Principles of Marketing

Principles of MarketingChapter 12 Gathering and Using Information: Marketing Research and Market Intelligence1Marketing ResearchThe only way we have to actually try to measure information about the market. May be one of the most important activities of marketing in general, IMHOCan be used for product development, consumer demand, segmentation, pre and post purchase decisions and opinions and many many many more decisions.

2Marketing ResearchDefined: The process of collecting, analyzing, and reporting marketing information that can be used to improve a companys bottom line.

It is the link between what we think we know and what we actually know.

3Marketing ResearchHeres an example:We are considering opening a store in town that sells hats. What is our first step?

4Market IntelligenceWhen we start keeping tabs on a market in general, usually our own market, we start gathering marketing intelligence.

Defined: Information gathered on a regular, ongoing basis to enable a firms decision makers to stay in touch with whats happening in the marketplace.

5Marketing IntelligenceJust like regular intelligence, it needs to be current to be valuable. If you only know outdated information, it most likely isn't very good. This is where trends can be spotted earlier than the competition, problems can be seen before they catch on fire, and where efficiencies can be gained if caught early enough.6Marketing Information SystemsInformation, as has been stated, is crucial for successWhen information is gathered on a regular basis, as with marketing intelligence, and is then organized and used to make decisions, it is known as Marketing Information Systems.Think CR and other databases 7Internal DataGenerated in house from sales, accounting, inventory, clickstream data, etc. that give information on the state of the firm.Within a firm, this data can be accessed through an intranet, or internal, employee only database or website.

8Analytical SoftwareUsed by professionals who are not computer experts to help make decisions. SAS, Access, Specific Firm Software, etc. Many companies rely only on internal analytics for decision making due to their size and the ability of their staff.

9Market IntelligenceWhile to former discussion was focused on internal data, market intelligence is focused on external trends and information. Internal data can find patterns based on customers, where market intelligence can find patterns based on non-customers10OnlineSome great information is online and free to access

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OnlineGoogle AlertsSocial MediaGeneral Search Engines12PublicationsWSJ, Economist, Forbes, Fortune, BusinessWeek, Financial Times, Trade Journals, etc.13Trade Shows and AssociationsTrade associations collect a lot of information that can be accessed if you are a member of the association. Great source since it is generally topical and relevant due to its specificity. 14SalespeopleSince these are the closest people to the consumer, they generally have really strong insights. They also have the ability to generate demand if they are good enough15Supplier and Industry ExpertsSuppliers do have an interest in the business and generally want to help youRising tide raises all shipsGenerally, they know why things are going well for competitors and dont mind sharing16CustomersThey are those doing the buying, so attempting to know what they are doing and why is quite important. 17Dark Side of IntelligenceIndustrial espionage: gathering corporate information illegally or unethicallyDumpster diving P&GCompetitor website hackingBarcode example

18Marketing ResearchWhen market intelligence, internal data, and analytics need more help, then marketing research really shines. Be cautious that it isnt perfect (if it was, then everyone would use it)Interview and research biasesIncorrect information capturingAccidents in the information19Steps in the Marketing Research ProcessDefine the problem or opportunityMay not be as easy as it soundsMay not be able to easily identify the problemMay not want to accept the real problemFocus on a narrow set of possible problems to hopefully determine a cause or possible causes

20Steps in the Marketing Research ProcessThere needs to be a research objective in mind when defining the problem to have any level of success.Need to know what it is we actually want to accomplish.we need to increase inventory turnover example21Steps in the Marketing Research ProcessStep 2: Designing the ResearchThis is the plan of attack or the design of what actually will happenWe want to collect data from our current customers and supplement this with data from this segment of customers and then determine the differences using this method of analysis. 22Steps in the Marketing Research ProcessTypes of data:Primary- collecting data for yourselfBenefits are that:Data is specific to the problemData is designed by the people who care about the questionDrawbacks are:ExpensiveOften difficult and takes timeSecondary- data that is already collected23Steps in the Marketing Research ProcessTypes of data:Secondary- data that is already collectedBenefits are:CheapEfficientTimely Drawbacks are:Not designed around a specific problemContent possibly is questionable

24Steps in the Marketing Research ProcessResearch Designs:Exploratory, Descriptive, and CausalExploratory is good for trying to tie-down what the problem actually is, hence the explore partTypes are depth interviewFocus groupCase studyEthnography- observationProjective techniques- proxy for direct questions25Steps in the Marketing Research ProcessDescriptive research-Gathering hard numbers via surveys, etc. to answer the questions who, what, where, when, and how. Physiological measures26Steps in the Marketing Research ProcessCausal research designs- examines cause-and-effect relationships to answer what if questionsGenerally experimentsCan also test market27Steps in the Marketing Research ProcessStep 3: Design the data collection formsQuestionnaire designScale items or open ended itemsWordingWhich one of the following wouldnt be of interest to someone who is not considered to be not unlike yourself?Do you find the presence of prestidigitation in celebratory reverie beneficial to the event?BiasesIncome, consumption, sensitive topics28Steps in the Marketing Research ProcessStep 4: Specify the sampleMust use a sample since we cannot use the populationPopulation is the whole of research questionSample is a subset of the populationWithout proper sampling, there is sampling errorSurveying people in Tall Cotton about the median individual in Mississippi29Steps in the Marketing Research ProcessSampling frame-List from which the sample is drawnIf we are looking for respondents from MS, we can use a phone bookThere will always be some error since some people who are in the population may not be in the phone bookProbability sampling is sampling where each possible participant has a known and equal chance of being selected. Nonprobability sampling is any sampling that is not systematic. Convenience sampling is a sample that is readily availiable.30Steps in the Marketing Research ProcessStep 5: Collect the dataDepending on the way the research is designed, there could be some leeway or can be predeterminedFace-to-face can be necessary when the research is more exploratory and long answers are better than survey bubbleSurveys can be useful when the information is not sensitive and doesnt need to be expanded onMystery shoppers can be used when there needs to be real world interactions31Steps in the Marketing Research ProcessStep 6: Analyze the dataOnce data is collected, it needs to be aggregated to be usefulData cleaning is reviewing the data for errors, omissions, issues, etc. Once the data is cleaned it needs to be checked to see if it is reliable and valid. 32Steps in the Marketing Research Process33

Steps in the Marketing Research ProcessStep 7: Write the research report and present findingsAll this information was collected for a reason, so this is the coup de grceGenerally follows the layout ofTitle pageTable of contentsExecutive SummaryMethodology and LimitationsFindingsRecommendations34