graham hooley • nigel f. piercy • brigette nicoulaud
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GRAHAM HOOLEY • NIGEL F. PIERCY • BRIGETTE NICOULAUD. 4. Customer analysis. Introduction. Information; raw material for decision making Marketing research; provision of information to reduce level of uncertainty in decision making Chapter includes; Information needs about customers - PowerPoint PPT PresentationTRANSCRIPT
GRAHAM HOOLEY • NIGEL F. PIERCY • BRIGETTE NICOULAUD
4Customer analysis
Introduction
• Information; raw material for decision making• Marketing research; provision of information to
reduce level of uncertainty in decision making• Chapter includes;
– Information needs about customers– Research techniques for collecting data– Uses of these techniques i.e. creating & segmenting
market and identifying current and potential product/service positions
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What we need to know about customers
• Grouped into current and future information• Critical issues concerning current customers;
– Who are the prime market targets?– What give them value?– How they can be brought closer?– How can they be better served?
• For future, we also need to know;– How will customers and their needs and requirements change?– Which new customers should we pursue?– How should we pursue them?
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Initiator
Influencer
DeciderPurchaser
User/consumerPurchase, use and
consumption
Who is the customer?Figure 4.1
Information on current customers
• Recognizing five roles can be useful in targeting marketing activity– The initiator The initiator – initiates the research for solution to
consumer’s problem– The influencer The influencer – influence on purchase decision– The decider The decider – actually make the decision– The purchaser The purchaser – buys the product or service– The user The user – consumes the product or service
• Different approaches may be suitable6-5
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WHOIs involved in buying
and consuming?
WHATAre their choice
criteria?
WHYDo they buy/use
the product?
HOWDo they use the
product?
Understanding customers-the key questionsFigure 4.2
WHENDo they buy/use
the product?
WHEREDo they buy?
CUSTOMERS
Information on future customers
• Two main types of change essential to customer analysis– First; change in existing customers their wants,
needs and expectations (Kaizen approach)– Second; new customers emerging as potentially
more attractive targets• Main way to analyze customers is through
marketing research and market modeling
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MARKETING RESEARCH
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Marketing research methods
Company records Tailor-maidresearch
Quantitative research
Off-the-pegresearch
Figure 4.3 Marketing-research methods
Qualitative research
Surveys Focus groups
Personal Telephone Postal Internet
Desk research
Shared & syndicated
Sales records
Accounts records
Depth interviews
Experiments Observation
Field Laboratory
Company records
• Company’s own records– Data about who purchase and how much purchase
may be obtained from invoice records– Purchase records may show customer loyalty
pattern• Identify gaps in customer purchasing and
highlight most valuable customers• Collect routine data on as detail a basis as
possible for unforeseen data requirements6-10
Off-the-peg research
• Tapping into existing research services; data that are already in existence – Information such as market size, growth rates,
economic trends• Crouch and Housden classify research as;
– Secondary or desk research– Syndicated research– Shared research
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Secondary desk research
• Data already been published by someone else• Advantages;
– Relatively cheap, quick to obtain, can be reliable and accurate i.e. govt. publications
• Disadvantages;– Out of date and not specific enough, vary
dramatically in quality, both from country to country and supplier to supplier
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Following question must be born in mind to check accuracy of secondary data
