l4 metrics bho1171
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Marketing Metrics
Lecture 4aChapter 3 (Sharp, 2013)
BHO1171 – Session 4 Slide 2
Why marketers need metrics
Are metrics meaningful?Marketing managers need measurement to
assess and guide their marketing actions. Marketing metrics let managers know how the
brand and business is performing; and marketing metrics can provide diagnostic information on how to improve things.
BHO1171 – Session 4 Slide 3
Why marketers need metrics
BHO1171 – Session 4 Slide 4
A system of marketing metrics
Why measure market-based assets? To understand and correctly evaluate the longer-
term effects of marketing activity. They are also needed to evaluate brand
performance• Because some marketing activity may potentially erode
these assets, and so erode future sales, while still generating acceptable sales and/or profits today.
BHO1171 – Session 4 Slide 5
A system of marketing metrics
Marketing metrics describe:• Brands’ activities in the market; for example new
product launches, price increases, changes in pack size, and so on
• How the market is reacting to these changes; for example how buyers are buying, at what prices, and so on
• How brand’s market-based assets are holding up
Marketing Metrics give you a baseline Which can be used to make checks and balances
BHO1171 – Session 4 Slide 6
Marketing Metrics
Marketing Metrics
FinancialMetrics
Memory Metrics
BehaviouralMetrics
CustomerProfileMetrics
BHO1171 – Session 4 Slide 7
Marketing Metrics
Marketing Metrics
FinancialMetrics
Memory Metrics
BehaviouralMetrics
CustomerProfileMetrics
BHO1171 – Session 4 Slide 8
Financial metrics
Profit and profit contributionProfit marginReturn on investment (ROI)
E.g. Eloqua 10 – Marketing Metrics DashboardsCustomer value and customer lifetime value
BHO1171 – Session 4 Slide 9
Marketing Metrics
Marketing Metrics
FinancialMetrics
Memory Metrics
BehaviouralMetrics
CustomerProfileMetrics
BHO1171 – Session 4 Slide 10
Behavioural metrics Sales
How many units did you sell? Market share
Proportion of market using your brand Market penetration
Proportion of products sold in category Purchase frequency
How often do consumers buy your brand? Share of category requirements (SCR)
Of an average consumer’s purchases in a time period, what proportion were for your brand?
BHO1171 – Session 4 Slide 11
Behavioural metrics
BHO1171 – Session 4 Slide 12
Behavioural metrics
Solely (100%) loyal customersDefection rateCustomer complaints and recommendations
Some of this data can be gathered using loyalty programmes such as Flybuys/Airmiles/Nectar
BHO1171 – Session 4 Slide 13
Marketing Metrics
Marketing Metrics
FinancialMetrics
Memory Metrics
BehaviouralMetrics
CustomerProfileMetrics
BHO1171 – Session 4 Slide 14
Memory metrics
Brand awarenessBrand image associationsMental availabilityAttitudeCustomer satisfaction and service qualityIntention to buy
BHO1171 – Session 4 Slide 15
Marketing Metrics
Marketing Metrics
FinancialMetrics
Memory Metrics
BehaviouralMetrics
CustomerProfileMetrics
BHO1171 – Session 4 Slide 16
Customer profile metrics
Customer profile metrics describe customers Used to help marketers identify and reach all the
different buyers in a brand’s categoryThey include metrics such as a customer’s gender,
age or income.Marketers need to understand
Who their different buyers are Where they live What media they consume How, when and where they shop.
BHO1171 – Session 4 Slide 17
Marketing activity metrics
It’s important to measure what marketing activities the company is actually doing.
Necessary for the firm to keep track of its marketing investment.
BHO1171 – Session 4 Slide 18
Physical availability metrics
Making a brand as easy to notice and buy as possible
Physical availability allows a consumer to buy and consume a product or service, so physical availability metrics include:
• Number of distribution points• House of opening• Geographical coverage of distribution points• Geographical coverage of delivery points• Number of display points in store• Number of shelves devoted to the brand.
BHO1171 – Session 4 Slide 19
Marketing benchmarks
Need to use other brands as a benchmark for your brand’s performance on marketing metrics
But don’t forget to account for: The Duplication of Purchase (DoP) Law The Double Jeopardy Law
Marketing Research
Lecture 4bChapter 4 (Sharp, 2013)
BHO1171 – Session 4 Slide 21
The central role of market research
Market research is used to understand What consumers know and think, How they behave How a company’s efforts are being received Opportunities for growth
Market research allows us to: Identify marketing opportunities and problems Evaluate marketing actions Monitor marketing activities Monitor market performance
BHO1171 – Session 4 Slide 22
The central role of market research
BHO1171 – Session 4 Slide 23
Commissioning research—the brief
Research objectives describe what the research will achieve in broad terms.
Examples could include:• Determine the market potential for a new car-sharing service in
Kuwait.• Benchmark the level of customer satisfaction among our
Malaysian customers.• Identify how our brands are perceived in relation to our
competitors. A study has one overarching research objective and two or
three smaller objectives or questions. Good research objectives are linked to marketing objectives
BHO1171 – Session 4 Slide 24
Commissioning research—the brief
BHO1171 – Session 4 Slide 25
Commissioning research—the brief
Research providers develop a research proposal in response to the brief How they would conduct the research the methods they would employ the costs involved
A typical proposal discusses what sort of raw data is required and provides a few different options for conducting the research.
