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L4 metrics bho1171

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L4 metrics bho1171

  1. 1. Marketing Metrics Lecture 4a Chapter 3 (Sharp, 2013)
  2. 2. BHO1171 – Session 4 Slide 2 Why marketers need metrics Are metrics meaningful? Marketing managers need measurement to assess and guide their marketing actions. Marketing metrics let managers know how the brand and business is performing; and marketing metrics can provide diagnostic information on how to improve things.
  3. 3. BHO1171 – Session 4 Slide 3 Why marketers need metrics
  4. 4. BHO1171 – Session 4 Slide 4 A system of marketing metrics Why measure market-based assets?  To understand and correctly evaluate the longer- term effects of marketing activity.  They are also needed to evaluate brand performance • Because some marketing activity may potentially erode these assets, and so erode future sales, while still generating acceptable sales and/or profits today.
  5. 5. BHO1171 – Session 4 Slide 5 A system of marketing metrics Marketing metrics describe: • Brands’ activities in the market; for example new product launches, price increases, changes in pack size, and so on • How the market is reacting to these changes; for example how buyers are buying, at what prices, and so on • How brand’s market-based assets are holding up Marketing Metrics give you a baseline  Which can be used to make checks and balances
  6. 6. BHO1171 – Session 4 Slide 6 Marketing Metrics Marketing Metrics Financial Metrics Memory Metrics Behavioural Metrics Customer Profile Metrics
  7. 7. BHO1171 – Session 4 Slide 7 Marketing Metrics Marketing Metrics Financial Metrics Memory Metrics Behavioural Metrics Customer Profile Metrics
  8. 8. BHO1171 – Session 4 Slide 8 Financial metrics Profit and profit contribution Profit margin Return on investment (ROI)  E.g. Eloqua 10 – Marketing Metrics Dashboards Customer value and customer lifetime value
  9. 9. BHO1171 – Session 4 Slide 9 Marketing Metrics Marketing Metrics Financial Metrics Memory Metrics Behavioural Metrics Customer Profile Metrics
  10. 10. BHO1171 – Session 4 Slide 10 Behavioural metrics  Sales  How many units did you sell?  Market share  Proportion of market using your brand  Market penetration  Proportion of products sold in category  Purchase frequency  How often do consumers buy your brand?  Share of category requirements (SCR)  Of an average consumer’s purchases in a time period, what proportion were for your brand?
  11. 11. BHO1171 – Session 4 Slide 11 Behavioural metrics
  12. 12. BHO1171 – Session 4 Slide 12 Behavioural metrics Solely (100%) loyal customers Defection rate Customer complaints and recommendations Some of this data can be gathered using loyalty programmes such as Flybuys/Airmiles/Nectar
  13. 13. BHO1171 – Session 4 Slide 13 Marketing Metrics Marketing Metrics Financial Metrics Memory Metrics Behavioural Metrics Customer Profile Metrics
  14. 14. BHO1171 – Session 4 Slide 14 Memory metrics Brand awareness Brand image associations Mental availability Attitude Customer satisfaction and service quality Intention to buy
  15. 15. BHO1171 – Session 4 Slide 15 Marketing Metrics Marketing Metrics Financial Metrics Memory Metrics Behavioural Metrics Customer Profile Metrics
  16. 16. BHO1171 – Session 4 Slide 16 Customer profile metrics Customer profile metrics describe customers  Used to help marketers identify and reach all the different buyers in a brand’s category They include metrics such as a customer’s gender, age or income. Marketers need to understand  Who their different buyers are  Where they live  What media they consume  How, when and where they shop.
  17. 17. BHO1171 – Session 4 Slide 17 Marketing activity metrics It’s important to measure what marketing activities the company is actually doing. Necessary for the firm to keep track of its marketing investment.
