Chapter 4 Marketing

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Developing Marketing Information

• Information needed can be obtained from:• Internal databases• Competitive marketing intelligence• Marketing research

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Internal Databases

• Electronic collections of consumer and market information within a company’s network

• Advantage: Information can be accessed quickly and economically.

• Disadvantages:• Data ages rapidly and may be incomplete.• Maintenance and storage of data is expensive.

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Competitive Marketing Intelligence

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Competitive Marketing Intelligence

• Advantages: • Gain insights about consumer opinions and their

association with the brand• Gain early warnings of competitor strategies,

new product launches or changing markets, and potential competitive strengths and weaknesses

• Help firms to protect their own information• Disadvantage:

• May involve ethical issues

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Marketing Research

• Systematic design, collection, analysis, and reporting of data• Relevant to a specific marketing situation facing

an organization

• Approaches followed by firms:• Use own research departments• Hire outside research specialists• Purchase data collected by outside firms

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Figure 4.2 - The Marketing Research Process

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Secondary Data

• Information that already exists• Collected for another purpose

• Sources:• Company’s internal database• Purchased from outside suppliers• Commercial online databases• Internet search engines

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Secondary Data

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Primary Data

• Information collected for the specific purpose at hand

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Table 4.1 - Planning Primary Data Collection

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Research Approaches

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Mail, Telephone, and Personal Interviewing

• Mail questionnaires are used to collect large amounts of information at a low cost per respondent.

• Telephone interviewing gathers information quickly, while providing flexibility.

• Personal interviewing methods:• Individual interviewing• Group interviewing

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Table 4.2 - Strengths and Weaknesses of Contact Methods

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Online Marketing Research

• Data is collected through:• Internet surveys• Online focus groups: Focus group interviewing

conducted online• Web-based experiments• Tracking consumers’ online behavior

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Online Behavioral & Social Tracking and Targeting

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Sampling Plan

• Sample: Segment of the population selected to represent the population as a whole

• Decisions required for sampling design:• Sampling unit - People to be studied• Sample size - Number of people to be studied• Sampling procedure - Method of choosing the

people to be studied

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Types of Samples

• Probability samples:• Simple random sample• Stratified random sample• Cluster (area) sample

• Nonprobability samples:• Convenience sample• Judgment sample• Quota sample

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Research Instruments

• Questionnaires can be administered in person, by phone, by e-mail, or online.• Closed-end questions• Open-end questions

• Mechanical instruments include:• People meters• Checkout scanners• Neuromarketing

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Implementing the Research Plan

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Interpreting and Reporting Findings

• Responsibilities of the market researcher: • Interpret the findings• Draw conclusions• Report findings to management

• Responsibilities of managers and researchers:• Work together closely when interpreting

research results• Share responsibility for the research process and

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Customer Relationship Management (CRM)

• Managing detailed information about individual customers

• Carefully managing customer touch points to maximize customer loyalty

• Consists of software and analytical tools that:• Integrate customer information from all sources• Analyze data in depth• Apply the results

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Distributing and Using Marketing Information

• MIS must make information readily available for decision-making.• Routine information for decision making• Non-routine information for special situations

• Intranets and extranets facilitate the information sharing process.

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Marketing Research in Small Businesses and Nonprofit Organizations

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International Marketing Research

• The problems faced include:• Dealing with diverse markets• Finding good secondary data in foreign markets• Developing good samples • Reaching respondents • Handling differences in culture, language, and

attitudes toward marketing research

• The cost of research is high but the cost of not doing it is higher.

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Intrusions on Consumer Privacy

• Failure to address privacy issues results in:• Angry, less cooperative consumers • Increased government intervention

• Best approach for researchers:• Asking only for the information they need• Using the information responsibly to provide

customer value• Avoiding sharing the information without the

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Misuse of Research Findings

• Few advertisers rig their research designs or deliberately misrepresent the findings.

• Solutions:• Development of codes of research ethics and

standards of conduct• Companies must accept responsibility to protect

consumers’ best interests and their own.

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Chapter 4 Marketing

Education

Transcript of Chapter 4 Marketing