LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:
Identify the reason for conducting marketing research.
Identify the reason for conducting marketing research.
Explain how marketing uses secondary and primary data.
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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Identify the reason for conducting marketing research.LO1Describe the five-step marketing research approach that leads to marketing actions.Explain how marketing uses secondary and primary data.LO3LO2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.Explain how information technology and data mining lead to marketing actions.LO4LO5LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:Describe three approaches to developing a company’s sales forecast.LO6What’s in aMovie Name?The Risks of Today’s (and Tomorrow’s) Blockbuster MoviesConduct TestScreeningsUse TrackingStudiesHOW TEST SCREENINGS ANDTRACKING STUDIES REDUCE MOVIE RISKSFIGURE 8-A Marketing research questions asked in test screenings of movies that lead to specific actionsConverting Marketing Research Results into ActionsHOW TEST SCREENINGS ANDTRACKING STUDIES REDUCE MOVIE RISKSThe Challenges in Doing Good Marketing ResearchFive-Step Marketing Research ApproachTHE ROLE OF MARKETING RESEARCHLO1What is Marketing Research?DecisionDecision MakingFIGURE 8-1 Five-step marketing research approach leading to marketing actionsSTEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVESLO2Be Specific, Measurable, and AchievableHave a ClearResearch PurposeMust Lead to Marketing ActionsSTEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVESLO2Exploratory ResearchDescriptive ResearchCausal ResearchSTEP 1: DEFINE THE PROBLEMIDENTIFY POSSIBLE MARKETING ACTIONSLO2Measures of SuccessPossible Marketing ActionsMeasure of Success: PlaytimeChildren Spent More TimePlaying with Old DesignChildren Spent More TimePlaying with New DesignContinue with Old Design;Don’t Introduce New DesignIntroduce New Design;Drop Old DesignSTEP 2: DEVELOPTHE RESEARCH PLANLO2Specify ConstraintsIdentify Data Neededfor Marketing ActionsSTEP 2: DEVELOP THE RESEARCH PLANDETERMINE HOW TO COLLECT DATALO2ConceptsMethodsNew-Product ConceptSamplingStatistical InferenceSTEP 3: COLLECT RELEVANT INFORMATION/DATALO3DataSecondary DataPrimary DataFIGURE 8-2 Types of marketing informationSTEP 3: COLLECT RELEVANT INFO/DATASECONDARY DATALO3InternalMarketing Input DataMarketing Outcome DataSTEP 3: COLLECT RELEVANT INFO/DATASECONDARY DATALO3ExternalCensus BureauTrade AssociationsBusiness PeriodicalsU. S.2010CensusAmericanCommunitySurveySTEP 3: COLLECT RELEVANT INFO/DATASECONDARY DATALO3ExternalSyndicated Panel DataScanner DataStatistical &Financial DataPortals &SearchEnginesWall StreetJournalCNBCInvestorsBusinessDailyFox BusinessNewsGoogleUSA.govSTAT-USACensusBureauMARKETING MATTERSOnline Databases and Internet ResourcesUseful to MarketersLO3STEP 3: COLLECT RELEVANT INFO/DATA+/– OF SECONDARY DATALO3AdvantagesTime SavingsInexpensiveOut of DateDefinitions/Categories Not RightDisadvantagesNot Specific EnoughSTEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—WATCHING PEOPLELO4Observational DataNielsen’s People MeterMechanical MethodsNielsen’s TV RatingsFIGURE 8-3 Nielsen Television Index Ranking Report for network primetime households: Week of May 16-22, 2011 FIGURE 8-B Nielsen Online Ratings for the top 10 Internet brands for August 2011 STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—WATCHING PEOPLELO4Personal MethodsMystery ShopperVideotapingEthnographic ResearchMARKETING MATTERSBuy•ology: How “Neuromarketing”is Trying to Understand ConsumersLO4NeuromarketingMethodsWhat is it?Why is itImportant?STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—ASKING PEOPLELO4Questionnaire DataIndividual InterviewsIdea Generation MethodsDepth InterviewsSTEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—ASKING PEOPLELO4Focus GroupsIdea Generation Methods“Fuzzy Front End” Ex: Trend HuntingSTEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—ASKING PEOPLELO4PersonalInterviewSurveysMail/FaxSurveysTelephoneSurveysIdea Evaluation MethodsOnline(E-Mail/Internet)SurveysMall Intercept Interview SurveysFIGURE 8-C Comparison of types of surveysSTEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—QUESTION FORMATSLO4Open-Ended QuestionsClosed-End or Fixed Alternative QuestionsDichotomous QuestionsSemantic Differential QuestionsLikert Scale QuestionsFIGURE 8-4A Different types of questions in a sample Wendy’s survey (Q1-Q5) FIGURE 8-4A (Q1) Sample Wendy’s survey: Open-ended question FIGURE 8-4A (Q2) Sample Wendy’s survey: Dichotomous question FIGURE 8-4A (Q3) Sample Wendy’s survey: Multiple choice question FIGURE 8-4A (Q4) Sample Wendy’s survey: Attitudinal question FIGURE 8-4A (Q5) Sample Wendy’s survey: Semantic differential scale