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Chapter 4 marketing research pace

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Chapter 4 - Marketing, Research, Pace

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Chapter 4 marketing research pace

  1. 1. Make Marketing Value Decisions (Part 1)Understand Consumers’ Value Needs (Part 2) Create the Value Proposition (Part 3)Communicate the Value Proposition (Part 4) Deliver the Value Proposition (Part 5)
  2. 2. Chapter 4What do customers want? Conducting and Understanding Market Research.
  3. 3. Chapter Objectives•Explain the role of a marketing information system and in marketing decision making.•Understand data mining and how marketers can put it to good use.•List and explain the steps and key elements of the marketing research process.
  4. 4. Consider these questions?•Whether or not to increase the price of a bottle of shampoo?•Whether or not to redesign the package for cereal?•What new flavors of soda to introduce?
  5. 5. How do we know what the market wants? Marketing Information System or.. or.. Market Company Acquired Intelligence Data DatabasesInformation coming from Databases within the Databases purchased or the marketing company: buying trends, negotiated from anotherenvironment. Competitor sales data, customer company. Kroger, gov’t, information, economic complaint data, refunds, cell phone companies, trends, etc... etc... credit cardor... Marketing Research
  6. 6. Syndicated vs. Custom Market Research
  7. 7. Syndicated vs. Custom Market Research
  8. 8. How Ad Meter worksUSA TODAY assembled282 adult volunteers inBakersfield, Calif., andMcLean, Va., andelectronically charted theirsecond-by-second reactionsto ads during the SuperBowl. Shugoll Research andTrotta Associates chose thevolunteers, who usedhandheld meters to registerhow much they liked eachad. A computer continuouslyaveraged the scores. Scoresare the highest average foreach ad.
  9. 9. Data Mining A large amount of data can usually be subject to data mining. Data mining is frequently used for very large amounts of data that may have “hidden stories”.Data mining usescomputers that runsophisticated programsso that analysts cancombine differentdatabases to understandrelationships amongbuying decisions,exposure to marketingmessages, and in-storepromotions.
  10. 10. Data Mining A large amount of data can usually be subject to data mining. Data mining is frequently used for very large amounts of data that may have “hidden stories”.Data mining usescomputers that runsophisticated programsso that analysts cancombine differentdatabases to understandrelationships amongbuying decisions,exposure to marketingmessages, and in-storepromotions.
  11. 11. Data Mining A large amount of data can usually be subject to data mining. Data mining is frequently used for very large amounts of data that may have “hidden stories”.Data mining usescomputers that runsophisticated programsso that analysts cancombine differentdatabases to understandrelationships amongbuying decisions,exposure to marketingmessages, and in-storepromotions.
  12. 12. End Module 1
  13. 13. Chapter 4Module 2
  14. 14. !"#$%&$()"*+$+,%$%*$ -*./$ !"#$%&$()"*+$+,%$%*$ 01$2&3%$4*$-*.$56#$7"%$ -*./$ 37*.%$89:;$ <1$2&3%$4*$-*.$56#$ 53"%$37*.%$89:;$!"#$#%&$(#)*#+,+--.#/)0#123)45$"5#1%#5/1%#5)#6)7#1"#$#&)(8(9# !"#$#%&$(#)*#+,+--.#/)0# 123)45$"5#1%#5/1%#5)#6)7#1"#$# &)(8(9#
  15. 15. That was Market Research!
  16. 16. Some important questions? Why should firms conduct research? Who conducts research? Where does information come from? What kind of information is important? What is the market research process? How can firms use the data they collect?
  17. 17. Why should firms conduct research?Who conducts research?Where does information come from?What kind of information is important?What is the market research process?How can firms use the data they collect?
  18. 18. Why should firms conduct research?Who conducts research?Where does information come from?What kind of information is important?What is the market research process?How can firms use the data they collect? To get insights into market-related issues that will help the firm make better decisions
  19. 19. Why should firms conduct research?Who conducts research?Where does information come from?What kind of information is important?What is the market research process?How can firms use the data they collect?
