chapter 3: marketing intelligence copyright © 2010 pearson education canada1

Chapter 3: Marketing Intelligence

Copyright © 2010 Pearson Education Canada 1


Copyright © 2010 Pearson Education Canada

Marketing Research

2

Marketing research serves many roles. It can:

1. Link companies with customers via information

2. Help define problems and opportunities

3. Generate, refine and evaluate marketing actions

4. Help monitor performance

Information is power. Power used wisely produces profit!



Scope of Marketing Research

3

Organizations tend to focus on three primary areas when conducting marketing research.

MarketAnalysis

Product Research

Consumer Analysis

Information about the marketplace

Information about how people perceive products

Information about the needs and motivations of consumers



Collecting Information

4

Information is collected in a scientific manner. Procedures are implemented to ensure the information is reliable and valid

Reliability

Validity

Information is reliable if another study under similar conditions gives similar results.

When research method actually measures what is intended to measure.



Marketing Research Process

5

1. ProblemAwareness

2. ExploratoryResearch

3. Primary Research

4. Data Transfer& Processing

5. Data Analysis& Interpretation

6. Recommendationsand Implementation



Problem Awareness

6

The problem at hand must be clearly distinguished from symptoms. A drop in sales or market share is a not a problem. They are symptoms that make marketers aware there is a deeper problem.

1. The problem must be precisely defined.

2. A typical research study will address a specific decision that must be made.

3. Exploratory research helps to define the problem.



Exploratory Research

7

When doing exploratory research a manger is actually conducting an investigation in an informal manner.

1. The situation is divided into manageable variables to narrow down the field of investigation, a process called funneling.

2. Funneling is accomplished through situation analysis; a procedure calling for consultation with internal an external experts and from secondary sources.



Secondary Data

8

Data compiled and published for purposes unrelated to the specific problem under investigation, yet may have some impact on resolving the problem.

1. Internal Data Sources

2. External Data Sources



Secondary Data

9

Advantages

1.Inexpensive

2.Readily available

3.Useful in exploratory stage

Disadvantages

1.Reliability questionable

2.Outdated

3.Unlikely to resolve problem



Primary Research

10

The collecting and recording of new data, called primary data, in order to resolve a specific problem, usually at high cost to the organization.



Primary Research Steps

11

ProblemDefinition

Objectives and Hypotheses

• What to achieve• Predicted outcomes

Sample Design• Who?• How many?• What procedure?

Data Collection• Survey, observation or experiment• Qualitative or quantitative• Methodology



Sample Design

12

A representative sample is essential in order to produce valid and reliable data.

Steps:

1.Define Population

2.Identify Sampling Frame

3.Determine Type of Sample

4.Determine Sample Size



Data Collection Methods

13

Survey

Observation

Experiment

Structured questionnaires with fixed-response answers.

By personal or electronic means.

Simulated test situations or test markets.



Qualitative Data

14

Data collected from small samples in a controlled environment (e.g., a focus group- is a small group of people 8to 10).

“Focus” implies the discussion concentrates on one topic or concept. Interviews reveal “attitudes” held by consumers.

Focus groups can now be held online; an environment where control is in the hands of the participant.



Quantitative Data

15

Data collected from large samples. Analysis and interpretation rely on numbers and percentages obtained from data collected from a structured questionnaire.

The feelings, attitudes, and opinions obtained from focus groups are quantified.



Survey Methodology

16

PersonalInterview

Telephone

Mail

Online

Which option to use depends on:

1.Nature of information sought

2.Cost and time constraints

3.Location of respondent

See Fig3.11 page 77 for more



Data Transfer and Processing

17

Editing

Reviewing questions for consistency, completeness, and authenticity.

Data Transfer

Transferring pre-coded responses to a computer. Direct electronic transfer is now common.

Tabulation

Counting responses to arrive at a frequency distribution and cross-tabulation by various sub-groups.



Data Analysis & Interpretation

18

DataAnalysis

Interpretation

An evaluation of each question to record observations.

An assessment of accumulated data in relation to the problem, objectives, and hypotheses of the study.



Managing Information

19

Sophisticated software technologies facilitate the collection and management of information.

A procedure known as data mining provides a means to uncover information about customers that should produce more effective marketing strategies. The goal is to maximize the value of a customer though additional purchases of a product or through complementary purchases of related products.



Database Management System

20

External Information

• Consumer• Market• Competitor• Economy• Social• Technology• Online Data

InternalInformation

• Sales• Costs• Profit• Budgets• Inventory• Production

Database

MarketingAnalysis

MarketingPlan

Evaluation and Control



CRM Model

21

External Data

InternalData

Database

DataAnalysis

Marketing Strategy

CustomerRetention

Customer Acquisition

Customer Extension

chapter 3: marketing intelligence copyright © 2010 pearson education canada1

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