question FIGURE 8-4B Different types of questions in a sample Wendy’s survey (Q6-Q9) FIGURE 8-4B (Q6) Sample Wendy’s survey: Likert scale question FIGURE 8-4B (Q7) Sample Wendy’s survey: Media behavior question FIGURE 8-4B (Q8) Sample Wendy’s survey: Usage behavior question FIGURE 8-4B (Q9) Sample Wendy’s survey: Demographic questions FIGURE 8-D Typical problems when wording questionsSTEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—OTHER SOURCESLO4Social MediaUSING MARKETING DASHBOARDSAre Carmex Social Media Programs Working Well?Conversation Velocity, Share of Voice, and SentimentLO4STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—OTHER SOURCESLO4ExperimentsIndependent Variable:The Cause (Drivers)Dependent Variable:The ResultTest MarketsPanelsFIGURE 8-E Sales drivers: factors that influence product or brand sales and are essential for effective marketing programs STEP 3: COLLECT RELEVANT INFO/DATAPRIMARY DATA—OTHER SOURCESLO4Information TechnologySensitivity AnalysisData WarehouseData MiningRFID TechnologyFIGURE 8-5 How marketing researchers and managers use information technology to turn information into action MAKING RESPONSIBLE DECISIONSNo More Personal Secrets:The Downside of Data MiningLO4Ghostery.comSTEP 3: COLLECT RELEVANT INFO/DATA+/– OF PRIMARY DATALO4AdvantageExpensiveTime Consuming to CollectDisadvantagesMore Specific to the ProblemSTEP 4: DEVELOP FINDINGSLO5Present the FindingsAnalyze the DataHow are Sales?What FactorsContribute toSales Trends?FIGURE 8-6 Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendationsand actions FIGURE 8-6A Findings presented to Tony’s marketing managerFIGURE 8-6B Findings presented to Tony’s marketing managerFIGURE 8-6C Findings presented to Tony’s marketing managerFIGURE 8-6D Findings presented to Tony’s marketing managerSTEP 5: TAKE MARKETING ACTIONSLO5Evaluate the ResultsMake Action RecommendationsImplement the Action RecommendationsThe Decision Process UsedThe Decision ItselfSALES FORECASTING TECHNIQUESLO6Sales ForecastJudgments of the Decision MakerSurveys of Knowledgeable GroupsDirect ForecastLost-Horse ForecastSalesforce Survey ForecastSurvey of Buyers’ Intentions ForecastSALES FORECASTING TECHNIQUESLO6Statistical MethodsTrend ExtrapolationLinear Trend ExtrapolationFIGURE 8-7 Linear trend extrapolation of sales revenues at Xerox (made at the startof 2000)FIGURE 8-F Top-down forecast: Survey of Buying Power FIGURE 8-G Build-up forecast: Apple’s four major product linesCARMEX: LEVERAGING FACEBOOK FOR MARKETING RESEARCHVIDEO CASE 8VIDEO CASE 8CARMEX1. What are the advantages and disadvantages for the Carmex marketing team in collecting data to narrow the flavor choices from three to two using (a) an online survey of a cross-section of Internet households or (b) an online survey of Carmex Facebook likers?VIDEO CASE 8CARMEX2. (a) On a Facebook brand page, what are “engagement” and “likes” really measuring? (b) For Carmex, which is more important and why?VIDEO CASE 8CARMEX3. (a) What evokes consumers “engagement” on a brand page on Facebook? (b) What attracts consumers to “like” a brand page on Facebook?VIDEO CASE 8CARMEX4. (a) What are the advantages and disadvantages of using a fixed-alternative poll question on Facebook? (b) When do you think it would be better to use an open-ended question?VIDEO CASE 8CARMEXFigure 1Figure 2VIDEO CASE 8CARMEX5. (a) If you had a limited budget and two weeks to decide which two flavors to put into quantitative testing, would you choose a “poll only” or a “contest only” strategy? Why? (b) If you had a sizeable budget and two months to make the same decision, which scenario would you choose? Why?VIDEO CASE 8CARMEXFigure 3Marketing ResearchMarketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.Measures of SuccessMeasures of success are criteria or standards used in evaluating proposed solutions to the problem.ConstraintsConstraints are, in a decision,the restrictions placed onpotential solutions to a problem.DataData are the facts and figures related to the problem that are divided into two main parts: secondary data and primary data.Secondary DataSecondary data are the factsand figures that have already been recorded before the project at hand.Primary DataPrimary data are the factsand figures that are newly collected for the project.Observational DataObservational data are the factsand figures obtained by watching, either mechanically or in person, how people actually behave.Questionnaire DataQuestionnaire data are thefacts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.Information TechnologyInformation technology involves operating computer networks that can store and process data.Data MiningData mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.Sales ForecastA sales forecast consists of 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.