BHO1171 – Session 4 Slide 26
Some Indicative Costs (February 2013)
Dependent on sample size, analytical methods, etc. Focus Groups: $3,000 - 10,000 + Individual Interviews (depth ethnographic): $1,000 - 5,000 + Observational: $5,000 + Data mining: $7,000 + Questionnaire
Design = $7,000 + Analysis = $10,000 + Delivery
• Online: $3,000 - 30,000 +• Post: $4,000 - 40,000 +• Telephone: $8,000 - 40,000+• Interview: $10,000 - 50,000 +
BHO1171 – Session 4 Slide 27
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 28
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 29
Identifying the Research Objectives
Most important but difficult If you define it wrong, you get the answer wrong!
Define problems, not symptoms Eg. How do we stop customers defecting vs why
do customers defect vs how many customers are defecting
BHO1171 – Session 4 Slide 30
Develop a plan
How will you answer the question? I.e., what methodology is appropriate?
Who will do the work? Internal versus external consultants Should you use a global Agency?
• TNS, ACNeilsen etc
BHO1171 – Session 4 Slide 31
Secondary data
Data collected for some purpose other than the current research problem at hand. It may be past research projects, company records, industry reports or any other information that can be used to assist with the current research problem.
It comes from two key sources—internal and external data.
• Internal—past research projects, sales figures, marketing intelligence information.
• External—statistics, academic and industry publications
BHO1171 – Session 4 Slide 32
Knowledge of buyer behaviour
It’s important to have knowledge of patterns that can be seen in different types of data And understand the marketing science laws that
apply to them. This knowledge provides a framework
To both analyse and interpret your data Will provide potential explanations for the
patterns you may see.
BHO1171 – Session 4 Slide 33
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 34
Ways to get information
Exploratory Informs real nature of the problem, suggests possible
solutions / new ideasDescriptive
Seeks to quantify demandCausal
Tests a cause-and-effect relationship
A tongue in cheek look at how marketing research might help new products - Shreddies
BHO1171 – Session 4 Slide 35
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 36
Golden Paradigms
Quantitative research deals with numbers and answers how many, how much or how often
Qualitative research deals with feelings, attitudes and behaviours
BHO1171 – Session 4 Slide 37
Qualitative and quantitative Methods
Qualitative Data Provides in-depth, rich-in-
detail information about the motives of respondents and their thoughts and feelings.
It tends to be focused on identifying what issues exist, rather than estimating how much of a behaviour exists.
Quantitative Data Provides specific numerical
information from a representative, usually large, sample of respondents.
It is structured, usually as a pre-written questionnaire with checklists or response scales, so it can be analysed using statistical techniques.
BHO1171 – Session 4 Slide 38
Qualitative methods
Focus groupsDepth interviewsObservational researchOther approaches:
• storytelling• projective techniques• ethnographic research• reflective journals• picture collages
BHO1171 – Session 4 Slide 39
e.g. Qualitative - Focus Groups
Graeme Norton – focus group revenge
Copyright © 2012 Pearson Education
4-39
BHO1171 – Session 4 Slide 40
e.g. Qualitative - Observation
Observation is as you would expect A market research literally observes behavior E.g., Lund University observation study of
supermarket shopping behavior
BHO1171 – Session 4 Slide 41
Quantitative methods
Telephone surveysInternet surveysMail surveysIn-person surveys
BHO1171 – Session 4 Slide 42
e.g. Quantitative - Surveys
Most commonly done: Online Computer Assisted Telephone Interviewing (CATI) Face to face
• E.g. Roy Morgan Research
BHO1171 – Session 4 Slide 43
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 44
Populations and samples
A population is the group of people to be studied. Eg. Consumers planning to buy a new car in next 3 months
A sample is the group of respondents you research from the population.
PopulationSample
BHO1171 – Session 4 Slide 45
Sampling
Customer samplesSampling considerationsHow you sampleSample sizeRepresentativeness
BHO1171 – Session 4 Slide 46
CATI Fieldwork in action
BHO1171 – Session 4 Slide 47
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 48
What Affects the Quality of Research?
ReliabilityExtent to which research techniques are free from
error
Validity
Representativeness
Extent to which researchmeasures what it wasintended to measure
Extent to which researchparticipants are similar to
the larger group
BHO1171 – Session 4 Slide 49
Data Analysis & Interpretation
Great care requiredDon’t over interpret
Managers will often pressure for a “yes” or “no” answer
Can use quantitative and qualitative packages SPSS vs QSR
BHO1171 – Session 4 Slide 50
Analysis methods
Multivariate analysis Complex Not always necessary Limitations of statistical significance tests
Alternative is to do descriptive analysis Identify patterns in the data Significant sameness and many sets of data
BHO1171 – Session 4 Slide 51
Six stages of the research process
1• Identifying the research objectives
2• Determining information required
3• Research design
4• Fieldwork
5• Data preparation and analysis
6• Report and communicate results
BHO1171 – Session 4 Slide 52
Report structure
Executive summaryProject backgroundResearch objectivesMethodologyFindingsConclusionAppendices
BHO1171 – Session 4 Slide 53
Presenting Data
Round to whole numbers no decimal places.
Sort tables by meaningful numbers In order of magnitude rather than alphabetical order.
Use averages or medians to highlight trends Indicate totals where appropriate
Especially where numbers add up to 100 per cent.Use a story line
One sentence that summaries what the reader should take away from the table or graph.
BHO1171 – Session 4 Slide 54