Airline passengers prioritization

Syndicated Panel Data

Requires consistent data collection over time, usually using electronic diary Ex. Nielsen Media, JD Power & Associates

What is the difference between secondary and primary data?

Secondary data are facts and figures that have already been recorded prior to the project at hand, whereas primary data are facts and figure that are newly collected for the project

Research Objectives

Specific measurable goals of marketing research

Primary Data Facts and Figures

Specifically collected for this project

What is the hardest step in the 5-step marketing research approach

Step 1: Define the Problem

Big Data (example)

Target's pregnancy prediction model -revenues grew from $44 billion (2002) to $67 billion (2010) -Guest ID number is linked to demographic info. -predictive analytics department -major life event leads to flexible shopping habits -predictable -potential gold mine for retailers

Neuromarketing methods

Using Brain scanning to analyze consumer reports

Nielsen Media Research obtains ratings of local TV stations in small markets byhaving households fill out diary questionnaires. These give information on (a) who is watching TV and (b) what program. What are the limitations of this questionnaire method?

Using diaries to record television viewing habits has problems because most people don't keep a continuous record of the television programs they have watched but instead wait until the end of several days or a week and then try to reconstruct their viewing behavior. This usually results in serious errors. In addition, the adult who records the family viewing may miss many of the programs watched by younger children or members of the family who are watching TV when the adult is not present.

Big Data Issues

Volume (increasing amount of data) Velocity (speed of data in and out) Variety (range of data types and sources) Veracity (accuracy)

Nonmutually Exclusive Answers (Example)

What is your age? []Under 20 []20-40 []40 and over Problem with question: What answer does a 40-year-old check?

Open-Ended Question (example)

What things are most important to you when you decide to eat out and go to a fast-food restaurant?

Unanswerable Question (Example)

What was the occasion for eating your first hamburger? Problem with question: Who can remember the answer? does it matter?

Social Media: Geo-location options

Where are you posting from -filter by location -20% of data is geo-located now

Leading Question (Example)

Why do you like Wendy fresh meat hamburgers better than those of competitors? Problem with question: Consumer is led to make statement favoring Wendy's hamburgers

Casual Research (Example)

Would a 10% reduction in tuition at a private college boost enrollment enough to offset the reduced tuition?

Dichotomous (binary) questions

Yes/No