  18. 18. BHO1171 – Session 4 Slide 18 Physical availability metrics Making a brand as easy to notice and buy as possible Physical availability allows a consumer to buy and consume a product or service, so physical availability metrics include: • Number of distribution points • House of opening • Geographical coverage of distribution points • Geographical coverage of delivery points • Number of display points in store • Number of shelves devoted to the brand.
  19. 19. BHO1171 – Session 4 Slide 19 Marketing benchmarks Need to use other brands as a benchmark for your brand’s performance on marketing metrics But don’t forget to account for:  The Duplication of Purchase (DoP) Law  The Double Jeopardy Law
  20. 20. Marketing Research Lecture 4b Chapter 4 (Sharp, 2013)
  21. 21. BHO1171 – Session 4 Slide 21 The central role of market research Market research is used to understand  What consumers know and think,  How they behave  How a company’s efforts are being received  Opportunities for growth Market research allows us to:  Identify marketing opportunities and problems  Evaluate marketing actions  Monitor marketing activities  Monitor market performance
  22. 22. BHO1171 – Session 4 Slide 22 The central role of market research
  23. 23. BHO1171 – Session 4 Slide 23 Commissioning research—the brief Research objectives describe what the research will achieve in broad terms. Examples could include: • Determine the market potential for a new car-sharing service in Kuwait. • Benchmark the level of customer satisfaction among our Malaysian customers. • Identify how our brands are perceived in relation to our competitors.  A study has one overarching research objective and two or three smaller objectives or questions.  Good research objectives are linked to marketing objectives
  24. 24. BHO1171 – Session 4 Slide 24 Commissioning research—the brief
  25. 25. BHO1171 – Session 4 Slide 25 Commissioning research—the brief Research providers develop a research proposal in response to the brief  How they would conduct the research  the methods they would employ  the costs involved A typical proposal discusses what sort of raw data is required and provides a few different options for conducting the research.
  26. 26. BHO1171 – Session 4 Slide 26 Some Indicative Costs (February 2013)  Dependent on sample size, analytical methods, etc.  Focus Groups: $3,000 - 10,000 +  Individual Interviews (depth  ethnographic): $1,000 - 5,000 +  Observational: $5,000 +  Data mining: $7,000 +  Questionnaire  Design = $7,000 +  Analysis = $10,000 +  Delivery • Online: $3,000 - 30,000 + • Post: $4,000 - 40,000 + • Telephone: $8,000 - 40,000+ • Interview: $10,000 - 50,000 +
  27. 27. BHO1171 – Session 4 Slide 27 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  28. 28. BHO1171 – Session 4 Slide 28 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  29. 29. BHO1171 – Session 4 Slide 29 Identifying the Research Objectives Most important but difficult  If you define it wrong, you get the answer wrong! Define problems, not symptoms  Eg. How do we stop customers defecting vs why do customers defect vs how many customers are defecting
  30. 30. BHO1171 – Session 4 Slide 30 Develop a plan How will you answer the question?  I.e., what methodology is appropriate? Who will do the work?  Internal versus external consultants  Should you use a global Agency? • TNS, ACNeilsen etc
  31. 31. BHO1171 – Session 4 Slide 31 Secondary data Data collected for some purpose other than the current research problem at hand. It may be past research projects, company records, industry reports or any other information that can be used to assist with the current research problem. It comes from two key sources—internal and external data. • Internal—past research projects, sales figures, marketing intelligence information. • External—statistics, academic and industry publications
  32. 32. BHO1171 – Session 4 Slide 32 Knowledge of buyer behaviour It’s important to have knowledge of patterns that can be seen in different types of data  And understand the marketing science laws that apply to them. This knowledge provides a framework  To both analyse and interpret your data  Will provide potential explanations for the patterns you may see.