1. Who collected the data and why?(Are they likely to be biased in their reporting?)
2. How did they collect the data?(Sample or census? Sampling method? Research instrument?)
3. What level of accuracy do they claim?(Does the methodology support the claim?)
4. What use did they put the data to?(Is its use limited?)
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Syndicated research
• Research buyers share costs and findings of research among themselves
• Conducted by marketing research agencies and sold to whoever will buy
• Examples are A.C. Nelsen, TCA, AGB, TGI etc• Advantages; methodology usually tried and
tested, samples are often bigger• Disadvantages; data are limited in usefulness
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Shared research
• Some of the costs and fieldwork are shared by number of companies but not results
• Advantages;– Established methodologies and are relatively
quick and cheap to tap into• Disadvantages;
– Its scope and number of questions that can be asked
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Tailor-made research
• Flexibility to design the research to exactly match the need of the client company
• Categorized as quantitative and qualitative research– Qualitative research emphasize gaining
understanding and depth in data that can not be quantified
– Quantitative research involves large samples and produces quantifiable outputs
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Qualitative techniques
• Unstructured or semi-structured interviewing methods
• Two main techniques are used; group discussion and individual depth interviews
• Group discussion Group discussion take the form of relaxed, informal discussion among 7-9 respondents
• The Depth interview Depth interview takes place between one interviewer and one respondent
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Uses of qualitative researchFigure 4.4
Quantitative techniques
• Include surveys, observation methods and experimentation
• Surveys are vast subject in themselves• Surveys include three types; personal
interviews, telephone interviews and postal surveys (mail)
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To provide quantitative data on markets and
customers
To determine customer
requirements and expectations
To provide data for segmentation
of markets
To determine customer
opinions and perceptions
To determine customer behavior
Uses of surveysFigure 4.5
Surveys
Surveys
Personal interviewsAdvantagesAdvantages• Greatest flexibility• Useful in attitudinal
statements,
DisadvantagesDisadvantages• Most expensive to conduct
Telephone interviewsAdvantagesAdvantages• Data is acquired quickly• Low cost• Closely controlled
DisadvantagesDisadvantages• Every one may not have
telephone
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Surveys (Cont’d)
Postal methodsAdvantagesAdvantages• Cheapest of all• Useful in locating
geographically disperse samples
DisadvantagesDisadvantages• Low response rate• Little control over who
responds• Requires clearly laid out
questionnaire, well pretested to insure clarity
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Observation techniques
• Observation techniques can be particularly useful where respondents are unlikely to be able or willing to give the types of information required– Observing what items a shopper has taken from
supermarket shelf, considered for purchase but not bought
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Experimentation
• Experiments are either carried out in the field or in-house (laboratory)
• Field experiments Field experiments take place in the real world• In-house experiments In-house experiments are conducted in more
controlled but less realistic settings
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To test customer reactions to alternative strategies
To estimate market potential
To establish the strength of relationship
To establish causation
To test elements of the strategy
Uses of experimentationFigure 4.6
Experiments
THE MARKETING RESEARCH PROCESS
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Stages in a comprehensive marketing research project
Figure 4.7
Problem definition
• Define clearly the problem to be tackled• Series of discussion between marketing
research personal and marketing decision maker are necessary
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Exploratory research
• Identify information gaps and specify the need for further research
• Initially secondary sources and company records can be utilized
• Qualitative research might then be used to explore
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Quantitative research
• Help in formulating hypothesis about how market is segmented and what factors influence purchase
• Followed by quantitative study– Ask respondents to evaluate competing products
• Experimentation might also be used in quantitative phase of segmentation
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Analysis and interpretation
• Turn the data generated into meaningful information– Factor analysis– Cluster analysis– Perceptual mapping
• Finally results will be presented to senior marketing decision-maker
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Organizing customer information
• Information is organized through MIS• Information system (MIS) has five basic
components;– Market research interface to collect data– The raw data collected– Statistical techniques used to analyze– Market models to utilize raw data and statistical
techniques– Finally managerial interface as decision maker
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Marketing decision support systemsFigure 4.8
Statistical techniques
Market models
Raw data
Marketing decision-maker
Managerial interface
Marketing research interface
Marketing environment
Respon
ses
Decisions
Raw data
• Data come into system from variety of sources, from internal and external primary and secondary sources
• Stored in various forms i.e. paper, people’s head, on computer
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Statistical techniques
• Synthesize and analyze the raw data• Commonly used statistics are averages,
means, standard deviations, ranges etc• Market models
– Model is representation of the real world
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Marketing decision support systems
• Change in emphases in marketing from information systems (MIS) to marketing decision support systems
• Provision of question and answer facilities• Grouped into two types;• Data-oriented decision support systems,
– Data retrieval and simple analysis using statistical techniques
• Model-oriented decision support systems– Simulation and representation of aspects of the real world
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Characteristics of MDSS
• MDSS support decisions!– Support rather than replace, managerial decision
making• MDSS are essentially interactive
– Ask questions, receive inputs and experiment with decision
• MDSS should be flexible and easy to use
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