Marketing Research
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is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
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Decision |
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is a conscious choice from among two or more alternatives
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Decision Making
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is the act of consciously choosing from alternatives
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Exploratory Research
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Provides ideas about a relatively vague problem.
Ex: General Mills discovered that the initial version of its Hamburger Helper wasn't satisfactory for many consumers, so it interviewed them to get ideas to improve the product
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Descriptive Research
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generally involves trying to find the frequency that something occurs or the extent of a relationship b/w two factors.
Ex: When General Mills wants to study how loyal consumers are to its Wheaties, it can obtain data on the number of households buying Wheaties and competitive products.
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Causal Research
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(the most sophisticated) Tries to determine the extent to which the change in one factor changes another one.
Ex: Fisher-Price decided changing the toy designs is related to changes in the amount of time children play with the toy. Experiments and test markets are examples of causal research.
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Research Objectives
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are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.
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Measures of Success
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criteria or standards used in evaluating proposed solutions to the problem.
Measures of Success are decided before the research begins
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Constraints |
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restrictions placed on potential solutions to a problem.
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Ex of Constraints
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The limitations on the time and money available to solve the problem.
Fisher price might set 2 constraints on its decision to select either the old or new version of the the chatter telephone: decision must be made in 10 weeks, and no budget is available beyond collecting data in a nursery school.
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Concepts |
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ideas about products or services
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New Product Concept
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a picture or verbal description of a product or service the firm might offer for sale
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Methods |
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are the approaches that can be used to collect data to solve all or part of a problem
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Sampling |
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a technique to select a group of distributors, customers, or prospects and treating the information they provide as typical of all those in whom they are interested
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Statistical Inference
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used to generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions
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Data |
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facts and figures related to a problem
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Secondary Data
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facts and figures that have already been recorded before the project at hand
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Internal Secondary Data
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data that comes from inside the organization.
Sales breakdowns and order requests
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External Secondary Data
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data comes from outside the organization. data available from the US Census
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Primary Data
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facts and figures that are newly collected for the project
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Internal Secondary Sales are often the....
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starting point for a new marketing research study b/c using this info can result in huge time and cost savings
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Syndicated Panel Data
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answer economic questions that require consistent data collection over time. is a type of external secondary data.
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Ex of syndicated panel data
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how many times did our customers buy our products this year compared to last. Some companies pay households and business to record all this info.
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Advantages of Secondary Data
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time savings and low cost
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Disadvantages of Secondary Data
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data may be out of date, definitions/categories might not be right for a researcher's project, not specific enough
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Primary data compared to secondary is more
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time consuming and expensive, but may be more specific to the problem
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Observational Data
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facts and figures obtained by watching, either mechanically or in person, how people actually behave.
Type of primary data
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Mechanical Methods of Observational Data
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TV ratings using a people meter
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People Meter
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a box that is attached to TVs, satelite dishes, etc. It has a remote that records when a viewer begins and finishes watching a program and sends the info to Media Research.
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Mystery Shopper
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companies pay mystery shoppers to check on the quality and pricing of their products and customer service provided by their employees.
Type of Primary Observational Data
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Ethnographic Research
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a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their "natural use environment", such as the home or car.
A type of Primary Observational Data
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Observational data can reveal ___ people do, but it cannot easily determine ____ they do it.
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what, why
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Neuromarketing |
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uses brain scanning to analyze the buying process. 85% of consumers' thoughts, feelings, or preferences towards something are deep within the subconscious part of the brain and can't be understood using traditional techniques.
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Questionnaire Data
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facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Type of primary data.
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Idea Generation Method is? consists of?
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coming up with ideas.
Individual Interviews, Depth Interviews, Focus Groups, Fuzzy Front End
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Individual Interview
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involves a single researcher asking questions of one respondent (most common way in the past)
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Depth Interviews
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researcher ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings
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Focus Groups
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informal sessions of 6-10 past, present, or prospective customers in which a discussion leader asks their opinions about the firm's and its competitors' products, how they use the products, and special needs they have that these products don't address.
