MKT 320 Exam 3

What is marketing research?

It consists of a set of techniques and principles for systematically collecting and interpreting data.

Who does marketing research data aid?

Decision makers involved in marketing goods, services, or ideas.

What example was given for chef boyadee?

Pull tab on top of can for opening without a can opener.

What makes up marketing research?

Collecting + Recording + Analyzing + Interpreting = Decision-making

________ + ________ + _______ + _______ = decision making

collecting, recording, analyzing, interpreting

What are the five steps of the marketing research process?

Define objectives, designing research, analyze data & develop insights, and develop & implement action plan

What is step 1, Define objectives in the marketing research process?

Research is expensive and time consuming, in this step a marketer must establish clear objectives for research and compare benefits of answering questions vs research costs.

What is an example of define objectives in the marketing research process?

McDonald’s studying their customer and those who prefer Wendy’s to better understand its customer’s experience.

What is step 2, Designing research, in the marketing research process?

In this step, researchers identify the type of data needed and determine the research necessary to collect them.

What is an example of designing research in the marketing research process?

In secondary data, McDonald’s examining available data. In primary data, asking customers for their feedback about specific products. They can use surveys via their app.

What is step 3, Collecting the data, in the marketing research process?

Data collection, collected from primary or secondary data sources.

What is primary data?

Data collected to address specific research needs. Examples include focus groups, in-depth interviews, and surveys. The groups represent the customers of interest.

What is secondary data?

Pieces of information that have been collected prior to the start of the focal research project. Can be external or internal. Data that already exists.

What is step 4, analyze data & develop insights, in the marketing research process?

Converting data into information that is useful for effective marketing decisions.

What is an example of analyze data & develop insights?

A visual graph, something that physically shows the data.

What is step 5, develop & implement action plan in the marketing research process?

Create executive summary, body of the report, conclusions, limitations, and then supplements including tables, figures, and appendices

What are the types of secondary data?

Inexpensive data, syndicated data, scanner data, and panel data.

What is inexpensive data?

The U.S. census data because it is readily available and conducted every 10 years.

What is syndicated data?

Data that is purchased from an information company for thousands of dollars.

What is scanner data?

Data obtained from scanner readings of barcodes at checkout counters. Sold by IRI and Nielsen. It helps firms assess what’s happening in the marketplace.

What is panel data?

Tracks customers over time by manufacturer, retailer, or research firms. Records of what customers purchased, their responses to survey questions. New balance tester community.

What is a sample?

A group of customers who represent customers of interest in a research way.

What is information?

The interpretation of data, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.

What is data?

Can be defined as raw numbers or other factual information that, on their own, have limited value to marketers.

What are some big names in syndicated data providers?

Nielson, IRI, JD Power, and NPD Group.

What are the Pros and Cons of Secondary research?

Pros are that it saves time in collecting data because they are readily available. it is also free or inexpensive (aside from syndicated data). its cons are it may not be precisely relevant or timely, its methodologies for collecting data may not be appropriate, and the data sources may be biased.

Qualitative research generates _______ and quantitative research generates _______.

ideas, numbers

Often start with _______ to discover ideas with open-ended questions. Small groups so not statistically valid.

qualitative

______ research has larger numbers so can assume valid across customers. Structured responses that can be statistically tested.

quantitative

What are the two types of primary data collection techniques?

Qualitative and quantitative

What are forms of qualitative research?

Observation, in-depth interviews, and focus groups.

What are forms of quantitative research?

Survey, panel, scanner, and experiments

What are Pros and Cons of Primary research?

Pros are it is specific to the immediate data needs and topic at hand. It offers behavioral insights generally not available from secondary research. Cons are, it is costly, time-consuming, and requires more sophisticated training to design study and collect data.

What is observation?

Tracking customers by camera as they are shopping in a store.

What is in-depth interviews?

When trained researchers interview one customer at a time. It is expensive and time consuming.

What are focus group interviews?

A small group of 8-12 people with a trained moderator. They now often take place online and generate feedback and buzz words, like “Teacher tested”.

What was are examples of a focus groups?

Speed queen, where they invited potential customers in to review washer machines. Before Disneyland launched its new start wards star cruiser hotel, it conducted focus groups.

What are the two type of survey questions?

Unstructured and structured.

What are unstructured questions?

“How do you feel about that”

What are structured questions?

Rate how you feel from 1 to 5.

What are 5 things to avoid on surveys?

Avoid questions that the respondent cannot easily/accurately answer, avoid sensitive questions unless absolutely necessary, Avoid double-barreled questions, which refer to more than one issue, Avoid leading questions that steer respondents to a response, and Avoid one-sided questions that only support one side of the issue.

What is the most popular quantitative form?

Surveys

What is experimental research?

Changing variables to see if it affects what customers buy. An example would be changing the organization of items on the menu.

What is big data?

Data sets that are too large and complex to analyze with regular software. Digital data flooded market with information. Companies like Amazon are embracing this.

What is internal secondary data?

Data warehouses and data mining such as identify churn rate.

What are the 5 V’s of big data?

Volume, Variety, Velocity, Veracity, and Value.

What is volume in big data?

Data in large quantities. Terabytes to exabytes of existing data to process.

What is variety in big data?

Data in many forms. Qualitative and quantitative, obtained from different media formats.

What is velocity in big data?

