MKT 340 Ch07 ppt(1)

Slide 7-1© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.



LO 7-3

LO 7-2

LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:

LO 7-1 Identify the reason for conducting marketing research.

Describe the five-step marketing research approach that leads to marketing actions.

Identify the two kinds of secondary data and give examples of each.



LO 7-5

LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 7, YOU SHOULD BE ABLE TO:

LO 7-4

LO 7-6

Describe the meanings of observational data and questionnaire data and give examples of each.

Explain how information technology and data mining lead to marketing actions.

Describe three approaches to developing a company’s sales forecast.



REDUCING THE RISK OF A MOVIE’S FAILURE WITH TEST SCREENINGS AND TRACKING STUDIES

What’s in aMovie Name?

The Risks of Today’s (and Tomorrow’s) Blockbuster Movies

• Conduct TestScreenings

• Use TrackingStudies

Movie Trailer

http://kerin.tv/cr6e/v7-1



FIGURE 7-A Marketing research questions asked in test screenings of movies that lead to specific actions



REDUCING THE RISK OF A MOVIE’S FAILURE WITH TEST SCREENINGS AND TRACKING STUDIES

Converting Marketing Research Results into Actions

AvatarMovie Trailer

Reducing the Risk of a Movie’s Failure with Test Screenings and Tracking Studies

http://kerin.tv/cr6e/ppt7-1



THE ROLE OF MARKETING RESEARCHLO 7-1

The Challenges in Doing Good Marketing Research

Five-Step Marketing Research Approach

What is Marketing Research?

• Decision • Decision Making



FIGURE 7-1 Five-step marketing research approach leading to marketing actions



STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVES

LO 7-2

Be Specific, Measurable, and Achievable

Have a ClearResearch Purpose

Must Lead to Marketing Actions LEGO Video




STEP 1: DEFINE THE PROBLEMIDENTIFY POSSIBLE MARKETING ACTIONS

LO 7-2

Measures of Success

Possible Marketing ActionsMeasure of Success: Playtime

• Children Spent More TimePlaying with Old Design

• Children Spent More TimePlaying with New Design

• Continue with Old Design;Don’t Introduce New Design

• Introduce New Design;Drop Old Design



STEP 2: DEVELOP THE RESEARCH PLANSPECIFY CONSTRAINTS

LO 7-2

Constraints

Identify Data Neededfor Marketing Actions



STEP 2: DEVELOP THE RESEARCH PLANDETERMINE HOW TO COLLECT DATA

LO 7-2

Concepts

Methods

• New-Product Concept

• Sampling

• Statistical Inference



STEP 3: COLLECT RELEVANT INFORMATION

LO 7-3

Data

Secondary Data

Primary Data



FIGURE 7-2 Types of marketing information



STEP 3: COLLECT RELEVANT DATASECONDARY DATA

LO 7-3

Internal

• Marketing Input Data

• Marketing Outcome Data




LO 7-3

External

• Census Bureau

U. S.2010Census

AmericanCommunitySurvey

U. S. 2012 Economic CensusCensus 2010





LO 7-3

External

• Syndicated Panel

Nielsen TV Ratings

J.D. Power Surveys

IRI InfoScan




LO 7-3

External

• Universities

• Trade Associations

• Business Periodicals



MARKETING MATTERSOnline Databases & Internet Resources

LO 7-3

Statistical &Financial Data

Portals &SearchEngines

Wall StreetJournal CNBC

FoxBusinessNews

GoogleUSA.gov

CensusBureau










LO 7-3

Advantages• Time Savings

• Inexpensive

• Out of Date

• Definitions/Categories Not Right

Disadvantages

• Not Specific Enough



STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—WATCHING PEOPLE

LO 7-4

Observational Data

• Nielsen’s People Meter

Mechanical Methods

• Nielsen’s TV Ratings



FIGURE 7-3 Nielsen Broadcast Ranking Report for network TV primetime households

NielsenTop 10




STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—WATCHING PEOPLE

LO 7-4

Personal Methods

• Mystery Shopper

• Videotaping

• Ethnographic Research

Neuromarketing Methods



STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—ASKING PEOPLE

LO 7-4

Questionnaire Data

Idea Generation Methods

• Individual Interviews

• Depth Interviews




LO 7-4

• Focus Groups

Idea Generation Methods

• “Fuzzy Front End” Ex: Trend HuntingTrend Hunter





LO 7-4

Idea Evaluation Methods

• PersonalInterviewSurveys

• Mail/FaxSurveys

• TelephoneSurveys

• Online(E-Mail/Internet)Surveys

• Mall Intercept Interview Surveys



FIGURE 7-B Comparison of types of surveys



STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—QUESTION FORMATS

LO 7-4

Open-Ended Questions

Closed-End or Fixed Alternative Questions

Dichotomous Questions

Semantic Differential Questions

Likert Scale Questions



FIGURE 7-4A Different types of questions in a sample Wendy’s survey (Q1 – Q6)