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Ex of using focus groups
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3M used focus groups to hear consumer complaints about steel wool pads scratching their cookware, which led to the Scotch-Brite Never Scratch soap pads
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Fuzzy Front End
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wierd/different methods in which marketing researchers rely on to find "the next big thing"
Ex: trend hunting
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Trend Hunting
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the practice of identifying "emergent shifts in social behavior" which are driven by changes in pop culture that can lead to new products
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Idea Evaluation Methods
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the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions
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Idea evaluation methods often involve...
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conventional questionnaires using personal, mail, telphone, fax, and online surveys of a large sample
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Mall Intercept Interviews
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personal interviews of consumers visiting shopping centers
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Open-Ended Questions
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allows respondents to express opinions, ideas, or behaviors in their own words w/out being forced to choose among alternatives. Captures the "voice" of respondents
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Close-end or Fixed Alternative Questions
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require respondents to select one or more response options from a set of predetermined choices
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Dichotomous Questions
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simplest form of a fixed alternative question that allows only a "yes" or "no" response
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a fixed alternative question with 3 or more choices uses a
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scale |
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Semantic Differential Scale
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5 point scale in which the opposite ends have one- or two- word adjectives that have opposite meanings.
Ex: how clean a person believes a restaurant is (can pick point 1 through 5)
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Likert Scale
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respondent indicates the extent to which he or she agrees or disagrees with a statement
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Social Networks
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intimate and frequent contact among people who share a common interest- at a lower cost than other media
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Panel |
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a sample of consumers or stores from which researchers take a series of measurements
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the word regularly is
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ambiguous
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Experiments |
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involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, an example of causal research
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Experiments want to determine...
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if changing an independent variable (a cause) will change the behavior of the dependent variable that is studied (the result)
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independent variables are also called
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marketing drivers.
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drivers |
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are often one or more of the marketing mix elements
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test market
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a marketing experiment to reduce risk.
Ex: food companies use test markets, which offer a product for sale in a small area to help evaluate potential marketing actions.
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the dependent variable usually is a change in
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purchases (incremental unit or dollar sales)
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Information Technology
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involves operating computer networks that can store and process data
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Data Warehouse
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databases that form the core, where the ocean of data is collected and stored
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Sensitivity Analysis
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used to query the database with "what if" questions to determine how a hypothetical change in a driver such as advertising can affect sales
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Data Mining
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extraction of hidden predictive information from large databases to find statistical links b/w consumer purchasing patterns and marketing actions.
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RFID Technology
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used a "smart tag" microchip on diapers and beer to tell whether they wind up in the same shopping bag at 10 in the evening
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Managers are responsible for..
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action, which is delivering the results in clear pictures, and if possible, in a single page.
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Evaluating the Decision Itself
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involves monitoring the marketplace to determine if action is necessary in the future. Are sales increasing to target segment? is new ad appealing to target group?
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Evaluating the Decision Process Used
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was the marketing research and analysis used to develop the recommendations effective? Was it flawed? Could it be improved for similar situations in the future?
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Sales Forecast
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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
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___ % of all sales forecasts are simply the judgment of the individual decision maker who must act on the results of the forecast
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99% |
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Direct Forecast
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involves estimating the value to be forecast without any intervening steps.
Ex: how many quarts of milk should i buy? or How much money should I get out of the ATM?
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Lost-Horse Forecast
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involves starting with the alst known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and make the final forecast
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Survey of Buyers' Intentions Forecast
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involves asking prospective customers if they are likely to buy the product during some future time period
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Salesforce Survey Forecast
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involves asking the firm's salespeople to estimate sales during a coming period, b/c the people are in contact with customers and are likely to know what customers like and dislike
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Trend Extrapolation
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involves extending a pattern observed in past data into the future
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Linear Trend Extrapolation
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when the patter is described with a straight line
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what is the best known statistical method of forecasting
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trend extrapolation
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