  20. 20. Why should firms conduct research?Who conducts research?Where does information come from?What kind of information is important?What is the market research process?How can firms use the data they collect? •  !"#$%&()*+%,*&%"-+./&#)0*+-12/ •  31"4-&1/&#)0*+-12/ •  5#+60"#7/#".*+-8*9#+2/ •  :#41"+)1+/*.1+&-12/ •  ;*"<1/"121*"&=/7")2>/1&?/
  21. 21. Market Research Process1. Identify the problem and state objectives Problem.....2. Create the research design (descriptive or Did people like the diagnostic?) Superbowl ads?3. Choose the method of research4. Select a sampling procedure Objective....5. Collect data To understand how6. Analyze data people felt about7. Write a presentation/report the Superbowl ads.
  22. 22. 1. Research Problem
  23. 23. Problem: Poor game attendance duringinclement weather = lost $$$ 1. Research Problem
  24. 24. Problem: Poor game attendance duringinclement weather = lost $$$ 1. Research Problem
  25. 25. Problem: Poor game attendance during inclement weather = lost $$$We already know that rain and snow keeps fans from coming out to games. 1. Research Problem
  26. 26. Problem: Poor game attendance during inclement weather = lost $$$We already know that rain and snow keeps fans from coming out to games. 1. Research Problem
  27. 27. Problem: Poor game attendance during inclement weather = lost $$$We already know that rain and snow keeps fans from coming out to games.Who are you interested in for the study? 1. Research Problem
  28. 28. Problem: Poor game attendance during inclement weather = lost $$$We already know that rain and snow keeps fans from coming out to games.Who are you interested in for the study? Current Bengal Fans? Potential Bengal Fans? Non football fans? Season ticket holders? Scalpers? 1. Research Problem
  29. 29. Your research PROBLEM indicates your research objectives….So - What is a research objective? A goal statement, defining the specific information needed to solve the marketing research problem 1. Research Objective
  30. 30. Your research PROBLEM indicates your research objectives….So - What is a research objective? A goal statement, defining the specific information needed to solve the marketing research problem!"#$%&(#"#)*+,"-%#."/#0"#%(,"1&2%#&3%()&(,%#&0#4%(2&$+# 2&5%+#)1*(2#&*(6+("/# 1. Research Objective
  31. 31. How can the problem and objectives be addressed?The research design dictates exactly what information to collect, and how (i.e. the type of research method)Primary or Secondary Data? For the Bengals’ problem, what would you suggest? Does the information already exists somewhere? Perhaps another NFL team has faced this issue? Perhaps another sport industry has faced this issue? 2. Research Design
  32. 32. Primary vs. Secondary!"#$%"& ()*+,-%"&!"##$%&$()*$%+,%-##.(&"(-/$))(-( 5-&-(&0-&(0-)(*/$6+"7)#.(1$$3(%"##$%&$(/$)$-/%0(*/"1#$2(-&(0-34( 8"/(-(*7/*")$("&0$/(&0-3(&0$()*$%+,%( */"1#$2(-&(0-34(9:;(<(1$)&(-1#$(&"(-/$))(&0$(*/"1#$2( 9:;(<(%-3(1$(#$))(%")&#.(&"(=-&0$/(-3( "/=-3+>$(&0$(-&-(!;?(<(%-3(1$(@2$(%"3)72+3=(-3( !;?(<(2-.(3"&(1$()*$%+,%($3"7=0B(0-6$( $A*$3)+6$(&"(=-&0$/( $//"/)B(+3%#7$(1+-)$( +38"/2-@"3( .+/0+1)0#0 /.)")0+1)0#0C7-3@&-@6$(2$&0")( 9/$6+"7)#.(%"##$%&$(-&-(D+&0+3(&0$( %"2*-3.(E2-/F$&(+3&$##+=$3%$G(HA*#"/-&"/.IC7-#+&-@6$(J$&0")( KL(!$3)7)( 5-&-(M-/$0"7)$)((E?+$#)"3G(
  33. 33. ! “soft” data !  “hard” data! Less structured !  Generally fast collection and cheap to! Subject to collect interpretation !  Easily! Time consuming comparable and expensive results !  Highly structured
  34. 34. ! “soft” data !  “hard” data! Less structured !  Generally fast collection and cheap to! Subject to collect interpretation !  Easily! Time consuming comparable and expensive results !  Highly structured
  35. 35. ! “soft” data !  “hard” data! Less structured !  Generally fast collection and cheap to! Subject to collect interpretation !  Easily! Time consuming comparable and expensive results !  Highly structured
  36. 36. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase StudyProjective Techniques
  37. 37. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase StudyProjective Techniques What kind of research problem or question would you address with Experimental/Causal Research??
