capturing marketing insights dr. ananda sabil hussein

Capturing Marketing InsightsDr. Ananda Sabil Hussein

What is Marketing Research?

Marketing research is the systematic design, collection, analysis, and reporting of data and

findings relevant to a specific marketing situation facing the company.

The Marketing Research Process

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Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Makedecision

Step 1

Define the problem (e.g., Will offering an in-flight Internet service create enough incremental preference and profit for American Airlines to justify its cost?)

Specify decision alternatives (e.g., Should American offer an Internet connection?)

State research objectives (e.g., types of 1st class passengers are likely to use internet?)

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Step 2

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5) Data Sources

4) ContactMethods

2) ResearchInstruments

3) SamplingPlan

1) Research Approach

Research Approaches

Observation—unobtrusive (LP)

Ethnographic--link between culture & behavior &/or how cultural processes develop over time (participant observation) 

Focus group—discuss topics of interest (LS)

Survey—knowledge, beliefs, preferences, satisfaction

Behavioral data--Data—purchasing data

Experimentation—cause and effect relationships

Research Instruments

Questionnaires

Qualitative Measures

Technological Devices

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Questionnaire Do’s and Don’ts

Ensure questions are free of bias

Make questions simple

Make questions specific

Avoid jargon

Avoid sophisticated words

Avoid ambiguous words

Avoid negatives

Avoid hypothetical's

Avoid words that could be misheard

Use mutually exclusive categories

Allow for “other” in fixed response questions

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Question Types – Thematic Apperception Test

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Make up a story that reflects what you think is happening in this picture.

Qualitative Measures

Word association—words are presented, one at a time, and respondents mention the first word that comes to mind.

Projective techniques—give people an incomplete stimulus and ask them to complete it.

Empathy—the experiencing as one’s own of the feelings or another.

Visualization—requires people to create a collage from magazine or drawing to depict their perceptions

Brand personification—ask subjects what kind of person they think of when the brand is mentioned.

Qualitative Measures

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Shadowing—observing peopleShadowing—observing people

Behavior mapping—photographing people with a space—2 or 3 days

Behavior mapping—photographing people with a space—2 or 3 days

Consumer journey—keeping track of interactions a consumer has with a product,

service, or space

Consumer journey—keeping track of interactions a consumer has with a product,

service, or space

Camera journals—ask consumers to keep visual diaries of activities and

impression related to a product

Camera journals—ask consumers to keep visual diaries of activities and

impression related to a product

Extreme user interviews—talking to people about a product and evaluating

their experience with it

Extreme user interviews—talking to people about a product and evaluating

their experience with it

Storytelling—prompting people to tell personal stories about their

consumer experiences

Storytelling—prompting people to tell personal stories about their

consumer experiencesUnfocused groups—interview

a diverse group of people to explore ideas

Unfocused groups—interview a diverse group of people to

explore ideas

Technological Devices

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Galvanometers (measure interest or emotions aroused by

Exposure to a specific ad or picture)

Tachistoscope (flashes an ad to a Subject with an exposure interval and

respondent describes everything he/she recalls)

Eye cameras (study respondents’ eye movement to see where their eyes

land 1st and how long, etc.)

Audiometers (record when TV is on and the channel)

GPS (global positioning system, can Determine how many billboards a person

may walk or drive by during a day)

Sampling PlanSampling unit: Who is to be surveyed?

Sample size: How many people should be surveyed?

Sampling procedure: How should the respondents be chosen?

Types of Samples

Probability

Simple random Every member of population

has an equal chance of selection

Stratified random Population is divided into

mutually exclusive groups (age groups) and random samples are drawn from each group

Cluster area Population is divided into

mutually exclusive groups (city blocks) and a sample is taken from each group

Non-probability

Convenience Selects the most

accessible population members

Judgment Selects population

members who are good prospects for accurate information

Quota Selects and interviews a

prescribed number of people in each of several categories

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Contact Methods

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Mail Questionnaire(For people that would not give

personal interviews or whose responses might be biased or distorted by interviewer)

Telephone Interview(Gather information quickly, however interview are short and non-personal)

Personal Interview(Most versatile and expensive,

subject to interview bias or distortion)

Online Interview(Inexpensive, faster, honest, versatile, samples small

and skewed, tech problems and inconsistencies)

Pros and Cons of Online Research

Advantages

Inexpensive

Fast

Accuracy of data, even for sensitive questions

Versatility

Disadvantages

Small samples

Skewed samples

Technological problems

Inconsistencies

Barriers Limiting the Use of Marketing Research

A narrow conception of the research

Uneven caliber of researchers

Poor framing of the problem

Late and occasionally erroneous findings

Personality and presentational differences

What are Marketing Metrics?

Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret

marketing performance.

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Marketing MetricsExternal

Awareness

Market share

Relative price

Number of complaints

Customer satisfaction

Distribution

Total number of customers

Loyalty

Internal

Awareness of goals

Commitment to goals

Active support

Resource adequacy

Staffing levels

Desire to learn

Willingness to change

Freedom to fail

Autonomy

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Sales Analysis

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Micro-Sales

Analysis(views specific products,

territories that fail to produce expected sales)

Sales-VarianceAnalysis

(Relative contribution ofdifferent factors to a gap in

Sales performance)

The Measures of Market Demand

Potential market—interest

Available market—interest, income, access

Target market—qualified available, company pursues

Penetrated market—buying product

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Estimating Current Demand

Total market potentialMaximum amount of sales available to all the firms in

an industry during:a given period under a given level of industry marketing effort, and environmental conditions.

Area market potentialMarket buildup method

Identifying all potential buyers in each market and estimating their potential purchases

Multiple-factor index methodSales are directly related to a series of indices Brand development index

Index of brand sales to category sales4-22

Estimating Future Demand

Survey of Buyers’ Intentions—probability of purchase

Composite of Sales Force Opinions—salespeople

Expert Opinion—dealers, distributors, suppliers, marketing consultants, trade associations

Past-Sales Analysis—trend, cycle, seasonal, erratic

Market-Test Method—select some territories to sell the product

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What is a Marketing Information

System?A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

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What is a Marketing Intelligence

System?A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.

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Steps to Quality Marketing Intelligence

Train sales force to scan for new developments

Motivate channel members to share intelligence

Hire external experts to collect intelligence

Network externally

Utilize a customer advisory panel

Utilize government data sources

Purchase information

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Sources of Competitive Information

Independent customer goods and service review forums

Distributor or sales agent feedback sites

Combination sites offering customer reviews and expert opinions

Customer complaint sites

Public blogs

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Major Forces in the Environment

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Demographic

Economic

Socio-cultural

Natural

Technological

Political-legal

Population and Demographics

Population growth

Population age mix

Ethnic markets

Educational groups

Household patterns

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Forecasting and Demand Measurement

How can we measure market demand?Potential marketAvailable marketTarget marketPenetrated market

A Vocabulary for Demand Measurement

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

Company Sales Potential

Market Demand Functions

Estimating Current Demand:

Total Market Potential Calculations Multiple potential number of

buyers by average quantity each purchases times price

Chain-ratio method

Estimating Current Demand:

Area Market PotentialMarket-Buildup

Estimating Current Demand:

Area Market PotentialMultiple-Factor Index

Estimating Future Demand

Survey of Buyers’ Intentions

Composite of Sales Force Opinions

Expert Opinion

Past-Sales Analysis

Market-Test Method