  33. 33. BHO1171 – Session 4 Slide 33 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  34. 34. BHO1171 – Session 4 Slide 34 Ways to get information Exploratory  Informs real nature of the problem, suggests possible solutions / new ideas Descriptive  Seeks to quantify demand Causal  Tests a cause-and-effect relationship A tongue in cheek look at how marketing research might help new products - Shreddies
  35. 35. BHO1171 – Session 4 Slide 35 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  36. 36. BHO1171 – Session 4 Slide 36 Golden Paradigms Quantitative research deals with numbers and answers how many, how much or how often Qualitative research deals with feelings, attitudes and behaviours
  37. 37. BHO1171 – Session 4 Slide 37 Qualitative and quantitative Methods Qualitative Data  Provides in-depth, rich-in- detail information about the motives of respondents and their thoughts and feelings.  It tends to be focused on identifying what issues exist, rather than estimating how much of a behaviour exists. Quantitative Data  Provides specific numerical information from a representative, usually large, sample of respondents.  It is structured, usually as a pre-written questionnaire with checklists or response scales, so it can be analysed using statistical techniques.
  38. 38. BHO1171 – Session 4 Slide 38 Qualitative methods Focus groups Depth interviews Observational research Other approaches: • storytelling • projective techniques • ethnographic research • reflective journals • picture collages
  39. 39. BHO1171 – Session 4 Slide 39 e.g. Qualitative - Focus Groups Graeme Norton – focus group revenge Copyright © 2012 Pearson Education 4-39
  40. 40. BHO1171 – Session 4 Slide 40 e.g. Qualitative - Observation Observation is as you would expect  A market research literally observes behavior  E.g., Lund University observation study of supermarket shopping behavior
  41. 41. BHO1171 – Session 4 Slide 41 Quantitative methods Telephone surveys Internet surveys Mail surveys In-person surveys
  42. 42. BHO1171 – Session 4 Slide 42 e.g. Quantitative - Surveys Most commonly done:  Online  Computer Assisted Telephone Interviewing (CATI)  Face to face • E.g. Roy Morgan Research
  43. 43. BHO1171 – Session 4 Slide 43 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  44. 44. BHO1171 – Session 4 Slide 44 Populations and samples  A population is the group of people to be studied.  Eg. Consumers planning to buy a new car in next 3 months  A sample is the group of respondents you research from the population. Populatio n Sample
  45. 45. BHO1171 – Session 4 Slide 45 Sampling Customer samples Sampling considerations How you sample Sample size Representativeness
  46. 46. BHO1171 – Session 4 Slide 46 CATI Fieldwork in action
  47. 47. BHO1171 – Session 4 Slide 47 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  48. 48. BHO1171 – Session 4 Slide 48 What Affects the Quality of Research? Reliability Extent to which research techniques are free from error Validity Representativeness Extent to which research measures what it was intended to measure Extent to which research participants are similar to the larger group
  49. 49. BHO1171 – Session 4 Slide 49 Data Analysis & Interpretation Great care required Don’t over interpret  Managers will often pressure for a “yes” or “no” answer Can use quantitative and qualitative packages  SPSS vs QSR
  50. 50. BHO1171 – Session 4 Slide 50 Analysis methods Multivariate analysis  Complex  Not always necessary  Limitations of statistical significance tests Alternative is to do descriptive analysis  Identify patterns in the data  Significant sameness and many sets of data
  51. 51. BHO1171 – Session 4 Slide 51 Six stages of the research process 1 • Identifying the research objectives 2 • Determining information required 3 • Research design 4 • Fieldwork 5 • Data preparation and analysis 6 • Report and communicate results
  52. 52. BHO1171 – Session 4 Slide 52 Report structure Executive summary Project background Research objectives Methodology Findings Conclusion Appendices
  53. 53. BHO1171 – Session 4 Slide 53 Presenting Data Round to whole numbers  no decimal places. Sort tables by meaningful numbers  In order of magnitude rather than alphabetical order. Use averages or medians to highlight trends Indicate totals where appropriate  Especially where numbers add up to 100 per cent. Use a story line  One sentence that summaries what the reader should take away from the table or graph.
  54. 54. BHO1171 – Session 4 Slide 54

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