FIGURE 7-4A (Q1) Sample Wendy’s survey: Open-ended question



FIGURE 7-4A (Q2) Sample Wendy’s survey: Dichotomous question



FIGURE 7-4A (Q3) Sample Wendy’s survey: Multiple choice question



FIGURE 7-4A (Q4) Sample Wendy’s survey: Attitudinal question



FIGURE 7-4A (Q5) Sample Wendy’s survey: Semantic differential scale question



FIGURE 7-4B (Q6) Sample Wendy’s survey: Likert scale question



FIGURE 7-4B Different types of questions in a sample Wendy’s survey (Q7 – Q9)



FIGURE 7-4B (Q7) Sample Wendy’s survey: Media behavior question



FIGURE 7-4B (Q8) Sample Wendy’s survey: Usage behavior question



FIGURE 7-4B (Q9) Sample Wendy’s survey: Demographic questions



FIGURE 7-C Typical problems when wording questions



STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—OTHER SOURCES

LO 7-4

Social Media

Carmex Lip Balm




USING MARKETING DASHBOARDSAre the Carmex Social Media Programs Working Well?

LO 7-4

Conversation Velocity, Share of Voice, and Sentiment




LO 7-4

Experiments

• Independent Variable:The Cause (Drivers)

• Dependent Variable:The Result

• Test Markets

Panels




LO 7-4

Information Technology

• Sensitivity Analysis

• Data Warehouse

Data Mining

• RFID Technology



FIGURE 7-5 How marketing researchers and managers use information technology to turn information into action



MAKING RESPONSIBLE DECISIONSThe Downside of Data Mining

Reveals Personal Information

Ghostery

LO 7-4

Collected via Cookies and Apps

Enables Personalization and Targeting

http://12e.kerin.tv/ppt8-12



STEP 3: COLLECT RELEVANT DATA+/– OF PRIMARY DATA

LO 7-4

Advantage

• Expensive

• Time Consuming to Collect

Disadvantages

• More Specific to the Problem



STEP 4: DEVELOP FINDINGSLO 7-5

Present the Findings

Analyze the Data

• How are Sales?

• What FactorsContribute toSales Trends?



FIGURE 7-6 Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions



FIGURE 7-6A Findings presented to Tony’s marketing manager



FIGURE 7-6B Findings presented to Tony’s marketing manager



FIGURE 7-6C Findings presented to Tony’s marketing manager



FIGURE 7-6D Findings presented to Tony’s marketing manager



STEP 5: TAKE MARKETING ACTIONSLO 7-5

Evaluate the Results

Make Action Recommendations

Implement the Action Recommendations

• The Decision Process Used

• The Decision Itself



SALES FORECASTING TECHNIQUESLO 7-6

Sales Forecast

Judgments of the Decision Maker

Surveys of Knowledgeable Groups

• Direct Forecast

• Lost-Horse Forecast

• Salesforce Survey Forecast

• Survey of Buyers’ Intentions Forecast



SALES FORECASTING TECHNIQUESLO 7-6

Statistical Methods

• Trend Extrapolation

• Linear Trend Extrapolation



FIGURE 7-7 Linear trend extrapolation of sales revenues at Xerox, made at the start of 2000



FIGURE 7-D Top-down forecast: Survey of Buying Power



CARMEX [A]: LEVERAGING FACEBOOK FOR MARKETING RESEARCH

VIDEO CASE 7

Carmex Video Case




VIDEO CASE 7Carmex [A]

1. 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?




2. (a) On a Facebook brand page, what are “engagement” and “likes” really measuring?

(b) For Carmex, which is more important and why?




3. (a) What evokes consumers “engagement” on a brand page on Facebook?

(b) What attracts consumers to “like” a brand page on Facebook?




4. (a) What are the advantages and disadvantages of using a fixed-alternative poll question on Facebook?

(b) When do you thinkit would be better to use an open-ended question?










5. (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?



FIGURE 3 Potential results from three possible Facebook strategies



INTERPRETINGCENSUS DATA

IN-CLASS ACTIVITY 7-1



CensusPromotional

Video

ICA 7-12010 Census Form & The New Portrait of America

Example:Interpreting U.S.

Census Bureau Data




WEBSITES FORMARKETERS




AmericanMarketingAssociation

AmericanAdvertisingFederation

YouTubeCNBC

DrudgeReport

Amazon.com

BloombergBusinessweek

The WallStreetJournal

Google

USA.gov

FoxBusiness

ICA 7-2Websites for Marketers

eBay















DESIGNING ATASTE TEST SURVEY FOR

HOWLIN’ COYOTE CHILI








PEPSI VS. COKE TASTE TEST




ICA 7-4Pepsi vs. Coke Taste Test Challenge

PepsiTasteTestAd

CokeTasteTestAd

Example:Pepsi versus Coke

Taste Test Challenge





Marketing Research

Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.



Measures of Success

Measures of success are criteria or standards used in evaluating proposed solutions to the problem.



Constraints

Constraints are, in a decision,the restrictions placed onpotential solutions to a problem.



Data

Data are the facts and figures related to the project that are divided into two main parts: secondary data and primary data.



Secondary Data

Secondary data are the factsand figures that have already been recorded prior to the project at hand.



Primary Data

Primary data are the facts and figures that are newly collected for the project.



Observational Data

Observational data are the factsand figures obtained by watching, either mechanically or in person, how people actually behave.



Questionnaire Data

Questionnaire data are thefacts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.



Information Technology

Information technology involves operating computer networks that can store and process data.



Sales Forecast

A 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.