Data moving quickly. Streaming data, requiring milliseconds to second to respond.

What is veracity in big data?

Data in doubt. Trustworthiness of data due to accuracy and reliability.

What is value in big data?

Data into money. Usefulness of data compared to its cost.

How is marketing analytics used to make sense of big data?

It uses advanced technologies and models to analyze gathered data so that marketers can improve their decision making, optimize returns, and make appropriate customer-related decisions.

What are marketing decisions?

Guided by marketing analytics, marketing mix, segments to target, and micro-segmentation strategies at a local level.

What are the tools and methods of marketing analytics?

The descriptive analytics tools, predictive analytics tools, prescriptive analytics tools, active analytics tools

What are descriptive analytics tools?

Help firms organize, tabulate, and depict their available data, usually in easy-to-understand reports, tables, and charts.

What are predictive analytics tools?

Rely on historically available data to forecast the future, such as what is predicted to happen to a firm’s product sales in the next month, next quarter, next year and so on. Can be used to reduce churn or churn rate.

What is churn or churn rate?

The percentage of customers who discontinue use of a service, which is calculated by dividing the average number of total participants by the number who have discontinued used.

What are prescriptive analytics tools?

Analyses that use simulations which ask a series of what-fi type questions and optimization techniques to find the most effective or best result which help firms better understand what they should do.

What are active analytics tools?

Artificial intelligence algorithms used to analyze input gathered from various data based including data from the internet of things.

What is AMA?

The American Marketing Association

What are the AMA ethical guidelines for conducting marketing research?

Prohibits selling or fundraising under the guise of conducting research

Avoid misrepresentation or omission of pertinent research data

Encourage the fair treatment of clients and suppliers

How do you use secondary data to assess CLV?

Use past behaviors to forecast future purchases, gross margin from these purchases, and costs associated with servicing customers.

The first question a marketing researcher should ask before embarking on a research study is

will the research be useful?

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is

secondary data.

Imagine you currently operate a coffee shop, and you want to add another shop in a new location. You need to obtain data to determine the size of your potential market. Which data source would you most likely use?

U.S. Census Bureau

Through analysis of sales data, a retail store found customers who bought peanut butter also tended to buy bananas. This store was engaged in

data mining.

Which statement best describes secondary data?

Secondary data are pieces of information that have been collected prior to the start of the focal research project

Hasbro wanted to determine if a new toy would appeal to preschoolers, so it put six 3-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this?

observation

Which question is unstructured?

“What scent would you prefer in a floor cleaner?”

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct

quantitative research.

Social media monitoring, in-depth interviews, and focus groups are all ________ research methods.

qualitative

Kohl’s wants to target the unique customers that shop in each store. To distribute the correct colors and styles of clothing to each area, Kohl’s  uses

marketing analytics.

A product is anything that is of value to a consumer and can be ______________.

offered through a voluntary marketing exchange.

There is more to a product than its __________, and there are many different _______ of products.

physical characteristics, types

What is at the core of product complexity?

Customer value

What is the actual product in product complexity?

Brand name, Quality level, Packaging, and Feature and design

What is Associated services in product complexity?

Financing, product warranty, and product support

What are different types of products?

Specialty, convenience, shopping, and unsought.

What is a specialty product?

Those which customers express such a strong preference that they will expend considerable effort to search for best suppliers. Like a specialty bike or camera.

What is a shopping product?

Products or services for which consumers will spend a fair amount of time comparing alternatives, furniture, shoes, appliances.

What is a convenience product?

Products or services for which the consumer is not willing to expend any effort to evaluate prior to purchase. Frequently purchased items like bread, soap.

What are unsought products?

products or services that consumers either do not normally think of buying or do not knoiw about. Hothands, insurance for less developed countries when traveling like Medex.

What is product mix?

The complete set of all products and services offered by a firm. Includes all the firm’s products and services.

What is product line?

What the product mix contains, which are groups of associated items that consumers tend to use together or think of as part of a group of similar products or services. They are associated items that consumers tend to use together or think of as part of a group.

What is breadth?

Number of product lines (across) May be too costly to maintain.

What is depth?

The number of products within a product line (up and down) May cannibalize brands.

Firms must be strategic with product offerings so one brand doesn’t ______ sales.

cannibalize

Increase breadth:

When firms add new product lines to capture new or evolving markets.

Decrease breadth:

When a firm drops a product line to focus on another product line.

Increase ______ to meet needs with more products. Decrease _____ when products not selling.

depth, depth

Increasing depth is to add new products to an _______ product line.

existing

Decreasing depth is to remove products from an ______ product line.

existing

Increasing breadth is to add new ______ _____ entirely.

product lines

Decreasing breadth is to remove _____ ______ entirely.

product lines

Brand = ____, _____ _____, ____, _____, _____, and ______.

Name, logo symbols, characters, slogans, jingles, and packaging.

Brands increases _______ and ______.

awareness, differentiates

What are examples of branding?

Brand names, URLs, Logos and symbols, characters, slogans, and jingles or sounds.

Brand adds value by:

Facilitating purchases, establishing joy, protecting from competition and price competition, are assets, and affect market value.

What is brand awareness?

How many know about a product. The more aware consumers are with a brand, the higher the chances of purchase.

What is perceived value?

Benefit to cost ratio. Relationship between a product’s benefits and its cost.