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MM Chapter 4.ppt
- 1. IPE 4101:Industrial and Business Management Lecture Series on Marketing Management Course Instructor: Md. Zahidul Islam Lecturer, Department of IPE, RUET
- 3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 22 Discussion Questions 1. What constitutes good marketing research? 2. What are the best metrics for measuring marketing productivity? 3. How can marketers access their return on investment of marketing expenditures?
- 4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 22 Marketing Research System Insight Market Research
- 5. The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. Marketing Research
- 6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 22 Creative Research Means Rivals Marketing partners Student projects Internet sources Check out rivals
- 7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 22 Marketing Research Process
- 8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 22 Step 1: Define the Problem Focused inquiry
- 9. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 22 Step 2: Develop the Research Plan Sampling plan Contact method Data Sources • Secondary data • Primary data Research Approaches • Observation • Focus groups • Surveys • Behavioral data • Experiments Research instrument • Questionnaires • Qualitative measures • Technological devices
- 10. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 22
- 11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 22
- 12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 22 Step 3: Collect the Information Online surveys Telephone surveys Interviews In-home surveys
- 13. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 22 Step 4: Analyze the Information
- 14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 22 Step 5: Present the Findings
- 15. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 22 Step 6: Make the Decision Research Decisions
- 16. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 22 Characteristics of Good Marketing Research 1. Scientific method 2. Research creativity 3. Multiple methods 4. Interdependence of models and data 5. Value and cost of information 6. Healthy skepticism 7. Ethical marketing
- 17. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 22 Former marketing research executive for General Foods concluded that Star Wars would fail at the box office. The film grossed $4.3 billion in box office receipts.
- 18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 22
- 19. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 22 • No research is better than bad research • Albert Einstein was asked: "If you were told you only had an hour to live and you could solve one problem, what would it be?" Einstein replied: "I would spend the first 59 minutes defining the problem.“ • You can have data without information, but you cannot have information without data
- 20. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 22 Measuring Marketing Productivity Marketing-mix modeling Marketing metrics
- 21. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 22 Marketing Metrics Quantify Interpret Compare Marketing Performance
- 22. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 22 Marketing Metrics External • Awareness • Market share • Relative price • Number of complaints • Consumer satisfaction • Total number of customers • Perceived quality/esteem • Loyalty/retention • Relative perceived quality
- 23. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 22 Marketing-Mix Modeling Awareness Expenditure
- 24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 22 Marketing Dashboards
- 25. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 22 Marketing Measurement Pathway
- 26. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 22 Marketing Dashboard Example
Editor's Notes
- Managers use market research to help them better understand the customers and markets. These insights are the how’s and why’s certain things happen in the market. The text gives an example of how Gillette conducted market research on the woman’s shaver market and how this research led the company to develop the Venus razor, which now has more than 50% of the global market.
- Over $28 billion was spent on marketing research in 2007.
- Example: American Airlines wanted to determine how many first-class passengers would be interested in having limited, Internet access during flights and how much extra they would be willing to pay for this service. AA would have to invest $90,000 per plane.
- Marketers must not focus too broadly or too narrowly on the research question. Trying to find out everything about first-class travellers needs is too broad, while trying to determine if enough passengers will pay $25 on a direct flight between Chicago and Tokyo to break even is too narrow. In this example, the marketers agreed to define the problem as “Will offering an in-flight Internet service create enough incremental preference and profit for AA to justify its cost against other possible investments in service enhancement…”
- Most expensive step Most prone to errors
- Develop summary measures Compute averages Statistical analysis / decision models
- Transform raw data into insight Present information in clear and compelling fashion
- Research should guide decisions, not be used to support decisions already made.
- Market research must be used properly and must be designed for the specific questions, to a specific audience, using specific tools. Using traditional marketing research techniques, a successful marketing research executive left General Foods in hopes of bringing market research to Hollywood. A film studio gave him the task of determining if a potential science fiction movie would be a success or failure. He concluded it would be a failure. His reasoning, American were looking for realism and authenticity (due to Watergate). Furthermore, he stated that citizens were suffering from a post-Vietnam hangover and would not welcome any movie that had the word “war” in its title.
- A survey of CMO’s found that 80% were dissatisfied with their ability to benchmark their marketing programs business impact and value.
- Marketers are facing pressure to provide clear, quantifiable evidence as to how marketing expenditures (ads, promo, etc) are helping their firms be more profitable. Marketing metrics are measures that helps marketers quantify, compare, and interpret marketing performance.
- Marketing metrics can being either external, such as those shown here, or internal. Internal metrics can include employees awareness of goals; resource adequacy or autonomy.
- The results of marketing-mix modeling helps guide allocation on marketing budgets. With the right models, marketers can determine how each marketing element (sales promotions, advertising, trade promotions, etc) impact product revenue. Marketing mix modeling has three shortcomings, as outlined by Dave Reibstein: Focus on incremental growth rather than on long-term sales Integrating multiple metrics (such as satisfaction, awareness, and brand equity) is limited These models fail to incorporate metrics related to competitors, the trade, or the sales force.
- Dashboards are similar to the instrument panel of an airplane. They can be designed to provide information in real-time that managers can use to better understand the market.