  38. 38. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase StudyProjective Techniques What kind of research problem or What would of research problem or question kind you address with question would you address with Survey Experimental/Causal Research?? Research??
  39. 39. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase StudyProjective Techniques What kind of research problem or What would of research problem or question kind you address with question would you address with Survey Experimental/Causal fans a free Bengals poncho If we promised all Research?? on rainy days, would attendance increase? Research??
  40. 40. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase Study Must be somethingProjective Techniques measurable!! What kind of research problem or What would of research problem or question kind you address with question would you address with Survey Experimental/Causal fans a free Bengals poncho If we promised all Research?? on rainy days, would attendance increase? Research??
  41. 41. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase Study Must be somethingProjective Techniques measurable!! What kind of research problem or What would of research problem or question kind you address with question would you address with Survey Experimental/Causal fans a free Bengals poncho If we promised all Research?? on rainy days, would attendance increase? Research?? effect
  42. 42. Watching/Open-ended questions. Convert to numbers. Interpretive & Inductive Deductive.QUALITATIVE METHODS QUANTITATIVE METHODSIn-depth interviews SurveysFocus Groups Experiments – causal researchObservation Scanner DataEthnographyCase Study Must be somethingProjective Techniques measurable!! What kind of research problem or What would of research cause question kind you address with problem or question would you address with Survey Experimental/Causal fans a free Bengals poncho If we promised all Research?? on rainy days, would attendance increase? Research?? effect
  43. 43. Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  44. 44. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  45. 45. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  46. 46. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  47. 47. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  48. 48. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  49. 49. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  50. 50. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  51. 51. Can you draw Reliability and Validity??Validity – measuring what we intended to measure. Are we measuring game attendance or just ticket sales?Reliability – consistency of our instrument – repeatability. Where are we getting our attendance data from?Representativeness – Can we speculate that our findings are relevant to the rest of our population potential game attendees?
  52. 52. Not all marketing problems can or should beaddressed with research efforts.
  53. 53. Not all marketing problems can or should beaddressed with research efforts. Reasons not to begin the market research process…
  54. 54. Not all marketing problems can or should beaddressed with research efforts. Reasons not to begin the market research process… Not enough $$ to •  Conduct the research •  Implement anything based on the findings
  55. 55. Not all marketing problems can or should beaddressed with research efforts. Reasons not to begin the market research process… Not enough $$ to •  The questions cannot be •  Conduct the research answered •  Implement anything based on •  The information already exists the findings (secondary data)
  56. 56. Not all marketing problems can or should be addressed with research efforts. Reasons not to begin the market research process… Not enough $$ to •  The questions cannot be •  Conduct the research answered •  Implement anything based on •  The information already exists the findings (secondary data)•  Costs outweigh the benefits•  Inability to make changes at all based on current situation
  57. 57. Now, what if we want to be sure that our fans are satisfied with the ponchos we give them on rainy/snowy days and they will be encouraged to return even in bad weather? Lets think Surveys…
  58. 58. Now, what if we want to be sure that our fans are satisfied with the ponchos we give them on rainy/snowy days and they will be encouraged to return even in bad weather? Lets think Surveys… What kinds of questions?
  59. 59. Now, what if we want to be sure that our fans are satisfied with the ponchos we give them on rainy/snowy days and they will be encouraged to return even in bad weather? Lets think Surveys… What kinds of questions?Satisfaction: from 1-5, how satisfied are you with......Attitude: from 1-5, how much did(do) you like/dislike, agree/disagree.....Behavior: how often do you.... , have you, will you......
  60. 60. Who can provide the data we need?Probability sample – each person in the population has an equal or known chance of being sampled. Helps ensure generalizability. Randomly select people who have recently attended a Bengals game. Non-probability sample – some customers may be better to sample from than others. Convenience - first 500 people in the door. Ability to express opinions and attitudes - willing to share info. Expertise - season ticket holders; attend 2x per year
  61. 61. Go out and get it! Mail your survey, email the survey, link on the website, use interviewers at the gates, etc..Challenges faced by quantitative and qualitative data collection ★ Bias in the survey language - leading questions, confusion questions, irrelevant questions ★ Bias using interviewers - are your interviewers offensive? Smelly? Have bad attitudes? Inducing socially responsible answers? ★ Timely collection and interpretation - a study conducted too late becomes useless. Can someone adequately interpret/analze your results? ★ Influence of external factors - can other things have caused or influenced your data? (maybe there were good beer specials during rainy days too?)
  62. 62. Are the results meaningful? ★ Are you able to implement any changes to help address your problem? ★ Are the results powerful enough for you to do so? ★ Should we really offer these ponchos? Did we solve our problem? 6.
  63. 63. Communicate the conclusionsfound in the study.e.g….”We conclude that after giving free ponchos on rainy days, attendance increased. We calculated a 12% increase over the rainy game day average attendance from the past 3 years.” Concluding recommendation: If the increased revenue from attendance exceedscosts of purchasing ponchos, we should continue to give free ponchos on rainy days. Sampled fans indicated that they were very satisfied with the ponchos. 7.
  64. 64. End Chapter 2
  65. 65. Three Main Reasons1. Understand market dynamics2. Anticipate what your rivals might do3. Create more practical marketing plans
  66. 66. An assessment of the strengths and weaknesses of current and potential competitors.FIRST: • Who are your competitors? • How do you define them? • Do your customers see them as alternatives to your business and its offerings?
  67. 67. Who does Bengals football compete!  Who are your competitors? with?!  What customer needs and preferences are you competing to meet?!  What are the similarities and differences between their products/services and yours?!  What are the strengths and weaknesses of each of their products and services?!  How do their prices compare to yours?!  How are you uniquely suited to compete with them? Do you have a USP?!  How are they doing overall? Market share?!  How do you plan to compete? !  Offer better quality services? Lower prices? More support? Easier access to services?
  68. 68. Capitalize. Minimize.Take ProtectAdvantage. Against.
  69. 69. !  Keeping up with competitors is of key importance!  CompetitiveIntelligence is the systematic and ethical approach for gathering and analyzing information about competitor activities and related business trends.!  80% of all information is public knowledge.
  70. 70. !  Keeping up with competitors is of key importance!  CompetitiveIntelligence is the systematic and ethical approach for gathering and analyzing information about competitor activities and related business trends.!  80% of all information is public knowledge. Sources: Annual and financial reports, industry reports (market share), speeches by company executives, government documents, online databases, trade organizations, popular and business press, customers
  71. 71. !  Determine what factors are key to success in your industry. !  Your customers can tell you a lot about what to look for. !  Are you meeting these factors? Are your competitors? !  Good Market Information Systems can help you collect information on competitors in a systematic fashion. These are problems/ questions that can be addressed with market research.
  72. 72. !  Market research is used to help solve marketing problems!  Market research is a process of data collection and analysis!  There are many forms of research methods, many of which are complementary to each other!  Market research can assist in competitor analysis!  Competitor intelligence is key to long- term success, especially in a high rivalry industry

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